Registered number: 07017640 Charity number: 1133120
Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report and Financial Statements For the Year Ended 31 August 2022
Chess in Schools and Communities
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 9 |
| Independent auditors' report on the financial statements | 10 - 13 |
| Consolidated statement of financial activities | 14 |
| Consolidated balance sheet | 15 |
| Charity balance sheet | 16 |
| Consolidated statement of cash flows | 17 |
| Notes to the financial statements | 18 - 33 |
Chess in Schools and Communities
(A company limited by guarantee)
Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 August 2022
| Trustees | Andrew Farthing (resigned 26 October 2022) |
|---|---|
| Ian Iceton (resigned 21 October 2022) | |
| Stephen Meyler | |
| Alison Sharp | |
| William Watson | |
| Isabel Keen | |
| Stephen O'Connell CBE (appointed 14 March 2023) | |
| Company registered number 07017640 Charity registered number 1133120 Registered office Chess in Schools and Communities 44 Baker Street London W1U 7RT Chief executive officer Malcolm Pein Independent auditors Kreston Reeves LLP Chartered Accountants Statutory Auditor 37 St Margaret's Street Canterbury Kent CT1 2TU Bankers Natwest Bank Plc 3rd Floor Cavell House 2a Charing Cross Road London WC2H 0NN Investment Managers Quilter Cheviot 1 Kingsway Holborn London WC2B 6AN Aberdeen Standard 1 George Street Edinburgh EH2 2LL |
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Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report For the Year Ended 31 August 2022
The Trustees present their annual report together with the audited financial statements of charity for the year ended 31 August 2022. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the group and the charity qualify as small under section 383 of the Companies Act 2006, the group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Objects
The charity's objects per the Memorandum of Association are:
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The advancement of education for the public benefit by promoting the mental and moral development and improvement of young people, in particular those who are socially and economically disadvantaged, through the promotion, teaching, coaching, playing and competition of chess.
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The advancement of amateur sport, including the encouragement of community participation, for the public benefit, through the promotion, teaching, coaching, playing and competition of chess.
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The promotion of social inclusion for the public benefit through the promotion, teaching, coaching, playing and competition of chess among those who are socially excluded as a result of unemployment, financial hardship, old age, ill health or disability.
These objectives are pursued by the delivery of weekly chess lessons and after schools clubs by CSC tutors and volunteers, the provision of chess sets, equipment and our curriculum to all schools, libraries and youth clubs which join our scheme. The organisation of tournaments in local boroughs and the London Chess Classic.
The charity works principally in boroughs with a high proportion of children eligible for Pupil Premium and boroughs with high level of deprivation as measured by the Index of Multiple Deprivation.
b. Activities undertaken to achieve objectives
The recovery process from Covid continued in the 2021/2022 academic year. Going into the 2022-23 academic year. After a successful renewal campaign in the summer term, 100 schools contracted to return to the core tutor-led activities in classrooms programme or joined for the first time. Covid continued to have an effect, as many schools continued to focus on catching up in academic subjects, leaving less class time for activities such as chess. A winter wave of the virus also affected the 12th London Chess Classic and disrupted delivery for the first two terms. Further waves caused staffing issues, but the full 30-week programme was delivered to all schools.
Going into the 22/23 academic year, 227 schools were registered for the main programme. The target number of schools set in the last report of 225 was achieved and there were 15,000 pupils involved each week. It was particularly encouraging that although the number of schools is significantly less than before the pandemic, participating schools requested more classes, so the number of children in the programme was close to prepandemic levels. A significant concern for future expansion was the financial pressures on schools due to inflation and energy prices.
The chess boom continued and this was reflected in continuing high demand for the charity from state schools for chess equipment, learning materials, consultancy, teaching, training, tutor visits and tournaments. The number of schools supported in these ways passed 1000. The charities prison programme recommenced and for the first time we ran a programme for Afghan refugee children. The charity also began to support Ukrainian refugees from their chess community who had sought refuge in the UK.
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Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2022
Objectives and activities (continued)
Despite the challenges, for the first time in the charity’s history two major events were run in one year with both the London Chess Classic in December and the 2nd ChessFest in Trafalgar Square in July. ChessFest was a particular highlight.
Work began on a new strategic plan during the year and the head office team was strengthened as was the London team of Regional Organisers in preparation for the increased output and activity in 22/23. Activity began in Hull and Hastings. Thanks to the support of our sponsors, receipts from schools and economies made during Covid, the charity’s finances remained robust.
