Company Registration No. 5483977 Charity No. 1112540 England and Wales Cricket Trust (A company limited by guarantee) Annual Report and Financial Statements 31 January 2023
England and Wales Cricket Trust (A company limited by guarantee) Annual Report and Financial Statements for the year ended 31 January 2023 Contents Page Officers and Professional Advisers Trustees, Report statement of Trustees, Responsibilities io Independent Auditor's 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 (A company limited by guarantee) Annual Report and Financial Statements for the year ended 31 January 2023 Officers and Professional Advisers Directors and Trustees lan Lovett Richard Gould lappointed 2. February 20231 Scott Smith James Wood Peter Ackerley Sancha Legg Ruth Sienkiewicz Forhad Hussain (appointed 2 June 20221 Tom Harrison (resigned 5, June 20221 nd Registered Office Lord's Cricket Ground St John's Wood London NW8 8QZ Registered Charity Number 1112540 Bankers National Westminster Bank plc 106 Finchley Road Swiss Cottage London NW3 5JN Solicitors Bates Wells & Braithwaite LLP 2-6 Cannon Street London EC4A 6YH DB Pitmans LLP 107 Cheapside London EC2V 6DN Audltor KPMG LLP 15 Canada Square London E14 5GL
Trustees, Report structure, governance and management The Trustees, who are also the directors for the purposes of Company Law, submit their report and the financial statements of England and Wales Cricket Trust I"The Trust" or"EWCf'l for the year ended 31 January 2023. 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 responsibility for the direction, Management and control of the England and Wales Cricket Trust. Objectlves and activitie5 The objectives of the Trust are, for the benefit of the public, to.. promote community participatlon in healthy recreation by providing facilitie5 for playing cricket,. and lill promote all purposes as recoEnised as charitable under the law5 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 performance The key elements of the charity's strategy are: to continue to deliver revenue funding to the recreational game to facilitate the existinE 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 recreational 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 specifically for facilities at recreational cricket clubs to support their cricket programme5; liiil to seek to provide facility grants both for cricket machinery and wider f3cility enhancements to support the recreational Eame,. and livl to support other cricketing charities whose objects are aliBned with that of the Trust. In 2022123, the Trust made donations totaling £2,965,00012022.' £2,286,834) to Chance to Shine and £926,225 12022.. £500,0001 to Lord's Taverners. The activities of the Trust are funded using a combination of restricted ftjnds from Sport England and the Trust's unrestricted and des18nated funds. The interest free loan scheme is funded wholly from the Trust's unrestricted funds. Incorporation England and Wales Cricket Trust, a private company limited by guarantee (No. 54839771, was incorporated on 17 June 2005 by a Memorandum and Articles of Association and is a registered charity (No. 11125401. The registered office of the company and Trust 15 Lord's Cricket Ground, London, NW8 8QZ.
Trustees, Report (continued) Trustees The Trustees serving during the year were.. Positlon with related partie5 Trustees lan Lovett President, England and Wales Cricket Board Tom Harrisorb Board Member, Chief Executive Officer, England and Wales Cricket Board Scott Smith 8oard Member, Chief Finance Officer, England and Wales Crickel Board James Wood Board Member, England and Wales Cricket Board,. Member, Devon County Cricl(et Club Peter Ackerley Director, Lancashire Cricket Foundation- Committee Member, Lord's Taverners Sancha Legg Committee Member, ECB Participation & Growth Committee Ruth Sienkiewicz None Richard Gould Board Member, Chief Executive Officer, England and Wales Crickel Board Forhad Hussain Nor)e The board is made up of eight 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 relevant to the charity. The board commits to revlewing the individuals on the board annually at a Trustees, 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 and policy, whilst leaving the day-to-day matters to the management team or to specific individuals. The management team consists of individuals with specific knowledge of Club and Facllity Management and Development, Cricket Board Management and Development and Finance. NewTrustees meet with the current Board members at the Trustees, meeting, and prior to this with the Finance team responsible for the Trust, who provide relevant documents and information about the role. Any Trustee updates le.g. from the Charity Commissionl or decisions to be made are communicated by the Project Accountant responsible for EWCT.
