Company Registration No. 5483977 Charity No. 1112540 England and Wales Cricket Trust (A company limited by guarantee) Annual Report and Financial Statements 31 January 2021 England and Wales Cricket Trust (A company limited by guarantee) Annual Report and Financial Statements for the year ended 31 January 2021 Contents Page Officers and Professional Advisers Trustees. Report Statement of Trustees, Responsibilities io Independènt Auditorfs Report to Members of the England and Wales Cricket Trust li statement of Financial Activities 15 Balance Sheet 16 Notes to the Financial Statements 17 England and Wales Cricket Trust IA company limited by guarantee} Annual Report and Financial Statements for the year ended 31 January 2021 Officers and Professional Advisers Dirertors and Trustees lan Lovett Tom Harrison Scott Srnith James Wood Peter Ackerley Sancha Legg Ruth Sienkiewicz Registered Office Lord's Cricket Ground London NW8 8QZ Registered Charity Number 1112540 Bankers National Westminster Bank plc 106 Finchlèy Road Swiss Cottage London NW3 5JN 50licitors Bates Wells & Braithwaite LLP 2-6 Cannon Street London EC4A 6YH BDB Pitmans LLP 107 Cheapside London EC2V6DN Auditor KPMG LLP 15 Canada Square London E14 SGL Trustees, Report Structure. governance and management The Trustees, who are also the directors forthe purposes of Company Law, submittheir report and the financial statements of England and Wales Cricket Trust I"The Trust" or "EWCT") for the year ended 31 january 2021. The TrusteÈs comply with the provisions of the Statement of Recommended Practice ISORPI 'Accounting and Reporting by Charities, effective from 2019 in preparing the annual report and financial statements of this harity. The board of Trustees have overall responsibility forthe direction, management and control of the England and Wales Cricket Trust. ObjectNes and activities The objectives of the Trust are, for the benefit of the public. to.. promote cornmunity participation in healthy recreation by providing facilities for playing cricket,. and promote all purposes as recoEni5ed as charitable under the laws of Eng13nd and Wales through an association with cricket. The Trustees confirm that they have refèrred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objertives and in planning future activities and Setting the grant making policy for the year. A¢hiÈvements and performance The key elements of the charivs strategy are.. to continue to deliver revenue funding to the recreational game to facilitate the existing community participation (particularly amongst boys and gir15 a8e group cricket) and enable increased participation amongst all levels of the amateur game,. to administer an interest free loan scherne for amateur cricket clubs with the aim of increasing the loan pool to £5m in the short term and £IOm in the medium term. These loans are specifitslly for facilities at amateur cricket club5 to support their cricket programmes,. liiil to seek to provide facility grants both for cricket machinery and wider facility enhancement5 to support the amateur game. and livl to support other cricketing charities whose objects are aligned with that of the Trust. In 2020121, the Trsjst made donations totalling £1,829,333 to Chance to Shine and £250,000 to Lord's Taverners. The activities of the Trust are funded using a combination of restricted fund5 from Sport England, restricted funds from Sport Wales, and the Trust's unrestricted and designated funds. The interest free loan scheme is funded wholly from the Trusvs unrestricted funds. Incorporation England and Wales Cricket Trust, a private company limited by guarantee INO. 54839771, was incorporated on 17 Itjne 2005 by a Memorandum and Articles of Association, and is a regISte￿d charity (No. 11125401. The registered office of the company and Trust is Lord's Cricket Ground, London, NW8 8QZ. Trustees, Report (continued) Trustees The Trustees serving during the year were- Trustees Position with related parties lan Lovett President, England and Wales Cricket Board Tom Harrison Chief Executive Offjcer, England and Wales Cricket Board Scott Smith Chief Finance Officer. England and Wales Cricket Board james Wood Board Member, England and Wales Cricket Board; Member. Dévon County Cricket Club Peter A¢kerley Director, Lancashire Cricket Foundation; Member, Lord's Taverners Committee Sancha Legg Committee Member, ECB Participation & Growth Committee Ruth Sienkiewicz Nonè The board is rnade up of seven Trustees, three of whom are independent of the England and Wales Cricket Board Limited I'ECB"). The Trustees of the England and Wales Cricket Trust are appointed by the ECB for their specific expertise in areas relèvant to the charity. The board commits to reviewing the individuals on the board annually at a Tru5tees' meeting and recommendations are then given to the ECB. The Trustees meet at least once a year and on any other occasions as judged necessary in order to review progress and determine matters of strategy 8nd policy, whilst leaving the day-ttrday matters to the management team or to specifie individuals. The management team consists of individua15 Wlth specific knowledge of Club and Facility Management and Development, Cricket Board Management and Development and Finance. New Trustees meet with the current Board members at the Trustees, meeting, and prTorto this with the Finance team responsible for the Trust, who provide relevant documents and information about the role. Any Trusree updates le.g. from the Charity Commission) or decisions to be made are communic£ted by the Project Accountant responsible for EWCT. Risk management and internal Control The Trustees have overall responsibility for Ènsuring that the Trust operates an appropriate system of controls, financial and otherwise, to provide reasonable assurance that the Trust is operating efPiciently and effectively, and that the Trust complies with the relevant laws and regulations. Powers To further its objectives, the Trust may.. provide grants and loans for capital improvements to grounds and facilities of community amateur sports clubs, County Boards, charitable sports clubs and other bodies,. and provide and a5SlSt in the provision