ChessFest 2022
Last year’s event was the biggest chess gathering ever in the UK. In 2022, without Covid restrictions, attendance almost doubled as Trafalgar Square was at capacity with over 11,000 visitors on the day. There was a dual theme with the 25th anniversary of the Kasparov versus Deep Blue match and the 50th anniversary of the world title contest between Boris Spassky and Bobby Fischer. The picture gallery is here: https://www.smugmug.com/app/organize/ChessFest-2022 Password CSC2022 Sky News covered the school events held in Manchester Square. Our thanks to XTX Markets and the Kusuma Foundation for their generous support. There was a second ChessFest in Liverpool and next year we also hope to have a ChessFest in Nottingham.
Training
The charity increased its output in anticipation of increased demand and 12 Tutor training courses were held, the most since 2018. These were in in London (3), Middlesbrough, Hull, Cardiff, Winchester, Stoke, Oxford, Manchester and two online. Online courses were well attended and they will be expanded in 22/23. The charity continued safeguarding training for tutors and encouraged them to join the more advanced courses offered by the European Chess Union. Classroom management training will be reintroduced for tutors in 22/23. A new curriculum was finished and distributed to tutors and was in use at all the schools in 21/22.
Online Chess Clubs
The ChessKid club activity plateaued, although 37,000 children are signed up. The charity continues to distribute 2000 ChessKid gold memberships to children in the core programme. The charity club for secondary schools on LiChess became increasingly popular and some tournaments were run. See: https://www.chessinschools.co.uk/chesskid-for-schools
Newham
The contract with Newham Borough council was renewed in 21/22 and will continue in 22/23. A new Regional Organiser was appointed. CSC continues to support some of the more talented players in Newham with the Newham Grand Prix. The charity is grateful for the continuing support of Newham Borough Council and we have agreed to reinstitute the annual borough tournament in 2023.
Prisons
The prisons’ programme gradually returned to pre Covid levels as each prison reached the required safety standard post Covid. Weekly chess clubs recommenced at nine prisons.
The relationship with the Ministry of Justice remained strong and thanks to their assistance with publicity and an article on the MoJ intranet, there is continuing interest from other prisons. The success of HMP Wandsworth in the World Prisons Championship led to Channel 4 News running an extensive feature on our programme which can be seen here:
https://www.channel4.com/news/how-chess-is-helping-rehabilitate-prisoners-at-hmp-wandsworth
A team of prisoners from HMP Wandsworth will be competing in the 2022 event and the intention is to involve other prisons for the first time including a women’s prison HMP Bronzefield. The charity would like to record its
Page 3
Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2022
Objectives and activities (continued)
thanks to Peter Sullivan, a volunteer, who coordinates activity nationally.
Online Delivery
There was naturally less demand for online delivery this year. The materials which were developed during lockdown are still distributed to new schools and the skills acquired by our tutors in delivering online will enable us to reach any school in rural areas in future. See: https://www.chessinschools.co.uk/chess-at-home
Afghan Refugees
The charity was approached by the City of London Corporation to teach chess to Afghan refugee children who were given temporary accommodation. Fortunately, the charity had two tutors available with knowledge of Pashtun, Farsi and Arabic. The sessions proved popular with the children and it was noticeable that the girls were particularly keen. At the end of the year the project was ongoing and will continue until the refugees are rehoused.
Ukrainian Refugees
The charity conducted some fund raising and supported some Ukrainian refugees from the chess community who decided to settle in the UK. The charity was also involved finding some homes for refugees within the chess community. This work will continue for as long as necessary.
Details of the charity’s work can be seen at www.chessinschools.co.uk.
c. Public benefit
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Achievements and performance
a. Fundraising
Thanks to strong school receipts and some new donors as well as the sizeable grant from the MESME Foundation in 2021, the charity avoided having to deploy its reserves to fund day to day activity in 21/22. The likely absence of a London Chess Classic in 2022 and the limitations imposed on the 2021 London Chess Classic will affect fundraising revenues. The charity is also grateful to XTX Markets for supporting ChessFest in 2022 and to XTX employees for their personal donations which were matched by the company. The vast majority of donations in 21/22 were restricted for a particular purpose.
