DocuSign Envelope ID: 5BA5310E-980C-4CE5-A409-213BF9F8A7EB
Sheffield United Community Foundation Limited Annual Report For the year ended 31 August 2020
Company no 06736385 Charity no 1126620
DocuSign Envelope ID: 5BA5310E-980C-4CE5-A409-213BF9F8A7EB
Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
Company Information
LEGAL AND ADMINISTRATIVE DETAILS
A Charitable Company Limited by Guarantee
Company registration number: 06736385 Charity registration number: 1126620 Registered office: Sheffield United Football Club Bramall Lane Cherry Street SHEFFIELD South Yorkshire S2 4SU Trustees: D Baker, Chairman S C Liversidge (resigned 3 August 2020) S M Brown P S Flower S Basu G Valentine T Joseph (appointed 31 January 2020 and resigned 26 November 2020) G Saville B Simpson-Lyons M D Monteiro (appointed 18 December 2019) Bin Khalid Al Saud, Musaad, H.H.Prince (resigned 16 March 2021) Bankers: Santander Merrion Court 44 Merrion Street LEEDS LS2 8JQ Auditor: Grant Thornton UK LLP 1 Holly Street SHEFFIELD S1 2GT
DocuSign Envelope ID: 5BA5310E-980C-4CE5-A409-213BF9F8A7EB
Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
Index to the financial statements
| Report of the trustees | 1 – 6 |
|---|---|
| Independent auditor's report | 7 – 9 |
| Statement of financial activities (incorporating the | |
| income and expenditure account) | 10 |
| Balance sheet | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 – 19 |
DocuSign Envelope ID: 5BA5310E-980C-4CE5-A409-213BF9F8A7EB
Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
1
Report of the trustees
The trustees (who are also directors of the charity for the purposes of the Companies) present their annual report together with the financial statements of Sheffield United Community Foundation Limited (the charitable company) for the year ended 31 August 2020. The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the applicable United Kingdom accounting standards including 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 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Structure, governance and management
Constitution
Sheffield United Community Foundation Limited ("the charitable company") is a company Limited by guarantee, which is governed by memorandum and articles of association dated 29 October 2008 and is a registered charity.
The company was registered as a charity on 10 November 2008.
These financial statements present the financial position as at 31 August 2020, and the result for the year then ended.
Method of appointment or election of trustees
The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association.
The Articles of Association allow The Sheffield United Football Club Limited to nominate no less than 50% of the total number of trustees on the board at all times.
At the first annual general meeting held on 25 May 2009 all of the trustees were required to retire for reappointment. At each subsequent annual general meeting one third of the trustees shall retire for reappointment by rotation.
Induction and training of trustees
The trustees are mindful of their duties in connection with the induction and training for trustees and appropriate steps have been taken.
Trustees
All of the trustees served throughout the year, except where otherwise stated:
S C Liversidge S M Brown D Baker, Chairman P S Flower S Basu G Valentine T R Joseph (appointed 31 January 2020) G Saville B Simpson-Lyons M D Monteiro (appointed 18 December 2019) Bin Khalid Al Saud, Musaad, H.H.Prince (resigned 16 March 2021)
During the year the charitable company provided its trustees with third party indemnity insurance.
Risk management
The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
2
Report of the trustees
Policies and Objectives
The Foundations policies and objectives are for the benefit of the public generally and the inhabitants of Sheffield City Region.
The Foundations vision is:
A Healthy, Empowered, Inclusive Community.
The Foundations Mission is:
To provide equal opportunities to help Develop Personal Skills, Promote Health and Wellbeing, Improve Academic Achievement and Inspire people to unlock their potential.
The Foundation use the power of sport and the brand of Sheffield United Football Club to “Tackle Inequalities and Create Opportunities” for the people of Sheffield City Region.
Going Concern
The impact of Covid19 in March 2020 saw significant changes to the Foundations operation as a sport development charity, and as a result, dramatically reduced the ability to deliver face to face initiatives, and in some cases halted delivery altogether. While some level of uncertainty remains around the exit route of Covid19 locally and nationally, we have since seen the return of all community projects in either a face to face or digital capacity, and indeed the return of staff to deliver such projects.
