Company Registration No. 5483977 Charity No. 1112540 England and Wales Cricket Trust (A company limited by guarantee) Annual Report and Financial Statements 31January 2022
England and Wales Cricket Trust (A company limited by guarantee) Annual Report and Financial Statements for the year ended 31 January 2022 Contents Page Officers and Professional Advlser5 Trustees, Report Statement of Tru5tees' Responsibilities io Independent Auditorfs Report to Members of the England and Wales Cricket Trust li Statement of Financlal A¢tlvitie5 15 Balance Sheet 16 Notes to thè Financial Statements 17
England and Wales Cricket Trust IA company limited by guaranteel Annual Report and Financial Statements for the year ended 31 January 2022 Officers and Professional Advisers Directors and Trustees lan Lovett Tom Harrison Scott Smith James Wood Peter Ackerley Sancha Le8g Ruth Sienkiewicz Registered Office Lord's Cricket Ground London NW8 8QZ Reglstered Charity Number 1112540 Bankers National Westminster Bank plc 106 Finchley Road Swi55 Cottage London NW3 5JN Solicitor5 Bates Wells & Braithwaite LLP 2-6 Cannon Street London EC4A 6YH BDB Pitmans LLP 107 Cheapside London EC2V 6DN Auditor KPMG LLP 15 Canada Square London E14 5GL
Trustees, Report Structurei governance and management The Trtjstees, who are also the directors for the purposes of Company Law, submit their rèport and the financial Statements of England and Wales Cricket Trust I"The Trust" or"Ewcf"I for the year ended 31 January 2022. The Trustees 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 charitv. The board of Trustees have overall respon5ibilityfor the direction, management and control of the England and Wales Cricket Trust. Objectives and activities The objectlve5 of the Trijst are, for the benefit of the publlc, to.. promote community participation in healthy recreation by providing facFlitie5 for playing tricket,. and lill promote all purposes as recognised as charitable under the lows of England and Wales through an association with cricket. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grant making policy for the year. Achievements and pertormance The key elements of the charlty's strategy are.. to continue to deliver revenue funding to the recreational game to facilitate the existing community participation Iparticularly amongst boys and girls age group cricket) and enable increased participation amongst all levels of the recreational game; to administer an interest free loan scheme for recre8tlonal cricket clubs with the aim of increasing the loan pool to £5m in the short term and £IOm irTr the medium term. These loan5 are specifically for facilitie5 at recreational crlcket clubs to support their cricket programmes,. liiil to seek to provide facility grants tM)th for crlcket machinery and wider facility enhancements to 5UPPOrt the recreational game; and livl to support other cricketing charities whose objects are aligned with that of the Trust. In 2021122, the Trust made donations totaling £2,286,83412021.' £1,829,333) to Chance to Shine and £500,000 12021.. £250,000) to Lord's Taverners. The activities of the Trust are funded using a combination of restrlcted funds from Sport England and the Trust's unrestricted and designated fund5. The interest free loan scheme is funded wholly from the Tru5t'5 unrestrlcted funds. Incorporation England and Wales Crlcket Trust, a private company limited by guarantee (No. 54839771, was incorporated on 17 June 2005 by a Memorandum and Articles of A550ciation and is a registered tharity (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.. Position with related partles Trustees lan Lovett President, England and Wales Crickel Board Tom Harrison Board Member, Chief Executive OFFicer, England and Wales Cricket Board Scott Smith Board Member, Chief Finance Officer, England and Wales Cricket Board James Wood Board Member, England and Wales Cricket Board,. Member, Devon County Cricket Club Peter Ackerlev Director, Lancashire Cricket Foundation,. Committee Member. Lord'5 Taverners Sancha Legg Committee Member, ECB Particlpation & Growth Committee Ruth Sienkiewicz None The board is made up of seven Trustees, three of whom are independent of the England and Wale5 Cricket Board Limited I"EC8"1. The Trustees of the England and Wale5 Cricket Trust are appointed by the ECB fDr their specific expertise in areas relevant to the charity. The board commits to reviewing the Indivlduals on the board annually at a Trustees, meetlng and recommendations are then given to the ECB. The Trustees meet Bt least once a year and on any other occasions as judged necessary in order to review progress and determine matters of strategy and policy, whilst leaving the day-to-day matteTS to the management team or to specific indlviduals. The management team consists of indlviduals with specific knowledge of Club and Facility Management and Development, Cricket Board Management and Development and Finance. NewTrustees meet with the current Board members at the Trustees, meeting, and priorto thls with the Finance team responsible for the Trust, who provide relevant documents and information about the role. Any Trustee tjpdates le.g. from the Charity Commission) or decisions to be made are communlcated by the Projert Accountant responsible for EWCT. Rlsk management and internal control The Trustee5 have overall responsibility for ensuring that the Trust operdtes an appropriate system of controls, financial and otherwise, to provide reasonable a55urance that the Trust is operating efficiently and effectively, and that the Trust complies with the relevant laws and regulations. Power5 To further 115 objectives, the Trust may.. provide grant5 ènd loans for capital improvements to grounds and facilitie5 of community recreational sports clubs, County Boards, charitable sports clubs and other bodies,. and lill provide and asslst in the provision of money, materia15 or other help.
