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2021-09-30-accounts

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

REGISTERED COMPANY NUMBER: 04684234 (England and Wales) REGISTERED CHARITY NUMBER: 1123870 (England and Wales)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

SWIMATHON FOUNDATION (A COMPANY LIMITED BY GUARANTEE)

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

CONTENTS OF THE ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021

SWIMATHON FOUNDATION

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 5
Report of the Independent Auditors 6 to 8
Consolidated Statement of Financial Activities 9
Balance Sheets 10
Consolidated Statement of Cash Flows 11
Notes to the Financial Statements 12 to 21

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 SEPTEMBER 2021

TRUSTEES Mr R I Riley
Mr P Stinson
Mr A N Kendall
Ms D Notaro
Mrs D Radice
Mr G Pearce
Ms E Wilkinson
COMPANY SECRETARY Kerry Secretarial services Ltd
REGISTERED OFFICE C/O Cox Costello & Horne
26 Main Avenue
Moor Park
HA6 2HJ
REGISTERED COMPANY NUMBER 04684234 (England and Wales)
REGISTERED CHARITY NUMBER 1123870 (England and Wales)
AUDITORS Cox Costello & Horne
Chartered Accountants and Statutory Auditors
26 Main Avenue
Moor Park
HA6 2HJ
BANKERS Barclays Bank PLC
54 High Street
Ruislip
Middlesex
HA4 7AT
SOLICITORS Clintons
55 Drury Lane
Covent Garden
London
WC2B 5RZ
WEBSITE www.swimathonfoundation.org

Page 1

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

The Trustees, who are 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 30 September 2021. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with provisions of Accounting and Reporting by Charities: Statement of Recommended Practice Applicable to Charities Preparing Their Accounts in Accordance with the Financial Reporting Standard Standards Applicable in the UK and Republic of Ireland (FRS 102) (Effective 1 January 2019) the Charity SORP. They also comply with our charity's governing document and the Companies Act 2006.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the Charity are:

“To promote and support any charitable purposes for the benefit of the public, in particular but not limited to the protection of health, the relief of poverty and sickness, the advancement of education and purposes for the general benefit of the inhabitants of the United Kingdom and elsewhere.”

Within these general objectives, the Charity works with charitable, commercial, facility operator and national governing body partners to promote the health, wellbeing and education of the general public through swimming. The Charity works with its charity partners – currently Marie Curie and Cancer Research UK – to promote its and their charitable activities through the provision to the general public of opportunities to swim and, in so doing, to raise funds in support of those charitable activities.

The Charity also supports smaller organisations that are involved with local swimming projects through its community grants scheme, under which the Charity aims to provide funds for new projects and activities in accordance with the grant making policy set out below.

Significant activities

The Charity continues to seek to invest in, expand and develop swimming events and related services and activities in the United Kingdom to maximise, in the longer term, the funds available for distribution to good causes and to promote the health, wellbeing and education of the general public through swimming. However, the continued material adverse impact of COVID-19 during the financial year in question severely curtailed the Charity’s activities in the financial year in question. The Charity was able to launch a second COVID Relief Fund in February 2021 distributing some £50,000 to help the swimming and aquatics community cope with the impact and effects of the pandemic. And the Charity was able to stage, with the support of its charity partners – Marie Curie and Cancer Research UK – a Swimathon Festival in September 2021, which combined its main Swimathon event with its Open Water Swimathon event.

Public benefit

Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Grant-making

The COVID Relief Fund awarded grants to encourage and support organisations which increase access to swimming and provide activities aimed at helping individuals and communities enjoy the health and wellbeing benefits of swimming. The Charity’s grant policy will be reviewed annually and will invite applications from community groups including swimming clubs, older people's organisations, youth groups, disability groups and other charities.

Volunteers

The Charity’s events and activities benefit from the work of a significant number of volunteers who assist in local delivery of the events, activities and campaigns promoted by the Charity and are recruited through the relevant company contracted to organise the Charity’s events.

