**Charity Registration No. 1135364**
**Company Registration No. 07120992 (England and Wales)**
## **GRASSROOT SOCCER (UK)**
**ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
## **GRASSROOT SOCCER (UK)**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
A N Haigh D Seale E Summe
## **Trustees**
## **Charity number**
**Charity number** 1135364 **Company number** 07120992 **Registered office** 63-66 Hatton Garden Fifth Floor Suite 23 London EC1N 8LE **Auditor** HW Fisher LLP Acre House 11-15 William Road London NW1 3ER United Kingdom **Bankers** National Westminster Bank Plc 46 Notting Hill Gate Notting Hill London W11 3HZ
(Appointed 15 April 2020) (Appointed 8 April 2021)
## **GRASSROOT SOCCER (UK)**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of trustees' responsibilities|5|
|Independent auditor's report|6 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 21|
## **GRASSROOT SOCCER (UK)**
## **TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
The trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and Accounting and Reporting by Charities: The Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective from 1 January 2019).
## **ABOUT GRASSROOT SOCCER**
Grassroot Soccer (GRS) is an adolescent health organisation that uses the power of soccer to educate, inspire, and mobilise youth in developing countries to overcome their greatest health challenges, live healthier, more productive lives, and be agents for change in their communities. GRS trains and empowers young community leaders and role models as Coaches to deliver critical health education and support to youth in their communities. GRS delivers comprehensive programming through affiliate country programmes in Zimbabwe, Zambia and South Africa, and works as a technical assistance provider with organisations in over 45 countries.
The contributions of Grassroot Soccer UK (GRS UK) are to provide programmatic oversight and grant management support, and to facilitate the sharing of best practices between GRS partner organisations and affiliates. GRS UK is a registered charity with its own Board of Directors and brand ambassadors who contribute to GRS’s communications and assist with fundraising and events. GRS UK is registered as a charitable company under the Companies Act 2006 in the United Kingdom.
## **VISION, MISSION AND PRINCIPLES**
**Our Mission:** Grassroot Soccer (GRS) is an adolescent health organisation that uses the power of soccer to educate, inspire, and mobilise youth in developing countries to overcome their greatest health challenges, live healthier, more productive lives, and be agents for change in their communities.
**Our Vision:** A world mobilised through soccer to create a healthy generation.
## **Our Principles:**
1. Young people have vast potential to create meaningful change and play a significant role in realising a healthy future for themselves.
2. Soccer is an ideal way to reach, educate, and inspire young people in a language they understand and enjoy.
3. Solving public health challenges for adolescents requires an integrated, collaborative, holistic, and community-wide approach.
## **CHARITABLE OBJECTS**
The objects of GRS UK are to empower youth around the world with the knowledge, skills, and support to live a healthy life. GRS UK works to achieve this objective by prospecting and securing funding for its partner organisations overseas, and by bringing visibility to the power of soccer to further positive social change.
## **GRASSROOT SOCCER’S WORK**
GRS delivers a combination of HIV, life skills and sexual and reproductive health education and services for young people that are tailored to addressing the specific risks in the communities where we work. The GRS model focuses on developing young community leaders (Coaches) who work in schools, at soccer pitches, and in community centres to deliver activity-based curricula to young people age 12-25. GRS has shown that our soccer-based interventions matched with strong community partnerships and referral networks can change behaviours and make a significant impact on the health of young people.
GRS works with communities to adapt its tested “SKILLZ” curriculum for various age groups, targeting the drivers of HIV and other health issues in an age-appropriate manner. By using soccer as a tool to attract young people, GRS is also able to access youth that may not be a part of formal education and are therefore difficult to reach. Furthermore, GRS strives to link young people to youth-friendly health and biomedical services including family planning, HIV testing, medical male circumcision, counselling, treatment and care.