Trustees, Report (continued) Risk management and internal control The Trustees have overall responsibility for ensuring that the Trust operates an appropriate system of controls, financial and otherwise, to provide reasonable assurance that the Trust Is operating efficiently and effectivelv, and that the Trust complies with the relevant laws and regulatlQn5. Powers To further its objectives, the Trust may- provide grants and loans for capital improvements to grounds and facilities of community recreational sports clubs, County Boards, charitable sports clubs and other bodie5; and lill provide and assist in the provision of money, materials or other help. 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 conditions are fulfilled. Grants are approved and monitored by the relevant members of the management team. Soci31 Investment policv The Trust administers an Interest Free Loan Scheme IIFLSI, which aims to finance capital projects to help create a sustainable future for cricket. The scheme can be partnered with the EWCT Strategic grants and County grants schemes 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 ha5 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 proce55 of fundraising or building reserves. This in turn often allow5 clubs to increase revenues due to enhanced facilitie5, 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 the loan in the event of a default, or occasionally (for large value loansl it takes out a legal charge over the club's Employees The Trust does not employ any members of staff. Reserves policy The Trust plans to maintain reserve5 $0 that at all time5 during the year, as a minimum, reserves are at least.. the level of interest free loans to be made to recreational crlcket clubs,. plus the level of expenditure, both charitable spend and overheads, expected in the next 12 months. To date, donat10115 have tended to be received towards 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 reserves of at least two times annual expenditure plus the planned loan pool. In addition, we take into account that the major donor has 8 highly cyclical business, Wlth annual profits varying significantly year-on-year. This means ihat on occasion, reserves will be far higher than two
Trustees, Report (continued} times annual expenditure plus the loan pool. For 2022/23, ECB, as the parent company, made no donation during the year. Investment policv It is the policy of the Trust to place it5 investments in cash deposits which provide appropriate liquidity, and which are deemed to be of low risk as defined by the agreed Treasury Management policy. Golng concern The Trustees 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 concern basis in preparinE the accounts, as disclosed in the accounting policies. As the Trust is funded by reseNes, which at present are adequate to cover more than the next 12 month5 expenditure, there are turrently no anticipated issues surrounding going concern. Thi5 is reviewed in further detail in the Basis for Preparation under Note I to the accounts. Strategic report Financial revlew and performance During the period, the Trust received income from charitable activities amounting to £617,651 12022.. £974,3871. The Trust made revenue grants to County Cricket Boards amounting to £11,289,068 12022.. £11,597,745) in accordance with the County Partnership Agreement ICPAI. Other charitable spend was £17,985,98712022-. £12,013,614). Investment returns in 2023123 were £741,90712022.. £38,973). The Trust held unrestricted fund5 of £38,917,01612022 all unrestrictedfunds.. £67,296,490). The decrease in funds was due to the donation from the parent company of £44,000,000 in 2022. Financial commentary The charity made a deficit of £28,379,474 for the period, compared to a surplus of £21,401,451 in the previous year. This was due to the donation from ECB which exceeded eKpenditure for the year 2021/22. Donatlons were received toward5 the Trust'5 charitable activities from ECB, Sport England and LV= Insurance for the #Funds4Runs grant scheme. In addition, the Trust generated £740,178 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 Trust's expenditlfre has increased year-on-year. In 2022123, £29,275,055 was spent on charitable activitie5, compared to £23,611,359 in the previous period. The increase is due to 2022123 being the first full year of an 18 month budget period for the County Grants Fund, increased donations to cricketing charities to support the Youth Strategy, offset by the cessation of Return to cricket grants.