Achievement and performance

Charitable activities

The charity, through its trading subsidiary, arranges the staging and promotion of swimming events in a nationwide network of participating swimming pools and at open water venues, to encourage members of the public, whatever their age or ability, to understand and realise the benefits of regular swimming as a means to improve health and wellbeing and to achieve personal fitness goals

Fundraising activities

The Swimathon Festival staged in the financial year in question provided opportunities for participants and members of the public generally to raise funds for the Charity and its charity partners Marie Curies and Cancer Research UK.

Page 2

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

Achievement and performance

Fundraising activities

The principal third party beneficiaries during the year were Marie Curie and Cancer Research UK (2020: Marie Curie and Cancer Research UK).

The sponsorship of competitors in events run by the group raised £495,093 (2020: £1,005,086) for charitable causes. Only those due to the foundation have been included as income of the charity.

During the year the number of people who took part in the swimming events was 3,624 (2020: 18,331).

Financial review

As discussed under future plans it has been an operationally and financially difficult year for the Foundation. Which has seen a reduction in the Groups, net current assets, total funds and cash balances.

At the balance sheet date, the Group had net current assets of £355,677 (2020: £540,520); total funds of £399,473 (2020: £595,032) and cash balances of £317,668 (2020:553,174).

The Group had net expenditure during the year of £195,559 (2020: £201,526).

The Group’s subsidiary made a loss of £266,703 which resulted in a net current liability position of £266,702. Of the Deficit £201,554 is in relation to amounts due to the Foundation. The Foundation views the subsidiary as an integral part of its charitable operations and intends to support the subsidiary. In the next financial year, the Foundation will make a donation to the subsidiary with a view of eliminating the deficit.

Principal funding sources

The principal funding source supporting the key objectives of the group are the fundraising receipts from the main annual pool based Swimathon event, combined in the financial year in question with the Open Water Swimathon.

Investment policy and objectives

Under the Memorandum and Articles of Association, the charity has wide powers to invest at the discretion of the trustees.

The Group seeks to adopt a cautious and prudent approach to its investment management policy, especially in the light global economic uncertainty, thus its only investments are in cash funds in readily accessible UK bank accounts. The risks attached to these funds are deemed to be minimal.

Reserves policy

Our reserves policy is set to ensure our work is protected from the risk of disruption at short notice due to a lack of funds, whilst at the same time ensuring we do not retain income for longer than required.

It is the policy of the charity to maintain sufficient unrestricted funds to be able to stage at least one iteration of the main pool based Swimathon event currently £600,000. Since 2018 the Charity has been able to adhere to this policy by keeping sufficient unrestricted funds in reserve. As a result of the COVID-19 pandemic the Charity was prevented from staging its main pool-based event in 2020 resulting in a material reduction in funds which would otherwise have been reserved under this policy. The Charity will seek to re-establish its reserves to a level equating to 120% of the costs of staging one iteration of the main pool based Swimathon event, over a period of five financial years to include the financial year ending on 30th September 2021.

The reserves policy is kept under periodic review and reserves levels will be adjusted as perceptions of risk and other factors change.

The achievements and performance of Swimathon (Trading) Limited, a wholly owned subsidiary, are aligned to the Charity as its parent charitable company.

Principal risks and uncertainties

The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced so that necessary recommendations can be made to reduce these risks. The Trustees also consider non-financial risks. A key element in the management of financial risk is the setting of the reserves policy referred to above.

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DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

Future plans

COVID 19 continued to have a material negative impact on the ability of the charity to undertake mass participation swimming events and associated charity fundraising activities.

In these circumstances, the Foundation’s Trustees have kept the Foundation’s financial position and particularly its cash flow under regular and careful review.

In keeping with this approach, the Trustees have taken a number of steps to protect the Foundation including

The Trustees have agreed upon a three-year re-building plan and have produced an operating budget to implement this. The Trustees are confident they have put in place the measures necessary to ensure the continuation of the Foundation through a challenging COVID 19 affected period and to allow a return in due course to the creation of wider opportunities for more members of the general public to participate in swimming and to benefit from the positive impact that swimming has on health and well-being.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Charity incorporated on 3 March 2003 and is governed by its Memorandum and Articles of Association. The Memorandum and Articles of Association have since been amended by special written resolutions dated 8 June 2011 and 20 October 2015 respectively.