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## **GRASSROOT SOCCER (UK)**
## **TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
Since 2002, GRS globally has reached over 2,700,000 young people through its programmes and partnerships, and has demonstrated remarkable results:
- **Assets**
- **25% increase in gender-equitable norms**
- **21% increase in young people who feel they can make healthy decisions**
- **21% increase in comprehensive knowledge of sexual and reproductive health**
- **Access**
- **Over 83,000 services accessed in 2019**
- **Over 38,000 young people tested for HIV**
- **Adherence**
- **Over 3,000 HIV+ young people supported in adherence programs**
## **GOVERNANCE AND MANAGEMENT**
GRS UK is a charitable company limited by guarantee, incorporated on 9 January 2010 and registered as a charity on 7 April 2010. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.
The Grassroot Soccer UK Board of Directors governs the charity in the UK and is responsible for determining policies and overseeing the strategic direction of the organisation. The Board meets one to three times per year and delegates the day-to-day operations of the UK organisation to the UK Director in consultation with the Chief Executive Officer.
The directors of GRS are its trustees, collectively known as the Board of Trustees. The trustees who served during the year and up to the date of signature of the financial statement:
Alexander N. Haigh Precious Lunga (Resigned 15 April 2021) Andrew Thomas Macdonald (Resigned 15 April 2021) Dustin Seale (Appointed 15 April 2020) Erin Summe (Appointed 8 April 2021)
Dr Tommy Clark served as the Chief Executive Officer during the year.
New trustees are appointed by the existing trustees or members. The Charity Commission approved revised Articles of Association for Grassroot Soccer UK in May 2019. These articles reflect new policies that only came into effect in 2019, including term limits for trustees (3 year terms, renewable 3 times). All trustees give of their time freely and no trustee remuneration was paid during the year. Trustees are required to disclose all relevant interests and in accordance with the charity’s policy withdraw from decision where a conflict of interest arises.
## **FUNDRAISING**
GRS UK is establishing a presence in London that has strengthened the commitment of existing UK-based partners and secured new revenue streams by implementing effective, targeted fundraising strategies and building strong relationships.
GRS UK had 2 large or multi-year donors: 1) British Telecom’s The Supporters Club, and 2) Swedish Postcode Foundation. GRS UK is responsible for and will continue to manage these relationships and ensure that donors are kept informed of what is happening on the ground.
During the year under review, GRS hosted a world-wide virtual Gala. The Gala was held on World AIDS Day, 1 December. Funds were raised both in the UK and the US. The funds raised will go towards supporting the work of the GRS affiliates. Income has fallen as fewer donations were received from the smaller virtual gala held this year compared to the larger in-person gala held in the prior year.
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## **GRASSROOT SOCCER (UK)**
## **TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **COVID-19**
As a result of the changes throughout the world due to the COVID-19 pandemic, GRS has found ways to continue the good work we do and even expand and thrive. Using the soccer-based approach, GRS created a COVID-19 specific curriculum, and made it open-source on our website. In addition, GRS programs were adapted to work remotely, either via phone or through an online platform. We continue to work through ways to engage youth though our programs as schools remain closed or at least closed to visitors. All these adaptations, done very quickly, have meant that GRS maintained exposure and funding levels. We have worked to reduce costs where possible to mitigate risks, especially travel and other non-programmatic costs. We continue to engage donors with positive results, and are finding new ways to fundraise that will replace in-person events.
## **RELATED PARTIES**
Grassroot Soccer UK acts as a funding partner within Grassroot Soccer, Inc. (a non-profit corporation in the United States). Also under the affiliation of Grassroot Soccer, Inc. are three companies who directly implement programming objectives of Grassroot Soccer, Inc. These companies are Grassroot Soccer South Africa, Grassroot Soccer Zimbabwe and Grassroot Soccer Zambia.
## **ACCOUNTABILITY**
GRS UK strives for upmost accountability and transparency with donors and partners. GRS involves diverse stakeholders in a number of areas of its operations to ensure programming is functioning at the highest capacity, including local governments and stakeholders, local and international implementing partners, and donors. The multi-faceted nature of GRS’s approach (health, education, soccer, youth development, child protection) puts GRS in a unique position to serve as a link between various wings of government and social services, including ministries of health, education, youth, sport, and social development.