Trustees, Report {continued) Analysis of the Trust's performance agalnst oblectives As at 31 January 2023, interest free loans to recreational cricket clubs since the scheme began totaled £11,436,67412022.' EIO,465,7241. During the perlod, the Trust paid out £970,950 in 49 new loans, and loan offers made to clubs but not yet advanced totalled £106,50012022.' £140,872). In 2022123 total grants to clubs of £14,094,762 were made lincluding partner fundingl12022.' £8,426,781). Of these, £12,332,450 were for facilities projects. Ewcf administered three further revenue grant schemes on behalf of the Commercial, Participation and Growth, and Disability cricket Departments which are included in the total grants,. #Funds4Runs145 Erants totalling £373,712), Disability Champion Clubs138 clubs totalling £19,000) and Inspired to Play11,362 grants totalling £1,369,600). £6,009,973 was paid out in strategic grants in 2022123 including key investment5 into the City of Bradford la pilot scheme with a new "cricket shield" facilitating indoor/outdoor play plus an improvement to fine turf provision) and supporting the development of a new ground at Farington, in conjunction with Lancashire County Council. The County Grarbts Fund paid out grants of £5,793,583 acr05S Its thematic areas of Creating Welcoming Environments. Providing Enhanced Facilities or Playing Opportunities for Women and Girls, and Tackling Climate Change. 2023 2022 IFLS Breakdown Value of loans (rangel £3,000 to £66,150 £1,700 to £lOO,000 Number of loans New loans paid out in period 49 £970,950 44 £644,315 2023 2022 COVID-19 Loans Breakdown Value of loans Irangel Number of loans New loans paid out in perlod £17,904 £17,904
Trustees, Report (continued) Facility grants paid 2022123 Type of grant Number of grants Pald by EWCT Paid by funding partners TOTAL Total Strategic Grants Strategic Grants.. Urban Grants 27 £6,009,973 £6,009,973 18 £3,259,101 £3,259,101 Strotegic Grunts.. Women's & Girls, Grants £2,750,872 £2.750.872 Total County Grants County Grt7nts.' Welcoming und Inclusive Environments 669 £5,793,583 £5,793,583 418 £3,303,806 £3,303,806 County Gronts.. Providing Enhonced Focilities or Ploying Opportunities County Gronts.. Tuckling Climate Change Emergency Fund Other grants Total grants to cricket clubs and org3nisations 146 £1,631,999 £1,631,999 105 £857,778 £857,778 25 £528,894 £528,894 1,443 £1,762,312 £1,762.312 2,164 £14,094,762 £14,094,762 Summary analysis of expenditure and related income for charitable activities in 2023 Grants to County Boards Grants to cricketing charities Grants to cricket Clubs Total Costs 11,289,068 3,891,225 14,094,762 29,275,055 Grants 113,500 I13,5¢1 Net cost funded from other Income 11,289,068 3,777,725 14.094.762 29,161,555 Funding Funding continued in 2021122 to the 39 County Cricket Boards ICCBS) underthe County Partnership Agreement ICPAI. The CPA covers the period from I" February 2021 to 31" January 2025. The CPA sets out the framework for the funding of recreational cricket in England and Wales in the period. General EWCT funding I£IO,000,000 split across all County Cricket Boards, excluding any specific funding for the County Age Group competitions or other development programme51-
Trustees, Report (continued) This funding was used in line with the CPA to-. support the participation in, and consumptlon 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 across juniors (girls and boys) and adults Imale and female),. provide an accessible playing offering that includes- o the delivery of relevant ECB national products and programmes- a relevant offering for players from age 5 up, irrespective 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 provision5 3re in place for activities run by their organisation and support local cricl(et 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 players; and grow the number of education institutions that offer cricket. The principal donor to the Trust is ECB, and ECB has determined un-ringfenced funding to be paid to CCBS for Beneral 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. Rlsk management and Internal control During the year, a review of the major strategic, business and operational risks that the Trust faces was carried out. As part of this review, systems and additional proceclures 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 rlsk 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 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. A general bad debt provision for 2.5% of the value of loans over 3 years old is made, plus any specific loans where payments are in arrears andlor subject to legal action. Other Tru5t-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 storms). The impact has been partially mitl8ated by interest earned from the Trust's Investments being allocated to the emergency fund, as in previous years, but as interest earned on investments has decreased, a set budget is now allocated annually in order to cover a "normal" year of emergency funding for flood and drought. Plans for future perlods The Trust's wnain objective5 and activities for this five-year business cycle are..
