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2021-06-30-accounts

Charity Registration No. 1125817

Company Registration No. 06333232 (England and Wales)

READING FC COMMUNITY TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

READING FC COMMUNITY TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees DR Downs
AM Reaney
B Stabler
N Coupe
J Carter
D Anthony
D Hall
PS Batth (Appointed 1 October 2020)
M Bradley (Appointed 28 February 2021)
G Connolly (Appointed 12 July 2021)
Charity number 1125817
Company number 06333232
Registered office Select Car Leasing Stadium
Junction 11
M4
Reading
RG2 0FL
Auditor Myers Clark
Egale 1
80 St Albans Road
Watford
Hertfordshire
WD17 1DL
Bankers HSBC Bank Plc
26 Broad Street
Reading
Berkshire
RG1 2BU
Solicitors Bates Wells Braithwaite
10 Queen Street Place
London
EC4R 1BE

READING FC COMMUNITY TRUST

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent auditor's report 8 - 11
Statement of financial activities 12 - 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 29

READING FC COMMUNITY TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

The trustees present the annual report and financial statements of the charity for the year ended 30 June 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's memorandum and articles of association , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019)

OBJECTIVES AND ACTIVITIES

The charity’s objectives as set out in the constitution are to assist in advancing education, to promote or assist in promoting community participation in healthy recreation, to provide or assist in the provision of facilities for recreation, to provide or assist in the interest of social welfare and with the object of improving the conditions of life for those whom the facilities are provided, to relieve sickness and disability and to preserve and protect health, and to promote any other purpose which is charitable according to English Law.

The aim of the charity is to have a positive influence on young people and the wider community through football and is expressed through its logo ‘Care Develop Educate’.

The Trust also makes pledges to its local community. These are as follows:

1. pledge to young people:

2. pledge to the Community:

3. pledge to those existing and potential partners:

o B ring together traditional and non-traditional football activities and environments o H elp identify pathways leading to additional training, volunteering and career opportunities o I nspire innovative football activities and opportunities

READING FC COMMUNITY TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

In furtherance of these aims the charity undertakes a variety of activities with children and young people within three main streams of activity:

Schools Programme

The charity works very closely with the schools in its area, bringing football, healthy lifestyles and education programmes into schools, using football as a vehicle to drive the importance of education and other life skills. A number of these activities are free to participants with some of them requiring fees to attend activities.

Out of school activities

The charity runs a series of coaching and training sessions for boys and girls that are run in the evenings, weekends and school holidays.

READING FC COMMUNITY TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

Social Inclusion

The charity runs a series of activities for young people between the ages of 12 to 19, including those who are not in education, employment or training (NEET), offenders/ex-offenders or educational underachievers:

The charity delivers a number of sessions and projects under the disability programme ‘ My Ability ’ in conjunction with other charities and disability groups to enable more disabled children and adults the opportunity of regular exercise – Funded by the English Football League Trust ( EFLT ) and the Wembley fund

These activities are supported by grant funding allowing free participation.

The Trust staff have also delivered the following courses/activities to our local community:

READING FC COMMUNITY TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

Public benefit

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in the planning and operations of all its current and future activities. In particular, the Trustees have given due regard to public benefit when setting the level of fees to participate in activities.

ACHIEVEMENTS AND PERFORMANCE

FINANCIAL REVIEW

During the year the charity raised a total of £ 1,411,628 (20 20 : £ 1,343,209 ) to pursue its activities.

The charity is aiming to hold sufficient unrestricted reserves to facilitate the existing charitable activities for 18 months. This would enable the Trust to generate appropriate supplementary additional income should funding from existing sources be reduced. In no circumstance will the reserves fall below the normal level of three months support costs.

At 30 June 20 21 the charity held £ 594,913 (20 20 : £ 419,656 ) in unrestricted reserves. This equates to approximately 31 months of support costs (20 20 : 24 months) . This is greater than our stated policy and is in place to cover contingencies.

