# **REGISTERED COMPANY NUMBER: 05834708 (England and Wales) REGISTERED CHARITY NUMBER: 1116971**
**REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021**
**FOR**
**SHOW RACISM THE RED CARD**
Read, Milburn & Co 71 Howard Street North Shields Tyne and Wear NE30 1AF
**SHOW RACISM THE RED CARD**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021**
||**Page**|
|---|---|
|**Report of the Trustees**|1 to 10|
|**Report of the Independent Auditors**|11 to 13|
|**Statement of Financial Activities**|14|
|**Balance Sheet**|15|
|**Cash Flow Statement**|16|
|**Notes to the Financial Statements**|17 to 28|
|**Detailed Statement of Financial Activities**|29 to 30|
## **SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 May 2021. The trustees have adopted the provisions of 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).
## **OBJECTIVES AND ACTIVITIES**
Show Racism the Red Card (SRtRC) is an anti-racism educational charity (Charity No: 1116971) established at end of 1995 aiming to combat racism through anti-racism education.
SRtRC harnesses the high-profile status of professional footballers to produce highly accessible educational resources, including films and education packs.
Apart from the films, we produce posters with Football Clubs, magazines and a whole range of other educational resources. We are also increasing the number of events that we hold with young people at football and other sporting clubs throughout the UK.
On an annual basis, we run UK wide anti-racism School Competitions, which involves young people producing poetry, artwork, music, short stories or films.
In Glasgow, Cardiff, the North East, North West and South of England we also have teams of workers and volunteers who work in schools and undertake anti-racism educational activities directly with young people and adults.
Throughout the course of the Covid-19 pandemic, the charity has moved a lot of educational content online and increased the numbers of adults and workplaces that have benefitted from educational training programmes.
## **Public Benefit**
Show Racism the Red Card aims:
- **1) To advance the education of the public on the subject of race and race equality by:**
- a) producing educational resources;
- b) providing educational workshops in schools;
- c) organising educational events at sporting clubs throughout the UK.
- **2) To promote equality and diversity for the public benefit by:**
- a) the elimination of discrimination on the grounds of race/ethnicity, gender, disability, sexual orientation or religion;
- b) promoting activities to foster understanding between people from diverse backgrounds.
- **3) To promote racial harmony for the public benefit by:**
- a) promoting knowledge and mutual understanding between different racial groups;
- b) advancing education and raising awareness about different groups to promote good relations between persons of different groups;
- c) working towards the elimination of discrimination on the grounds of race/ethnicity.
Page 1
## **SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **ACHIEVEMENT AND PERFORMANCE**
2020 was the year of the Covid-19 pandemic, but it was also the year of the Black Lives Matter (BLM) movement. One severely restricted the work that we were able to do, the other lead to the biggest influx of public support and donations we have ever seen.
The tragic death of George Floyd on 25 May 2020 and the ensuing global reaction with the BLM movement has put antiracism at the top of the agenda. This is a once in a generation opportunity to 'seize the time' and turn a movement into real change on racial equality. Alongside the outpouring of support, the BLM movement lead to a huge increase in public and corporate donations to SRtRC. After 12 years of austerity and having to 'tighten our belts', we are now in a position to look at developing and expanding the organisation over the next three to five years. The Strategic Review 2020-23 now needs reviewing and updating, as we look to build upon the opportunities ahead.
During the course of the last financial year, we have built new partnerships with a number of corporate organisations and developed our workplace-based training programmes to look at key issues like allyship, privilege and cultural competence. We were able to use online platforms, to work beyond our geographical limitations and deliver to many thousands more adults across the UK.
In addition to films and online resources that we made available for schools, we also used online platforms to stay in touch with our supporters and the public, with a series of zoom events and launches which we have then broadcast via Facebook and other social media channels.
Approximately 23,000 young people participated in the 2021 School Competition in England alone and Awards Ceremonies will be hosted online to reward all winners.
We were humbled when staff at the World Bank Group (WBG) nominated Show Racism the Red Card as one of their chosen charities to receive funds raised during their Community Connections Campaign, an annual workplace giving program conducted over a two-month period in November and December, with staff donations matched 100% by the WBG.