of money, materials or other help. Trustees, Report (continued) Grant pollcy Grant5 payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions are fulfilled. Grants are approved and monitored by the relevant members of the rnanagement team. Social Investment policy The Trust administers an Interest Free Loan Scheme IIFLSI, which aims to finance capital projects to help create sustainable future for cricket. The scheme can be partnered with the EWCT Grant Aid Programme, the EWCT Small Grant Scheme and other external funding programmes. The EWCT Interest Free Loan Scheme supports projects that could not otherwise be completed as some clubs cannot obtain commercial finance and the availability of grant funding has decreased over the past few years. The loan scheme also allows evidentially sustainable projects to be financed years ahead of schedule when compared to the process of fundraising or building reserve5. This in turn often allows clubs to increase revenues due to enhanced facilities. which allows,- repayment of the loan, growth in membership and enhanced expenditure on community cricket activities. The Trust requires clubs to have personal guarantors, who are jointly and severally liable for repayment of thè loan in the event of a default, or occasionally (for large value loans) it takes out a legal charge over the club's In addition to the usual loan scheme, EWCT offered an emergency interest free loan scheme to clubs and leagues due to the COVID-19 crisis. These loans were offered to assist clubs and leagues with their cashflow during the initial period of lockdown when no team sports were permitted. Club loan5 were offered with a 3 year repayment term whilst the League loans were offered on a l year repayrnent term, specifically to cover the purchase of cricket balls by the leagues. Employees The Trust doès not employ any members of staff. ReseNes policy The Trust plans to maintain reserwès so that at all times during thè year, as a minimum, reserves are at least.. the level of interest free loans to be made to amateur cricket clubs,. plus the level of expenditure, both charitable spend and overheads, expected in the next 12 months. To datè, donations have tended to be received toward5 the end of the financial year while the majority of expenditure has been at the beginning or in the middle of the financial year. This, and the above policy, means that at year end we usually seek to have re5erve5 of at least two times annual expenditure plus the planned loan pool. In addition, wè take into account that the major donor has a highly cyclical bu5ine55. Wlth annual profits varying significantly year-on-year. This means that on occasion, reserves will be far higher than two times annual expenditure plus the loan pool. For 2020121. ECB, as a parent company, made a total donation of £26,413,120 during the year. Investment poli It is the policy of the Trust to place its investments in cash deposits which providè appropriate liquidity, and which are deemed to be of low risk as defined by the agreed Treasury Management poSicv. Trustees, Report (continued) Going concèrn The Trustees havè 8 reasonablè expectation that the Trust has adequate reSoUr￿S to continue in existence for the foreseeable future. For this reason, the Trustees continue to adoptthe golng concern basis in preparing the accounts, as disc105ed in the accounting policies. The Trustees have assessed the possible impact of COVID-19. As the Trust is fundèd by reserves, which at present are adequate to cover the next 12 months budgeted expenditure, including that related to COVID-19, thère are currently no anticipated issues around going concern. This is rèviewed in further detall In the Basis for Preparation under Note I to the accounts. Strategic report Financial review and performance During the period. the Trust received income from charitable activities amounting to £796,130 12020.- £982,002). The Trust made rèvenue grants to County Cricket Boards amounting to £10,824,245 12020.. £5,484,944) in accordance with the new County Partnership Agreement ICPAI. Other charitable spend was £8,829,43712020.' £7,387,974). Investment returns In 2020121 were £111,80212020.' £185,882). The Trust held unrèstrlrt￿ funds of £45,895,039 12020 oll unrestrirtedfvnds.- £38,276,9931. The increase in funds was due to the donation from the parent company of £26,413,120 in 202112020.- £15,650,000). Financial commentary The charity made a surplus of £7.618.046 for the period, compared to a surplus of £3,918,152 in the previous year. This was due to the donation from ECB which exceeded expenditure for the year. Donations were received towards the Trust's charitable activities from ECB, Sport England (capital programmesl and Sport Wales (capital programmesl. In addition, the Trust generated £111,802 from its investments. This will be added to the reserves and held as an emergency fund available to help clubs in need of urgent financial assistance. The TnJsVs expenditure has incrÉased year-on-year. In 2020121, £19,653,682 was spent on tharitable activities, compared to E12,872.918 in the previous period. Although 2020121 saw a £1,170,667 decrease in donations to Chance to Shine, the overall expenditure increased. with the differenTr mainly due to the £5,339,301 increase in County Cricket Board Grants, under the new County Partnership AgreÉrnent funding which came into effect in February 2020, and expenditure of £3,102,970 in relation to a dedI￿ted Return to Cricket grant scheme aimed at helping cricket clubs adverse￿ affected by the COVID-19 pandemic. Analysis of the Trusys performance against objectives As at 31 January 2021. interest free loans to am8teur cricket clubs since the scheme began totalled £9,803.505 12020.. £9,137,469). During the period, the Trust paid out £666,036 in 52 new loans lamount of clubs increased from 50 louns, but loan value decreasedfrom £825,527 in 20201. and loan offers made to clubs but not yet advanced totalled £37,57812020.' £10.3Q41. Due to COVID-19, a l year IFLS repayrnent holiday was offered to all clubs from May 2020. In addition to the usual loan scheme, EWCT offered an Èmergency interest free loan scheme to clubs and leagues due to the COVID-19 crisis. Club loans were offered with a 3 year repayment term and 31 loans were Trustees, Report (continued) paid out totalling £134,826. League loans were offered on a l year repayment term, specifically to cover the purchase of cricket balls, and 12 loans were paid out totallin8 £163,990. In 2020121, Ewcf updated several of its grant schemes, replacing the former EGAP ènd Small Grant schemes with more focused. strategic grants. In addition, EWCT introduced a one off emergency grsnt fund during the year to assist clubs adversely affected by the COV5D-19 crisis. Total facility grants of £6,750.104 were mad lincluding partner fundingl12020.