Recruitment and appointment of new Trustees

The Articles of Association allows for the appointment of at least 2 directors but with no maximum. The Trustees may be appointed during the year by the Trustees or at any general meeting. Retirement by rotation provisions apply.

Organisational structure

Trustees

The Trustees oversee a robust governance framework. The Trustees meet at least quarterly in each financial year. The charity's governance complies with the Code for the Voluntary and Community Sector endorsed by the Charity Commission. The Trustees have agreed a schedule of matters which includes approval of annual budgets. All Trustees are members of the charity and directors of the charitable company.

During the period there were 5 (2020: 7) meetings of the trustees.

Members

The Charity's constitution allows the appointment of members and has no restriction on member numbers. They are entitled to attend all general meetings, including the AGM, where they receive the annual report and accounts and elect trustees. There are currently 7 members, of which 7 are trustees. Each member guarantees to contribute up to ten pounds sterling (£10) to the charity's debts, liabilities and costs in the event of the Charity being wound up and for one year after ceasing to be a member.

Induction and training of new Trustees

The Trustees offer a wide range of skills and experience essential to the good governance of the charity. On an informal basis, new Trustees undergo orientation to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association and decision-making process, the business plan and recent financial performance of the Charity. During the informal induction, Trustees meet key persons of the Charity. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. New Trustees will need to demonstrate an interest in swimming and its benefits which may include experience of and/or commitment to Swimathon events.

Wider network

The Trustees maintain a wide network of contacts in the United Kingdom through the delivery of Swimathon events in swimming pools and open water venues in the United Kingdom, as well as through the operation of a community grants programme, every year. These include Sport England, the National Governing Bodies for Swimming of England, Scotland and Wales and all major Pool Operating Groups in the UK.

Page 4

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

Related parties

Swimathon (Trading) Ltd is a wholly owned subsidiary of Swimathon Foundation. Consolidated financial statements have been prepared on the basis that the activities of the subsidiary are material to the group as a whole.

Philip Stinson, a trustee, is a partner in Clintons, a law firm engaged to provide legal and professional management services to the Charity and its trading subsidiary.

The trustees have considered the requirements as set out in the Charity Commission publication on "Trustee payments and expenses (CC11)". All related party transactions are approved by independent trustees.

Financial statements

The audited financial statements comply with the Statement of Recommended Practice (SORP) – (FRS 102) (Effective 1 January 2019), the Charities Act 2011, the Companies Act (2006) and the Charities (Accounts and Reports) Regulations 2008. The Trustees' report and financial statements are submitted to the Charity Commission following approval by the membership at the AGM.

Charity status

Swimathon Foundation is a company limited by guarantee, as defined by the Companies Act 2006 and is a registered charitable company with the Charity Commission.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Charity’s Trustees (who are also directors of Swimathon Foundation and of its trading subsidiary Swimathon (Trading) Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and financial statements in accordance with applicable law and regulations.

Company law requires the Charity’s Trustees to prepare financial statements for each financial year. Under that law, the Charity’s Trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Charity’s Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

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

The Charity’s 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 financial position of the charitable company 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 Charitable company and the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Charity’s Trustees confirm that so far as they are aware:

AUDITORS

A resolution for the reappointment of Cox, Costello and Horne as auditors for the charity will be proposed at the forthcoming Annual General Meeting.

28 June 2022

Approved by the trustees on ………………………… and signed on their behalf by:

............................................. Mr A N Kendall - trustee

Page 5

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SWIMATHON FOUNDATION

Opinion

We have audited the financial statements of Swimathon Foundation (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 30 September 2021 which comprise the consolidated and parent charitable company statement of financial activities, the group and parent charitable company balance sheets, the consolidated and parent charitable company statement of cash flows and the 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, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s Ethical Standard, 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 entity'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 report of the trustees other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SWIMATHON FOUNDATION

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent 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 in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the report of the trustees, the trustees (who are also the directors of the parent 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 group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with regulations made under the Acts. 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 an auditor’s report 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Charity and the industry in which it operates, we identified that the principal laws and regulations that directly affect the financial statements to be Companies Act 2006, the Charities Act 2011, 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); and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

In addition, the Charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation.