Huge thanks are due to everyone who has supported our work, and the fantastic SRtRC staff team who have worked tirelessly, during these unprecedented times and challenges. Their passion and enthusiasm for anti-racism education shines through in everything that we do.
Page 2
## **SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **FINANCIAL REVIEW**
It is a testament to the quality of work that we deliver, that many Local Authorities; Police and Crime Commissioners and Trade Unions maintained funding for SRtRC despite their own financial challenges thrown up by the Covid-19 pandemic.
We were humbled by the levels of donations from the general public throughout the year and additionally, the organisation has been able to develop relationships with a number of corporate partners over the period.
Income for the year ended 31 May 2021 was £2,014,789 (2020 - £988,156) whilst expenditure was £928,561 (2021 - £962,402).
## **Funders**
We would like to offer sincere thanks to all funders, listed below. In this period, Show Racism the Red Card received financial backing from:
UNISON, Unite the Union, Professional Footballers' Association, National Education Union, Potts Print (UK) Ltd, The Football Association, Durham Police & Crime Commissioner, Police & Crime Commissioner for Cleveland, Thompsons Solicitors, Police & Crime Commissioner for Northumbria, PROSPECT, North Tyneside Council, Buckinghamshire County Council, South Tyneside Council, Scottish Professional Football League (SPFL), Inverclyde Council, Perth & Kinross Council, Newport City Council, Thompsons Solicitors Scotland, The Robertson Trust, East Renfrewshire Council, Gwent Office of Police and Crime Commissioner, PFA Scotland, Scottish Football Association, The Scottish Government, Educational Institute of Scotland (EIS), Swansea Council, Rhondda Cynon Taf Council, Scottish Football Partnership, Football Association of Wales, West Lothian Council, Welsh Assembly Government, Llywodraeth Cymru, Vale of Glamorgan Council, Big Lottery Wales, ASLEF, Torfaen County Borough Council and Sefton CVS.
We also received monies from: ASDA, Dr Martens, Bumble, Marsh Insurance, Goldman Sachs, Tokio Marine Kiln, Kickers/Pentland Brands, Avison Young, EA Sports, Virgin, World Bank Group, Barry's UK and Outplay Entertainment in addition to donations from across the UK.
## **Investment Policy**
Since the awful events of May 2020, Show Racism the Red Card has seen a surge of donations from the general public. We have also been fortunate enough to receive donations from large corporate organisations during the period, all of which has put the organisation into a very different financial position.
These funds present an opportunity to both invest in the organisation and to invest funds for financial stability. We see this very clearly as a two layered activity to spend to invest and grow, whilst securing our funds and potentially investing them to provide ongoing financial security.
Page 3
## **SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **FINANCIAL REVIEW - continued**
## **Investing in the organisation**
Firstly, there has been considerable investment in Communications. This will ensure that communication with the general public, organisations and funders is consistent. It also will enable the development of a communications identity and proactive promotion of the work that we undertake. There are two salaried Communications Officers, plus a Sessional Worker to provide expertise and further support.
Secondly, our Executive Team was expanded with a Senior Campaign Manager to help support the campaign in both Wales and Scotland and develop work with corporate partners.
Thirdly, we have added to our Education and Campaign staff in the regions, with Wales, the Southern Region, North East and Scotland all having additional staffing resources.
And finally, the North West Regional Team has been established with a Manager and Education staff, and a commitment to provide support for up to 3 years if needed.
## **Investing for Financial Security**
In addition to this, we have been reviewing how we maintain our reserves and are considering a move to the Flagstone platform as an immediate action to secure funds and split between different accounts. This will give the opportunity to maximise the interest rates available with a mix of short and long duration accounts and fixed rates.
We are also intending to build an Investment Strategy to enable growth of the funds. We aim to have this work completed by the next annual return.
## **Reserves Policy**
The organisation continues to endeavour to work towards securing one full year's operating costs as reserves. This policy exceeds the recommendations of the Charity Commission.
At present the reserves are split into true (free) reserves and designated funds, comprising the Emergency, Core Costs and North West Development funds. Those designated funds stand at £555,920 (2020 - £214,047), true reserves amount to £928,554 (2020 - £184,199).