- £4,237,974). This included £3,102,970 of COVID-19 related emergency grants to help clubs during the COVID-19 crisis and planned grant expenditure in other areas was reduced to help cover this scheme. £2,877,502 was paid out in strategic grants in 2020, which was lower than originallv budgeted as funds were re8llocated to fund the COVID-19 related emergency support grants. 20ZI 2020 IFLS Breakdown Value of loans (rangel Number of loans New loans paid out in period £2.000 to £50,000 £2,000 to £50,000 52 50 £666,036 £852,627 2021 2020 COVID-19 Loans Breakdown Va5ue of103ns (rangel Number of loans New loans paid out in period £2,000 to £30.000 43 £298.816 Facility grants paid 2020121 Type of grant Number of grants Paid by EW Pald by funding partners TOTAL Total Strate8it Grants Stn7tegic GrGrJts.. Club Grants 40 2,751,004 1,167,949 126,498 2,877,502 1.203.751 14 35,802 Strutegic GrGnts.' Urb(Jn Gr¢7nts 25 1,573,055 90,696 1,663.751 Str&tegic Grants.. Women & Girls Gronts 10,000 10,000 Retum to Cricket Grants 1,262 42 3,102,970 3,102.970 Emergency Fund Total grants 350,000 419,632 546,130 769.632 1.344 6,203.974 6,750,104 Trustees, Report (continued) Summary analysis of expenditure and related income for charitable a¢tivities in 2021 Grant5 to County Boards Grants to ¢ricketing charities Grants to crickét clubs Total Costs 10,824,245 2,079.333 6,750,104 19.653.682 Grants 546,130 546,130 Net ¢05t funded from other income 10,824.245 2,079,333 6,203.974 19,107,552 Funding 2020121 saw the first year of funding to the 39 County Cricket Boards ICCBS) under the new County Partnership Agreement ICPAI. COVID-19 caused significant financial pressures in the cricket network and the distribution of CPA funding for 2020 provided cèrtainty to the CCBS through a year of uncertainty. By guaranteeing their fundin& CC8s remainèd resilient throughout 2020121 and werè able to continue to support their local communities desplte the fact that cricket faced a heavily curtailed season. The CPA will officially run from I February 2021 to 31° January 2025. The CPA set5 Out the framework forthe funding of recreational cricket in England and Wales in the period. General Ew￿ funding I£IO,000,000 split across all County Cricket Boards, excluding any specific funding for the County Age Group competitions or other development programmesl.. This funding was used in line with the CPA to.. support the participation in, and consumption of, cricket by 8ttratting and retaining players, volunteers, officials and coaches and providing safe and high-quality experiences for all; proactively develop local cricket clubs and communities,. grow cricket participation across junior5 (girls and boys) and adults Imale and femalèl,. provide an accessible playing offering that includes.. o the delivery of relevant ECB national products and progr8mmes- a relevant offering for players from age 5 up, irrespertive of age, location, ability and gender- and a relevant offering delivered in cricket clubs, urban and other non-traditional cricket environments as appropriate,. ensure the requisite child safeguarding provisions are in place for activitie5 run by their organisation and support local cricket clubs to meet the required standards,- develop the cricket workforce across volunteers, officials and coaches,. enable and support leagues to deliver competitions that recruit and retain playèrs- and grow the number of education institutions that offer cricket. The principal donor to the Trust is ECB, and ECB has determined unringfenced funding to be paid to CCBS for general running costs, County Age Group fundin& development programmes and othèr county competitions. In turn, the Trust 15 a major donor to the Chance to Shine and Lord's Taverners charities. Trustees, Report (continued) Risk management and internal Control During the year, a review of the major strategic, busines5 and operational risks that the Trust faces was carried out. As part of this review, systems and additional procedures were establishèd both to mitigate those r15ks identified and to minimise any potential impart on the Trust should those risks actually materiali5e. The Trust has considered credit risk and believes that the exposure to this risk is equal to the total value of interest free loans outstanding. The Controls put in place to reduce this risk are credit checks via detailed financial review5, agreement of payment term5 at the outset of the loan, club appointment of loan guarantors where applicable and close contact with clubs throughout thè terms of the loan. In addition, for 2020121, EWCT offered all clubs with outstanding loans the opportunity to defer their loan repayments for I year, from May 2021 to May 2022. to allow clubs to focus their finances on proterting their clubs from the impact of COVID- 19. This has helped ensure these clubs have been able to continue operating despite a drop in revenues. A general bad debt provision for 2.5Q/o of the value of loans over 3 years old is made, plu5 any specific loans where payments are in arrears and subject to legal action. Other Trust-specific risks have been identified as part of the group's formal risk analysi5 exercise.. The impact on community cricket of reductions in public sector funding. The risk has been mitlgated by the allocation of funding to the CCBS via the new CPA agreement and by the Trust via the new strategic grants. Climate change (both drought and floods and storms). The impact has been partially mitigated by interest earned from the Trust's investments