## **RISK MANAGEMENT**
The Trustees are responsible for identifying and reviewing the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees have identified two relevant risks in the current landscape. The first is financial in that very few of the programmatic expenses of the charity are incurred in Sterling, so are subject to fluctuating currency exchanges. This risk is minimized by working to move funds (especially grant funds) into the currency of spend as soon as possible. The other risk identified is operational and is the effect of the political and world heath views on HIV and adolescent health, which can affect funding. This risk has led to the development of a strategic plan that will allow for a more nimble approach to growth and the cycle of funding and broaden our reach in the adolescent health world.
## **PUBLIC BENEFIT**
The Trustees confirm that they have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit, which addresses the need for all charities’ aims to be, demonstrably, for the public benefit.
## **FINANCIAL REVIEW**
The charity continues to fund its activities through corporate and individual donations and from fundraising events. Total income raised in the year was £166,683 (2019: £1,216,409) of which £5,000 (2019: £171,478) was restricted. Total expenditure was £334,948 (2019: £731,151).
## **RESERVES POLICY**
As at 31 December 2020, the Charity had reserves totaling £495,773 (2019: £664,038), of which £nil (2019: £67,383) were restricted. GRS UK has very few direct operating expenses, and takes measures to get money out to affiliates for programming and keep low reserves in the UK. The trustees are satisfied that the reserves held within the Charity are sufficient for future needs.
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## **GRASSROOT SOCCER (UK)**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees, who are also the directors of Grassroot Soccer (UK) for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 5 -
## **GRASSROOT SOCCER (UK)**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF GRASSROOT SOCCER (UK)**
## **Opinion**
We have audited the financial statements of Grassroot Soccer (UK) (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice) .
## In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' r eport, which includes the d irectors ' r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the d irectors ' r eport included within the trustees' r eport has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport.
- 6 -
## **GRASSROOT SOCCER (UK)**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF GRASSROOT SOCCER (UK)**
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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' r eport and from the requirement to prepare a s trategic r eport.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
As part of our planning process:
- We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The charity did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: the Charity SORP, FRS 102, Charities Act 2011, Companies Act 2006, Data Protection and Employment Law.
- We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
- The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management, and the conclusion that there are no significant accounting estimates.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key income lines.
- Assessing the validity of the classification of income, expenditure, assets and liabilities between unrestricted and restricted funds.
- Obtaining third-party confirmation of material bank balances.
- 7 -
GRASSROOT SOCCER {UK)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF GRASSROOT SOCCER IUK)
Documentingand Verifyin8 all si8nihcant telated party balarKes and tran5acbons.
Reviewin8 dotumÈntètion suth asthe chartty board minutes fof dixussions ol irregularities indudin8 fraud.
Owing to the inherent limitations of an èudit. there is an unavoidable risk th* we mty not have detected some mèterial
misstatements In the finèn£ial statements even tknJgh we ha* properly planned and performed our audit in accordance with
uditing srandards. The prSmèry responsibility for the prevention and deteoion ol irregularities and frèud rests with the trustees of
the charity.
A further descripion of our responsibilities is available on the Financial Rep)trting Council's website at". https.'Ilwww.frc.org,ukl
uditorsre5pon5ibiliies. This description forms part olour audIr,5 rewrt.
Use of our report
This report is mède solely to the charitèble compèny's Memts, as a body, in atmrdancÈ with Chapter 3 of Part 16 of the Companles
Att 2006. Our audit work has been undertaken so th* we might stste to the charitable tompany s members those mètters we are
required to state to them In an èuditors, re and for no other purpose. To the hjllest extent permitted by law, we do not èccept or
ssume responslblllty to anyone other than the chaiitsble company and the chadtstle company's members as a body, for our èudlt
work, for this report, or fer the opSnSonswe ha%* foimed.