Page 4
**SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **FUTURE PLANS**
## **The year ahead**
Keeping our staff safe and maintaining the organisation’s anti-racism education remit are our key priorities moving forward in these uncertain times. We are also looking to develop the organisation in several key areas:
- Regional Managers
- Wear Red Day
- Educational Resources
- Trade Unions
- Football Clubs & Players
- Patrons
- Human Resources Management
## **Strategic Priorities 2020 - 2023**
The board will ensure that SRtRC maintains and sustains the financial viability of the organisation for the period January 2020 - December 2023 through the following Strategic Priorities which will be translated into a deliverable Action Plan.
- 1 To equip those working within education to better tackle racism and promote equality in the classroom and throughout the whole school environment.
- 2 To utilise all forms of media to reach increased numbers of young people with an anti-racism message.
- 3 To further develop programmes of anti-racism workshop delivery to young people and adults.
- 4 To strengthen adult education, to train people in workplaces so they can create more equal work environments and know how to respond appropriately to racism.
- 5 To maintain, sustain and continuously strengthen funding partnerships with Government, Local Authorities, trade unions, police, corporate partners and other charities throughout England, Scotland and Wales to generate income through sales of products/services and participation in fundraising events.
- 6 To maintain and further strengthen partnerships with footballers, football clubs and sporting institutions to further diversify the types of role-models that we work with and events that we deliver, in order to reach a wider audience with an anti-racism message.
- 7 To respond quickly to tackle emerging trends in racist attitudes by raising the profile of the issue of racism amongst policy makers, the media and those working within education.
Page 5
**SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Document**
Show Racism the Red Card (SRtRC) is a charity (Charity no: 1116971) established in December 1995, which aims to advance the education of the public, in particular but not exclusively of young people. SRtRC harnesses the high profile of professional football and professional footballers to work towards the elimination of racial discrimination both in football and in society.
The organisation was incorporated (Company No: 5834708) in June 2006 and in March 2021, the Trustees approved the adoption of a new set of Articles of Association for the Charity, replacing those that had been in effect since the Charity's incorporation in 2006.
The reasons for the adoption of the new Articles were twofold. First, it had become apparent that a number of provisions in the 2006 Articles had been superseded by developments within the Charity's governance; were no longer relevant; or did not provide the Trustees with the governance framework that they needed to act in the best interests of the Charity.
Second, as part of an overall governance review against the guidelines provided by the Charity Commission, the Trustees concluded that the adoption of a more streamlined, flexible constitution, in line with the model provided by the Charity Commission, would enable the Trustees to act in an efficient, agile and effective manner.
The Articles of Association have been approved by the Charity Commission (as required by Charities regulation) and are in full effect.
## **Organisational Structure**
Show Racism the Red Card has a Board of Trustees. The quorum for Trustees' meetings is four Trustees, or one third of the total number of Trustees at any particular time, rounded up to the next even number, whichever is the greater.
- The Trustees as Company Directors have general control of the Charity;
- The Trustees are responsible for the management of the Charity, for which purpose they may exercise all of the powers of the Charity; are responsible for setting the Charity's strategy; and are responsible for overseeing the Charity's operational activities;
-
- The Trustees may make reasonable standing orders, rules or regulations for the conduct and management of the Charity, subject to them being consistent with the Articles and compliant with relevant legislation;
- The Trustees may establish procedures for the resolution of disputes that may arise in relation to the application of these Articles and any standing orders, rules or regulations.
The Board shall hold at least four meetings in each year, meaning that there shall be at least four Trustee Meetings within any given twelve month period.
At present, the Board has 13 members with a variety of professional skills relevant to the work of SRtRC.
Page 6
**SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT - continued**
A scheme of delegation is in place, and day-to-day responsibility for the provision of the services rest with the Chief Executive along with the Deputy Chief Executive (DCE), Regional Manager for the South, Regional Manager for the North West and Education Manager North East.
The Offices in Scotland and Wales are operated on a day-to-day basis by the Scottish and Welsh Campaign Managers respectively, and overseen by the Senior Campaign Manager who also supports the DCE with Corporate partnerships.
The Chief Executive is responsible for ensuring that the organisation delivers the services specified and that key performance indicators are met. He is also responsible for individual line management and supervision of the Senior Management Team (SMT) and ensuring that the team continue to develop their skills and working practices in line with best practice.