being a51ocated to the emergency fund, as in previous years. This self- funded scheme is not dependent on external donors, though it is impacted by levels of investments held and prevailing interest Tates. The COVID-19 pandernic, which has impacted the ability of the recreational game to generate revenues. Several mitigating actions have been taken during the year to try to ensure our clubs have remained viable during this period, including-. Assistance in acce55ing central government business COVID emergency grants, loans and relief schemes. o Assistance in accessing Sport England and Sport Wales grants. An EWCT funded emergency loan scheme. An EWCT funded Return to Cricket emergency grant scheme this was monéy originally budgeted to be spent on other areas in the Trust but was repurposed to deal with the COVIO- 19 crisis. IFLS repayment holidays for all clubs, initially until May 2021. Plans for future periods The Trust's main objectives and activities for this five year business cycle are.. to administer the interest free loan scheme and 3im to support the recreational game in accèssing this financing source for cricket club facilities through ECB'S new online Investment Management System IIMSI,. to administer and distribute the County Grant Fund to amateur cricket clubs and other local cricketing organisations via the County Cricket Board and Foundation network and IMS,. to continue to support the County Boards and Foundations in line with revenue funding agreernents (namely the new County Partnership AgrÈements ICPAII,. to continue to support other crickèting charities in line with the Trust's own objectives., to oversee the introdurtion of a new liability insurance scheme for recreational cricket clubs,. and to provide support to amateur cricket clubs through special projects approved by the Trustees such as an emergency relief fund, a flood relief fund andlor a sustainable energy fund. Iv) Trustees, Report (continued) Auditor Each of the persons who is a trustee at the datè of approval of this report confirms that.. so far as the trustees are aware, thère is no relevant audit information of which the company's auditor is unaware,. and the trustees have tsken 311 the steps that he/she ought to have tsken as a trustee in order to make himself/herself aware of any relevant audit information and to éstablish that the company's auditor is aware of that information. This confimation is given and should be interpreted in accordance with thè provisions of s418 of the Companies Act 2006. Pursuant to sertion 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office. On behalf of the Board Tom Harrison Trustee 22 April 2021 Statement of Trustees, Responsibilities The trtJ5tees are responsible for preparinE the Trustees, Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for Èach financial year. Under that law they are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 affair5 of thé charitable company and of the expenditure and income for that period. In preparin8 these financial statements. the trustee5 are required to= select suitable accounting policies and then apply them consistentlv; make judgements and estimates that are reasonable and prudent,. assess the charitable company'5 ability to continue as a Eoing concern, disc105ing, as applicable, matters related to going concern; and use the going concern basis of accounting unless they either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable companfs transaction5 and di5c105e with reasonable accuracy at any time thè financial position of the charitable company 3nd enable them to ensure that the financial Statements comply with the Companies Art 2006. They are responsible for such internal control as they determine 15 necessary to enable the preparation of financial statements that are free from mater131 misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safegu3rd the assets of the charitablè company and to prevent and detect fraud and other irregularities. io Independent auditorfs report to the members of England and Wales Cricket Trust Opinion We have audited the financial statements of England and Wales Cricket Trust I'the charitable companrf'l for the year ended 31 January 2021 which comprise the Statement of financial activities, the Balance sheet and related notes, including thè accounting policies in note l. In our opinion thè financial statements- give a true and fair view of the charitable companvs affairs as at 31 January 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance with UK accounting stsndards, including FRS 102 The Financial Reporting Standord ¢ipplicable in rhe UK und Republic of Irelond,. and 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 IUKI I'ISAS IUKI") and applicable law. Our responsibilities are described below. We havè fulfilled our ethical responsibilities under, and are independent of the group in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Going toncern The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the group or the charitable company or to cease their operations, and as they have concluded that the group and the charitable companvs financial p051tion means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year frorn the date of approval of the financial statements I'the going concern period"). In our evaluation of the trustees, conclusions, we considered the inherent risks to the charitable compan¢5 financial resources or ability to continue operations over the going concern period. Our conclusions based on this work.. we consider that the trustees, use of the going Concern basis of accounting in the preparation of the fin8ncial statements is appropriate,. we have not identified, and concur with the trustee< assessment that thère is not, a material uncertainty re18ted to events or conditions that, individually or collectively, may cast significant doubt on the group or the charitable company's ability to continue as a going concern for the going concern period. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable atthetime they were made, the above conclusions are not a guarantee that the group or the charitable company will continue in operation. li Independent auditorfs report to the mernbers of England and Wales Cricket Trust (continued) Fraud and breaches of laws and regulations- ability to detert Identifying and responding to risks of material misstatement due to fraud To identify risks of material misstatement due to fraud I"fraud risks") we assessed events or conditlOll5 that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: Enquiring of Trustees. other management and legal department and inspection of policy documentation as to the charitable company's high-level policies and proceduies to prevent and detect fraud and the charitable companqs channel for "whistleblowing" as well as whether they have knowledge of any actual, suspected or alleEÉd fraud. Considering remuneration incentive schemes and performance targets. Using analytical procedures to identify any usual or unexpected relationships. As required by auditing Standards, and taking into account our overall knowledge of the control environment, wè perform procedures to addr25S the risk of management override of controls. On this audit. we have not identified any fraud risk. We performed procedures including.. Identifyingjournal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted tts unusual accounts. Assessing significant accounting estimates for bias. Identifying t7nd responding to risks of materiol misstt7tement dtje to non-complionce with laws t7nd regulation5 We identified areas of laws and regulations that could rÉasonably be expected to have a material effect on the financia5 5taternènts from our general commercial and sector experience through discussion with the trustees and other management las required by auditing standard51, and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effèct of these laws and regulatlons on the financial statements varies considerably. Firstly, the charitable company is subject to laws and regulations that directly affect the financial statement5 including fin3ncial reporting legislation lincluding related legislationl, distributable profits legislation and taxation legislation and we as5e55ed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondlyi the charitable company is subject to many other laws and regulations where the consequences of non-compliance could have a msterial effect on amounts or disc105ures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect, health and safety, anti-bribery and employment law, recognising the nature of the charitable company'5 activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulation5 to enquiry of the trustees and other managernent and inspection of regulatory and 12 Independent auditorfs report to the members of England and Wales Cricket Trust (continued} Fraud and breaches of laws and règulations- ability to detect Icontinuedl legal correspondence, if any. Therefore. if a breach of operation81 regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Context of the (Jbility of the oudit to detectfroud or bret7ches of low orregult7tion Owing to the inherent limitations of an audit, there is an unavoidable riskthat we may not have detected some material misstatement5 In the financial statements, even though we have properly planned and perfornied our audrt in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by audtting standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve coIIu5ion, forgery, intentional omissions, misrepresentations. or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non- compliance or fraud and cannot be expected to detert non-compliance with all laws and regulations. Other information The trustees are responsible for the other information, which comprises the Trustees, Annual Report,. Our opinion on the financial statements does not cover the other information and, accordingly, wè do not express an audit opinion or, except a5 explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work. the information therein is materially misst£ted or inconsistent with the financial statements or our audit knowledge. Based solely on that work: we have not identified material misstatements in the other information,. in our opinion the information given in the Trustees, Annual Report, which constitutes the strategic report for the financial year, is consTStent with the financial statements- and in our opinion that report been prepared in accordance with the Companies Act 2006. Matters on whith we are required to rèport by exception Under thè Companies Act 2006 we are required to report to you if, in our opinion: the charitable company has not keptadeouate accounting records or returns adequate for our audit have not been received from branches not visf(ed by us,. or the charitable company 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 re￿iVed all the infom)ation and explanations we require for our audit. We have nothing to report in these respects. Trustee5' responsibilities As explained more fully in their statement set out on page 10, the trustees (who are also the direttors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statemènts and for being satisfied that they give a true and fair view,- such internal control as they detÈrmine 13 ## **Independent auditor's report to the members of England and Wales Cricket Trust (continued)** ## **Trustees' responsibilities (continued)** is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the group's and 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 they either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities** 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 our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC's website at www.frc.org. u k/auditorsresponsi bi I ities. ## **The purpose of our audit work and to whom we owe our responsibilities** 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Jonathan Russell (Senior Statutory Auditor)** ## **for and on behalf of KPMG LLP, Statutory Auditor** ## _**Chartered Accountants**_ ## **15 Canada Square** **London** **E14 SGL 30[th] April 2021** 14 England and Wales Cricket Trust (A company limited by guarantee) Statement of Financial Activities For the year ended 31 January 2021 Unrestrirted funds Restricted funds 2021 2020 Notes Income Donations and legscies