We identified the following areas as those most likely to have such an affect: the provisions of the charity’s governing documents, Charity legislation; VAT legislation, employment Law; data protection and health and safety legislation. International Auditing Standards (UK) limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any.

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DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SWIMATHON FOUNDATION

Audit procedures performed by the engagement team included:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 auditor’s report.

Use of our report

This report is made solely to the charitable company’s members as a body, in accordance with Chapter three of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

__________ Michael F Cox BSc FCA (Senior Statutory Auditor) for and on behalf of Cox Costello & Horne, Chartered Accountants and Statutory Auditors, 26 Main Avenue, Moor Park, HA6 2HJ

28 June 2022

Date: ______

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DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2021

30.9.21
Unrestricted
fund
Notes
£
INCOME FROM:
Donations
2
510,574
Other trading activities
3
467,968
Investment income
4
6
Total income
978,548
EXPENDITURE ON:
Charitable activities
5
1,174,107
Total expenditure
1,174,107
Net (expenditure)
(195,559)
RECONCILIATION OF FUNDS:
Total funds brought forward
595,032
Total funds carried forward
399,473		 30.9.20
Total
funds
as restated
£
301,526
687,368
109
989,003
1,190,529
1,190,529
(201,526)
796,558
595,032

An integral part of the charitable activities of the foundation is facilitating the raising of funds for other charities, swimmers are sponsored with funds raised being due to the foundation and other charities. The funds raised on behalf of other charities are collected on trust for the other charities and in accordance with the requirements of the Charity SORP are not recognised in the figures noted above, in the current year £315,730 was raised on behalf of other charities, and the preceding year £703,560. The amounts disclosed in the Fundraising section of the Trustees’ Report represent the total funds raised including those due to the Foundation.

The notes form part of these financial statements

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DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 30 SEPTEMBER 2021

Notes
FIXED ASSETS
Intangible assets
12
Investments
13
TOTAL FIXED ASSETS
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
TOTAL CURRENT ASSETS
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
THE FUNDS OF THE CHARITY
Unrestricted funds
16
TOTAL CHARITY FUNDS		 Group
30.9.21
30.9.20
Unrestricted
funds
Total
funds
£
£
43,796
54,512
-
-
43,796
54,512
360,765
98,833
317,668
553,174
678,433
652,007
(322,756)
(111,487)
355,677
540,520
399,473
595,032
399,473
595,032
399,473
595,032
399,473
595,032		 Charity
30.9.21
30.9.20
Unrestricted
funds
Total
funds
£
£
43,796
54,512
1
1
43,797
54,513
349,000
199,358
265,243
451,567
614,243
650,925
(193,418)
(110,407)
420,825
540,518
464,622
595,031
464,622
595,031
464,622
595,031
464,622
595,031		 Charity
30.9.21
30.9.20
Unrestricted
funds
Total
funds
£
£
43,796
54,512
1
1
43,797
54,513
349,000
199,358
265,243
451,567
614,243
650,925
(193,418)
(110,407)
420,825
540,518
464,622
595,031
464,622
595,031
464,622
595,031
464,622
595,031
540,518
595,031
595,031
595,031
595,031

28 June 2022

The financial statements were approved and authorised for issue by the trustees on ___ and signed on their behalf by:

____ Ms D Notaro - trustee

REGISTERED COMPANY NUMBER: 04684234 (England and Wales) REGISTERED CHARITY NUMBER: 1123870 (England and Wales)

The notes form part of these financial

statements Page 10

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

SWIMATHON FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2021

Notes
Cash flows from operating activities:
Net cash provided by operating activities
19
(
Cash flows from investing activities:
Purchase of intangible fixed assets