PLANS FOR FUTURE PERIODS

The Trust will continue with the existing programmes , as well as with n ew initiatives includ ing :

READING FC COMMUNITY TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

STRATEGIC DIRECTION - The Action Plan

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is constituted as a company limited by guarantee, not having a share capital and is governed by a memorandum and articles of association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

DR Downs CG Parker (Resigned 8 October 2020) AM Reaney B Stabler N Coupe J Carter D Anthony D Hall N Howe (Resigned 6 July 2021) PS Batth (Appointed 1 October 2020) M Bradley (Appointed 28 February 2021) G Connolly (Appointed 12 July 2021)

The sole member of the charity is Reading Football Club Limited. Members undertake to contribute a sum not exceeding £1 to the assets of the charity if the charity is wound up whilst a member, or within 12 months of ceasing membership.

The trustees are appointed by the member. New trustees are selected on the basis of the skills and experience they have and receive induction from existing trustees as required.

The charity has 2 3 full time members of staff, and 71 part time sports coaches.

The trustees met four times during the year to decide on policy and procedure. The day to day management of the charity is undertaken by the charity’s general manager.

READING FC COMMUNITY TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

The charity occupies premises and uses furniture and equipment that belongs to Reading Football Club. The charity makes a financial contribution to Reading Football Club to cover costs.

Auditor

A resolution proposing that Myers Clark be reappointed as auditors of the company will be put to the Annual General Meeting.

The trustees' r eport was approved by the Board of Trustees.

AM Reaney

Trustee Dated: 3 December 2021

READING FC COMMUNITY TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 JUNE 2021

The trustees, who are also the directors of Reading FC Community Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

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

READING FC COMMUNITY TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF READING FC COMMUNITY TRUST

Opinion

We have audited the financial statements of Reading FC Community Trust (the ‘charity’) for the year ended 30 June 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity 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 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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

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

READING FC COMMUNITY TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF READING FC COMMUNITY TRUST

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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 .

READING FC COMMUNITY TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF READING FC COMMUNITY TRUST

The extent to which the audit was considered capable of detecting irregularities including fraud

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following;

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the Employment law.

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

READING FC COMMUNITY TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF READING FC COMMUNITY TRUST

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Myers Clark Chartered Accountants Statutory Auditor

3 March 2022

Egale 1 80 St Albans Road Watford Hertfordshire WD17 1DL

READING FC COMMUNITY TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2021

Unrestricted
Restricted
funds
funds
Notes
£
£
Income from:
Donations and legacies
3
280,321
-
Charitable activities
4
716,633
414,674
Other trading activities
5
-
-
Total income
996,954
414,674
Expenditure on:
Raising funds
6
28,636
-
Charitable activities
7
793,061
430,599
Total resources expended
821,697
430,599
Net income/(expenditure) for the year/
Net movement in funds
175,257
(15,925)
Fund balances at 1 July 2020
419,656
42,187
Fund balances at 30 June 2021
594,913
26,262		 Total
2021
£
280,321
1,131,307
-
1,411,628
28,636
1,223,660
1,252,296
159,332
461,843
621,175		 Total
2020
£
142,043
1,161,901
39,265
1,343,209
56,083
1,180,408
1,236,491
106,718
355,125
461,843

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

All income and expenditure derive from continuing activities.