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Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2022
Achievements and performance (continued)
b. Supporters
The charity would like to record its gratitude to:
MESME XTX Markets and employees John Lyon’s Charity Angus Lawson Memorial Trust Kasuma Foundation DeepMind Scheinberg Foundation Ennismore Foundation Orbis Investments Don Hanson Charitable Trust Newham Borough Council Lorna Kerr The Vincit Foundation The Cooke Family
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
Of the total reserves of £1,475,391, £360,700 (2021: £289,003) relate to restricted projects as prescribed by the donors. Actual free reserves at 31 August 2022 were £1,114,691 (2021: £1,510,929). This amount is higher than the Trustees’ policy, but the excess has been set aside for the future expansion of the charity and support of the charity’s flagship events. The policy was recently reviewed by the Trustees as part of the overall Strategic Review and in view of the continuing expectation for school receipts to remain strong and to cover nearly all tutor fees, the Trustees have decided that reserves should be reduced. The Trustees still consider it prudent to maintain an invested reserve but have decided this amount may be reduced to £500,000 through increased investment in delivery capacity and the support of events.
c. General review
Despite a 20% discount offered to many schools for the academic year 21/22, school receipts were strong. The reduction in staffing at head office contributed to reducing overheads but there has since been recruitment since which will increase central costs.
The core delivery to schools and the staging of the ChessFest were the main focus of charitable expenditure. Total expenditure for the year ended 31 August 2022 amounted to £1,267,615 (2021: £860,690). Total income including provision for Gift Aid not received at year end was £1,020,022 (2021: £1,006,273). The charity suffered a deficit, after net losses on investments amounting to £324,541 (2021: surplus of £231,353). Prior to the loss on investments the charity suffered a deficit of £247,593 (2021: surplus of £145,583).
At 31 August 2022 the Group had net assets of £1,475,391 (2021: £1,799,932).
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Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2022
d. Investments policy
The main objectives for the charity's investment portfolio are to preserve the charity's reserves in real terms, deliver a reasonable overall total return and for the portfolio to be sufficiently liquid to fund cash flow shortfalls and any unfunded commitments that may arise. The total return target for the investment portfolio has been set at inflation plus 3.5% p.a. net of fees.
A reasonable level of capital volatility within the investment portfolio is considered by the Trustees to be acceptable given the charity's risk and return objectives but the portfolio should be well diversified across asset classes and individual investments should be in line with a standard medium risk profile.
The charity precludes any direct investment in tobacco companies. The Trustees accept that some collective investment schemes may have exposure to tobacco stocks. However, the investment manager will monitor the position of these collective investment schemes to ensure this is kept to a minimum.
In principle the Trustees wish to be responsible investors. Therefore the investment manager is expected to take account of environmental, social and governance (ESG) issues in their investment analysis and decision-making process and engage with company management where appropriate.
e. Principal risks and uncertainties
The Trustees frequently assess risks presented to it during board meetings and update a risk register accordingly.
Page 6
Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2022
Structure, governance and management
a. Constitution
Chess in Schools and Communities is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association dated 14 September 2009.
b. Methods of appointment or election of Trustees
The management of the Group and the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
c. Organisational structure and decision-making policies
The day-to-day running of the organisation is delegated to senior staff comprising: the Chief Executive, the Chief Operating Officer and the Events and Client Relationship Manager. In 2016 the charity appointed a Head of Safeguarding. In 2018 the charity appointed a Deputy Head of Safeguarding and split the responsibility for delivery in London between a team of five staff.
The Trustees meet regularly to discuss issues of strategic direction concerning the model for chess teaching in schools, fund raising strategies and public affairs. The Trustee meetings determine the strategic plan, consider performance against the plan, maintain the risk register and approve the budget prepared by the Chief Executive.
d. Policies adopted for the induction and training of Trustees
Trustees are given an introduction to the organisation and the role of a Trustee by the Chief Executive and Chief Operating Officer through attendance at regular Trustee meetings, charity fundraising activities and events associated with the delivery of the core programme. All new Trustees are given a copy of the Charity Commission's publication CC3 which describes their legal duties and responsibilities. Trustees receive a comprehensive update from the Chief Executive three times a year and relevant documentation including end of term reports, fund raising, school contributions, performance against strategic plan, reports from individual boroughs, press cuttings and updates on the charity's public affairs campaign. Trustees also attend the charity's flagship event, the London Chess Classic, details of which are at www.londonchessclassic.com. The Chair of Trustees is also invited to the annual Senior Staff meeting.
e. Remuneration policy
The Chief Executive and Chief Operating Officer complete a review of all staff’s remuneration, including Senior Management, taking into account the economic indicators and the charity salary market. The Board of Trustees will independently review the CEO and COO’s remuneration, using comparable organisations as a benchmark.
f. Financial risk management
The Trustees have assessed the major risks to which the Group and the charity are exposed, in particular those related to the operations and finances of the Group and the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Page 7
Chess in Schools and Communities
(A company limited by guarantee)
Trustees' Report (continued) For the Year Ended 31 August 2022
Plans for future periods
The charity will conduct its activities in accordance with the new Strategic Plan agreed in March 2023. The main plans and objectives for 22/23 are:
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Continue the recovery process, aiming for a minimum of 10% growth in 22/23, preferably more, to get closer to pre Covid levels, mindful of the headwinds, particularly with school finances remaining fragile.