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		 30.9.21
£
210,703)
(24,809)
6
(24,803)
(235,506)
553,174
317,668		 30.9.20
£
(163,221)
(81,768)
109
(81,659)
(244,880)
798,054
553,174

The notes form part of these financial

statements Page 11

DocuSign Envelope ID: C11BA95E-0F76-4FE3-82D4-A5C864B244E1

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

SWIMATHON FOUNDATION

1. ACCOUNTING POLICIES

Basis of Preparation

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 financial statements have been prepared taking advantage of the reduced disclosure regime for ultimate parents. As permit by FRS 102 paragraph 1.12 (b) the parent charity’s own statement of cash flow has not been presented.

Going concern

The financial statements are drawn up on the going concern basis which assumes Swimathon Foundation will continue in operational existence for the foreseeable future. The board of trustees have given due consideration to the working capital and cash flow requirements of Swimathon Foundation. The board of trustees consider Swimathon Foundation's current and forecast cash resources to be sufficient to cover the working capital requirements of the charity and its subsidiary for at least 12 months from the date of signing the financial statements.

The charity has been impacted by the new “Corona” virus in the year 2020. The direct and indirect consequences of the new “Corona” virus and a corresponding global pandemic wave on the charity sector cannot yet be conclusively assessed. Various sectors and locations within the charity community will show different exposure and vulnerability to potential public shutdowns or other measures taken to contain the further spreading of the virus. “We will” consistently monitor this development and the impact on our charity in a very diligent, prudent and transparent way.

Basis of the consolidation

The financial statements consolidate the results of the charity and its wholly owned subsidiary Swimathon (Trading) Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

The income and expenditure account for the year dealt with in the financial statements of the charitable company amounted to (deficit) of (£195,559) (2020 – £201,526).

Investment in subsidiaries

The consolidated financial statements incorporate the financial statements of the charity and entities (including special purpose entities) controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries during the year are included in the statement of financial activity, as appropriate using accounting policies consistent with those of the parent. All intra-group transactions and balances are eliminated in full on consolidation.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires the Board of Trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the period. However, the nature of estimation means that actual outcomes could differ from those estimates.

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

Judgements

Revenue recognition

Swimathon Foundation recognises revenue on a receivable basis where the amount is reliably measurable and there is adequate probability of receipt. Income recognition policies are detailed in the accounting policy for income. When it is considered that the key criteria of entitlement, probability and measurement for revenue recognition are not fulfilled for a transaction, revenue recognition is delayed until these are judged to have been met. Payments received in advance of revenue recognition are recorded as deferred income.

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SWIMATHON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES – continued

Estimates

Tangible fixed assets

The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life. Increasing an asset's expected life would result in a reduced depreciation charge. The useful lives of the assets are determined at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events which may impact their life such as changes in technology.

Accruals

Expenditure incurred in the reporting period where there is uncertainty as to the final amount to be paid is accounted for on the basis of an estimated value where this treatment is viewed as appropriate. An accrual is recognised when it is probable that an obligation exists for which a reliable estimate can be made. The amount may change in the future due to new developments or as additional information becomes available.

Income

All income is recognised in the Statement of Financial Activities once the charitable company has a legal entitlement to the income, it is certain that the income will be received, and the monetary value of income can be measured with sufficient reliability and accuracy.

Unrestricted donations

Charitable donations are recognised in the financial statements when the charitable donation has been received, or if, before receipt, there is sufficient evidence to provide the necessary certainty that the donation will be received, and the value of the incoming resources can be measured with sufficient reliability.

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (2019), the general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Conduit – Funds - Sponsorship which relates to charities other than the Foundation are not recognised in these financial statements on the basis that the charity has no rights or benefits arising from these funds.

Expenditure

The charitable company is not registered for VAT as its sources of income are considered to be exempt from VAT. For this reason, it is unable to recover input VAT it suffers on purchased goods and services and the cost is included with the item of expense to which it relates. Expenditure is recognised on an accrual basis as a liability is incurred.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charitable company. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they receive a grant and any condition attaching to the grant is outside of the control of the charity.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

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SWIMATHON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES – continued

Charitable activities

Charitable activities comprise those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs associated of an indirect nature necessary to support them.