Trustees, Report (continued) Grant policy Grants 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 condition5 are fulfilled. Grants are approved and monitored by the relevant members of the management team. Social Investment policy The Trust adrnini5ters an Interest Free Loan Scheme IIFLSI, which aims to finance capital project5 to help create a sustainable future for cricket. The scheme can be partnered with the Ew Strategic grants and County grants schemes and other external funding programmes. The EWCT Interest Free Loan Scheme supports projects that could not othenNi5e be completed a5 some clubs cannot obtain commercial finance and the availability of grant funding has decreased over the past few years. The loan scheme alsD allows evidentially sustainable projects to be financed years ahead of schedule when compared to the process of fundraising or building reserves. This in turn often allows clubs to increase revenues due to enhanced facilities, which allows, repayment of the loan, Browth in membership and enhand expenditure on community cricket attivities. The Trust requires clubs to have personal guarantors, who are Joint and severally liable for repayment of the loan in the event of a default, or occasionally (for large value loans) it takes out a legal charge over the club's In additSon to the usual loan scheme, EWCT offered an emergency interest free loan scheme to clubs and league5 due to the COVID-19 crisis last year. These loan5 were offered to a5SlSt clubs and leagues with their ca5hflow during the initial perlod of lockdown when no team swr15 were permitted. Club loans were offered with a 3 year repayment term whilst the League loan5 were offered on a l year repayment term, specifically to cover the purchase of cricket balls by the leagues. Employees The Trust does not employ any members of staff. Reserves policy The Trust plans to maintain reserve5 SO that at all times durlng the year, a5 a minimum, reserves are at least- the level of Snterest free loans to be made to recreational cricket clubs; plus the level of expenditure, both charitable spend and overheads, expected in the next 12 months. To date, donations have tended to be received towards the end of the financial year while the majority of expendlture has been at the beginning or in the middle of the finar)cial year. Thi5, and the above policy, means that at year end we usually seek to have reserves of al least two times annual expenditure plus the planned loan pool. In addition, we take into account that the major donor has a highly cyclical business, with annual profits varying significantly year-on-year. Thls means that on occasion, reserves will be far higher than two times annual expenditure plus the loan pool. For 2021122, ECB, as the parent company, made a total donation of £44,000,000 during the year. Investment poll¢y It 15 the policy of ihe Trust to place its investments in cash deposits which provlde appropriate liquidity, and which are deemed to be of low risk as deflned by the agreed Treasury Management pollcy.
Trustees, Report {continued) Golng concern The Trustees have a reasonable expectatioll that the Trust has adequate resources to continue in exlstence for the foreseeable future. For this reason, the Trustees continue to adopt the doing concern basis in preparing the account5, a5 disclosed in the accounting policies. The Trustees have completed a risk assessment of the continued potential impact of COVID-19. As the Trust 15 funded by reseives, which at p¥esent are adequate to cover more than the next 12 months expenditure, there are currently no anticipated issues surrounding going concern. Th55 is reviewed in further detail in the Basi5 for Preparation under Note I to the accounts. Strategic report Financial revlew and performance During the period, the Trust received income from charitable artivlties amounting to £974,387 12021.. £796,130). The Trust made revenue grants to County Cricket Board5 amountinE to £11,597,745 12921.. £10,824,2451 in accordance with the new County Partnership Agreement ICPAI. Other charitable Spend was £12,013,61412021.' £8,829.4371. Investment returns in 2021122 were £38,97312021.' £111,802). The Trust held unrestricted funds of £67,296,49012021 oll unrestricted funds.. £45,895,039). The increase in funds was due to the donatlon from the parent company of £44,000,0(M) in 202212021.. £26,413,120). Financlal commentary The charity made a Surplus of £21,401,451 for the period, compared to a surplu5 of £7.618,046 in the previous year. This was due to the donation from ECB which exceeded expenditure for the year. Donatlons were received towards the Trust'5 charitable activities frorn ECB, Sport England Icapltal programmesl and LV - Insu¥ance for the #Funds4Runs grant scheme. In addition, the Trust generated £38,973 from its investments. This will be added to the reserves and held as an emergency fut)d available to help clubs in need of urgent financial assistance. The Tru5t'5 expenditure has increased year-on-year. In 2021122, £23,611,359 was spent on charitable activities, compared to £19,653,682 in the previous period. This is partially attributable to the launch of three new revenue grant schemes totalllng £2,251,654,. #Funds4Runs, Disability Champion Clubs, Inspired to Play and an amount of £800,000 to The Club Cricket Charity Trust for the distribution of defibrillators to the cricket club netWQTk. Analysis of the Trust's performance agaln51 objectlves A5 at 31 January 2022, interest free loans to recreational cricket clubs since the scheme began totalled £10,465,724 12021.. £9,803,505). During the period, the Trust paid out £662,219 in 45 new loans, and loan offer5 made to clubs but not yet advanced totalled £140,872 12021.- £37,578). Due to COVID-19, a IFLS repayment holiday was offered to all clubs from May 2020 until November 2021.
