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2020-11-30-accounts

Charity Registration No. 1112571

Company Registration No. 05493713 (England and Wales)

York City Knights Foundation Annual Report And Unaudited Financial Statements

For The Period Ended 29 November 2020

YORK CITY KNIGHTS FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr I Wilson Mr M Campbell Mr J Stearman

Charity number

1112571

Company number 05493713 Registered office Triune Court

Triune Court Monks Cross Drive York YO32 9GZ

Independent examiner

Laura Masheder FCA DChA Garbutt & Elliott LLP Triune Court Monks Cross Drive York YO32 9GZ

YORK CITY KNIGHTS FOUNDATION

CONTENTS

Page
Trustees report 1 - 3
Statement of Trustees' responsibilities 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 15

YORK CITY KNIGHTS FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 29 NOVEMBER 2020

The Trustees present their report and financial statements for the period ended 29 November 2020. The financial statements include all transactions up to 30 November 2020 as the charity has taken advantage of the concession available to companies to prepare their accounts up to seven days either side of the year end.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019) .

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law and throughout the report are collectively referred to as Trustees.

Principal activity and business review

The principal activity of the charity is to provide a wide range of services and activities for the benefit of the community through education, sport and physical activities.

The results for the period and the charity's financial position at the end of the period shown are attached in the financial statements.

When planning the activities of the charity, the Trustees have had regard to the guidance issued by the Charity Commission on public benefit.

Reference and Administrative Details

The Legal and Administrative Information page forms part of this report.

Objectives and activities

The Charity's objects (the "Objects") are for the benefit of the public generally and, in particular the inhabitants of York and North Yorkshire and their surrounding areas:

a. To promote community participation in health recreation by providing facilities for the playing of rugby league and other sports ("facilities" in this clause means land, buildings, equipment and organising sporting activities).

b. To provide and assist in providing facilities for sport, recreation or other leisure time occupation of such persons who have need for such facilities by reason of their youth, age, infirmity or disablement, poverty of social and economic circumstances or for the public at large in the interests of social welfare and with the object of the improving their conditions of life.

c. To advance the education of children and young people through such means as the trustees think fit in accordance with the law of charity.

d. Protecting and preserving the health of young people in such charitable ways as the trustees see fit.

e. Providing or assisting in the provision of courses, lectures, demonstrations and coaching for teachers who organise or supervise playing or coaching rugby league and such other games or sports.

Achievements and performance

The Foundation is currently working with more than 100 schools (both primary and secondary). Annually we work with more than 10,000 people by providing rugby league coaching sessions to schools, colleges & universities. We deliver a boys player development programme, a girls participation and player development programme, we support the York City Knights Ladies and run a Disability Rugby League section. Alongside this we deliver physical and mental health fitness sessions, memories sessions for those who are isolated, school holiday sessions and programmes for disadvantaged young people and lonely as well as school assembly programmes and initiatives.

YORK CITY KNIGHTS FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

The York City Knights Foundation is supported by players and staff from the York City Knights, who we utilise, alongside our staff and volunteers, in all of the above. Our aim is to be able to continue to provide these opportunities and expand on them which will enable us to have a positive effect on our community.

Financial review

Income for the year was £110,823 which after expenditure of £103,517 resulted in net income for the year of £7,306.

At 29 November 2020 the financial statements show an unrestricted funds deficit of £4,281. Despite the deficit, the Foundation receives the support of York City Knights Limited in the form of an interest free loan to assist with day to day cash flow requirements.

The Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (the 'free reserves') held by the charity should be approximately 3 months of the resources expended or expected to be expended in the next financial period, given the planned employment of the development team, which equates to £25,000 in general funds. At this level, the Trustees feel that they would be able to continue the current activities of the charity in the event of a significant drop in funding. Currently the charity's free reserves are approximately £29,000 behind this target. Going forward, new income streams have been developed, with existing income streams extended/increased. Amongst the new income stream is a new Knights Lottery which started in the period under review.

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Fundraising

The charity seeks and receives individual donations to support our work. We strive to achieve the highest fundraising standards and value our supportive funders and donors. We stay up to date with charity regulations, data protection and the Fundraising Preference Service (FPS) to make sure we are legally compliant and adhering to all guidelines and best practice. No fundraising complaints have been received during the year by the charity.

Plans for the future and Covid-19

Ultimately, the role of the Foundation within the community activity had been going from strength to strength and new initiatives and funding opportunities are being explored on a daily basis.