Detailed Covid-secure risk assessments and delivery plans have been developed by the management team to ensure a fluid transition from digital to face to face delivery as and when it is appropriate to do so, maintaining engagement with staff and beneficiaries alike.
With funding received from the Premier League in March 2020 and December 2020, covering the period up to August 2021, the trustees are confident in the Foundations ability to continue its operation in the short and medium term.
Stress testing has been undertaken to demonstrate the Foundations ability to meet its liabilities as they fall due for a period of at least 12 months after the date of the financial statements. In addition, with growth in the education department, largely due to digital developments, the Foundation has maintained a strong cash position, despite the setbacks Covid19 provided, which gives confidence to the trustees to deem it appropriate to prepare the financial statements on a going concern basis. The trustees believe that there are no material uncertainties which may cast doubt over the Foundations ability to continue as a going concern.
Post balance sheet events - Sheffield United Supporters Association
In August 2020, the Foundation discussed the transfer of the club's Super draw Lotto, a society lottery that has been functioning for over 30 years, licensed under the Gambling Commission. The aim of the transfer of the Super draw Lotto, and the TUPE transfer of its 2 employees was to generate additional income by way of donation from the lottery, which is set at a minimum of 20% of the total income, as per gambling commission rules for large society lotteries). After consultation with the club and employees under the TUPE agreement, the Foundation adopted the Super draw Lotto and the TUPE transfer on Monday 31 August 2020, with the license for the Super draw being transferred to the Head of Foundation in October 2020. It is envisaged that throughout 2020-2021 that the proceeds generated from the Super draw Lotto will support the development and implementation of new community initiatives at the Foundation, in line with its vision and mission.
Achievements and performance
Review of activities
Overview
Sheffield United Community Foundation Limited has, like many charities, been challenged by the onset of the Covid-19 pandemic throughout 2020. Despite this, because of Sheffield United FC’s promotion to the Premier League in 2019, the Foundation had a positive start to the 2019-2020 delivery year developing its services through new initiatives and increased contracts. The Foundation continues to evidence sustainability despite the challenges and maintains its strong reputation in the city region as a trustworthy provider.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
3
Report of the trustees
The Foundation enjoys a positive working relationship with SUFC Academy and SUFC Women, both of whom are based at the SteelPhalt SUFC Academy building, its home for 6 years. However, due to the considerable restrictions due to the pandemic, the Foundation vacated their offices in March 2020 to allow Covid-19 measures to be established in the Academy building for first team players and staff. As a result of this continuing through year end (August 2020), the Foundation subsequently permanently vacated the premises and will utilise the iconic facilities at Bramall Lane Stadium as a prime delivery location, with Education programmes expanding to sites across the city, enhancing our engagement. At present, the Foundation continue to follow government guidance and operate a work from home policy.
The Foundation Senior Leadership Team reviewed its operations in February 2020, as part of its annual planning process. As a result, the Foundation continues to implement its mission through the delivery of 20 (2019:17) highquality programmes in the revised areas of:
-
Education & Training
-
Health & Wellbeing
-
Participation & Inclusion
Financially, the charity has had a progressive year despite setbacks because of national lockdown in 2020. The Foundation made a positive contribution into its reserves to sustain future charitable activities whilst also investing in facilities and infrastructure. The purpose of such development has helped to create future sustainability whilst achieving an increased level of community impact and social value.
The Foundation engaged with 11,511 individuals in 2019-2020, generating £396.9k in social value.
The Foundation’s Leadership and Management team continue to adopt and employ robust business principles to ensure controlled, manageable, and sustainable future growth which is overseen by a proactive Board of Trustees.
Structure
Ending the year with 38 FTE (2019: 31), and 38 casual staff members, The Foundation saw a mix of increased recruitment at both the start and end of the delivery year due to enhanced delivery. However, there was an increase in staff turnover throughout the year, in part due to the pandemic. 12 leavers in 2019-2020 (2018-2019: 4). Successful appointments were made to fill some of the existing roles, while others were picked up by existing staff. The addition of 5 new roles included a Financial Controller, Business Development Manager, Education Tutor, Lottery Manager and Lottery Administrator. There were changes to the Leadership and Management team with the addition of a Financial Controller and a Business Development Manager in September 2019. However, due to the disruption of Covid-19, the Business Development Manager role was vacated in April 2020 and not replaced.