Trustees, Report (continued) In 2021122, 3 year later than planned due to COVID-19, EWCT launched its new grant Schemes. It replaced the former EGAP and Small Grant schemes Wlth the Strategic Grant5 Fund and the County Grants Fund, the latter with delegated budgets administered via County Cricket Boards and Foundation5. Total facility grants of £8,426,781 were made (including partner fundingl12021.' £6, 750,104). This included £1,254,933 of COVID-19 related emergenry grants made via the Return to Cricketgrant scheme continued from 2020J21, designed to help clubs during the COVID-19 crlsi5. EWCT administered three further revenue grant schemes on behalf of the Commercial, Participation and Growth, and Disability cricket Departments which are included in the total Facilities grants- #Funds4Runs1179 grants totallin8 £539,427], Disability Champion Clubs171 clubs totallinE £35,500) and Inspired to Play11,625 grants totalling over £1.8ml- Planned capital grant expenditure was therefore deferred to the back end of 2021122 to help administer these schernes. £3,540,000 was paid out in strategic grants in 2021122 including key investments into the Worcester University's International Inclusive Centre and supporting the Abraham Moss Leisure Centre's Urban Cricket Centre, in conjunction with Manchester City Council. The County Grants Fund committed £831,177 across its thematic areas of Creating Welcoming Environments, Providing Enhanced Facilities or Playing Opportunities for Women and Gir15, and Tackling Climate Change. 2022 2021 IFLS Breakdown Value of loans Irangel Number of loans New loan5 paid out in period £1,700 to £lOO,000 44 £644,315 £2,000 to £50,0(X) 52 £666,036 2022 2021 COVID-19 Loan5 Breakdown Value of loans (rangel Number of loan5 New loans paid out in period £17.904 £2,(M)O to £30,000 43 £298,816 £17.904
Trustees, Report (continued} Facility grants paid 2021122 Type of grant Number of grants Pald by EWCT Pald by funding partner5 TOTAL Total Strategic Grant5 Strategic Grt7nt5.' Urbajj Grunts 21 3,540,000 921,527 3,540,000 921,527 14 Strotegic Grunts.. Women & Girls Gronts 2,618,473 2,618,473 Total County Grant5 County Grants.. Welcoming and Inclusive Environment5 108 494,171 337,006 831.177 67 494,171 494,171 County Grants.. Providing Enhanced Focilities or Pltsying Opportunities County Grants.. Tockling Climote Chonge Return to Cricket Grant5 33 278,681 278,681 58,325 58,325 488 1,254,933 168,649 1,851.654 7,309,407 1.254,933 549.017 2.251,654 8.426.781 Emergency Fund Other grants Total grants to cricket clubs and organi5atlons 24 380.368 400.000 1,117,374 1,875 2,516 Summary analysls of expenditure and related intome for charitable activities in 2022 Grants to County Boards Grant5 to cricketing charities Grant5 to ¢rlcket clubs Total Costs 11,597,745 3,586,833 8,426,781 23,611,359 Grants 257,013 1,117,374 1,374,387 Net cost funded from other income 11,597,745 3,329,820 7,309.407 22,236.972
Trustees, Report (continued) Fundlng Funding continued in 2021/22 to the 39 County Cricket Boards ICC&sl underthe County Partnership Agreement ICPAI. COVID-19 caused uncertainty in the cricket network and the distribution of CPA funding for 2021 provided financial certalnty to the CCBS through the year. By guaranteeing their funding, CCBS remained resilient throughout 2021122 and were able to continue to 5UPPOrt their local communities. The CPA tover5 the period from I, February 2021 to 31, January 2025. The CPA sets out the framework for the funding of recreational crlcket in England and Wale5 in the period. General EWCT funding I£IO,000,000 split across all County Cricket Board5, excluding any specific funding for the County Age Group competitions or other development progiammesl.. This funding was used in line with the CPA to.. support the partlcipation in, and consumption of, cricket by attracting 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 acr055 juniors (girls and boys) and adults Imale and female); provide an accessible playing offering that includes.. o the delivery of relevant ECB national pioduct5 and programmes; a relevant offering for players from aEe 5 up, irrespective of age, location, ability and gender,. and a relevant offering delivered in cricket clubs, urban and other non-traditlonal cricket environments a5 appropriate; ensure the requisite child safeguarding provision5 are in place for activities run by their organi5ation and support local cricket clubs to meet the required standards,. develop the critket workforce across volunteers, officSals and coaches; enable and support leagues to deliver competitions that recruit and retain player5,' 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 funding, development programmes and other county competitions. In turn, the Trust Is a major donor to the Chance to Shine and Lord's Taverners charities. Risk management and internal control During the year, a review of the major strategSc, business and operational risks that the Trust faces was carried out. As part of thls review, systems and additional procedures were established both to mitigate those risks identified and to minimise any potential impact on the Trust should those risks actually materialise. 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 flnancial reviews, agreement of payment terms at the outset of the loan, club appointment of loan guarantors where applicable and close contact with clubs throughout the terms of the loan. In addition, for 2021122, EWCT offered all tlub5 Wlth outstanding loans the opportunlty to defer their loan repayments from May 2020 until Nov 2021, to allow clubs to focu5 their finances on protecting 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 2.5% of the value of loans over 3 years old is madei plus any Specific loans where payments are in arrears and subject to legal action.