Trustees, Report (continued) to administer the interest free loan scheme and 3im to support the recreational game in accessing this financing source for cricket club facilities through ECB'5 online Investment Management System IIMSI,. to administer and distribute the County Grants Fund to recreational cricket clubs and other local ricl(eting Organisations via the County Cricket Board and Foundation network and IMS,. to continue to support the County Boards and Foundation5 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 objectives; to oversee the liability insurance scheme for recreational cricket clubs,. and to provide support to recreational cricket clubs through special projects approved by the Trustees such as an emerBenty relief fund, a flood relief fund andlor a sustainable energy fund. Ivl Auditor Each of the persons who is a trustee at the date of approval of this report confirms that-. so far as the trustee5 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 helshe ought to have taken as a trustee in order to make himselflherself aware of any relevant audit information and to e5tabli5h that the company's auditor is aware of that Information. This confirm8tlon is given and should be interpreted in accordance with the provisions 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 Scott Smith Trustee 19 April 2023
Statement of Trustees, Responsibilities The trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and regulations. Company law require5 the trustees lo prepare financial statements for each financial year. Under that law they are required to prepare the financial statements in accordance with UK Accounting 5tandard5 and applicable law IUK Generally Accepted AccoLJnting 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 5atlsfied that they give a true and fair 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 consistently* make judgements and estimates that are reasonable and prudent- assess the charitable company's ability to continue as a going concern, disclosinE, 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 company's transactions and disclose with reasonable accuracy at any time the financi81 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 statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregtjlarities. io
Independent auditor's 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 company") for the year ended 31 January 2023 which comprise the Statement of financial activities, the Balance sheet and related notes, including the accounting policies in note l. In our opinion the financial statement5- give a true and fair vlew of the charitable company's affairs as at 31 January 2023 and of its incoming resources and application of resources, including it5 income and expenditure, for the year then ended,. have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financiol Reporting Standard opplicuble in the UK ond Republic of Ireland,. 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 have 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 concern 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 companty5 financial posltion 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 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 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 ba515 of accounting in the preparation of the financial statements is appropriate,. we have not identified, and concur with the trustees, assessment that there is not, a material uncertainty related to events or condition5 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 event5 or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a Buarantee that the Eroup 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 ond responding to risks of mttterlol misstatement due tofraud To identify risks of material mlsstatemÈnt due to fraud I'fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedure5 included.. Enquiring of Trustees, other management and legal department and inspection of policy documentation as to the charitable company's high-level policies 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 environment, we perform procedures to address the risk of management override of controls. On this audit, we have not identified any fraud risk. We performed procedures including.. Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted to unusual accounts to cash balances. Identifying and responding to risks of muterial misstatement due to non-complionce with laws ond gUIl)tIons 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 experience through discussion with the trustees and other management las required by auditing standardsl, 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 effect of these laws and regulations on the financial Statements varies considerablv. Firstly, the charitable company is subject to law5 and regulations that directly affect the financial 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 regulations as part of our procedures on the related financial statement items. Secondly, the charitable company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosure5 in the financial statements, for instance through the imposition of fines or litigation. We identifled 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 Wales Cricket Trust (continued) Fraud and breaches of Saws and regulations- ability to detect Icontinuedl compliance with these13ws and regulations 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 us or evident from relevant correspondence, an audit will not detect that breach. Context of the ability of the oudit to detectfroud or breoches of low or regulotion 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 audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulation5 is from the event5 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, forEery, 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 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 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 misstated or inconsistent with the financial statement5 or our audit knowledge. 