The current Foundation gender split is 77% male (71% 2018-2019) and 23% female (29% 2018-2019) with 33% (42% 2018-2019) female representation on the Leadership Team.
Trustees
The Board of Trustees has changed during the reporting period with the appointments of Mark Monteiro, Prince Musaad Bin Khalid Al Saud and Thomas Joseph. Retirements included Suzanne Liversidge and Thomas Joseph. The Board of Trustees continues to have proactive involvement in the Community Foundation with roles and responsibilities being shared, based on the Trustees appropriate experience and skills. The number of trustees at the end of the reporting period is 10 (8 2018-2019).
Performance Overview
Education
The education strand continues to have a strong Further and Higher Education offer which saw diversification of learning pathways to accommodate for a broader range of students.
46 (2019: 50) study programme learners and 26 (2019: 19) Foundation Degree learners enrolled in 19-20, with 10 learners engaging in a new level 2 BTEC sport pathway.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
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Report of the trustees
Key developments included the successful expansion of the Foundation’s delivery offer with increased recruitment on the Women’s pathway (30), the introduction of the Futures pathway (34) and continued Traineeship programmes (20). A total of 166 learners achieved with the Foundation in 2019/2020.
The strand particularly excelled across Further Education with 96% of learners completing the qualifications they set out on. All learners were offered to continue their studies as part of the Foundation’s internal progression routes, including the Foundation Degree, with 20/35 graduates progressing to Higher Education.
Sports Participation
The participation strand enjoyed a moderately successful year with curriculum support contracts meeting their targeted school engagement (15/15).
In contrast to 2018/2019, Covid-19 proved exceptionally challenging for the strand with a series of school closures and restrictions on community engagement and group gatherings.
The Foundations football camps were reduced because of national lockdown over the Easter half term, and restricted engagement figures in the summer holidays due to Covid-19 restrictions and safeguarding measures.
Premier League Kicks engaged with 402/1150 young people up to March 2020 and was subsequently paused until the next delivery year.
The strands Healthy schools programme engaged 19/32 primary schools up to national lockdown in March 2020, while delivery of repurposed projects during the summer allowed the Joy of Moving programme to engage with 35/10 schools in the summer, engaging 7811/1800 children.
Premier League Primary Stars was paused in March 2020, with a 3 week, summer school in July 2020 engaging 41 children who were given the opportunity to return to structured education and learning in preparation for their return to school in September.
The Foundation continued to administer 17 (2019: 14) Grassroots Women’s and Girls Football teams allowing participation in competitive football from ages 8 to adulthood.
NCS
Recruitment for Summer 2020 saw the Foundation engage 537 young people (2019: 427) on the National Citizen Service programme with signups at 105% against the contracted target. Although this was the biggest delivery year to date on the project, NCS was repurposed due to Covid-19. “Keep doing good” - a social action initiative was launched by NCS, the Foundation engaged 47/50 young people for this project during the summer.
Health & Wellbeing
Due to Sheffield United FC’s promotion to the Premier League, the Foundation secured £300k of funding to support the pre-existing “Fans Fighting Cancer” project for a period of 3 years, which included £250k from the PL/PFA fund and £50k from Weston Park Cancer Charity.
The project was impacted by Covid-19 restrictions like most but engaged with 92/150 participants and also delivered 52 care packages to participants who were isolated.
The project moved online and continues to engage participants virtually in physical activity and mental health support.
Funding
Financial integrity remains a key priority for the Foundation management team.
The financial position of the Community Foundation has changed with a turnover of £1,559,006 (2019: £1,186,042) and costs of £1,192,400 (2019: £1,076,540), providing a contribution into reserve of £366,606 (2019: £109,502). However, it is noted that £145,676 of this figure is restricted for operational costs relating to the 20-21 delivery year across Premier League Primary Stars, Premier League Kicks and NCS, leaving a residual value of £220,930.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
5
Report of the trustees
The Foundation continues to develop financial efficiencies which have supported consecutive positive financial positions at year end in 18-19 and 19-20. With Sheffield United Football Club retaining Premier League status in 2020, the Foundations financial forecasts for the 2020-2021 year indicate another positive operating budget that will sustain key charitable outputs despite the ongoing challenges presented because of Covid-19 and the current economic climate.