Management costs

Management costs comprise all costs involving the public accountability of the trust and its compliance with regulation and good practice. These costs include costs related to audit and management fees together with an apportionment of overhead and support costs.

Allocation and apportionment of costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, payroll and governance costs which support the charity's society services and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in the notes.

Intangible fixed assets

Intangible fixed assets are initially measured at historic cost and subsequently carried at cost less accumulated amortisation and any accumulated impairment losses.

At the reporting date, the charity assesses whether there is any indication that an asset may be impaired. An impairment loss is recognised if the recoverable amount of an asset is less than its carrying amount.

Amortisation is provided at rates calculated to write down the cost of each asset to its residual value (realistic value at the end of its economic life) on a systematic basis over its useful economic life. The amortisation rates in use on a straight-line basis are as follows:

Computer software – 3 years.

Financial instruments

The Foundation only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and trade creditors and other creditors.

Financial assets and liabilities are offset, and the net amount reported in the statement of financial position when there is an 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.

Debtors: Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and Cash equivalents: Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors: Basic financial liabilities, including trade and other creditors, 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 payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method.

Interest income: Interest income is recognised in income and expenditure using the effective interest method.

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

SWIMATHON FOUNDATION

1. ACCOUNTING POLICIES - continued

Taxation

The charity is an institution within the meaning of the Charities Act 2011 and as such is a charity within the meaning of Section 506(1) of the Taxes Act 1988. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains within categories covered by Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied exclusively to charitable purposes. The charity receives no similar exemption in respect of Value Added Tax.

The charity is an institution, which is established for charitable purposes within the meaning of the Charities Act 2011 and as such is a charity within the meaning of Para 1 of Schedule 6 to the Finance Act 2010. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Sections 478-488 of the Corporation Tax Act 2010 (formerly enacted in Section 505 of the Income and Corporation Taxes Act 1988) or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes. The charity receives no similar exemption in respect of Value Added Tax. For this reason, the charity is generally unable to recover input VAT it suffers on goods and services purchased. The charity's subsidiary company is subject to corporation tax and VAT in the same way as any commercial organisation.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund are set out in the notes to the financial statements.

2. DONATIONS

Donations
Gift aid		 30.9.21
£
487,268
23,306
510,574		 30.9.20
£
259,125
42,401
301,526

For the 2021 Charity Funds Raised £495,093 (2020. £1,005,086) donations were collected by the Swimathon Foundation and distributed to Marie Curie £157,865 (2020. £351,780) and Cancer Research UK £157,865 (2020: £351,780). The donations collected for Marie Curie and Cancer Research were not recognised in these financial statements.

3. OTHER TRADING ACTIVITIES

Fundraising events
Rights fees
4.
INVESTMENT INCOME
Deposit account interest		 30.9.21
£
59,648
408,320
467,968
30.9.21
£
6		 30.9.20
£
217,808
469,560
687,368
30.9.20
£
109

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SWIMATHON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

5. CHARITABLE ACTIVITIES COSTS

Direct costs
Supporting charities and
organisations
involved in swimming
Support cost		 Direct
costs
£
824,292
-
-
**824,292 **		 Grant
Funding of
activities
(see note
6)
£
-
28,050
-
28,050		 Support
costs (see
note 7)
£
-
-
321,765
321,765		 Totals
£
824,292
28,050
321,765
1,174,107

6. GRANTS PAYABLE

Supporting charities and organisations involved in swimming 30.9.21
£
28,050
28,050		 30.9.20
£
131,803
131,803

During the year, grants were payable to the following beneficiaries:

OWS Venue grant £5,700 (2020: £nil), Schools Swimathon £nil (2020: £82,824) and Swimming Clubs Covid grants £22,350 (2020: £48,979)

7. SUPPORT COSTS

Management
£
£
Support cost
307,220		 Information
Governance
Finance
technology
costs
£
£
£
422
3,923
10,200		 Totals
321,765

8. NET INCOME

Net income is stated after charging:

Auditors’ remuneration - audit fees
8
Auditors’ remuneration - non-audit work
8
Computer software amortisation
8		 30.9.21
£
6,500
3,700
35,525		 30.9.20
£
6,500
3,700
27,256

The amortisation cost is included in the SOFA within charitable activities cost.