The Deputy Chief Executive (DCE) is responsible for overseeing: Corporate partnerships, the fulfilment of orders for resources and materials and maintaining records of Income and Expenditure. Managing the Campaign Team and overseeing the organisation of educational events at professional football clubs around the country and coordination of the annual School Competition in England.
The Regional Managers for the South and North West are responsible for coordinating and expanding the education work throughout the South, and North West of England and establishing agreements with partnership councils and other potential funders for the work.
The North East Education Manager is responsible for coordinating and expanding the education work in North East England and establishing agreements with partnership councils and other potential funders for the work.
All Managers are members of the SMT and meet on a bi-monthly basis, although meetings have often been much more frequent and even fortnightly during the height of lockdown.
## **Appointment of Trustees**
There shall be at least five Trustees and not more than 15 Trustees. If the number of Trustees falls below five the remaining Trustees may only act to appoint further Trustees.
A person may only be appointed as a Trustee if that person:
- a) is a natural person aged 18 or over;
- b) is permitted to do so by law;
- c) agrees in writing to become a Trustee of the Charity; and
- d) is not otherwise disqualified from acting as a Trustee under the provisions of the Articles.
Page 7
**SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT - continued**
Any person who is willing to act as a Trustee and is permitted by law and these Articles to do so, may, subject to the Articles be appointed to be a Trustee by a decision of the Trustees.
Trustees will be appointed based on the skills, knowledge, expertise and experience that the Trustees need to govern, lead and deliver the Charity's Objects. Trustees may be appointed at the discretion of the Trustees pursuant to an open recruitment process.
Upon appointment a Trustee shall become a Member of the Charity.
Trustees are not permitted to appoint an alternate to act on that Trustee's behalf.
## **Pay policy for senior staff**
The Board of Directors (who are the Trustees), and the Senior Management Team, comprise the key management personnel of the charity in charge of directing, controlling and running the day-to-day operations of Show Racism the Red Card. All Directors give of their time free of charge.
The performance of the senior staff is reviewed annually in line with targets set as part of the annual appraisal process and salaries are set in accordance with the agreed NJC payscales.
In view of the nature of the organisation, the directors benchmark against NJC pay levels for comparable roles within similar organisations and Local Authorities adhering to the same pay scales.
## **Risk Management**
Show Racism the Red Card has an Audit & Risk (A&R) Sub-Committee to oversee Risk Management and has developed a Risk Register, which is regularly reviewed during meetings of the A&R Committee.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Charity Name:** Show Racism the Red Card
**Charity Registration Number:** 1116971
**Company Registration Number:** 05834708
**OSCR Number:** SC040713
## **Registered Office and Operational Address:**
Show Racism the Red Card, The Linskill Centre, North Shields, NE30 2AY
Page 8
## **SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS continued**
## **Management Committee**
Derek Gardner - Treasurer Susan Abbott Patrick Cozier Christine Blower Samantha Dennis Shaka Hislop Alexandra Mayer Leroy Rosenior Helen Watson Omar Yaseen
Appointed 1 January 2022 Appointed 23 February 2022 Appointed 1 January 2022 Appointed 23 February 2022
Appointed 23 February 2022 Appointed 1 January 2022
Nadeem Ahmad Retired 25 June 2020 Martin Lightfoot Retired 3 November 2021 Karen Puddephatt Retired 3 November 2021 Khalid Malik Retired 10 December 2021 Claire Rodgerson Retired 10 February 2022 Tosca Fairchild Retired 21 February 2022 Sumati Bala Retired 21 February 2022 Leana Coopoosamy Retired 21 February 2022 Hitesh Patel Retired 21 February 2022 Laura Fleck Retired 23 February 2022
## **Senior Management Team**
Chief Executive Ged Grebby Deputy Chief Executive Paul Kearns Senior Campaign Manager Sunil Patel Campaign Manager Wales Dean Pymble Campaign Manager Scotland Jordan Allison Education Manager North East Sue Schofield Regional Manager for the South Steve Goodsell Regional Manager for the North West Keziah Major
## **Auditors**
Read, Milburn & Co., 71 Howard Street, North Shields, NE30 1AF
## **Bankers**
Unity Trust bank plc, 4 Brindleyplace, Birmingham, B1 2JB
Page 9
**SHOW RACISM THE RED CARD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2021**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of Show Racism The Red Card for the purposes of company law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## **AUDITORS**
The auditors, Read, Milburn & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 24 February 2022 and signed on its behalf by:
Ms A Mayer - Trustee
Page 10
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SHOW RACISM THE RED CARD**
## **Opinion**
We have audited the financial statements of Show Racism The Red Card (the 'charitable company') for the year ended 31 May 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 May 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 19 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Page 11
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SHOW RACISM THE RED CARD**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 12
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SHOW RACISM THE RED CARD**
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. In this regard, our procedures include the following:
- enquiry of management around actual and potential litigation and claims;
- reviewing minutes of meetings of those charged with governance;
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report**
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 auditors' 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Nicholas Liley (Senior Statutory Auditor) for and on behalf of Read, Milburn & Co 71 Howard Street North Shields Tyne and Wear NE30 1AF
15 March 2022
Page 13
## **SHOW RACISM THE RED CARD**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MAY 2021**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
National
North East England
North West England
Scotland
Southern England
Wales
Investment income
3
Other income
**Total**
**EXPENDITURE ON**
Raising funds
5
**Charitable activities**
6
National
North East England
North West England
Scotland
Southern England
Wales
**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
1,215,205
375,137
26,182
2,500
18,889
10,947
17,409
206
1,269
1,667,744
-
394,138
58,774
3,466
42,749
62,894
19,495
581,516
1,086,228
398,246
1,484,474|Restricted
funds
£
-
-
89,057
18,333
50,661
30,773
158,221
-
-
347,045
-
-
89,057
18,333
50,661
30,773
158,221
347,045
-
-
-|2021
Total
funds
£
1,215,205
375,137
115,239
20,833
69,550
41,720
175,630
206
1,269
2,014,789
-
394,138
147,831
21,799
93,410
93,667
177,716
928,561
1,086,228
398,246
1,484,474|2020
Total
funds
£
85,674
375,514
151,657
-
78,935
78,129
216,549
611
1,087
988,156
288
286,362
187,176
-
125,676
114,600
248,300
962,402
25,754
372,492
398,246|
|---|---|---|---|---|
The notes form part of these financial statements
Page 14
## **SHOW RACISM THE RED CARD (REGISTERED NUMBER: 05834708)**
## **BALANCE SHEET 31 MAY 2021**
|Notes
**CURRENT ASSETS**
Debtors
13
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
14
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
17
Unrestricted funds
**TOTAL FUNDS**|2021
£
88,675
1,764,697
1,853,372
(368,898)
1,484,474
1,484,474
1,484,474
1,484,474
1,484,474|2020
£
76,854
757,085
833,939
(435,693)
398,246
398,246
398,246
398,246
398,246|
|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 24 February 2022 and were signed on its behalf by:
Mr D Gardner - Treasurer
Ms A L Mayer - Trustee
The notes form part of these financial statements
Page 15
## **SHOW RACISM THE RED CARD**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MAY 2021**
|Notes
**Cash flows from operating activities**
Cash generated from operations
20
Net cash provided by operating activities
**Cash flows from investing activities**
Interest received
Net cash provided by investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|2021
£
1,007,406
1,007,406
206
206
1,007,612
757,085
1,764,697|2020
£
166,977
166,977
611
611
167,588
589,497
757,085|
|---|---|---|
The notes form part of these financial statements
Page 16
**SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The presentation currency of the financial statements is the Pound Sterling (£).
## **Going Concern**
The financial statements are prepared on the going concern basis. In the opinion of trustees, no material uncertainties exist about the charity's ability to continue.
## **Income**
Income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants is recognised when the charity has entitlement to the funds, any performance conditions attgrantsto the granst have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Governance costs**
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity.
## **Allocation and apportionment of costs**
Expenditure which is directly attributable to specific activities has been included in these cost categories. Where costs are attributable to more than one activity, they have been apportioned across the cost categories on a basis consistent with the use of these resources.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
continued...
Page 17
**SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Fund accounting**
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **Debtors**
Trade and other debtors (including prepayments) are recognised at the settlement amount due or amount prepaid).