Income from charitable activities Income from investments Other income 26.413,120 26,413,120 15.650,000 796.130 982,002 111,802 185,882 49,709 io 796,130 111,802 49,709 Total income 26,574.631 796,130 27,370,761 16,817,884 Expenditure on Raising funds Charitable activities Other expenditure 18.453) 18,4531 18,3381 4, 10 118,857.552} 1796,1301 119.653.6821112,872,9181 191.708} 191,7081 119,4131 Total expendtture 118,957.7131 {796,1301 119,753,843) 112,900,669) Net gainlllossl on investments 1,128 1,128 937 Net income/lexpenditurel 7.618.046 7.618.046 3,918,152 Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward 38.276,993 38.276.993 34,358,841 Total funds ¢arried forward 45,895.039 45,895.039 38,276,993 The Tru5Ys income and expenses relate to both unrestricted and restricted funds and continuing charitsble operations. The restritted funds are dèscribed in note 10. The statement of financial activities 3150 complies with thè requirements for an income and expenditure account under the Companies Act 2006. The Trust has no recognised gain5 or losses other than the net increase in funds for the year. 15 England and Wales Cricket Trust (A company limited by guarantee) Balance Sheet As at 31 January 2021 2021 2020 Notes Fixed assets Investments 23.375.372 11,338,581 Current assets Cash at bank Investments Social investments.. amounts falling due within one year Social investments-. amount5 falling due after more than one year Debtors.. amounts falling due within one year 3,920,782 3.097,594 17,389,718 21,136,406 329,656 808,307 3,132,464 2,024,727 44.000 808,000 24.816.620 27,875,034 Current Liabilities Amounts falling due within one year 12,296,9531 1936,6221 Net current assets 22,519.667 26,938,412 Total assets less current liabilities 45,895.039 38,276,993 The funds of the charity Unrestricted income funds Restricted income funds 45.895.039 38,276,993 io Total funds 45.895,039 38,276,993 These financial statements of England and Wales Cricket Trust, company registration number 5483977. were approved on 22. April 2021. lan Lovett Trustee Tom Harrison Trustee 16 England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements As at 31 January 2021 Accounting polities Basis ot preparation The financial staternents are preparèd in accordance with applicable United Kingdom Accounting Standards, the applicable requirements of the St3tement of Recornmended Practice ISORPI 'Accounting ond Reporting, by Charities, FRS102, the Trust Deed, and the Companies Act. The particular accounting policies adopted are described below, and have been applied consistently throughout the year and the preceding year. Per FRS 102, a public benefit Èntity IPBEI is an entity whose primary purpose is for public and social benefit and not to provide a financial return to its shareholders. Thè Trustees have assessed that the Company meets this definition, thus have accounted for any interest free loans as concessionary loans under section PBE34 of FRS 102 for the purposes of these financial statements. England and Wales Cricket Trust Ithe "Company'l is a private company limited by guarantee and incorporatèd, domiciled and registered in England, in the United Kingdom. These financial statements were prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland I"FRS 102.1 as issued in August 2014. The presentation currency of these financial staternents is sterling. All amounts in the financial statements have been rounded to the nearest £. The Companrfs ultimate controlling party, England and Wales Cricket Board Limited, includes the Company in its consolidated financial statements. The Consolidated financial statements of England and Wales Cricket Board Limited are prepared in accordance with Financial Rèporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland I'FRS 102.1 and are available to the public and may be obtained from Lord's Cricket Ground, London, NW8 8QL In these financial statements, the company is considered to be a qualifying entity (for the purposes of this FRSI and has applied the exemptions available under FRS 102 in respect of the following disclosures: Cash flow statement,. Transactions with Key Management Personnel,. Related party transattions entered into between I￿0 or more members of a group (for wholly-owned subsidiariesl. Due to the current economic conditions there are inherent futu￿ uncertainties that may impart the business. As a rèsult of this the trustees have made enquiries regarding ECB support and future government funding and have a reasonable expectation that the Trust has adequate resources to continue in existence for the foreseeable future. For this reason, the trustees continue to adopt the going concem basis in preparing the accounts. The Trustees have assessed the possible impact of COVID-19, with significant uncertainty and multiple scenarios possible across the recreational game. As the Trust 15 funded by reserves, which at present are adequate to cover the next 12 month budgeted expenditure, including that ￿lated to COVID-19, there are currently no anticipated issues around 80ing concern, although thé Trusts activities may be modifièd to best assist the recreational game at this time. As EWCT relies on these reserves to fund its activities, it is not reliant on significant income over thè next 12 months. It does receive a small amount of funding each year from Sport England and Sport 17 England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements Year ended 31 January 2021 Accounting policies Icontlnuedl Basis for preparation Icontinuedl Wales. At the date of signing these accounts, the Sport England income ha5 been confirmed for the year ending 31"January 2022 and will be available to draw down as spent. Incomlng resources Income is recogni5ed when the charity has entitlement to the funds, any performance conditions attached to the itemlsl of income have been met, it is probable that the income will be received and the amount can be measured reliably. All incoming resources are included in the Statement of Financial Activities I'SOFA'I when the Trust is legally entitled to the income, is reasonably certain of receipt and the amount can be measured with sufficient