Trustees, Report (continued) other Trust-specific risks have been identified as part of the group's formal risk analysis exercise: The impact on community cricket of reductions in public sector funding. The risk has been mitigated by the allocation of funding to the CCBS via the CPA agreement and by the Trust via the new strategic grants. Climate change (both drought and floods and 5tQTmsl. The impact has been partially mitigated by interest earned from the Trust's investments being allocated to the emergency fund, as in previou5 years, but as interest earned on investments has decreased, a set budEet is now allocated annually In order to cover a "normal" year of emergency funding for flood and drought. The COVID-19 pandemic, which impacted the ability of the recreational game to generate revenues. Several mitigating actions were taken over the past three financial years to try to ensure our clubs have remained viable during this period, including: o Assistan in accessing Sport England and Sport Wales grants in 2021. An EWCT funded emergency loan scheme. An EWCT funded Return to Cricket emergency grant scheme. o IFLS repayment holidèys for all clubs, from May 2020 until Noverllber 2021. Plan5 for future periods The Trust's main objectives and activities for thls five year business cycle are.. to administer the interest free loan scheme and alm to support the recreational game in accessing this financing source for cricket club facilities through EC8's online Investment Management System IIMSI,. to administer and distribute the County Grants Fund to recreational 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 agreements Inamely the County Partnership Agreements ICPAII- to continue to support other cricketing charities in line with the Trust's own objectlves,. to oversee the liability insurance scheme for recreational cricket clubs,. and to provide support to recreational cricket club5 through special projects approved by the Trustees such as an emergency relief fund, a flood relief fund andlor a sustainable energy fund. Audltor Each of the persons who 15 a trustee at the date of approval of thi5 report confirrns that.. so far as the tmstees are aware, there is no relevant audit information of which the company's auditor is unaware,. and the trustees have taken all the steps that he/she ought to have taken as a trustee in order to make himselflherself aware of any relevant audit information and to establish that the company'5 auditor is aware of that information. This confirmation is given and should be interpreted in accordante with the provislons of s418 of the Companie5 Act 2006. Pursuant to section 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 Harri50n Trustee 9, May 2022
Statement of Trustees, Responsibilities The trustees are responslble for preparingthe Trustees, Report and the financial statements in accordance with applicable law and regulations. Company law require5 the trustees to prepare financial Statements for each 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 Practi1, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the flnancial statements unless they are satisfied that they glve a true and falr view of the state of affairs of the charitable company and of the expenditure and income for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consi51ently,' make judgements and estimates that are ¥easonable and prudent,. asse5S the charitable company's abilily to continue as a going concern, dist105ing. as applicable, matters related to going Concern,. and use the going concern basis of accounting unless they either intend to liquidate the charitable company oi to cease operations, or have no realistic alternative but to do 50. The trustees are responsible for keeping adequate accounting record5 that are sufficient to show arbd explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial 5tatement5 that are free from material misstaternent, whether due to fraud or error, and have general responsibility for taking such steps a5 are reasonably open to them to Safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities. io
Independent auditols 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 cornpany") for the year ended 31 January 2022 which comprise the Statement of financial activities, the Balance sheet and related notes, including the accountlng policies In note l. In our opinion the financial statements.. give a true and fair view of the charltable company's affairs as at 31 January 2022 and of its incoming resource5 and application of resources, including its income and expenditu¥e, for the year then ended; have been properly prepared in accordan with UK accounting standards, including FRS 102 The Fintsncial Reporting Standard opplicoble in the UK ond Republic of Irelund; and have been prepared in accordance wlth the requlrements of the Companies Act 2006. Basls for oplnion We conducted our audit in accordance with International Standards on Auditing IUKI I"ISAs IUKI"l and appllcable law. Our responsibilities are de5crlbed below. We have fulfilled our ethical responsibilitie5 under, and aTe 