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SWIMATHON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

9. TRUSTEES' REMUNERATION AND BENEFITS

The charity trustees were not paid or received any other benefits from employment with the charity or its subsidiary in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses

Trustees' expenses
30.9.21 30.9.20
£ £
Trustees' expenses 5,100 6,242

During the year two trustees claimed from expenses, travelling £nil (2020: £1,142), travel etc. £5,100 (2020: £5,100) and Christmas lunch £nil (2020: £1,814).

During the year insurance was purchased to indemnify the charitable company from loss arising from neglects or defaults of its trustees, employees or agents. The amount was £1,120 (2020: £1,120).

10. STAFF COSTS

There were no staff costs for the year ended 30 September 2021 nor for the year ended 30 September 2020. The average monthly number of employees during the year was £nil (2020: £nil)

No employees received emoluments in excess of £60,000.

11. RECLASSIFICATIONS AND COMPARATIVE FIGURES

Historically, the cost of the running the Swimathon and the contribution received from third parties to run it had not been treated as charitable activities. On the basis that the Swimathon itself promotes health and amateur sports; the trusts have reconsidered the presentation of the Statement of Financial Activities.

Charitable expenditure reclassifications have been made to the comparative figures to enhance comparability with the current year's financial statements. Reclassifications were necessary as the gross charity funds raised line in the SOFA was omitted. Raising funds, supporting charities and organisations involved in swimming, donations to charitable institutions, and other expenditure included under the heading of charitable activities in the current financial year.

As a result, certain line items have been amended in the statement of financial activities and the related notes to the financial statements. Comparative figures have been adjusted to conform to the current year's presentation.

12. INTANGIBLE FIXED ASSETS The group and charity

Computer
software
£
COST
At 1 October 2020
81,768
Additions
24,809
At 30 September 2021
106,577
AMORTISATION
At 1 October 2020
27,256
Charge for year
35,525
At 30 September 2021
62,781
NET BOOK VALUE
At 30 September 2021
43,796
At 30 September 2020
54,512		 Computer
software
£
COST
At 1 October 2020
81,768
Additions
24,809
At 30 September 2021
106,577
AMORTISATION
At 1 October 2020
27,256
Charge for year
35,525
At 30 September 2021
62,781
NET BOOK VALUE
At 30 September 2021
43,796
At 30 September 2020
54,512		 Computer
software
£
COST
At 1 October 2020
81,768
Additions
24,809
At 30 September 2021
106,577
AMORTISATION
At 1 October 2020
27,256
Charge for year
35,525
At 30 September 2021
62,781
NET BOOK VALUE
At 30 September 2021
43,796
At 30 September 2020
54,512
106,577
27,256
35,525
62,781
43,796
54,512

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SWIMATHON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

13. FIXED ASSET INVESTMENTS The Charity

FIXED ASSET INVESTMENTS
The Charity
Shares in group
undertakings
£
COST
At 1 October 2020 and 30 September 2021 1

COST

NET BOOK VALUE
At 30 September 2021
At 30 September 2020		 1
1

There were no investment assets outside the UK.

The company investment at the balance sheet date in the share capital of companies include the following:

Swimathon (Trading) Limited

Nature of business: Sporting activities

%
Class of share: holding
Ordinary 100

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Amounts owed by group undertaking
Other debtors
Prepayments and accrued income		 Group
30.9.21
30.9.20
£
£
-
-
360,765
3,817
-
95,016
360,765
98,833		 Charity
30.9.21
30.9.20
£
£
-
120,727
349,000
-
-
78,631
349,000
199,358		 Charity
30.9.21
30.9.20
£
£
-
120,727
349,000
-
-
78,631
349,000
199,358
199,358