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Despite the inflationary environment, to keep price increases to schools to a minimum and maintain tutor fees at a level that ensures retention.
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Organisation of a 2023 London Chess Classic, subject to funding.
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Organisation of a 2023 ChessFest and to spread ChessFest to other venues around the UK.
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Increase the training opportunities to the tutor base and new tutors.
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Expand the tutor base to create a reserve, particularly in London.
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Organisation of more chess teaching courses.
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Outreach to teacher’s organisations and local authorities to increase awareness of our offering.
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To seek new sources of funds and reconnect with donors after Covid.
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The continuation of a public affairs campaign around the benefits of chess while continuing efforts to bring the charity to the attention of the wider public and key decision makers.
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the charity for the purposes 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 . 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 Group and the charity and of their incoming resources and application of resources, including their income and expenditure, 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 of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) 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 Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 8
Chess In S¢lM)ols and Comnwnllies {A company limited by guarathl Truste•s' Report (contlnuedl Forth• Year Ended 31 August 2022 DIlosUre of In1mTr to audltors Each ofthe persons who are TnJstee5 at ts t¥ne then this Trustees. report is apprnved has [fmed thaL" so far as that TnJstee is ayare. Ihere 15 rel8vant a111 InfOti of whith the charitable group's 8udttoTr are unaware, and that Trustee has taken am ts steF6 that (4JJM to have been taken as a Tntstee in wder to be awdre of aTy relevant audit Inf arnl lo esta11th that the dwitaL4è group's auditors we aware of that Auditors The adItOrS. Kreston Reeves LLP. have nl#2ted ttir wthNJnegs to cuthue in offi. The deswJnated Trustees will proFKsse a motKm reapwinttyu the lt¥ at a ntiThj ofthe Tntstees. stephen Meyler Trustee Date. 30 q tsLS Page 9
Chess in Schools and Communities
(A company limited by guarantee)
Independent Auditors' Report to the Members of Chess in Schools and Communities
Opinion
We have audited the financial statements of Chess in Schools and Communities (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2022 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 August 2022 and of the Group's 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 and the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 10
Chess in Schools and Communities
(A company limited by guarantee)
Independent Auditors' Report to the Members of Chess in Schools and Communities (continued)
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditors' 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, except to the extent otherwise explicitly stated in our report, 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.
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 Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company 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' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, 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 Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
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Chess in Schools and Communities
(A company limited by guarantee)
Independent Auditors' Report to the Members of Chess in Schools and Communities (continued)
Auditors' 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 auditors' 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:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to safeguarding, health and safety, general data protection regulations and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
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Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
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Assessment of identified fraud risk factors; and
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Review of expenditure to confirm no evidence of personal benefit; and
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Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and
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Challenging assumptions and judgements made by management in its significant accounting estimates; and
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Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
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Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
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Reading minutes of meetings of those charged with governance; and
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Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting transactions; and
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Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Page 12
Chess in Schools and Communities
(A company limited by guarantee)
Independent Auditors' Report to the Members of Chess in Schools and Communities (continued)
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
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Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charitable company's members and trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and 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 charitable company and its members and trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Samantha Rouse FCCA DChA (senior statutory auditor)
for and on behalf of Kreston Reeves LLP
Chartered Accountants Statutory Auditor Canterbury
Date:
Page 13
Chess in Schools and Communities
(A company limited by guarantee)
Consolidated Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 August 2022
| Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities Investments 5 Other income Total income Expenditure on: Raising funds Charitable activities 6 Total expenditure Net (expenditure)/income before net (losses)/gains on investments Net (losses)/gains on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 104,685 398,614 8,251 - 511 512,061 19,602 811,749 831,351 (319,290) (76,948) (396,238) 1,510,929 (396,238) 1,114,691 |
Restricted funds 2022 £ 507,961 - - - - 507,961 - 436,264 436,264 71,697 - 71,697 289,003 71,697 360,700 |
Total funds 2022 £ 612,646 398,614 8,251 - 511 1,020,022 19,602 1,248,013 1,267,615 (247,593) (76,948) (324,541) 1,799,932 (324,541) 1,475,391 |
Total funds 2021 £ 741,835 240,962 10,987 11,989 500 |
|---|---|---|---|---|
| 1,006,273 | ||||
| 11,306 849,384 |
||||
| 860,690 | ||||
| 145,583 85,950 |
||||
| 231,533 | ||||
| 1,568,399 231,533 |
||||
| 1,799,932 |
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 18 to 33 form part of these financial statements.