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Andrew Rleh ISenloi5tstutw Audltorl
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Chartered Accountènis
Statutory Auditor
Acre House
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London
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## **GRASSROOT SOCCER (UK)**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Unrestricted**
**funds**
**2020**
**Notes**
**£**
**Income from:**
Donations and gifts
**3**
151,138
Other trading activities
**4**
10,231
Investment income
**5**
314
**Total income**
161,683
**Expenditure on:**
Raising funds
**6**
47,364
Affiliate charity support
**7**
209,510
Other
**12**
-
**Total resources expended**
256,874
**Net (outgoing)/incoming**
**resources before transfers**
(95,191)
Gross transfers between
funds
(5,691)
**Net (expenditure)/income for the**
**year/**
**Net movement in funds**
(100,882)
Fund balances at 1 January
2020
596,655
**Fund balances at 31**
**December 2020**
495,773|**Restricted**
**funds**
**2020**
**£**
5,000
-
-
5,000
-
78,074
-
78,074
(73,074)
5,691
(67,383)
67,383
-|**Total**
Unrestricted
funds
**2020**
2019
**£**
**£**
156,138
681,028
10,231
363,603
314
300
166,683
1,044,931
47,364
233,314
287,584
333,077
-
233
334,948
566,624
(168,265)
478,307
-
-
(168,265)
478,307
664,038
118,348
495,773
596,655|Restricted
funds
2019
**£**
171,478
-
-
171,478
-
164,527
-
164,527
6,951
-
6,951
60,432
67,383|Total
2019
**£**
852,506
363,603
300|
|---|---|---|---|---|
|||||1,216,409|
|||||233,314|
|||||497,604|
|||||233|
|||||731,151|
|||||485,258
-|
|||||485,258
178,780|
|||||664,038|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 9 -
GRASSROOT SOCCER (UK)
De£$
45735
507J73
1392641
664J)38
67.383
5*655
Thefi
Hal
-10-
## **GRASSROOT SOCCER (UK)**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**21**
**Investing activities**
Investment income received
**Net cash generated from investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
314|**£**
69,271
314
-
69,585
436,735
506,320|**2019**
**£**
300|**£**
294,241
300
-|
|---|---|---|---|---|
|||||294,541
142,194|
|||||436,735|
- 11 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Company information**
Grassroot Soccer (UK) is a private company limited by guarantee incorporated in England and Wales. The registered office is 63-66 Hatton Garden, Fifth Floor, Suite 23, London, EC1N 8LE.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
As stated in the Trustees' Report, Grassroot Soccer (UK) has adapted in response to the prolonged Covid-19 outbreak. Programmes were adapted to work remotely and the charity continues to work through ways to engage youth in these programmes as schools remain closed. The trustees of Grassroot Soccer (UK), alongside the board members and senior management team of the parent charity, Grassroot Soccer, Inc. continue to monitor the situation carefully and have put plans in place to mitigate the risk to the group's operations. The charity's income has fallen significantly this year due to the inability to hold any in-person fundraising events however the charity's fixed cost base is very low and thus the other variable cost the charity incurs (outside of event expenditure), grant funding , can be flexed depending on the level of income received and reserves available to the charity. The trustees continue to assess the viability of resuming in-person events in future. For the above reasons, the trustees have a reasonable expectation that Grassroot Soccer (UK) can continue as a going concern for the foreseeable future and thus the financial statements have been prepared on the going concern basis.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
## **1.5 Resources expended**
Costs of raising funds includes those costs incurred to organise and stage the fundraising events.
Grants payable are transfers of funds to affiliates of the Charity, in furtherance of the Charity's charitable objectives. The affiliates notify the Charity when additional funding of the charitable activity is required, whereupon the Charity transfers the funds to this affiliate, through its US parent GRS Inc.
Support costs are those functions that support the work of the charity but are not themselves charitable activities. All such costs have been allocated to the single activity of affiliate charity support.
Governance costs are those costs associated with meeting statutory and legal requirements and include audit fees. All such costs have been allocated to the single activity of affiliate charity support
- 12 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
3 years, straight line method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
The Charity 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.
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
The trustees are satisfied that there are no significant accounting estimates or judgements in the financial statements.