## **Cash at bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments.
## **Creditors**
Creditors (including accruals and deferred income) are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount
## **Financial instruments**
All financial assets and financial liabilities of the charity qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **2. DONATIONS AND LEGACIES**
||2021|2020|
|---|---|---|
||£|£|
|Donations|1,215,205|85,674|
continued...
Page 18
**SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **3. INVESTMENT INCOME**
|Deposit account interest
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
National
£
Sales, workshop and sponsorship
118,385
Grants
256,752
375,137
Southern
England
£
Sales, workshop and sponsorship
10,947
Grants
30,773
41,720
Grants received, included in the above, are as follows:
Scottish Government
Trade union grants
PFA
Local council grants
Welsh Assembly
Police and Crime Commissioner grants
Big Lottery
Building a Stronger Britain Together
Department for Communities and Local Government
Other grants|North
East
England
£
26,182
89,057
115,239
Wales
£
17,409
158,221
175,630|2021
£
206
North
West
England
£
2,500
18,333
20,833
2021
Total
activities
£
194,312
603,797
798,109
2021
£
4,167
185,300
50,000
46,830
92,467
41,000
-
-
-
184,033
603,797|2020
£
611
Scotland
£
18,889
50,661
69,550
2020
Total
activities
£
112,962
787,822
900,784
2020
£
56,181
234,700
50,000
93,627
-
40,000
84,474
51,538
77,297
100,005
787,822|
|---|---|---|---|
Income received through the Coronavirus Job Retention Scheme is allocated to location in proportion to the related staff costs, as follows: National - £38,419 (2020 - £12,057); North East - £15,757 (£9,216), Scotland - £4,827 (£2,653); South - £13,773 (£9,148); Wales £13,924 (£12,927).
continued...
Page 19
**SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **5. RAISING FUNDS**
|**Raising donations and legacies**
Fundraising fees
**6.**
**CHARITABLE ACTIVITIES COSTS**
National
North East England
North West England
Scotland
Southern England
Wales
**7.**
**DIRECT COSTS OF CHARITABLE ACTIVITIES**
Staff costs
Postage and stationery
Travel and expenses
Resources
T-Shirts, badges etc
Video production
Launches
Printing costs
Sessional workers fees
Accommodation
Recruitment
Staff training
Evaluation
Marketing and communication|Direct
Costs (see
note 7)
£
194,037
80,847
1,997
35,844
31,362
107,438
451,525|2021
£
-
Support
costs (see
note 8)
£
200,101
66,984
19,802
57,566
62,305
70,278
477,036
2021
£
292,303
9,060
10,355
3,927
28,748
278
3,250
10,896
74,439
927
1,703
4,215
-
11,424
451,525|2020
£
288
Totals
£
394,138
147,831
21,799
93,410
93,667
177,716
928,561
2020
£
334,052
11,979
60,565
11,236
20,230
525
12,349
25,652
86,085
6,069
592
5,803
1,000
3,420
579,557|
|---|---|---|---|
continued...
Page 20
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **8. SUPPORT COSTS**
|**SUPPORT COSTS**||
|---|---|
|Management
and
Governance
administration
costs
£
£
National
192,033
8,068
North East England
66,984
-
North West England
19,802
-
Scotland
57,566
-
Southern England
62,305
-
Wales
70,278
-
468,968
8,068|Totals
£
200,101
66,984
19,802
57,566
62,305
70,278|
||477,036|
## **9. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
|Auditors' remuneration
Operating leases - premises|2021
£
3,660
31,254|2020
£
3,600
31,499|
|---|---|---|
## **10. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 May 2021 nor for the year ended 31 May 2020.
## **Trustees' expenses**
During the year 2 (2020 - 3) trustees were reimbursed for out-of-pocket expenses totalling £330 (2020 - £1,042).
continued...
Page 21
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
|**11.**
**STAFF COSTS**
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Direct charitable expenditure
Management and administration|2021
£
613,123
48,478
30,651
692,252
2021
23
3
26|2020
£
590,978
44,737
27,680
663,395
2020
23
3
26|
|---|---|---|
||||
No employees received emoluments in excess of £60,000.
The key management personnel, including the trustees, are listed under Reference and Administrative Details. The total employee benefits (including Social Security costs) of the key management personnel were £275,193 (2020 - £235,199).
continued...