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

READING FC COMMUNITY TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2021

Statement of Financial Activities - Prior Year Detail

Unrestricted
Restricted
funds
funds
£
£
Income from:
Donations and legacies
141,308
735
Charitable activities
817,899
344,002
Other trading activities
37,265
2,000
Total income
996,472
346,737
Expenditure on:
Raising funds
53,348
2,735
Charitable activities
822,899
357,509
Total resources expended
876,247
360,244
Net incoming/(outgoing) resources before
transfers
120,225
(13,507)
Gross transfers between funds
-
-
Net income/(expenditure) for the year /
Net movement in funds
120,225
(13,507)
Fund balances at 1 July 2019
299,431
55,694
Fund balances at 30 June 2020
419,656
42,187		 Total
2020
£
142,043
1,161,901
39,265
1,343,209
56,083
1,180,408
1,236,491
106,718
-
106,718
355,125
461,843

READING FC COMMUNITY TRUST

BALANCE SHEET

AS AT 30 JUNE 2021

2021
Notes
£
Fixed assets
Tangible assets
12
Current assets
Debtors
13
98,750
Cash at bank and in hand
742,378
841,128
Creditors: amounts falling due within
one year
14
(233,995)
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
15
Unrestricted funds
Designated funds
16
40,522
General unrestricted funds
554,391		 £
14,042
607,133
621,175
26,262
594,913
621,175		 2020
£
37,386
497,337
534,723
(92,642)
46,242
373,414		 £
19,762
442,081
461,843
42,187
419,656
461,843

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2021, although an audit has been carried out under section 144 of the Charities Act 2011. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The accounts were approved by the Trustees on 3 December 2021

AM Reaney Trustee

Company Registration No. 06333232

READING FC COMMUNITY TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2021

2021
Notes
£
Cash flows from operating activities
Cash generated from operations
20
Net cash used in investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
£
245,041
-
-
245,041
497,337
742,378		 £
96,464
-
-
96,464
400,873
497,337

READING FC COMMUNITY TRUST

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

1 Accounting policies

Charity information

Reading FC Community Trust is a private company limited by guarantee incorporated in England & Wales.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

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

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

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

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

1.4 Incoming resources

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

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

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

1.5 Resources expended

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 settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on the accruals basis.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 10 years straight line Motor vehicles 4 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

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

1.9 Financial instruments

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

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

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

Basic financial assets

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

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

Basic financial liabilities

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

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

Derecognition of financial liabilities

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

1.10 Employee benefits

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

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

1.11 Retirement benefits

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

2 Critical accounting estimates and judgements

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

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

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
5,754
-
Grants
274,567
-
280,321
-
For the year ended 30 June 2020
141,308
735
Donations and gifts
Donations from institutions
4,019
-
Donations from individuals
1,735
-
5,754
-
Grants
English Football League Trust
35,000
-
Premier League FanFare
-
-
HMRC Job Retention Scheme
239,567
-
274,567
-		 Total
2021
£
5,754
274,567
280,321
4,019
1,735
5,754
35,000
-
239,567
274,567		 Total
2020
£
3,974
138,069
142,043
142,043
2,194
1,780
3,974
35,000
735
102,334
138,069

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

4 Charitable activities

Schools
programme
Out of school
activities
£
£
Services provided under contract
66,486
109,960
Performance related grants
160,962
425
Other income
40
198
227,488
110,583
Analysis by fund
Unrestricted funds
68,026
110,158
Restricted funds
159,462
425
227,488
110,583
For the year ended 30 June 2020
Unrestricted funds
118,217
174,709
Restricted funds
147,462
25,425
265,679
200,134
Performance related grants
Premier League Charitable Fund
152,962
425
English Football League Trust
8,000
-
Thames Valley Police
-
-
Other
-
-
Sport England - National Lottery
-
-
Wokingham Borough Council
-
-
Reading Borough Council
-
-
Bracknell Forest Borough Council
-
-
Metropolitan Thames Valley Housing
-
-
160,962
425		 Social
inclusion
£
493,393
277,938
21,905
793,236
538,449
254,787
793,236
524,973
171,115
696,088
146,613
4,000
37,000
2,325
-
25,000
25,000
30,000
8,000
277,938		 Total
2021
£
669,839
439,325
22,143
1,131,307
716,633
414,674
1,131,307
300,000
12,000
37,000
2,325
-
25,000
25,000
30,000
8,000
439,325		 Total
2020
£
848,593
306,164
7,144
1,161,901
817,899
344,002
1,161,901
277,500
13,650
-
1,000
9,680
4,334
-
-
-
306,164