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 concern The trustees have prepared the flnanclal statements on the Boing concern basis a5 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 company's financi31 position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their abilily to continue as a going concern for at least a year from 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 company's financial resotjrces or ability to continue operations over the golng concern period. Our conclusions based on thSs work: we consider that the trustees, use of the going concern basis of accountin8 in the preparation of the financial statements is appropriate,. we have not identified, and concur with the trustee5' assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the group or the charltable company's ability to continue as a golng concern for the goin@ concern period. However, as we cannot predlct all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time theywere made, the above conclusions are not a guarantee that the group or the charitable company will continue in operation. li
Independent auditor's report to the members of England and Wales Cricket Trust {continued) Fraud and breaches of laws and regulations- ability to detect Identifying Lynd responding to risks of moteriol misstotement due tofruud To identify risks of material misstatement due to fraud I"fraud risk5"1 we assessed events or conditions that could indicate an incentive oi pressure to commit fraud or provide an opportunlty to commlt 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 policie5 and procedures to prevent and detect fraud and the charitable company's channel for'whistleblowing" as well as whether they have knowledge of any actual, suspected or alleged 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 environTnent, we perform procedure5 to addre55 the risk of management override of controls. On thi5 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 documentatlon. These Included those posted to unusual accounts to cash balances. Identifying and responding to risks of material mlsstotement due to non<omplionce with lows ond regultytlons We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experien through distUS510ll Wlth the trustees and other management las required by auditing standards), and di5CU5sed with the tru5tee5 and other management the pollcies and procedures regarding compliance with12ws and regulations. We communlcated identlfied laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varie5 Considerably. Firstly, the charitable company 15 subject to laws and regulations that directly affect the flnancial statements including financial reporting legislation (including related legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regLJlations a5 part of our procedures on the related financial statement items. Secondly, the charitable company 15 subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures 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's activities. Auditing standards limit the required audit procedures to identify non- 12
Independent auditor's report to the members of England and Wale5 Cricket Trust (continued) Fraud and breaches of laws and regulation5- ability to detect Icontinuedl compliance with these laws and regulatlons to enquiry of the trustees and other management and Inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to U5 or evident from relevant correspondence, an audit will not detect that breach. Context of the Gbility of the audit to detectfroud or breaches of low or regulatio Owing to the inherent limitations of an audit, there Is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audlt in accordance with auditing Standards. For example, the further removed non-compliance with laws and regulations 15 from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional ornissions, misrepresentations, or the override of internal contro15. Our audlt procedures are designed to detect material misstatement. We are not Tesponsible for preventing non- compliance or fraud and cannot be expected to detect 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, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our Tespon5ibility is to read the other information and, in doing so, consider whether, based on our flnancial statements audit work, the information therein is materially misstated 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 Trijstees, Annual Report, which constitutes the strategic report for the financial year, is con51Stent with the financial statements- and in our opinion that report been prepared in accordance with the Companies Act 2LK)6. Matters on which we are rÈquired to report by exception Under the Companies Act 2006 we are required to report to you if, in our opinlon.. the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us. or the charltable company financial statements are not in agreemenl with the accounting records and returns,. or certain disclosures of trustees, remuneration specified by law are not made; or we have nol received all the information and explanation5 we require for our audit. We have nothing to report in these respect5. 13
Independent auditor's report to the members of England and Wales Cricket Trust (continued)
Trustees' responsibilities
As explained more fully in their statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine 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.uk/auditorsresponsibilities.