Page 22
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
|**12.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
85,674
**Charitable activities**
National
298,217
North East England
21,182
Scotland
5,401
Southern England
27,902
Wales
12,317
Investment income
611
Other income
1,087
**Total**
452,391
**EXPENDITURE ON**
Raising funds
288
**Charitable activities**
National
209,065
North East England
56,701
Scotland
52,142
Southern England
64,373
Wales
44,068
**Total**
426,637
**NET INCOME**
25,754
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
372,492
**TOTAL FUNDS CARRIED FORWARD**
398,246|Restricted
funds
£
-
77,297
130,475
73,534
50,227
204,232
-
-
535,765
-
77,297
130,475
73,534
50,227
204,232
535,765
-
-
-|Total
funds
£
85,674
375,514
151,657
78,935
78,129
216,549
611
1,087
988,156
288
286,362
187,176
125,676
114,600
248,300
962,402
25,754
372,492
398,246|
|---|---|---|
continued...
Page 23
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
|**13.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
**14.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income|2021
£
88,675
2021
£
13,785
22,433
17,981
314,699
368,898|2020
£
76,854
2020
£
10,771
11,475
5,633
407,814|2020
£
76,854|
|---|---|---|---|
|||435,693||
## **Deferred Income**
Included within Accruals and Deferred Income are the following amounts comprising income received in advance of delivery of the related services or expenditure incurred.
|Balance at 1 June 2020
Released to donations and legacies
Released to income from charitable activities
Amount deferred in year
Balance at 31 May 2021|£
404,214
(65,000)
(298,514)
270,339
311,039|
|---|---|
## **15. LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
|Within one year|2021
£
8,960|2020
£
9,403|
|---|---|---|
continued...
Page 24
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Unrestricted
funds
£
Current assets
1,737,707
Current liabilities
(253,233)
1,484,474
**MOVEMENT IN FUNDS**
At 1/6/20
£
**Unrestricted funds**
General fund
184,199
Designated funds
214,047
398,246
**TOTAL FUNDS**
398,246
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Scottish Government
Welsh Assembly
Regional Funding: NE England
Regional Funding: North West
Regional Funding: Scotland
Regional Funding: Southern England
Regional Funding: Wales
**TOTAL FUNDS**|Restricted
funds
£
115,665
(115,665)
-
Net
movement
in funds
£
1,086,228
-
1,086,228
1,086,228
Incoming
resources
£
1,667,744
4,167
92,467
89,057
18,333
46,494
30,773
65,754
347,045
2,014,789|2021
Total
funds
£
1,853,372
(368,898)
1,484,474
Transfers
between
funds
£
(341,873)
341,873
-
-
Resources
expended
£
(581,516)
(4,167)
(92,467)
(89,057)
(18,333)
(46,494)
(30,773)
(65,754)
(347,045)
(928,561)|2020
Total
funds
£
833,939
(435,693)
398,246
At
31/5/21
£
928,554
555,920
1,484,474
1,484,474
Movement
in funds
£
1,086,228
-
-
-
-
-
-
-
-
1,086,228|
|---|---|---|---|
## **17. MOVEMENT IN FUNDS**
Page 25
continued...
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **17. MOVEMENT IN FUNDS - continued**
**Comparatives for movement in funds**
|Net
movement
At 1/6/19
in funds
£
£
**Unrestricted funds**
General fund
169,283
25,754
Designated funds
203,209
-
372,492
25,754
**TOTAL FUNDS**
372,492
25,754
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
452,391
**Restricted funds**
Scottish Government
56,181
Big Lottery
84,474
Department for Communities and Local
Government
77,297
Regional Funding: NE England
130,475
Regional Funding: Scotland
17,353
Regional Funding: Southern England
50,227
Regional Funding: Wales
119,758
535,765
**TOTAL FUNDS**
988,156|Transfers
between
At
funds
31/5/20
£
£
(10,838)
184,199
10,838
214,047
-
398,246
-
398,246
Resources
Movement
expended
in funds
£
£
(426,637)
25,754
(56,181)
-
(84,474)
-
(77,297)
-
(130,475)
-
(17,353)
-
(50,227)
-
(119,758)
-
(535,765)
-
(962,402)
25,754|
|---|---|
Page 26
continued...