8ased 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 corbsistent with the financial 5tatement5,' aTbd in our opinion that report been prepared in accordance with the Companies Act 2006. Matters on which we are required to report by exception Under the Companies Act 2006 we are required to report to you if, in our opinion.. 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 charitable company financial statements are not in agreement with ihe accounting records and returns,. or certain disclosure5 of trustees, remuneration specified by law are not made; or we have not receNed all the information and explanations we require for our audit. We have nothing to report in these respects. 13
Independent auditor's report to the members of England and Wales Cricket Trust (continued) Trustees, responsibilities A5 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 lawl 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, disc105ing, as applicable, matters related to going concern,. and using the going concern basi5 of accounting unle55 they either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so. Audltor's responslbllitles 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 i55ue our opinion in an audito¢s report. Reasonable assurance is a high level of assurance, but doe5 not guarantee that an audit conducted in accordance with ISAS IUKI 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 www.frc.or .uk auditorsres of our responsibilitie5 provided on the FRC'S website at The purpose of our audit work and to whom we owe our responslbllltles 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 auditorfs 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 aUdt work, for this report, or for the opinions we have formed. Jonathan Russell {Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditoy CharteredAccountantS IS Canada Square London E14 5GL 27April 2023 14
England and Wales Cricket Trust (A cornpany limited by guarantee) Statement of Financial Activities For the year ended 31 January 2023 Unrestricted funds Restricted funds 2023 2022 Notes Income Donations and legacies Income from charitable activitiÈs Income from investments Other income 44,000,000 974,387 38,973 450,000 io 617,651 617,651 741,907 10,000 741,907 10,000 Total income 751,907 617,651 1,369.558 45,463,360 Expenditure on Raising funds Charitable activities Other expenditure {31,889) 131,889} 127,2201 4, 10 {28.657,404} 1617,6511 {29,275,055) 123,611,359) 1440,3581 {440,358} 1389,4021 Total expenditure {29,129,6511 1617,6511 {29.747.302) 124,027,981) Net gainlllossl on investments 11,7301 11,7301 133,9281 Net incomellexpenditurel 128,379,474) 128,379,474) 21,401,451 Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward 67,296,490 67,296,490 45,895,039 Total funds carried forward 9 38,917.016 38,917.016 67,296,490 The Trust's income and expenses relate to both unrestricted and restricted funds and continulng charltable operations. The restricted funds are described in note 10. The statement of financial activities also complies with 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 Cricket Trust {A company limited by guarantee) Balance Sheet As at 31 January 2023 2023 2022 Notes Fixed assets Investments 37,079,927 20,719,878 Current assets Cash at bank Investments Prepayments Social investments: amounts falling due within one year Social investments-. amounts falling due after more than one year Debtors: amounts falling due within one year 5,286,781 47,721,051 159,705 1,059,544 1,188,713 2,272,675 2,369,062 56,470 96,500 8,675,470 51,535.031 Current Liabilitie5 Amounts falling due within one year 16,838,381114,958,4191 Net current assets 1,837,089 46,576,612 Totsl assets less current liabilities 38,917,016 67,296,490 The funds of the charitv Unrestricted income funds Restricted income funds 38.917.016 67,296,490 io Total funds 38,917,016 67,296,490 These financial statements of England and Wales Cricket Trust, company registration number 5483977, were approved on 19April 2023. IJJ lan Lovett Trustee Scott Smith Trustee 16
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements As at 31 January 2023 Accounting policies Basis 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 'Accounting ond Reportin9' by Charities, FR5102, the Trust Deed, and the Companies Act. The particular accounting policies adopted are described below and have been applied consistentlv throughout the year and the preceding year. Per FRS 102, 3 public benefit entity IPBEI is an entity whose primary purpose 15 for public 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 (the 'Company"l is a private company limited by guarantee and incorporated, domiciled and registered in England, in the United Kingdom. These financial statements were prepared in accordance with Financial Reporting Standard 102 The Finunciol Reporting Stondord applicable in the UK and Republic of Ireland l 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 