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
12[th ] May 2022
14
England and Wales Cricket Trust {A company limited by guarantee) Statement of Financial Activities For the year ended 31 January 2022 Unrestricted funds Restricted funds 2022 2021 Notes Income Donations and legacies Income from charitable actSvities Income from investments other Income 44,000.000 44,000.000 26,413,120 974,387 796,130 38,973 111,802 450,000 49,709 io 974.387 38,973 450,000 Total Sn¢ome 44,488,973 974.387 45,463,360 27,370,761 EKpendltuYe on Ralsing funds Charitable activities Other expenditure 127,2201 127,2201 18,4531 4, 10 122,636,972) 1974,3871 123.611,3591 119.653,6821 1389,4021 1389,4021 191,7081 Total expenditure 123.053.5941 1974,3871 124.027.9811119,753,8431 Net gain/llossl on Investments 133.9281 133.9281 1,128 Nel income/lexpenditurel 2 21,401,451 21.401.451 7,618,046 Tran5fe¥s between fund5 Net movement in funds Reconciliation of funds Total funds brought forward 45,895,039 45,895,039 38,276,993 Total funds carrfed forward 9 67,296,490 67,296,490 45,895,039 The Trust's income and expenses relate to both unrestricled and restricted funds and continuing charitable operations. The restTlCted funds are described in nDte 10. The statement of financial activlties also complies wlth the requirements for an income and expenditure account under the Companies Act 2006. The Trust has no recognised gains or losses other than the net increase in funds for the year. 15
England and Wales Crtcket Trust IA company limited by guarantee) Balance Sheet As at 31 January 2022 2022 2021 Notes Fixed as5et5 Investments 20,719,878 23,375,372 Current assets Cash at bank Investments Prepayments Social investments.. amounts falling due within one year Social investment5.' amounts falling due after more than one year Debtors.. amount5 falling due within one year 47,721,051 3,920,782 17,389,718 159,705 1,188,713 329,656 2,369,062 3,132,464 96,500 44,000 51,535,031 24,816,620 Current Liabilities Amounts falling due within one year 14,958,419112,296,9531 Net current assets 46.576,612 22,519,667 Total assets less current liabilities 67,296,490 45,895,039 The funds of the charity Unrestricted income funds Restricted income fund5 67.296,490 45,895,039 io Total funds 67,296,490 45,895,039 These fSnanclal Statements of England and Wales Cricket Trust, company registration number 5483977, were approved on 9th May 2022. lan Lov Trustee Tom Harrison Trustee 16
England and Wales Cricket Trust IA company limited by guarantee) Notes to the Financial Statement5 As at 31 January 2022 Accounting policies Basks of preparation The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards, the applicable requirements of the Statement of Recommended Practice ISORPI 'Accountlng Jnd Reporting, by Charities, FRS102, the Trust Deed, and the Companies Act. The particular accounting policies adopted are described below and have been applled consistently throughout the year and the preceding year. Per FRS 102, a public benefit entity IPBEI is an entity whose primary purpose is for publlc and social benefit and not to provide a financial return to its shareholders. The Trustees have assessed that the Company meet5 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") 55 a private company limited by guarantee and incorporated, domiciled and registered In England, in the United KinBdom. These financlal statements were prepared in accordance with Financial Reporting Standard 102 The Finonciol Reporting Stondurd applicable in the UK and Republic of Ireland I'FRS 102,1 as issued in August 2014. The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £. The Company's ultimate controlling party, England and Wales Cricket Board Limlted, includes the Company in Its consolidated financial statements. The consolidated financial statement5 of England and Wales Cricket Board Limited are prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland I'FRS 102,1 and are available to the public Bnd may be obtained from Lord's Cricket Ground, London, NW8 8QZ. In these financial statements, the company is considered to be a qualifying entity (for the purp05e5 of this FRSI and has applied the exemptions available under FRS 102 in respect of the followlng disclosures- Cash flow statement- Transactions Wlth Key Management Personnel,. Related party transactions entered into between two or more members of a group (for wholly-owned subsidiariesl- Due to the economic ¢ondition5 and uncertainties faced over the past few years as a result of COVID- 19, the trustees have made enquiries regarding ECB support and future government fundSng. The ECB made a significant contribution to the Trust at the end of the financial year. The trustee5 have a reasonable expectation that the Trust has adequate resources to continue in exlstence for the foreseeable future. For this reason, the trustees continue to adopt the going concern basis in preparin8 the accounts. As the Trust is funded by reseNes, which at present are adequate to cover more than the next 12 months of budgeted expenditure, there are currently no anticipated issues around Boing concern, although the Trusts activitles may be modified to best assist the recreational game in the future. As Ewcf relies on these reserves to fund it5 activities, it Is not rellant on significant income over the next 12 months 17