Quality Management
The Foundation remains committed to providing high quality interventions in line with its vision and mission.
Feedback and performance results are reviewed by the Leadership Team to ensure the Foundation remain on vision and mission and that the key values of passionate, progressive, trustworthy, flexible, and considerate are upheld throughout delivery.
The Foundation successfully implemented key actions deriving from the “Capability Code of Practice” as outlined by the EFL Trust and Premier League Charitable Fund. The success of which secured ongoing funds for the 19-22 delivery period from both partners.
Communication and Marketing
The Foundation continue to utilise and update its informative website and social media accounts, where its key aim is to continue to drive engagement with its current and new initiatives to help meet project and Foundation objectives.
The Marketing and Communications Officer continues to produce and distribute key marketing content and case studies to enable the Foundation to have an increased online and social media presence, raising awareness of the Foundations impact and engagement opportunities. 2019-2020 saw percentage follower increases across all social platforms (113% Instagram, 17% Twitter, 70% Facebook) and the introduction of e-newsletters monthly, with 37,952 subscribers, averaging 11,000 targeted emails per month based on supporters’ preferences.
Club Relationship
The key relationship with Sheffield United Football Club continues to remain robust. The club’s Chairman Prince Musaad Bin Khalid Al Saud, joined the Foundations Board of Trustees, demonstrating the close link between the organisations and the shared commitment towards supporting the local community. The club’s CEO and Senior Management continued to endorse and support the activities of the Foundation throughout the delivery year, and indeed, the national pandemic with support and advice from HR, Payroll, Finance and Operations throughout the challenging period.
Reserves Policy
The Foundation’s policy is to retain free reserves at a level which provides adequate working capital and allows it to meet its anticipated commitments in the short and medium term. For this purpose, free reserves are defined as total reserves less restricted reserves. It is considered that free reserves to cover a three-month period are sufficient with a maximum free reserve of six months. The current level of free reserve stands at £421,284, which equates to approximately 3 months operating costs.
Conclusion
Building on the success of 2018-2019, the Foundation has enjoyed a relatively successful year in terms of its intended purpose of creating a healthy, empowered, inclusive community in Sheffield. Consistency in governance, leadership and management helped the Foundation navigate the operational challenges presented by Covid-19 throughout the year, which has enabled the Foundation to successfully emerge from the 19-20 year, not only in a sustainable financial position, but with an improved range of diverse engagement with the people of Sheffield, building on its already stable platform to continue its organisational and charitable progress.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
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Report of the trustees
Statement of trustees' responsibilities
The trustees (who are also directors of Sheffield United Community Foundation Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees confirm that:
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so far as each trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
D Baker Chairman and Trustee 27 May 2021
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Independent Auditor's report to the trustees of Sheffield United Community Foundation Limited
Opinion
We have audited the financial statements of Sheffield United Community Foundation Limited (the ‘charitable company’) for the year ended 31 August 2020, which comprise the Statement of financial activities (incorporating the income and expenditure account), the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 and of its incoming resources and application of resources including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and 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.
The impact of uncertainties on our audit
Our audit of the financial statements requires us to obtain an understanding of all relevant uncertainties, including those arising as a consequence of the effects of macro-economic uncertainties such as Covid-19 and Brexit. All audits assess and challenge the reasonableness of estimates made by the directors and the related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company’s future prospects and performance.
Covid-19 and Brexit are amongst the most significant economic events currently faced by the UK, and at the date of this report their effects are subject to unprecedented levels of uncertainty, with the full range of possible outcomes and their impacts unknown. We applied a standardised firm-wide approach in response to these uncertainties when assessing the charitable company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company associated with these particular events.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
In our evaluation of the trustees’ conclusions, we considered the risks associated with the charitable company’s business, including effects arising from macro-economic uncertainties such as Covid-19 and Brexit, and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the period of at least twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects.
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Independent Auditor's report to the trustees of Sheffield United Community Foundation Limited
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the charitable company will continue in operation.
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.
Opinion 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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The information given in the Report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.