Page 14
Chgss in Schools and Communiti85 IA company limrted by guarantee} Regtstered number. 07017640 Consolidated Balanc• Shè8t A8 at 31 August 2022 2022 2021 Flxed assets Investments 11 963.852 963,852 Current assets 12 165.045 545.882 312.298 588.128 Cash al bank and in harKI 710.927 A),426 Creditorn". anKJunts falllng due wilhtn one 13 184.940) (64.346) Net currenl assets 62587 836.080 Credtlors.. amounts falling due after more 14 P7.5001 Net assets 1N75J91 1.799.932 Funds Restricted funds Unrestricted funds 15 15 289.003 1.510.929 1,114.691 Total funds 1.475.391 1.799.932 81xy)unting rOrdS and preparat offfinarbial atern. the small companies regime. The financlal stateMts were apwowj aU1trKxi f(Y bythe Tft aThl 4ned on their behalf by.. Stephen Meyler Trustee Date: So The notes on pages 18 to 33 part ofthese fin*xllal statem8nts. Page 15
Chess In Schools and C¢>mmunitle$ IA company Ilmited by guarantee) Registered number: 07017640 Charity Balance Sheet As at 31 August 2022 2022 2021 Fixed assets Investments 11 963,853 963,853 Current assets Debtors Cash at bank and Ri hand 12 243.024 479A71 388.109 510.175 721495 898.284 Creditors.. amounts falling due wthFn 13 (84,760) (61,8971 Net current assets Creditors: amounts falling due after f than cw year 637,735 836,387 14 (37,500} Net assets 1.487.140 1,800.240 Charity funds Restricted tunds Unrestricted funds 15 15 330.933 1.156207 289,003 1.511,237 Total funds 1.487.140 1,800,240 The charws net movement in fvnds for the wa5 £(313.1LK)) (221- £265)). The Twstees acknoge their resKMx6iblities fL¥ U)mKAyirvJ wilh ts requirenHts of the Act wilh rnspect to The financial statements have Lwi F*epal in acLvdm 7hilh the provts1w awfK21)18 to enlilies subject to the small companies regime. ffinanaal Staents were aprmwj aThJ issue by the Tntstees svJned on tsir behalf by: Stephen Meyler Trustee Date: So The notes on pages 18 to 33 fomi these finan(4 ststeffts. ¥3 Page 16
Chess in Schools and Communities
(A company limited by guarantee)
| Consolidated Statement of Cash Flows For the Year Ended 31 August 2022 Note Cash flows from operating activities Net cash used in operating activities 18 Cash flows from investing activities Proceeds from sale of investments Purchase of investments Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 19 The notes on pages 18 to 33 form part of these financial statements |
2022 £ (37,690) 134,607 (139,163) (4,556) (42,246) 588,128 545,882 |
2021 £ 117,402 |
|---|---|---|
| 57,695 (54,789) |
||
| 2,906 | ||
| 120,308 467,820 |
||
| 588,128 |
Page 17
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
1. General information
Chess in Schools and Communities is a charitable company registered in England. The charitable company's registered address is Chess in Schools and Communities, 44 Baker Street, London, W1U 7RT.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Chess in Schools and Communities meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.
2.2 Going concern
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations are received by way of grants, donations, legacies and gifts and is included in full in the consolidated statement of financial activities when receivable.
Income from charitable activities includes income received by way of contributions made by schools, prisons and other establishments, from course fees and tournament tickets and is recognised as the events take place.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 18
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fee and costs linked to the strategic management of the charity.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
2.5 Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.6 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 19
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
2. Accounting policies (continued)
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at an appropriate discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the consolidated statement of financial activities as a finance cost.
2.10 Financial instruments
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Pensions
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
2.12 Fund accounting
Unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group 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.
Investment income, gains and losses are allocated to the appropriate fund.
Page 20
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
3. Income from donations
| Donations Individual and corporate donations Gift aid Trusts Government grants Total 2021 |
Unrestricted funds 2022 £ 86,251 8,234 10,200 - 104,685 493,535 |
Restricted funds 2022 £ 459,194 48,767 - - 507,961 248,300 |
Total funds 2022 £ 545,445 57,001 10,200 - 612,646 741,835 |
Total funds 2021 £ 426,206 73,154 225,320 17,155 |
|---|---|---|---|---|
| 741,835 | ||||
Government grants included income received in relation to the furlough scheme.