England and Wales Cricket Trust IA company limited by guarantee) Notes to the Financial Statements Year ended 31 January 2022 Accountlng policies Icontinuedl 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 15 probable that the income will be received and the amount can be rlleasured 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. Qonations and legacies are recognised in the SOFA in the period in which they are received and paid. Income from charitable activities Capital grant fundin@ from Sport England is recognlsed in the period to which it relates and matched to the appropriate 8rant 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,. thi5 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 objectlves of the Trust,. either revenue grants (County Cricket Boards and cricketing charitiesl Dr capltal grants (cricket club5 and other appropriate applicants, e.B. local authorities). Revenue grant5 The Trust's intention to pay a certain level of grants to County Cricket Boards ICC8sl and cricketing charities 15 set out in the new 2021-24 County Partnership Agreernent 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 nationally and strategic objective. The individual Erants are recognised once an offer letter ha5 been made for the club to sign and return. EWCtCounty Grants are paid to applicants from a formula-based budget allocated to County Cricket Boards and Foundations. Thi5 budget is spread across the 2022 and 2023 financial year5 due to the delayed launch of the funding programme. Return to Cricket grants were funded by re311ocating County Grants Funds and other budgets to support club5 during the COVID-19 crisis. The indlvidual grants were recognised once an offer letter has been made for the club to sign and return. The scheme closed in 2021. 18
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2022 Accountlng policie5 Icontinuedl Emergency Fund grants are paid as required from the Trust's accumulated Investment income with an additional budget allocation. The grants are recognised once an offer letter has been made for the club to sign and return. Allocation of support and governance costs Support costs have been allocated between governance costs and other support cost5. Governance costs comprlse all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statLJtory audit and legal fees together with an apportionment of overhead and support costs. Governance costs and Support Costs relating to charitable activitie5 have been apportioned based on the number of individual grant awards made in recognition that the administrative costs of awardin& monitoring and assessing loan5 and different categories of grants are broadly equivalent. The allocation of support 3nd governance costs is analysed in note 4. Concesslonary loarh5 England and Wales Cricket Trust makes interest free loan5 to third parties which are repayable Sn line with agreed upon payment 5chedLJles. In line with FR5102 PBE34, Concessionary Loans are initiallv measured at the amount received or paid. In subsequent year5, the carrying amount of concessionary loans in the financial statements Is adjusted to reflect any accrued interest payable or receivable. To the extent that a loan is irrecoverable, an impairment Ioss is be recogn15ed in the statement of financial activities. Accounting Convention These account5 are prepared under the hlstorical cost convention. Company status The Trust 15 a Company limited by guarantee. The Member of the Trust (England and Wales Cricket Board) undertakes to contribute a sum not exceeding £1 to the assets of the Trust rf it is wound up during its membership or within one year afterwards. Resources expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where cost5 cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of resouices. Grants are charged to the statement of financial activities when a constructive obligation exists not withstanding that they may be paid in future accounting periods. Governance costs are the costs associated with the governance arrangements 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 strateglc as opposed to day-to-day management of the Trust's activities. Charltable activities include costs of grants. 19
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements {continuedl Year ended 31January 2022 Accountlng policies Icontinuedl Funds Unrestricted funds are funds that are available for use at the discretion of the Trustees in furtherance of tlie 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. Tax England and Wales Cricket Trust is a regISted charity and, as such, is exempt from taxation on its income to the extent that the income 15 applied to its charitable purposes. Investments Investments are held in the form of cash deposits and are determlned as current or non-current on the basis of whether they are planned to be reinvested over the next 12 months. Deposits with an intended investment term of longer than one year are classified as non-current investments. Result for thè year 2022 2021 Net income/lexpenditurel for the year 21,401.451 7,618,046 stated after charging.. Fees payable to the company's auditor for the audit of the cotmpany's annual accounts linclusive of VATI 12,400 12,600 Ultimate tontrolling party The England and Wale5 Cricket Trust Is a company limited by guarantee, so has no share capltal. On the basis that the Trust is considered to be a subsidiary of the England and Wales Cricket Board Llmited, its financial re5uIt5 arid position are consolidated into the group accounts of England and Wales Cricket Board Limited. Copies of these group accounts can be obtained frotn 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 2022 Resources expended 2022 2021 Charitable activities Unrestricted funds Grants to County Boards Grants to cricketing charities Grant5 to cricket clubs and organisations 11.597,745 10.824,245 3.329.820 1,829,333 7,709,407 6,203,974 22,636,972 18,857,552 Restricted funds Sport Wale5 Sport En8land- Club GrBnts Sport England- Grant5 to Cricketing Charities 126,498 419,632 250,000 717,374 257,013 974,387 796,130 Governance costs Expendlture on raising funds 389,402 27.220 