reliability- Donations and legacies are recognised in the SOFA in the period in which they are received and paid. Income from charitable activities Government capital grants from Sport Wales are rècognised in the period to which they relate and offset against EWCT Strategic Grant projects in Wales. o &pital grant funding from Sport England is recogni5ed in the period to which it relate5 and matched to the appropriate grant expenditure in England. Investment income-, interest on funds held on deposit is included when receivable. andlor the amount can be measured reliably by the charity,. this is normally upon notification of the interest paid or payable by the Bank and is requested at year-end. Grants payable are made to third parties in the furtherance of the charitable objectives of the Trust- either revenue grants Icounty Cricket Boards and cricketing charitiesl or capital grants (cricket clubs and other appropriate applicants, e.g. local 3Uthoritiesl. Revenuè grants The Trust's intention to pay a certain level of grants to County Cricket Boards ICCBS) and cricketing charities is set out the new 2021-24 County Partnership Agreement ICPAI. and a schedule of payments was sent out to each CCB at the start of the period. Capital grants EWCT Strategic Grants are paid to applicants from a set budget, allocated by region and strategic objective. The individual grants are recognised once an offer letter ha5 been made for the club to sign and return. Return to Cricket grants were paid out of reallocated Strategic Grant fundingto support clubs during the COVID-19 crisis and were allocated based on need. The individual grants are recognised once an offer letter has been made for the club to $18n and return. Emergency Fund grants are paid as required from the Trust's accumulated investment income. The grants are recognised once an offer letter has been made for the club to sign and return. 18 England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2021 Accounting policies {continuedl Allocation of support and govemance costs Support costs have been allocated between governance costs and other support costs. Governan costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with 3PPOrtionment of overhead and support costs. Governance costs and support costs relatingto charitable activities have been apportioned based on the number of individual grant awards made in recognition that the administrative costs of awardin& monitoring and assessing 108ns and different categories of grants are broadly equivalent. The allocation of support and governance costs is analysed in note 4. Concessionary loans England and W31es CricketTrust makes interest free loans to third parties which are repayable in line with agreed upon payment schedules. In line with FRS102 PBE34, Concessionary Loans are initially measured at the amount received or paid. In subsequent years, the carrying amount of concessionary loans in the financial Statements is adjusted to reflert any accrued interest payable or receivable. To the extent that a loan that ha5 been made is irrecoverable, an impairment loss is be recognised in the statement of financial activities. Accounting convention These accounts arè prepared under the historical cost convention. Company status The Trust is a Company limited by guarantee. The Member of the Trust IEngland and Wales Cricket Boardl undertakes to contribute a sum not excèeding £1 to the assets of the Trust if it is wound up during its Tnernbership or within one year afterwards. Resources expended All expenditure is accounted for on an accruals basi5 and has been classified under headings that aggregate all costs related to that category. Where costs cannot be dirertly attributed to particular headings they have been allocated to activities on a basis consistent with use of resources. Grants are charged to the statement of financial activities when a construrtive obligation exists not withstanding that they may be paid in future accounting pèriods. Governance costs are the costs associated with the governance arrangemènts of the Trust which relate to the general running of the Trust as opposed to those costs associated with fundraising or charitable activity. Included within this category are costs associated with the strategic as opposed to day-to-day management of the Trusvs activities. Charitable activities include costs of grants. Fund5 Unrestrirted funds are funds that are avaTlable for use at the discretion of theTrustees in furtherance of the general objectives of the Trust and which have not been designated for other purposes. Restricted funds relate to funds received from donors for specified purposes. 19 England and Wales Cricket Trust (A company limited by guarantee} Notes to the Financial Statements (continued) Year ended 31 January 2021 Accounting policies Icontinued} Tax England and Wale5 Cricket Trust is a reElStered charity and, as such, is exempt from taxation on its income to the extent that the income is applied to its charitable purposes. Investments Investments are held in the form of cash dep051t5 and are determined as current or non-current on the basis of whether they are plannÉd to be reinvested over the next 12 months. Deposits with an intended investment term of longer than one year are classified as non-current investment5. Result for the year 2021 2020 Net income/lexpenditurel for the year 7,618,046 3,918,152 Stated after charging.. Fees payable to the company's auditor for the audit of the company's annLJal accounts (inclusive of VAT) 12,600 12,000 Ultimate controlling party The England and Wales Cricket Trust is a company limited by guarantee, so has no share capital. On the basis that the Trust is considered to be a subsidiary of the England and Wales Cricket Board Limited, its financial results and position are consolidated into the group accounts of England and Wales Cricket Board Lirnited. Copies of these group accounts can be obtained from Lord's Cricket Ground, London NW8 8QZ. 20 England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2021 Resources expended 2021 2020 Charitable activities Unrestrirted funds Grants to County Boards Grants to cricketing charities Grants to Cricket