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 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 and may be obtained from Lord's Cricket Ground, London, NW8 8QZ. In these financial statements, the company is considered to be a qualifying entity Ifor 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 transactions entered into between two or more members of a group (for wholly-owned subsidiariesl. The EC8 made a significant contribution to the Trust at the end of the 2022 financial year. The trustees 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 concern basis in preparing the accounts. As the Trust is funded by reserves, which at present are adequate to cover more than the next 12 months of budgeted expenditure, there are currently no anticipated issues around going concern, although the Trusts 3ctlvities may be modified to best assist the recreational game in the future. As EWCT relies on these reserves to fund its activities, it is not reliant on significant income over the next 12 month5. 17
England and Wales Cricket Trust {A company limited by guarantee) Notes to the Financial Statements Year ended 31 January 2023 Accounting policie5 Icontinuedl Incoming resources Income Is recogni5ed when the charity ha5 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 Grant funding from Sport England is recognised in the period to which it relates 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 cricketin8 chaiitiesl or capital grants (cricket clubs and other appropriate applicant5, e.g. local authorities). Revenue grants The Trust's intention to pay a certain level of Erants to County Cricket Boards ICCBSI and cricketing charities is set out in 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 nationally and Strategic objective. The individual grants are recognised once an offer letter has been made for the club to sign and return. EWCT County Grants are paid to applicants from a formula-based budget allocated to County Cricket Boards and Foundations. This budget is spread across the 2022 and 2023 financial vears due to the delayed launch of the funding programme. 18
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2023 Accounting policie5 (continued) Emergency Fund Brants are pald as required from the Trust's accumulated investment income with an additional budget allocation. The grants are recognisÈd 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 Eovernance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with reEulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. Governance costs and support COSts relating to charitable activities have been apportioned based on the number of individual grant awards made in recoEnition that the administrative costs of awarding, monitoring and assessing loans and different categories of grants are broadly equivalent. The allocation of support and governance costs is analysed in note 4. Conce5sionary loans England and Wale5 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 reflect any accrued interest payable or receivable. To the extent that a loan is irrecoverable, an impairment loss is be recognised in the Statement of financial activities. Accounting convention These accounts are prepared under the historical cost conventlon. Company Status The Trust is a Company limited by guarantee. The Member of the Trust IEngland and Wales Cricket Board) undertakes to contribute a sum not exceeding £1 to the assets of the Trust if it is wound up during its membership or within one year afterwards. Resources expended All expenditure is accounted for on an accrua15 basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly 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 constructive obligation exists not withstanding that they may be paid in future accounting periods. Governance costs are the costs a55ociated with the governance arranEements 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 strateBiC as opposed to day-to-day management of the Trust's activities. Charitable activities include costs of grants. 19
England and Wales Cricket Trust IA company Simited by guarantee) Notes to the Financial Statements {continued) Year ended 31 January 2023 Accountlng pollcles Icontlnuedl Funds Unrestricted funds are funds that are available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust and which have not beet) designated for other purposes. Restricted funds relate to funds received from donors for specified purpose5. Tax England and Wales Cricket Trust is a registered charity and, as such, is exempt from taxation on its income to the extent that the income is applied to its charitable purp05es. Investments Investments are held in the form of cash deposit5 and are determined a5 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 the year 2023 2022 Net incomellexpenditurel for the yeai 128,379,474121,401,451 Stated after charging.. Fee5 payable to the company's auditor for the audit of the company's annual accounts linclusive of VATI 17,480 12,400 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 con501idated into the group accounts of England and Wales Cricket Board Limited. Copies of these group accounts can be ohtained 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 2023 Resource5 expended 2023 2022 Charitable activities Unrestricted funds Grants to County Boards Grants to critketing charities Grants to cricket clubs and organisations 11,289,068 11,597,745 3,777,725 3,329,820 13,590,611 7,709,407 28,657,404 22,636,972 Restricted funds Sport England - Club Grants Sport England Grants