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The report of the trustees has been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in Report of the trustees.
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 Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a strategic report..
Responsibilities of trustees for the financial statements
As explained more fully in the Trustees' Responsibilities Statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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Independent Auditor's report to the trustees of Sheffield United Community Foundation Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.
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 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 Redfern, FCA Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Sheffield 27 May 2021
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
10
Statement of financial activities (incorporating the income and expenditure account)
| Note Income Engagement activities Total income 4 Expenditure Resources expended Youth engagement activities Total expenditure 5 Net (expenditure)/income before transfers Transfers between funds 12 Net movement in funds Total funds brought forward 12 Fund balances carried forward at 31 August 2020 12 |
Unrestricted funds £ 892,508 |
Restricted funds £ 666,498 |
Total funds 2020 £ 1,559,006 |
Total funds 2019 £ 1,186,042 |
|---|---|---|---|---|
| 892,508 | 666,498 | 1,559,006 | 1,186,042 | |
| (671,578) | (520,822) | (1,192,400) | (1,076,540) | |
| (671,578) | (520,822) | (1,192,400) | (1,076,540) | |
| 220,930 - |
145,676 - |
366,606 - |
109,502 - |
|
| 220,930 200,354 |
145,676 26,357 |
366,606 226,711 |
109,502 117,209 |
|
| 421,284 | 172,033 | 593,317 | 226,711 |
All activities are classed as continuing.
The accompanying accounting policies and notes form an integral part of these financial statements.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
11
Balance sheet (registered number: 06736385)
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Creditors: amounts falling due after more than one year 11 Net assets 13 Charity funds Restricted funds 12 Unrestricted funds 12 |
2020 £ 32,348 |
2019 £ 39,453 |
|---|---|---|
| 109,869 766,404 |
190,997 315,012 |
|
| 876,273 (312,761) |
506,009 (315,203) |
|
| 563,512 | 190,806 | |
| (2,543) | (3,548) | |
| 593,317 | 226,711 | |
| 172,033 421,284 |
26,357 200,354 |
|
| 593,317 | 226,711 |
The financial statements were approved by the trustees on 27 May 2021 and signed on their behalf by:
D Baker Chairman and Trustee
The accompanying accounting policies and notes form an integral part of these financial statements.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
12
Statement of cash flows
| Cash flows from operating activities Adjustment for: Depreciation (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash generated from operating activities Cash flows from investing activities Purchase of tangible fixed assets Change in cash and cash equivalents in the reporting period Cash and cash equivalents brought forward Cash and cash equivalents carried forward |
2020 £ 366,606 32,237 81,128 (3,447) |
2019 £ 109,502 3,640 (126,930) 206,926 |
|---|---|---|
| 476,524 (25,132) |
193,138 (42,606) |
|
| 451,392 315,012 |
150,532 164,480 |
|
| 766,404 | 315,012 |
The accompanying accounting policies and notes form an integral part of these financial statements.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
13
1
Notes to the financial statements
Company information
Sheffield United Community Foundation Limited is a registered charity and company limited by guarantee. The registered office is Sheffield United Football Club, Bramall Lane, Cherry Street, Sheffield, South Yorkshire, S2 4SU. The charitable company was incorporated in England and Wales.
2
Basis of preparation
The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements are presented in pounds sterling (£).
Company status
The company is a company Limited by guarantee. In the event of the company being wound up, the liability in respect of the guarantee is Limited to £10 per member of the company. The members of the company are the Board of Trustees.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Income
All incoming resources are included in the Statement of financial activities when the company has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.
Income from government and other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Expenditure
All expenditure is accounted for on an accruals basis and has been included under expenses categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Support costs are those incurred directly in support of expenditure on the objects of the charity. Governance costs are those costs incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
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Notes to the financial statements
Tangible fixed assets and depreciation
Tangible fixed assets costing £100 or more are capitalised at cost. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Motor vehicles - 25% straight line Fixtures & fittings - 25% straight line
Irrecoverable Value Added Tax
The Foundation is unable to recover the Value Added Taxation charged on its purchases. The irrecoverable amount is charged to the statement of financial activities.
Taxation
As a registered charity the company is exempt from taxation on its income and gains to the extent that they are applied for its charitable purposes.