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **17. MOVEMENT IN FUNDS - continued**
## **Designated funds**
The trustees have designated reserves such that only those amounts freely available for expenditure are within the general fund. At the balance sheet date, designated funds were made up as follows.
|Emergency Fund
Core Costs Fund
NW Development Fund|2021
£
240,920
265,000
50,000
555,920|2020
£
214,047
-
-
214,047|
|---|---|---|
## **Restricted funds**
Restricted funds relate to specific projects or funding provided for a specific geographical area.
## **Transfers between funds**
During the year, the following amounts were transferred from the general fund
|Transferred to Emergency Fund
Transferred to Core Costs Fund
Transferred to NW Development Fund|2021
£
(26,873)
(265,000)
(50,000)
(341,873)|2020
£
(10,838)
-
-
(10,838)|
|---|---|---|
## **18. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 May 2021.
continued...
Page 27
## **SHOW RACISM THE RED CARD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2021**
## **19. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES**
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
## **20. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income for the reporting period (as per the Statement of**
**Financial Activities)**
**Adjustments for:**
Interest received
Increase in debtors
(Decrease)/increase in creditors
**Net cash provided by operations**|2021
£
1,086,228
(206)
(11,821)
(66,795)
1,007,406|2020
£
25,754
(611)
(4,228)
146,062
166,977|
|---|---|---|
## **21.. ANALYSIS OF CHANGES IN NET FUNDS**
|**Net cash**
Cash at bank and in hand
**Total**|At 1/6/20
£
757,085
757,085
757,085|Cash flow
£
1,007,612
1,007,612
1,007,612|At 31/5/21
£
1,764,697|
|---|---|---|---|
||||1,764,697|
||||1,764,697|
## **22. LEGAL STATUS**
Show Racism the Red Card is a company limited by guarantee, registered in England and Wales and has no share capital. The company's registered number and registered office address can be found within Reference and Administrative Details.
The liability of each member is limited to a sum not exceeding £1, being the amount that each Member undertakes to contribute to the assets of the Charity in the event of it being wound up while that person is a Member of within one year after that person ceases to be a Member, for payment of the Charity’s debts and liabilities incurred before that person ceases to be a Member, payment of the costs, charges and expenses of winding up, and adjustment of the rights of the contributories amongst themselves.
Page 28
**SHOW RACISM THE RED CARD**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2021**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
**Investment income**
Deposit account interest
**Charitable activities**
Sales, workshop and sponsorship
Grants
**Other income**
Fund raising events
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Fundraising fees
**Charitable activities**
Wages
Social security
Pensions
Postage and stationery
Travel and expenses
Resources
T-Shirts, badges etc
Video production
Launches
Printing costs
Sessional workers fees
Accommodation
Recruitment
Carried forward|2021
£
1,215,205
206
194,312
603,797
798,109
1,269
2,014,789
-
259,939
17,614
14,750
9,060
10,355
3,927
28,748
278
3,250
10,896
74,439
927
1,703
435,886|2020
£
85,674
611
112,962
787,822
900,784
1,087
988,156
288
298,297
20,093
15,662
11,979
60,565
11,236
20,230
525
12,349
25,652
86,085
6,069
592
569,334|
|---|---|---|
This page does not form part of the statutory financial statements
Page 29
## **SHOW RACISM THE RED CARD**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2021**
|**Charitable activities**
Brought forward
Staff training
Evaluation
Marketing and communication
**Support costs**
**Management and administration**
Wages
Social security
Pensions
Rent and rates
Insurance
Telephone
Sundries
Office equipment
Bank charges
Bad debts
**Governance costs**
Auditors' remuneration
Accountancy and legal fees
Total resources expended
**Net income**|2021
£
435,886
4,215
-
11,424
451,525
353,184
30,864
15,901
31,254
680
5,135
1,538
19,366
542
10,504
468,968
3,660
4,408
8,068
928,561
1,086,228|2020
£
569,334
5,803
1,000
3,420
579,557
292,681
24,644
12,018
31,499
793
4,525
611
7,932
872
1,582
377,157
3,600
1,800
5,400
962,402
25,754|
|---|---|---|
This page does not form part of the statutory financial statements
Page 30