91.708 8,453 Total resource5 expended 24,027,981 19,753,843 Revenue grants to the 39 County Cricket Boards contribute to thelr running costs, plus delivery of local cricket lincluding competitions) fo¥ all aEes and abilitie5. Grant5 are made to speciali5ed Institutlons to assist them in deliverin@ their cricket programmes. Facilities grants to cricket clubs comprise a major grants scheme (Strategic Grants Fundl for larger- scale facility improvements; a smaller grants scheme (County Grants Fundl for awards from £1,000 to £10,000 for specific projects.. an emergency fund fDr clubs affected by a crlsls, for example flooding,. and a COVID-19 specific emergency grant 5chewne (Return to Cricket) to support clubs due tg the disruption caused by COVID-19. Revenue grants to crlcket clubs comprise an inclusive cricket grant I#Funds4Runsl, paid to cricket provider5 in urban andlor deprived areas,. a fixed-amount grant Ilnspired to Playl to extend affiliated cricket clubs, offer for women and children- and a fixed-amount grant (Disability Champion Clubs) which rewarded clubs retrospertively that introduced new disability cricket programmes. A list of grants is available from the England and Wales Cricket T¥ust. 21
England and Wales Cricket Trust {A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2022 Resources expended Icontinuedl The Trustees did not receive any emoluments in respect of their services to the Trust during the year or prior year. No Trustees received reimbursernent iri relation to out of pocket expenses fortravel and subsistence durin@ the period Ino Trustees were pJid in 2020/20211- Analysls of Support and governance costs The Trust initially identifie5 the costs of its support function5. It then Identifie5 those costs which relate to the governance funttion. Refer to the table below for the basis for appDrtionment and the analysis of support and governance c05t5. General support Governance Function/general Total Basis of apportionment Audit costs 12,400 12,400 Governance Legal 2,288 2,288 Specific legal Tax advice fees Governance Club insurante scherne management fee5 232,393 232,393 General Support Geneyal allowance for doubtful debt Iloan scheme) 141,875 141,875 Loans scheme Trustee expenses Bank charges Governance 446 446 Governance TOTAL 374.268 15,134 389,402 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 deposits with investment terms of less than one vear. 22
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2022 Social investments 2022 2021 Amounts falllng due within one year: Interest free loans to cricket clubs Emergency COVID-19 interest free loans to cricket clubs and leagues 1.016,115 172,598 233,173 96,483 Total amount falling due within one year.. 1,188.713 329.656 Amounts f6lling due after more than one year: Interest free loans to cricket clubs Emergency COVID-19 interest free loans to critket clubs and leagues 2,288,843 2,933,631 80,219 198,833 Total amount falling after more than one year.. 2,369,062 3,132,464 As at 31 january 2022, interest free loan5 to recreational Cricket clubs since the scheme began totalled £10,465,724 12021.. £9,803,505). In addition, loan offers made to clubs but not yet advanced totalled £140,872 12021.. £37,578). In 2021122 £187,143 allowance for doubtful debts has been made 12021.. E45,2681, which constitutes both a general provision of 2.5% of the outstanding loan balance Dlder than 3 years plus a specific provision. 2022 2021 Programme related investments Iloansl Loans outstanding at start of year Les5 loan repayments during year New loans advanced during year 3.212,072 2,870,927 1364,2861 1324,8911 644,315 666,036 Loans outstanding at end of year Provision for doubtful debts 3.492,101 1187.1431 3,212,072 145,2681 Loans outstanding at end of year 3.304,958 3,166,804 23
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements {continued) Year ended 31 January 2022 Social investments Icontlnuedl 2022 2021 COVID-19 related Investments Iloansl Loans outstanding at start of year New loans advanced during year Less loan repayments during year 295,316 17,904 160,403} 2,870,927 298,816 13,5001 Loans outstanding at end of year Provision for doubtful debts 252,817 295,316 Loans outstanding at end of year 252,817 295.316 Debtors 2022 2021 Amounts falling due wlthin one year: Partnership funding County Board Debtors Club Debtors 90,000 36,000 8,000 6,500 96.500 44,000 Creditors 2022 2021 Amounts lalling due within one year: Accruals (grant claims received before year end and audit fees) Creditors Deferred income 1,844,427 1,412,071 2,650,997 462,995 884,882 4,958.419 2,296,953 24
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2022 Fund balances Analysls of movements in unrestricted fund5 Balances as at start Incoming of year resources Balances as at end of year Resources expended Transfers General fund Designated Emergency fund 45,407,358 44.349,029 122,884,9451 487,681 106,016 1168,6491 66,871,442 425,048 Total funds 202112022 45,895,039 44.455,045 123,053,594) 67,296,490 Total funds 202012021 38,276,993 26,575.759 118,957,713) 45,895,039 The unrestricted fund include5 all general donations. 10. Analysis of movements in restricted funds Balances as at start of the Incoming Resources year resourtè5 expended Balances as at end of year Transfers Sport England 974.387 1974,3871 Total 202112022 974,387 1974,3871 Total 202012021 796,130 1796,1301 Name of restrlcted fund Sport England Description, nature and purp05e5 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. 11. Related parties The company has taken advantage of the exemption in section 33. IA of FRS 102 from disclosinE transactions with Its ultimate controlling party, the ECB. There were no transactions with other related parties during the year. 25