Retirement benefits
Defined contribution pension schemes
The pension costs charged in the year represents the amount of the contributions payable to the schemes in respect of the accounting year.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Going concern
The impact of Covid19 in March 2020 saw significant changes to the Foundations operation as a sport development charity, and as a result, dramatically reduced the ability to deliver face to face initiatives, and in some cases halted delivery altogether. While some level of uncertainty remains around the exit route of Covid19 locally and nationally, we have since seen the return of all community projects in either a face to face or digital capacity, and indeed the return of staff to deliver such projects.
Detailed Covid-secure risk assessments and delivery plans have been developed by the management team to ensure a fluid transition from digital to face to face delivery as and when it is appropriate to do so, maintaining engagement with staff and beneficiaries alike.
With funding received from the Premier League in March 2020 and December 2020, covering the period up to August 2021, the trustees are confident in the Foundations ability to continue its operation in the short and medium term.
Stress testing has been undertaken to demonstrate the Foundations ability to meet its liabilities as they fall due for a period of at least 12 months after the date of the financial statements. In addition, with growth in the education department, largely due to digital developments, the Foundation has maintained a strong cash position, despite the setbacks Covid19 provided, which gives confidence to the trustees to deem it appropriate to prepare the financial statements on a going concern basis. The trustees believe that there are no material uncertainties which may cast doubt over the Foundations ability to continue as a going concern.
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3
Notes to the financial statements
Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions about the carrying amounts 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. The recognition of income from grants, including their classification as restricted, involves judgement as to whether performance or other entitlement commitments have been met.
4 Income received
| Grants receivable Social Inclusion PL Kickz Programme NCS Foundation Degree Kinder Head Office PL Primary Stars R PL Girls WNST PL Transition Fans FC Traineeships Project income Curriculum support Football Camps Grassroots Football development Healthy Schools Disability Mental Health PL Primary Stars S Education Study programme/Futsal Traineeship Womens Futures Scholars Extra curriculum after school clubs Sponsorship PL Kickz Programme Head Office |
Unrestricted funds 2020 £ - - 30,731 54,950 7,954 230,000 - - - - - 13,572 |
Restricted funds 2020 £ 4,000 125,000 230,991 - 14,246 103,025 70,000 - - - 83,334 - |
Total funds 2020 £ 4,000 125,000 261,722 54,950 22,200 333,025 70,000 - - - 83,334 13,572 |
Total funds 2019 £ 540 122,083 384,125 49,575 21,000 62,001 70,000 25,000 8,000 20,000 - - |
|---|---|---|---|---|
| 337,207 | 630,596 | 967,803 | 762,324 | |
| 7,300 14,477 - 3,942 5,395 5,543 6,678 36,382 1,105 161,590 47,560 106,723 104,000 23,360 25,984 - - 5,262 |
- - 35,142 - - - - - - - - - - - - - 760 - |
7,300 14,477 35,142 3,942 5,395 5,543 6,678 36,382 1,105 161,590 47,560 106,723 104,000 23,360 25,984 - 760 5,262 |
15,981 49,025 33,093 4,621 3,329 - 4,554 63,869 851 173,398 35,566 - - - 34,172 5,259 - - |
|
| 555,301 | 35,902 | 591,203 | 423,718 | |
| 892,508 | 666,498 | 1,559,006 | 1,186,042 |
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5 Resources expended
Notes to the financial statements
6
| Youth engagement activities Net income This is stated after charging: Depreciation of tangible fixed assets Audit of financial statements |
Direct £ 231,758 |
Support costs Salary Overheads £ £ 841,576 119,066 |
Support costs Salary Overheads £ £ 841,576 119,066 |
Support costs Salary Overheads £ £ 841,576 119,066 |
Total Total 2020 2019 £ £ 1,192,400 1,076,540 2020 2019 £ £ 32,237 3,640 7,500 6,700 |
|---|---|---|---|---|---|
During the year, no trustees received any remuneration or benefit in kind (2019: £nil). During the year, no trustees received any reimbursement of expenses (2019: £nil).
