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 enhan￿d 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 Practi￿1, 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