4. Income from charitable activities
| School contributions Prison contributions Tournament income Older people contributions Yes2Chess Total 2021 |
Unrestricted funds 2022 £ 384,725 11,120 283 2,486 - 398,614 240,962 |
Total funds 2022 £ 384,725 11,120 283 2,486 - 398,614 240,962 |
Total funds 2021 £ 208,953 2,773 - (764) 30,000 |
|---|---|---|---|
| 240,962 | |||
5. Investment income
| Dividends from trading subsidiary Total 2021 |
Unrestricted funds 2022 £ - 11,989 |
Total funds 2022 £ - 11,989 |
Total funds 2021 £ 11,989 |
|---|---|---|---|
Page 21
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
6. Analysis of expenditure on charitable activities
Summary by fund type
| Fundraising Tournament costs Chess Tutoring Training Total 2021 |
Unrestricted funds 2022 £ 26,367 135,578 635,681 14,123 811,749 577,462 |
Restricted funds 2022 £ 7,851 86,701 341,712 - 436,264 271,922 |
Total 2022 £ 34,218 222,279 977,393 14,123 1,248,013 849,384 |
Total 2021 £ 30,985 368,115 443,514 6,770 |
|---|---|---|---|---|
| 849,384 | ||||
7. Analysis of expenditure by activities
| Fundraising Tournament costs Chess tutoring Training Total 2021 |
Direct costs 2022 £ 90 151,177 798,223 14,123 963,613 592,978 |
Support costs 2022 £ 34,128 71,102 179,170 - 284,400 256,406 |
Total funds 2022 £ 34,218 222,279 977,393 14,123 1,248,013 849,384 |
Total funds 2021 £ 30,985 368,115 443,514 6,770 |
|---|---|---|---|---|
| 849,384 | ||||
Page 22
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
7. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Tutor costs ChessFest expenses LCC costs Expenses Tournament expenses Advertising Equipment Training projects Total 2021 |
Fundraising 2022 £ - - - 90 - - - - 90 216 |
Tournament costs 2022 £ - - 89,569 5,385 90 17,978 38,155 - 151,177 304,012 |
Chess tutoring 2022 £ 559,625 234,054 4,544 - - - - - 798,223 281,980 |
Training 2022 £ - - - - - - - 14,123 14,123 6,770 |
Total funds 2022 £ 559,625 234,054 94,113 5,475 90 17,978 38,155 14,123 963,613 592,978 |
Total funds 2021 £ 270,366 11,370 35,028 132,116 - 109,883 27,445 6,770 |
|---|---|---|---|---|---|---|
| 592,978 | ||||||
Analysis of support costs
| Staff costs IT General overheads Travel and entertaining General administrative services Bank charges Governance costs (note 8) Total 2021 |
Fundraising 2022 £ 23,832 1,205 2,976 834 783 162 4,336 34,128 30,769 |
Tournament costs 2022 £ 49,651 2,511 6,200 1,738 1,631 338 9,033 71,102 64,103 |
Chess tutoring 2022 £ 125,117 6,328 15,624 4,381 4,108 851 22,761 179,170 161,534 |
Total funds 2022 £ 198,600 10,044 24,800 6,953 6,522 1,351 36,130 284,400 256,406 |
Total funds 2021 £ 183,910 11,527 18,986 3,884 14,516 840 22,743 |
|---|---|---|---|---|---|
| 256,406 | |||||
Page 23
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
8. Governance costs
| Accountancy fees Auditors' remuneration Consultancy fees Professional fees Payroll services |
2022 £ 1,925 7,590 20,668 5,098 849 36,130 |
2021 £ 1,750 6,600 4,001 9,365 1,027 |
|---|---|---|
| 22,743 |
9. Staff costs
| Wages and salaries Social security costs Pension |
Group 2022 £ 186,677 10,764 1,159 198,600 |
Group 2021 £ 171,131 11,135 1,644 183,910 |
Charity 2022 £ 186,677 10,764 1,159 198,600 |
Charity 2021 £ 171,131 11,135 1,644 |
||
|---|---|---|---|---|---|---|
| 183,910 |
The average number of persons employed by the charity during the year was as follows:
| Group | Group | Charity | Charity | |
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| No. | No. | No. | No. | |
| Average number of staff | 4 | 5 | 4 | 5 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| Group | Group | ||
|---|---|---|---|
| 2022 | 2021 | ||
| No. | No. | ||
| In the band £60,001 | - £70,000 | 1 | 1 |
The key management personnel's total remuneration during the year totalled £92,674 (2021: £98,066), including employer's national insurance contributions of £9,322 (2021: £9,713).