7
Staff costs
| Staff costs were as follows: Wages and salaries Social security costs Other pension costs The average monthly number of employees during the period was as follows: |
2020 £ 770,080 52,962 18,534 |
2019 £ 654,833 39,504 10,330 |
|---|---|---|
| 841,576 | 704,667 | |
| 2020 No. 34 |
2019 No. 26 |
No employee received remuneration amounting to more than £60,000 in either year.
Key management personnel
Key management personnel within the charitable company is defined as the Head of Foundations.
The total cost of employment in respect of the key management personnel was £56,296 (including employer NIC and employer’s pension contributions).
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8
Notes to the financial statements
Tangible fixed assets
9
10
| Cost At 1 September 2019 Additions At 31 August 2020 Depreciation At 1 September 2019 Charge for the period At 31 August 2020 Net book amount At 31 August 2020 At 31 August 2019 Debtors Trade debtors Other debtors Prepayments and accrued income Creditors: amounts falling due within one year Trade creditors Other taxation and social security Other creditors Accruals and deferred income Obligations under finance lease |
Motor vehicles £ 23,850 - |
Fixtures & fittings £ 88,540 25,132 |
Total £ 112,390 25,132 |
|---|---|---|---|
| 23,850 | 113,672 | 137,522 | |
| 23,850 - |
49,087 32,237 |
72,937 32,237 |
|
| 23,850 | 81,324 | 105,174 | |
| - | 32,348 | 32,348 | |
| - | 39,453 | 39,453 | |
| 2020 £ 54,908 706 54,255 |
2019 £ 24,807 21,620 144,570 |
||
| 109,869 | 190,997 | ||
| 2020 £ 28,333 14,565 3,860 265,024 979 |
2019 £ 28,315 24,781 1,455 260,175 477 |
||
| 312,761 | 315,203 |
Debtors
Creditors: amounts falling due within one year
Accruals and deferred income includes deferred income of £179,945 (2019: £155,000) relating to funding received from the Premier League Charitable Trust in the year for projects starting 1 September 2020.
| Obligations under finance leases | 2020 2019 £ £ 2,543 3,548 |
|---|---|
11 Creditors: amounts falling due after more than one year
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
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Notes to the financial statements
12 Statement of funds
| Unrestricted funds General funds Restricted funds Restricted funds Total funds |
Brought forward £ 200,354 26,357 |
Incoming resources £ 892,508 666,498 |
Resources expended £ 671,578 520,822 |
Transfer £ - - |
Carried forward £ 421,284 172,033 |
|---|---|---|---|---|---|
| 226,711 | 1,559,006 | 1,192,400 | - | 593,317 |
Transfer between funds
Management have carried out a detailed review of the various projects carried out under the restricted funds and have identified additional cost relating to the projects which had been incorrectly included under unrestricted funds.
Restricted funds
The restricted income carried forward at 31 August 2020 is made up as follows:
| PL Kicks Grassroots PL Primary Stars Wembley Fans FC PL Transition Social inclusion / YOYO NCS |
£ 55,320 4,948 3,876 2,060 16,605 4,214 7,343 77,667 |
|---|---|
| 172,033 |
13 Analysis of net assets between funds
| Tangible fixed assets Current assets Creditors due within one year Creditors due after more than one year |
Restricted funds 2020 £ 1,642 300,721 (130,330) - |
Unrestricted funds 2020 £ 30,706 575,552 (182,431) (2,543) 421,284 |
Total funds 2020 £ 32,348 876,273 (312,761) (2,543) |
Total funds 2019 £ 39,453 506,009 (315,203) (3,548) |
|---|---|---|---|---|
| 172,033 | 593,317 | 226,711 |
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Sheffield United Community Foundation Limited Annual Report for the year ended 31 August 2020
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Notes to the financial statements
14 Related party transactions
The related parties, through their relationship as Trustees of the Sheffield United Community Foundation Limited, are:
Sheffield United Football Club Limited: The company did not make any sales this year (2019: £nil). The company incurred charges of £67,477 for accounting support and hire of facilities (2019: £41,838). £4,747 of historic sales ledger balances are subject to a bad debt provision.
Highlander Computing Solutions Limited: The company incurred charges of £17,559 for IT advisory services (2019: £14,304).
15 Capital commitments
There were no capital commitments at 31 August 2020 or 31 August 2019.