## **3 Donations and gifts**
||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|
||**funds**|**funds**||funds|funds||
||**2020**|**2020**|**2020**|2019|2019|2019|
||**£**|**£**|**£**|£|£|£|
|Donations and gifts|151,138|5,000|156,138|681,028|171,478|852,506|
- 13 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**4**
**5**
**6**|**Other trading activities**
**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Fundraising events
10,231
363,603
**Investment income**
**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Interest receivable
314
300
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Fundraising costs
Staging fundraising events
47,364
233,314
47,364
233,314|**Other trading activities**
**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Fundraising events
10,231
363,603
**Investment income**
**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Interest receivable
314
300
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Fundraising costs
Staging fundraising events
47,364
233,314
47,364
233,314|
|---|---|---|
|||233,314|
- 14 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **7 Affiliate charity support**
|Grant funding of activities (see note 8)
Share of support costs (see note 9)
Share of governance costs (see note 9)
**Analysis by fund**
Unrestricted funds
Restricted funds|**2020**
**£**
239,995
34,216
13,373
287,584
209,510
78,074
287,584|**2019**
**£**
285,400
194,554
17,650|
|---|---|---|
|||497,604|
|||333,077
164,527|
|||497,604|
## **8 Grants payable**
|Grants to institutions:
NPC Grassroot Soccer South Africa
Grassroot Soccer Zambia
Grassroot Soccer, Inc. Zimbabwe
Grassroot Soccer, Inc. (US)
Grassroot Soccer UK|**2020**
**£**
17,666
28,876
18,676
170,238
4,539
239,995|2019
£
40,480
69,261
49,846
120,873
4,940|
|---|---|---|
|||285,400|
Grassroot Soccer (UK) paid all grant monies in the year (£239,995) to Grassroot Soccer,Inc. who then distribute the funds to the affiliates.
- 15 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**9**
**Support costs**
**Support costs**
**Governance**
**costs**
**£**
**£**
Staff costs
6,234
-
Depreciation
-
-
Other support costs
27,982
-
Bad debt allowance
-
-
Audit fees
-
12,828
Accountancy
-
545
Legal and professional
-
-
34,216
13,373
Analysed between
Charitable activities
34,216
13,373|**2020**
Support costs
Governance
costs
**£**
£
£
6,234
60,046
-
-
305
-
27,982
121,423
-
-
12,780
-
12,828
-
9,714
545
-
726
-
-
7,210
47,589
194,554
17,650
47,589
194,554
17,650|2019
£
60,046
305
121,423
12,780
9,714
726
7,210|
|---|---|---|
|||212,204|
|||212,204|
Governance costs includes payments to the auditors of £12,828 (2019: £ 9,714) for audit fees and £545 (2019: £726) for other services .
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or reimbursement of expenses during the year.
## **11 Employees**
The average monthly number of employees during the year was:
|Administrative staff
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2020**
**Number**
1
**2020**
**£**
5,641
513
80
6,234|**2019**
**Number**
1|
|---|---|---|
|||**2019**
**£**
52,445
6,257
1,344|
|||60,046|
- 16 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **11 Employees**
**(Continued)**
The key management personnel of the Charity comprise the Board of Trustees and the Head of Grassroot Soccer UK. Whilst some staff, both of the Charity, and its US affiliate, manage the day to day affairs of the charity, all strategic decisions are taken by the Trustees who are directly involved in the running of the Charity, along with the Head of Grassroot Soccer UK.
The trustees receive no remuneration for their work.
Total remuneration paid to key management personnel in the year was £nil (2019: £38,876).
The head of Grassroot Soccer UK stepped down from her role in 2019.
There were no employees whose annual remuneration was £60,000 or more.