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

5 Other trading activities

6 Unrestricted
Restricted
funds
funds
£
£
Golden Gamble
-
-
Mascots
-
-
Birthday parties
-
-
Sponsorships
-
-
Other trading activities
-
-
For the year ended 30 June
2020
37,265
2,000
Raising funds
Unrestricted
Restricted
funds
funds
£
£
Fundraising and publicity
Golden Gamble
14,878
-
Mascots
4,161
-
Birthday parties
4,400
-
Other fundraising costs
-
-
Support & governance costs
5,197
-
Fundraising and publicity
28,636
-
28,636
-
For the year ended 30 June 2020
Fundraising and publicity
53,348
2,735		 Total
2021
£
-
-
-
-
-
Total
2021
£
14,878
4,161
4,400
-
5,197
28,636
28,636		 Total
2020
£
23,805
5,910
7,550
2,000
39,265
39,265
Total
2020
£
26,653
6,969
10,225
2,735
9,501
56,083
56,083
56,083

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

7 Charitable activities

Schools
programme
£
Staff costs
155,955
Depreciation and impairment
-
Direct costs
59,741
215,696
Share of support & governance costs
(see note 8)
47,826
263,522
8
Support & governance costs
SUPPORT COSTS
Salaries
Travel and subsistence
Printing, postage and stationery
Telephone
IT support
Legal & professional
Project sundries
Training, kit and other staff costs
Other costs
GOVERNANCE COSTS
Audit
Analysed between
Fundraising
Charitable activities		 Out of
school
activities
£
52,168
-
45,272
97,440
21,605
119,045		 Social
inclusion
Total
2021
£
£
557,387
765,510
5,720
5,720
125,339
230,352
688,446
1,001,582
152,647
222,078
841,093
1,223,660
2021
£
176,677
3,426
900
1,230
6,674
1,414
2,385
9,617
14,134
10,818
227,275
5,197
222,078
227,275		 Total
2020
£
690,744
5,720
283,932
980,396
200,012
1,180,408
2020
£
167,455
6,714
1,317
1,705
545
7,279
792
11,047
3,038
9,621
209,513
9,501
200,012
209,513

Governance costs includes payments to the auditors of £ 10,818 (2020- £ 9,621 ) for audit fees.

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

9 Net movement in funds 2021 2020
£ £
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's
financial statements 10,818 9,621
Depreciation of owned tangible fixed assets 5,720 5,720

10 Trustees

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

No travel expenses were paid in respect of trustees (2020: £nil).

During the year no donations were made to the Trust by trustees (2020: £nil).

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

11 Employees

Number of employees

The average monthly number employees based on headcount during the year was:

2021 2020
Number Number
Permanent staff 23 23
Peripatetic coaches and staff 71 71
94 94
Employment costs 2021 2020
£ £
Charitable activities:
Wages and salaries 702,016 634,419
Social security costs 50,775 43,758
Other pension costs 12,719 12,567
765,510 690,744
Raising funds:
Wages and salaries 21,027 25,284
Social security costs 1,136 1,245
Other pension costs 295 312
22,458 26,841
Support & governance costs:
Wages and salaries 164,372 154,054
Social security costs 9,707 10,641
Other pension costs 2,598 2,760
176,677 167,455
Total employment costs 964,645 885,040
The number of employees whose annual remuneration including benefits in
kind was £60,000 or more were:
2021 2020
Number Number
Within the range of £60,000 - £69,999 - 1
Within the range of £70,000 - £79,999 1 -