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 August 2022, expenses totalling £23 were reimbursed or paid directly to 1 Trustee (2021 - £NIL to Trustee). This related to travel expenses..
Page 24
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
11. Fixed asset investments
| Group Cost or valuation At 1 September 2021 Additions Disposals Revaluations At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 Charity Cost or valuation At 1 September 2021 Additions Disposals Revaluations At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 |
Investments in subsidiary companies £ 1 - - - 1 1 1 |
Listed investments £ 963,852 139,163 (134,607) (81,504) 886,904 886,904 963,852 |
Listed investments £ 963,852 139,163 (134,607) (81,504) |
|---|---|---|---|
| 886,904 886,904 |
|||
| 963,852 Total £ 963,853 139,163 (134,607) (81,504) |
|||
| 886,905 886,905 |
|||
| 963,853 |
Page 25
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
12. Debtors
| Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income Tax recoverable |
Group 2022 £ 21,861 - 124,659 5,086 13,439 165,045 |
Group 2021 £ 67,527 - 210,922 - 33,849 312,298 |
Charity 2022 £ 21,861 76,763 124,659 5,086 14,655 243,024 |
Charity 2021 £ 67,527 76,264 210,650 - 33,668 |
|---|---|---|---|---|
| 388,109 |
13. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals |
Group 2022 £ 28,981 196 503 55,260 84,940 |
Group 2021 £ 9,418 21,913 751 32,264 64,346 |
Charity 2022 £ 28,801 196 503 55,260 84,760 |
Charity 2021 £ 6,969 21,913 751 32,264 |
|---|---|---|---|---|
| 61,897 |
14. Creditors: Amounts falling due after more than one year
| Group | Group | Charity | Charity | |
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Accruals | 37,500 | - | 37,500 | - |
Page 26
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
15. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Restricted funds London Chess Classic Africa fund Erlestoke Prison Prisons Wandsworth ChessFest Berkshire Liverpool/Merseyside Shreyas Royal Sebastian Bainbridge Memorial Ukraine Total funds |
Balance at 1 September 2021 £ 1,510,929 252,628 30,251 2,116 4,008 - - - - - - - 289,003 1,799,932 |
Income £ 512,061 262,500 - - - 8,208 191,640 3,125 16,000 19,200 6,058 1,230 507,961 1,020,022 |
Expenditure £ (831,351) (201,916) - - (4,008) (3,300) (191,640) - (16,000) (19,000) - (400) (436,264) (1,267,615) |
Gains/ (Losses) £ (76,948) - - - - - - - - - - - - (76,948) |
Balance at 31 August 2022 £ 1,114,691 |
|---|---|---|---|---|---|
| 313,212 30,251 2,116 - 4,908 - 3,125 - 200 6,058 830 |
|||||
| 360,700 | |||||
| 1,475,391 |
Page 27
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
15. Statement of funds (continued)
London Chess Classic is exclusively for running the educational elements of the London Chess Classic tournament.
The Africa fund is to be used exclusively on our activity in Africa.
Erlestoke Prison funds are for the provision of a chess club at HMP Erlestoke.
Prisons funds are to be used only for the development of the charity's chess in prisons programme.
Wandsworth fund relates to a donation received to improve the chess training offering in the area.
ChessFest donations are used exclusively towards the running of this year's annual ChessFest tournament.
Berkshire fund relates to a donation received to improve the chess training offering in the area.
Liverpool/Merseyside fund relates to a donation received to improve the chess training offering in the area.
Shreyas Royal fund relates to a donation received to support the development of the Shreyas Royal.
Sebastian Bainbridge Memorial fund relates to a donation received to create a memorial for Sebastian Basinbridge.
The Ukraine fund relates to funds received to be donated to a Ukrainian appeal of the Charity's choice.