However, the Foundation has been impacted greatly due to Covid-19. During the initial lockdown all delivery was curtailed with two of the three members of staff placed on Furlough. The Foundation has made use of the Furlough scheme. Initially staff were furloughed fulltime but this was reduced to part time as delivery has become possible.

Operationally the Foundation has made adjustments to its delivery plans to become Covid-19 compliant, following the RFL guidelines. We are looking to support our community as their needs have changed through this pandemic. Going forward schools are making bookings for our paid delivery services with demand for our services growing again.

Financially, we have been successful with a number of funding bids which will allow us to deliver projects focussing on peoples current needs. These bids will partly offset the loss of income from schools delivery.

Looking to the future we have confidence that the Foundation will continue to support the communities across York and North Yorkshire.

YORK CITY KNIGHTS FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

Structure, governance and management

Organisational structure

The Trustees form an Executive Committee which determines the general policy of the charity and controls its day to day activities. The Trustees who served during and up to the financial period end were as follows:

Mr I Wilson Mr J Stearman Mr M Campbell

Appointment of Trustees

New Trustees are appointed by election and a majority vote of Trustees at the Trustees' meeting.

Trustees interests

None of the trustees had any interests in the entity during the current or prior year.

Constitution

The company is limited by guarantee, has no share capital and is a registered charity.

The company was incorporated on 28 June 2005 and is governed by the rules contained within its Memorandum & Articles of Association. The charity is registered with the Charity Commission under the charity registration number 1112571 and with Companies House under company number 05493713.

Reporting guidelines

This report has been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The company has taken advantage of the small companies' exemption in preparing the report above.

The Trustees declare that they have approved the Trustee's report (including the directors report) above.

Signed by order of the Trustees:

Mr J Stearman

Trustee Dated: 30 November 2021

YORK CITY KNIGHTS FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE PERIOD ENDED 29 NOVEMBER 2020

The Trustees, who are also the directors of York City Knights Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

YORK CITY KNIGHTS FOUNDATION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF YORK CITY KNIGHTS FOUNDATION

I report to the Trustees on my examination of the financial statements of York City Knights Foundation (the charity) for the period ended 29 November 2020.

Responsibilities and basis of report

As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Laura Masheder FCA DChA

Dated: 30 November 2021

Garbutt & Elliott LLP Chartered Accountants

Triune Court Monks Cross Drive York YO32 9GZ

YORK CITY KNIGHTS FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 29 NOVEMBER 2020

Period 1
December Year ended
2019 to 29 30
November November
2020 2019
Notes £ £
Income from:
Donations and legacies 3 24,599 7,612
Income from c haritable activities 4 66,178 74,778
Fundraising activities 5 20,046 -
Total income 110,823 82,390
Expenditure on:
Raising funds 6 5,559 -
Charitable activities 7 97,958 91,103
Total expenditure 103,517 91,103
Net income/(expenditure) for the year/
Net movement in funds 7,306 (8,713)
Fund balances at 1 December 2019 (11,587)
(2,874)
Fund balances at 29 November 2020 (4,281)
(11,587)

The statement of financial activities includes all gains and losses recognised in the period.

All income and expenditure in the current period and prior year was unrestricted.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

YORK CITY KNIGHTS FOUNDATION

BALANCE SHEET AS AT 29 NOVEMBER 2020

29 November
2020
Notes
£
Current assets
Debtors
11
19,272
Cash at bank and in hand
8,354
27,626
Creditors: amounts falling due within
one year
12
(31,907)
Net current liabilities
Income funds
Unrestricted funds		 30 November
2019
£
£
£
11,500
1,635
13,135
(24,722)
(4,281)
(11,587)
(4,281)
(11,587)
(4,281)
(11,587)

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 29 November 2020.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 8 to 15 form part of these Financial Statements.

The financial statements were approved by the Trustees on 30 November 2021

Mr J Stearman

Trustee

Company Registration No. 05493713

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 29 NOVEMBER 2020

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Charity information

York City Knights Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Triune Court, Monks Cross Drive, York, YO32 9GZ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £ 1 .