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other creditors
Accruals and deferred income		 Group
30.9.21
30.9.20
£
£
77,951
50,802
114,447
5,310
130,358
55,375
322,756
111,487		 Charity
30.9.21
30.9.20
£
£
14,912
49,722
114,447
5,310
64,059
55,375
193,418
110,407		 Charity
30.9.21
30.9.20
£
£
14,912
49,722
114,447
5,310
64,059
55,375
193,418
110,407
110,407

SWIMATHON FOUNDATION

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

16.
MOVEMENT IN FUNDS
The Group
Unrestricted funds
Free reserves
TOTAL FUNDS
The Charity
At 1.10.20
£
Unrestricted funds
General fund
595,032
Designated fund
-
595,032
TOTAL FUNDS
595,032
Net movement in funds, included in the above are as follows:
The Group
Unrestricted funds
Free reserves
Funds retained within a non-charitable subsidiary
TOTAL FUNDS
The Charity
Unrestricted funds
Free reserves
TOTAL FUNDS		 At 1.10.20
Net
movement in
funds
At 30.9.21
£
£
£
595,032
(195,559)
399,473
595,032
(195,559)
399,473
Net
Transfers
Movement
between
in funds
funds
At 30.9.21
£
£
£
71,144
(218,125)
448,051
-
218,125
218,125
71,144
-
666,176
71,144
-
666,176
Incoming
resources
Resources
expended
Movement in
funds
£
£
£
570,228
(499,084)
71,144
408,320
(675,023)
(266,703)
978,548
(1,174,107)
(195,559)
Incoming
resources
Resources
expended
Movement in
funds
£
£
£
570,228
(499,084)
71,144
570,228
(499,084)
71,144)

Transfers between funds

Transfers were made between unrestricted funds to designated funds in the amount of £218,125 (2020: £nil) in order to cover the costs relating to delayed events that will take place after the year end in the 2021/2022 financial year.

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

SWIMATHON FOUNDATION

17. RELATED PARTY DISCLOSURES

Trustees

Transactions and balances during the year were as follows:

Trustee Total Balance
Related party involved Index transactions outstanding
30.9.21 30.9.20 30.9.20
30.9.20
£ £ £
£
Clintons P Stinson 1 119,544 116,092 - -

Nature of relationship:

1 = Partner in related law firm - provision of professional legal and management services during the year

18. COMPANY LIMITED BY GUARANTEE

The charitable company is limited by guarantee and has no share capital. Every member of the company undertakes to contribute to the assets of the company in the event of its being wound up, for payments of the debts and liabilities of the company, such amount as may be required, not exceeding £10.

19. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

30.9.21 30.9.20
£ £
Net (expenses)/income for the reporting period
(as per the statement of financial activities) (195,559) (201,526)
Adjustments for:
Amortisation charges 35,525 27,256
Interest received (6) (109)
(Increase)/decrease in debtors (261,932) 442,026
(Decrease)/increase in creditors **211,269) ** (430,868)
Net cash provided by operating activities **(210,703) ** (163,221)
ANALYSIS OF CHANGES IN NET FUNDS
At 1.10.20 Cash flow At 30.9.21
£ £ £
Net cash
Cash at bank 553,174 **(235,506) ** 317,668
553,174 **(235,506) ** 317,668
Total 553,174 **(235,506) ** 317,668

20. ANALYSIS OF CHANGES IN NET FUNDS

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SWIMATHON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

21. Impact of the Covid 19 pandemic

COVID 19 continued to have a material negative and impact on mass participation sporting events and associated charity fund-raising during the financial year in question, in particular in swimming. In these circumstances, the Foundation’s Trustees kept the Foundation’s financial position under regular and careful review, taking a number of steps to protect the Foundation including as follows:

The Trustees have agreed upon a three-year re-building plan and have produced an operating budget to implement this. The Trustees are confident they have put in place the measures necessary to ensure the continuation of the Foundation through a challenging COVID 19 affected period and to allow a return in due course to the creation of wider opportunities for more members of the general public to participate in swimming and to benefit from the positive impact that swimming has on health and well-being.

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