## **12 Other expenditure**
|||**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
||Net loss on disposal of tangible fixed assets|-|233|
|**13**|**Tangible fixed assets**|||
|||**Fixtures, fittings & equipment**||
||||**£**|
||**Cost**|||
||At 1 January 2020||750|
||Disposals||(750)|
||At 31 December 2020||-|
||**Depreciation and impairment**|||
||At 1 January 2020||750|
||Eliminated in respect of disposals||(750)|
||At 31 December 2020||-|
||**Carrying amount**|||
||At 31 December 2020||-|
||At 31 December 2019||-|
- 17 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**15**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Accruals and deferred income|**2020**
**£**
51
-
802
853
**2020**
**£**
-
-
11,400
11,400|**2019**
**£**
-
241,055
25,512|
|---|---|---|
|||266,567|
|||**2019**
**£**
1,021
28,273
9,970|
|||39,264|
- 18 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **16 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Movement in funds**
**Balance at**
**1 January 2019**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**1 January 2020**
**£**
**£**
**£**
**£**
NPC Grassroot Soccer South Africa
20,880
46,227
(40,480)
26,627
Funds to be spent within the UK
4,449
7,802
(4,940)
7,311
Grassroot Soccer Educ. Ltd - Zambia
15,610
77,351
(69,261)
23,700
Grassroot Soccer Zimbabwe
19,493
40,098
(49,846)
9,745
60,432
171,478
(164,527)
67,383|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
-
(17,666)
-
(4,539)
5,000
(37,193)
-
(18,676)
5,000
(78,074)|**Transfers**
**Balance at**
**31 December**
**2020**
**£**
**£**
(8,961)
-
(2,772)
-
8,493
-
8,931
-
5,691
-|**Transfers**
**Balance at**
**31 December**
**2020**
**£**
**£**
(8,961)
-
(2,772)
-
8,493
-
8,931
-
5,691
-|
|---|---|---|---|
||||-|
Restricted income is received with the purpose of funding projects undertaken by Grassroot Soccer affiliates in other countries as specified in the donors' contracts. Grassroot Soccer UK transfers money as per each country's requirements.
The transfers relate to the correction of the internal fund allocation based on the actual project spend and the (gains)/losses on project spend in other currencies.
- 19 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**17**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2020**
**2020**
**£**
**£**
Fund balances at 31
December 2020 are
represented by:
Current assets/(liabilities)
495,773
-
495,773
-|**Total**
Unrestricted
funds
Restricted
funds
**2020**
2019
2019
**£**
£
£
495,773
596,655
67,383
495,773
596,655
67,383|Total
2019
£
664,038
664,038|
|---|---|---|
## **18 Operating lease commitments**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Within one year|-|2,599|
## **19 Related party transactions**
Grassroot Soccer UK 's parent company Grassroot Soccer , Inc . is based in the US . They also have affiliates in South Africa, Zambia and Zimbabwe where most of their projects are undertaken. Thomas Clark, Chief Executive Officer of Grassroot Soccer , Inc . is a member of all boards of the Grassroot Soccer affiliates, however, it is the US board that has authority over all Grassroot Soccer activities in South Africa, Zambia, Zimbabwe and the UK. Grassroot Soccer (UK) pay grant monies (detailed in notes 8 and 16 to the financial statements) to Grassroot Soccer,Inc. who then distribute the funds accordingly to the affiliates.
## **20 Parent undertaking**
The ultimate controlling party of Grassroot Soccer UK is its parent company, Grassroot Soccer , Inc . which is based in the US , registered office: 15 Lebanon Street, Hanover, NH 03755, USA.
|**21**|**Cash generated from operations**|**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
||(Deficit)/surpus for the year|(168,265)|485,258|
||Adjustments for:|||
||Investment income recognised in statement of financial activities|(314)|(300)|
||(Gain)/loss on disposal of tangible fixed assets|-|233|
||Depreciation and impairment of tangible fixed assets|-|305|
||Movements in working capital:|||
||Decrease/(increase) in debtors|265,714|(218,539)|
||(Decrease)/increase in creditors|(27,864)|27,284|
||**Cash generated from operations**|69,271|294,241|
- 20 -
## **GRASSROOT SOCCER (UK)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
- 22 **Analysis of changes in net funds**
The charity had no debt during the year.
- 21 -