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The Trustees have at the time of approving the financial statements a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Whilst the global economy has been significantly impacted by the COVID-19 virus, the charity still has cash reserves sufficient to meet its immediate requirements. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

At the year end the Foundation was in deficit funds, post year end the charity has generated positive cash and continues to receive the support of York City Knights Limited in the form of an intercompany loan to assist with the payment of liabilities as they fall due.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

1 Accounting policies

(Continued)

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

1.5 Expenditure

Expenditure, which includes attributable VAT which cannot be recovered, is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administration, finance, human resources, information systems and governance costs. All governance and support costs are allocated to the various costs of charitable activities on a specific expenditure basis.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

1 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.8 Taxation

York City Knights Foundation is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Act 2010. Accordingly, it is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

1 Accounting policies

(Continued)

1.11 Reporting period

The current accounting period has been shortened from 30 November 2020 to 29 November 2020.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The Trustees consider that there are no critical accounting estimates and judgements that would have a material effect on the financial statements.

3 Donations and legacies

1 December Year
2019 to 29 ended 30
November November
2020 2019
£ £
Donations 6,281 7,612
C oronavirus J ob R etention S cheme 18,318 -
24,599 7,612

All donations received in both the current and prior year were unrestricted.

4 Income from c haritable activities

Fee income Grants and Period 1
Fee income		 Grants and
funding funding
2020 2020 December
2019		 2019 Year
£ £ 2019 to 30
£		 £ ended 30
Fee income Grants and November Fee income Grants and November
funding funding
2020 2020 2020
2019		 2019 2019
Charitable activities 65,178 1,000 66,178
27,847		 46,931 74,778

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

5 Other trading activities
Period 1
December Year
2019 to 29 ended 30
November November
2020 2019
£ £
Sponsorships and social lotteries 20,046 -
6 Raising funds
Period 1
December Year
2019 to 29 ended 30
November November
2020 2019
£ £
Membership schemes and social lotteries 5,559 -
5,559 -

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

7 Charitable activities

Period 1
December Year
2019 to 30 ended 30
November November
2020 2019
£ £
Staff costs 90,088 78,880
Motor expenses 261 2,016
Repairs and maintenance 176 117
Sundry expenses 1,688 368
Professional fees 2,139 859
Advertising 379 450
Printing, postage and stationery 109 281
Entertaining 851 2,362
Travel expenses 324 379
Venue hire - 2,941
Staff training - 600
96,015 89,253
Share of governance costs (see note 8) 1,943 1,850
97,958 91,103

All expenditure in the current and prior year was unrestricted.

8 Support costs

Support costs
Period 1
December Year
2019 to 29 ended 30
November November
2020 2019
£ £
Professional fees 1,943 1,850
1,943 1,850

Professional fees includes Independent Examiner's fees of £1,000 relating to accountancy services and £600 relating to the independent examination.

9 Trustees

None of the trustees Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

10 Employees

The average monthly number of employees during the period was:

Period 1
December Year
2019 to 29 ended 30
November November
2020 2019
Number Number
3 2
Employment costs Period 1
December Year
2019 to 30 ended 30
November November
2020 2019
£ £
Wages and salaries 81,240 69,158
Social security costs 7,081 6,710
Other pension costs 1,767 3,012
90,088 78,880

No employees received emoluments in excess of £60,000 (201 9 - no employees).

Due to the current resourcing of the charity the key management personnel of the charity are considered to be all of the remunerated staff members who each contribute significantly to the management, strategy and delivery of the foundation. The aggregate employment benefits, including employer's national insurance and pension contributions, for the key management personnel for the period was £88,433 (201 9 - £6 7,711 ).

11 Debtors

Debtors
Period 1
December Year
2019 to 29 ended 30
November November
2020 2019
Amounts falling due within one year: £ £
Other debtors 16,961 11,500
Prepayments and accrued income 2,311 -
19,272 11,500

YORK CITY KNIGHTS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 29 NOVEMBER 2020

12 Creditors: amounts falling due within one year

Period 1
December Year
2019 to 29 ended 30
November November
2020 2019
Notes £ £
Other taxation and social security 14,197 11,212
Deferred income 13 3,478 -
Other creditors 10,325 11,660
Accruals and deferred income 3,907 1,850
31,907 24,722
Deferred income
Period 1
December Year
2019 to 30 ended 30
November November
2020 2019
£ £
Arising from lottery income 3,478 -

13 Deferred income

14 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the statement of financial activity in respect of defined contribution schemes was £1,767 (2019 - £3,012).

15 Related party transactions

The charity is closely associated with York City Knights Limited, a Rugby Football League club ("the club"). The club supports the work of the charity via an interest free loan to support immediate cashflow needs, as at 29 November 20 20 there was a balance owing to the club of £1 0,325 (201 9 - £ 11,660 ).

There were no other disclosable related party transactions during the period (2019 - none) .