Page 28
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
15. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds Restricted funds London Chess Classic Africa fund Erlestoke Prison Isle of Man Prisons Isle of Wight Schools ChessFest Total of funds |
Balance at 1 September 2020 £ 1,255,774 278,162 30,251 2,630 1,082 - 500 - 312,625 1,568,399 |
Income £ 757,973 - - - - 5,000 - 243,300 248,300 1,006,273 |
Expenditure £ (588,768) (25,534) - (514) (1,082) (992) (500) (243,300) (271,922) (860,690) |
Gains/ (Losses) £ 85,950 - - - - - - - - 85,950 |
Balance at 31 August 2021 £ 1,510,929 |
|---|---|---|---|---|---|
| 252,628 30,251 2,116 - 4,008 - - |
|||||
| 289,003 | |||||
| 1,799,932 |
16. Summary of funds
Summary of funds - current year
| General funds Restricted funds |
Balance at 1 September 2021 £ 1,510,929 289,003 1,799,932 |
Income £ 512,061 507,961 1,020,022 |
Expenditure £ (831,351) (436,264) (1,267,615) |
Gains/ (Losses) £ (76,948) - (76,948) |
Balance at 31 August 2022 £ 1,114,691 360,700 |
|---|---|---|---|---|---|
| 1,475,391 |
Page 29
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
16. Summary of funds (continued)
Summary of funds - prior year
| General funds Restricted funds |
Balance at 1 September 2020 £ 1,255,774 312,625 1,568,399 |
Income £ 757,973 248,300 1,006,273 |
Expenditure £ (588,768) (271,922) (860,690) |
Gains/ (Losses) £ 85,950 - 85,950 |
Balance at 31 August 2021 £ 1,510,929 289,003 |
|---|---|---|---|---|---|
| 1,799,932 |
17. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Total Analysis of net assets between funds - prior year Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2022 £ 886,904 350,227 (84,940) (37,500) 1,114,691 Unrestricted funds 2021 £ 963,852 611,423 (64,346) 1,510,929 |
Restricted funds 2022 £ - 360,700 - - 360,700 Restricted funds 2021 £ - 289,003 - 289,003 |
Total funds 2022 £ 886,904 710,927 (84,940) (37,500) |
|---|---|---|---|
| 1,475,391 | |||
| Total funds 2021 £ 963,852 900,426 (64,346) |
|||
| 1,799,932 |
Page 30
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
18. Reconciliation of net movement in funds to net cash flow from operating activities
| Net (expenditure)/income for the year (as per Statement of Financial Activities Adjustments for: Losses/(gains) on investments Decrease/(increase) in debtors Increase in creditors Net cash (used in)/provided by operating activities 19. Analysis of cash and cash equivalents Cash in hand 20. Analysis of changes in net debt At 1 September 2021 £ Cash at bank and in hand 588,128 |
Group 2022 £ (324,541) 81,504 147,253 58,094 (37,690) Group 2022 £ 545,882 Cash flows £ (42,246) |
Group 2021 £ 231,533 (88,855) (48,602) 23,326 |
|---|---|---|
| 117,402 Group 2021 £ 588,128 At 31 August 2022 £ 545,882 |
Page 31
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
21. Related party transactions
Malcolm Pein, the Chief Executive of Chess in Schools and Communities (the "Charity") and Secretary of its subsidiary Chess Promotions Limited ("CPL"), is a Director of Chess & Bridge Limited ("C&B"). During 2010, C&B signed a Supply Agreement with the Charity and CPL (together referred to as the "Customer"), to provide the Customer with certain goods and services on standard trade terms. This includes chess books, chess sets and boards, chess computer software, other chess related products and general administration support services. The total paid to C&B by the Charity during the year was £51,805 (2021: £42,409). At year end £Nil remained payable (2021: £Nil).
Malcolm Pein, is also a Director of Classical Games ("CG") a company incorporated in the United States of America. The total paid to CG by the Charity during the year was £1,560 (2021: £516). At the year end £Nil remained payable by the Charity (2021: £Nil).
There were transactions between Chess in Schools and Communities and Chess Promotions Limited within the ordinary course of business during the year. As at 31 August 2022 CPL owed the Charity £76,763 (2021: £76,264).
22. Pension commitments
The group operates a defined contribution pension scheme for its employees. The pension cost charge for the period represents contributions payable by the charity to the scheme and amounted to £1,159 (2021: £1,644). At the balance sheet date £41 was recognised as a debtor owed to the charity (2021: £276 liability owed to the scheme).
23. Controlling party
There is no ultimate controlling party.
Page 32
Chess in Schools and Communities
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
24. Principal subsidiaries
The following was a subsidiary undertaking of the charity:
| Name | Company | Registered office or principal | Principal activity | |
|---|---|---|---|---|
| number | place of business | |||
| Chess Promotions Ltd | 07152226 | 44 Baker Street, London, W1U | To exploit the | |
| 7RT | commercial value of | |||
| various chess | ||||
| events. | ||||
| Class of | Holding | Included in | ||
| shares | consolidation | |||
| Ordinary | 100% | Yes |
The financial results of the subsidiary for the year were:
| Name | Income | Expenditure | (Deficit) for | Net |
|---|---|---|---|---|
| £ | £ | the year | (liabilities) | |
| £ | £ | |||
| Chess Promotions Ltd | 8,251 | (19,692) | (11,441) | (11,748) |
Page 33