to Cricketing Charities 504,151 113,500 717,374 257,013 617.651 974,387 Governance costs Expenditure on raising funds 440,358 31,889 389,402 27,220 Totsl resources expended 29,747,302 24,027,981 Revenue grants to the 39 County Cricket Board5 contribute to their running costs, plus delivery of local cricket lincluding competitions) for all ages and abilities. Grants are made to specialised institutions to assist them in delivering their cricket programmes. Facilities grants to cricket clubs comprise a major grant5 scheme1Strategic Grants Fund) for larger- scale f3cility improvements,. a smaller grants scheme Icounty Grants Fund) for awards from £1,000 to £10,000 for specific projects,. an emeoency fund for clubs affected by a crisis, for example flooding. Revenue grant5 to cricket clubs comprise an inclusive cricket grant I#Funds4Runsl, pald to cricket provider5 in urban and/or deprived area5,' 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 retr05pectively that introduced new disability cricket programmes. A list of grants is available from the Englarbd and Wales Cricket Trust. 21
England and Wales Cricket Trust {A company limited by guarantee) Notes to the Financial Statements {continued) Year ended 31 January 2023 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 reimbursement in Telation to out of pocket expenses for travel and subsistence during the period Ino Trustees were paid in 2021/20221. Analysls ol support and governance costs The Trust initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. RefÈr to the table below for the basis for apportionment and the analysis of support and governance costs. General 5UPPOrt Governance Function/general Total Basi5 of apportionment Audit costs 17,480 17,480 Governance Legal 5,571 5.571 Specific legal Tax advlte fees Governance Club insurance scheme management fees 462,641 462,641 General Support General allowance for doubtful debt (loan scheme) 145,6191 145,6191 Loans scheme Trustee expenses Governance Bank charges 285 285 Governance TOTAL 417,022 23,336 440,358 Investment5 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 year. 22
EnEland and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements {continued) Year ended 31 January 2023 Social investments 2023 2022 Amounts falling due within one yeay: Interest free loans to cricket clubs Emergency COVID-19 interest free loans to cricket clubs and leagues 1,006,286 1,016,115 53,258 172,598 Total amount falling due within one year: 1,059,544 1,188,713 Amounts falling due after more than one year: Interest free loans to cricket clubs Emergency COVID-19 interest free loans to cricket clubs and leagues 2,240,039 2,288,843 32,636 80,219 Total amount falling after more than one year: 2,272,675 2,369,062 As at 31 January 2023, interest free loans to recreational cricket clubs since the Scheme began totalled £11,436,67412022.' £10,465,724). In addition, loan offer5 made to club5 but not yet advanced totalled £106,50012022.. £140,8721. In 2022123 £141,524 311owance for doubtful debts has been made 12022.. £187,143), which constitutes both a general provision of 2.5% of the outstandin8 loan balance older than 3 years plus a specific provision. 2023 2022 Programme related Investments (loans) Loans outstanding at start of year Less loan repayments during year New loans advanced during year 3,492.101 3,212,072 11,075,202) 1364,2861 970,950 644,315 Loans outstanding at end of year Provision for doubtful debts 3,387,849 3,492,101 {141,5241 1187,1431 Loans outstanding at end of year 3,246,325 3,304,958 23
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2023 Social investments Icontinuedl 2023 2022 COVID-19 related investment5 (loans) Loans outstanding at start of year New loans advanced during year Less loan repayments during year 252,817 295,316 17,904 160,4031 1166.9231 Loans outstanding at end of year Provision for doubtful debts 85.894 252,817 Loans out5tandin8 at end of year 85,894 252,817 Debtors 2023 2022 Amounts falling due wlthin one year: Partnership funding County Board Debtois Club Debtors 41,156 90,000 15,314 6,500 56,470 96,500 Creditors 2023 2022 Amounts falling due within one year: Accruals Igrant claims received before year end and audlt feesl Creditors Deferred income 631,482 1,844,427 6,206.899 2,6SO,997 462,995 6,838,381 4,958,419 24
England and Wales Cricket Trust (A company limited by guarantee) Notes to the Financial Statements (continued) Year ended 31 January 2023 Fund balances Analysi5 of movements in unrestricted funds Balances a5 at start Incomlng of year resources Balances as at end of year Resourtes expended Transfers General fund Designated Emergency fund 66,702,793 593,697 711,204 128,600,757) 38,973 1528,8941 38,813,240 103,776 Total funds 202212023 67,296,490 750,177 129.129.651) 38,917,016 Total funds 202112022 45,895,039 44,455,045 123.053.594) 67,296,490 The unrestricted fund includes all general donations. 10. Analysls of movements in restricted funds Balances asatstart of the Incomlng Resources year resources expended Balances as at end of Transfers year Sport England 617,651 1617.6511 Total 202212023 617,651 1617,651) Total 202112022 974.387 1974,3871 Name of restricted fund Sport England Descriptlon, nature and purposes of the fund The fund5 are required to be used to aid the delivery of development programme5 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 disclosing tran53Ctions Wlth its ultimate controlling party, the ECB. There were no transactions with other related parties during the year. 25