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

12
Tangible fixed assets
Fixtures and
fittings
Motor vehicles
£
£
Cost
At 1 July 2020
23,402
13,520
At 30 June 2021
23,402
13,520
Depreciation and impairment
At 1 July 2020
7,020
10,140
Depreciation charged in the year
2,340
3,380
At 30 June 2021
9,360
13,520
Carrying amount
At 30 June 2021
14,042
-
At 30 June 2020
16,382
3,380
13
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
93,638
Other debtors
976
Prepayments and accrued income
4,136
98,750
14
Creditors: amounts falling due within one year
2021
£
Trade creditors
25,928
Other creditors
20,086
Accruals and deferred income
187,981
233,995		 Total
£
36,922
36,922
17,160
5,720
22,880
14,042
19,762
2020
£
34,508
1,474
1,404
37,386
2020
£
4,082
21,257
67,303
92,642

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

15 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at 1 Incoming Resources Transfers Balance at
July 2020 resources expended 30 June
2021
£ £ £ £ £
Out of school activities 4,488 425 (4,913) - -
Schools Programme 13,934 159,462 (173,396) - -
Social inclusion 17,144 252,462 (249,965) - 19,641
Capacity Building 6,621 - - - 6,621
Other - 2,325 (2,325) - -
42,187 414,674 (430,599) - 26,262
Prior Year Detail
Movement in funds
Balance at 1 Incoming Resources Transfers Balance at
July 2019 resources expended 30 June
2020
£ £ £ £ £
Out of school activities 4,165 25,425 (25,102) - 4,488
Schools Programme 23,333 147,462 (156,861) - 13,934
Social inclusion 21,575 171,115 (175,546) - 17,144
Capacity Building 6,621 2,735 (2,735) - 6,621
55,694 346,737 (360,244) - 42,187
Unrestricted funds
Movement in funds
Balance at 1 Incoming Resources Transfers Balance at 30
July 2020 resources expended June 2021
£ £ £ £ £
Designated funds
Info Bus 29,860 - (3,380) - 26,480
Classroom 16,382 - (2,340) - 14,042
46,242 - (5,720) - 40,522
General unrestricted funds 373,414 996,954 (815,977) - 554,391
Total unrestricted funds 419,656 996,954 (821,697) - 594,913

16 Unrestricted funds

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

16 Unrestricted funds

Unrestricted funds Unrestricted funds (Continued) (Continued)
Prior year detail
Movement in funds
Balance at 1 Incoming
Resources		 Transfers Balance at 30
July 2019 resources
expended		 June 2020
£ £ £ £ £
Info Bus 33,240 - (3,380) - 29,860
Classroom 18,722 - (2,340) - 16,382
51,962 - (5,720) - 46,242
General unrestricted funds 247,469 996,472 (870,527) -
373,414
Total unrestricted funds 299,431 996,472 (876,247) -
419,656
17 Analysis of net assets between funds
Unrestricted Restricted Total
£ £ £
Fund balances at 30 June 2021 are represented by:
Tangible assets 14,042 - 14,042
Current assets/(liabilities) 580,871 26,262 607,133
594,913 26,262 621,175
Unrestricted Restricted Total
£ £ £
Fund balances at 30 June 2020 are represented by:
Tangible assets 19,762 - 19,762
Current assets/(liabilities) 399,894 42,187 442,081
419,656 42,187 461,843

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

18 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
21,758
13,256
35,014		 2020
£
22,915
31,386
54,301

19 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 143,331 122,433

Transactions with related parties

The company has taken advantage of the exemption in FRS 102 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.

Ultimate controlling party

The immediate parent company is The Reading Football Club, by virtue of it being the sole member of the company and having sole power in appointing and removing trustees of the company. The ultimate controlling party is Dai Yongge by virtue of having control of Great Shine International Limited, the ultimate controlling parent company of The Reading Football Club Limited.

READING FC COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

20
Cash generated from operations
Surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Cash generated from operations
21
Analysis of changes in net funds
The charity had no debt during the year.		 2021
£
159,332
5,720
(61,364)
141,353
245,041		 2020
£
106,718
5,720
48,209
(64,183)
96,464