clubs and org3nisations 10.824.245 5,484,944 1,829.333 3,150,000 6.203.974 3,255,972 18,857,552 11,890,916 Restricted funds Sport Wales Sport England- Club Grants Sport England Grants to Cricketing Charities 126.498 419.632 250,000 182,002 800,000 796.130 982,002 Governance costs Expenditure on raising funds 91,708 8.453 19,413 8.338 Total resources expended 19.753.843 12.900,669 Revenue grants to the 39 County Cricket Boards contribute to their running costs, plus delivery of local cricket (including competitionsl for all ages and abilities. Grants are made to specialised institutions to assist them in delivering theTr cricket programmes. Grants to cricket clubs comprise a major grants scheme for larger-scale facility improvements- an emergenry fund for clubs affected by a cri515, for example flooding- and a COVID-19 specific emergenry grant scheme to support clubs due to the disruption caused by COVID-19. A list of grants is available from the England and Wales Cricket Trust. The Trustees did not receive any emoluments in respect of their service5 to the Trust during the yèar or prior year. No Trustees rèceived reimbursement in relation to out of pocket expenses fortravel and subsistence during the period Ino Trustges were paid in 20201. 21 England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2021 Resources expended Icontinuedl Analysis of support and governance costs The Trust initially identifies the costs of its support functions. It then identifie5 those costs which relate to the govern3nce function. Refer to the table below for the basis for apportionment and the analysis of support and governance costs. General support Governance Function/general Total Basis of apportionment Audit costs 12,600 12.600 Governance Le8al 15,527 15.527 Specific legal Tax advice fees 6,000 6.000 Governance Club insurancè scheme managément fees 49,760 49,760 General Support General allowance for doubtful debt (loan scheme) Trustee expenses 7,374 7,374 Loans scherne Governance Bank charges 8,900 8,900 Governance TOTAL 57,134 43.027 100,161 Investments Non-current.. All non-current investments comprise cash deposits with intended investment terms of longer than one year. Current.. All current investments comprise cash dep051ts with investment terms of less than one year. 22 England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements {continued) Year ended 31 January 2021 Social investments 2021 2020 Amounts falling duè within one year: Interest free loans to cricket clubs Emergency COVID-19 interest free loans to cricket clubs and leagues 233,173 96,483 808,307 Total amount fBlling due within one year.. 329,656 808,307 Amounts fallin8 due after more than one year: Intèrest free108ns to cricket clubs Emergency COVID-19 interest free loans to cricket clubs and lèagues 2.933,631 2,024,727 198.833 Total amount falling after more than one year: 3.132,464 2,024,727 As at 31 January 2021, interest free loans to amateur cricket clubs since the scheme began tot?Iled £9,803,505 12020.. £9,137,469). In addition, loan offers made to clubs but not yet advanced totslled £37,57812020.. £10,304). In 2020/21 £45,268 allowance for doubtful debts has been made12020.'£37,8941, which constitutes both a general provision of 2.5% of the outstanding loan balan￿ older than 3 years plus a specific provision. Due to the COVID-19 crisis, EWCT also offered a COVID-19 specific emergency interest free loan scheme to clubs and leagues in 2020121. Club loans were offered with a 3 year repaymentterm and totalled £134,826. League loans were offered on a l year repayment term, specifically to cover the purchase of Cricket balls. and totalled £163,990. 2021 2020 Programme related investments Iloansl Loans outstanding at start of year Less loan repayments during year New loans advanced during year 2,870,927 2.926,224 (324,891) 1907,9241 666,036 852,627 Loans outstanding at end of year Provision for doubtFul debts 3.212.072 (45.2681 2,870,927 137,8941 Loans outstanding at end of year 3,166,804 2,833,033 23 England and Wales Cricket Trust (A company limited by guarantee} Notes to the Financial Statements (continued) Year ended 31 January 2021 Social investments Icontlnuedl 2021 2020 COVID-19 related investments (loans} New loans advanced during year Less loan repayments during year 298,816 13,5001 Loans outstanding at end of year Provision for doLJbtful debts 295,316 Loans outstandin8 at end of year 295,316 Debtors 2021 2020 Amounts falling due within one year: Sport England Funding Partnership funding County Board Debtors 800,000 36,000 8.000 8,000 44,000 8C)8,000 Credttors 2021 2020 Amounts falling due within one year: Accruals (grant claims received before year end and audit fees) Dèferred income 1,412,071 810,124 884,882 126,498 2.296.953 936,622 24 England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2021 Fund balances Analysis of movements in unrestricted funds Balances as at start Incoming Resources of year resources expended Transfers Balances as at end of year General fund DèsiEnated Emergency fund 37.975,194 26.389,877 118,957,713) 301,799 185,882 45,407.358 487.681 Total fvnds 202012021 38,276.993 26.575,759 118.957,7131 45,895.039 Total funds 201912020 34.358,841 15,836.819 111.918.6671 38.276,993 The unrestritted fund includes all general donations. 10. Analysis of movements in restricted funds Balances as at start of the Incoming Resources vear resources expended Balances as at end ot Transfers year Sport England Sport Wale5 669,632 1669,6321 126.498 1126.4981 Total 2020/2021 796,130 {796.130) Total 2019/2020 982.002 1982.0021 Name of restricted fund Sport England Description. nature and purposes of the fund The funds are required to be used to aid the delivery of development programmes and monitoring processes in line with the Trust's national policy. The funds are required to be used to aid the delivery of high quality facilities, in line with the Trusvs national policy. Sport Wales 11. Related partiès The company has taken advantage of the exemption in sertion 33.IA of FRS 102 from disclosing transactions with its ultimate controlling party, the ECB. There were no tran53Ctions with other related parties during the year. 25