TEAM ARMY SPORTS FOUNDATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 Registered Company Number: 07773783 Registered Charity Number: 1144004 TEAM ARMY SPORTS FOUNDATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 CONTENTS PAGE Reference and Adtninistrative details Trnstees, Rew)rt Independent Auditors, Report 9- 11 stsiement of Financial Activities 12 Bklance Sheet 13 SÉatement of Cash Flows 14 Notes to the Fiinaneial Ststements 15- 19 TEAM ARMY SPORTS FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 NOVEMBER 2020 Ststu$ The organisation is a ¢haTitsble company limÈted by guarantee, incorporated 14 September 2011 and register¢d as a charity on 27 September 2011. Coverlling DOcu￿ent The charity is controlled by its governing document, a deed of trust, and constitutes a limited cornpany, limited by guarantee, as defmed by the Companies Act 2006. Comp2ny Number 07773783 Charity Number 1144004 Registered OffR¢e Lime Cottage Tisbury Row Tisbury Salisbury England SP3 6RZ Trustses Major General Colin Mcclean {Chair) Major General Jonathan James Cole {apptstnted 2 December 2020) Satah Louise Cox {appointed I September 2020) Dr Nicolas Anderson Brigadier RiLhard Dennis OBE Major General Neil S￿tOn CB Andr¢w Mcmorran Major General Richard Selnple CBE Mr Graham Bea]e Bankers Barclays Bank ramborough GU14 7PQ Auditor6 Haysrnaeintyre LLP 10 Queen Street Place LonLton EC4R IAG TEAM ARMY SPORTS FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020 The Trustee5 present their report and the audited fJnan¢i21 statements foi the year ended 30 November 2020 Reference and administrative infomation set oui on page I foTms part of this report. The fwancial statem¢nts comply with current statutory requirements, the Memorandum and Articl¢s of Association and the Chariti¢s StateEnenl of Recommended Practice (SORP 2015) (Second Edition, effective l January 2019). Structure, Governance and Management The trnstees of the charity are drawn frorn a uTrix of cuttent aTtd ex-serving military persotjnel and experienced people from Èndusty. Thi5 15 intended io ensure that the Board has a good mix of knowledg¢ and insight intl) Forces sport tempered with appropriate eommercial experience. If the Board feels it needs additional skills or knowledge it will identify and approach suitable pe￿p]e to see ifthey would be interested in volunteering to be a Trnstee. Many senior serving officers and senior industry executives will alr¢ady have experience of serving on chwity boards. The board of Trnstees aims to meet 2-3 times peryear. While the board relies QD a part time CEO Imaj Gen {retd) Lamont Kirkland CBE) and back~otTice capability lo guide the day-to-day activities of the charity, a]1 stttlegic 2nd policy matters are decided by the board (the CEO does not serve as a Trustee). Given the realilic5 of service lif¢ not all trusÈees are able to attend every TNstee's board meeting. A boardmeeting will only go-ahead if the chaiT and CEO ¢on att¢nd andamajority of the trustees are available. During th¢ f￿￿claI year, the Board comprised of five serving or ex-serving officers, Maj Gen (retd) Richard Semple, Maj Gen Colin Mcclean (Chairl, Major General Neil Sexton with Brig (retd) Richard Dennis and ￿s0 joined in S¢p by WOI Sarah Cox in order io provide a more appropriate mix and some diverssty to tli¢ board's composition. This was also in response to the board's view that it needs to b¢ bettcr infonned of current soldier's requirements and thereby help snfolyn decisiolls ott future tunding. Between them they have a comprehensive understanding of the Arn]ed Forces and how Forces sport is organised and funded. The charity continues to be well serv¢d by its non-military Inembers.. Dr Nsc And¢rson, of QinctiQ; Mr Andr¢w Mcmorran, CEO of Official Military Beer Co]npally and Mr Graham Beal from Ernst & Young who brings finan¢¢ ¢xp¢rtis¢. The charity has no paid staff. Its k¢y management personnel are its trustees who are unrernunerated. Objective5 and aetivities (Revised Iyov 2019, further amended under a special resolution in Aug 2020) The objects aTEd objectives were last fomally updated in Nov 2019 to eneompassing sp)rt. challenge and adventure for serving and ¥¢￿ran forces whilst also supporting flagship grants to significant worthy pursuits. I FY2019, this not ODiy COV¢Ted support to a nllmber of More Thinor 2dventhrous activities but the flagship grant made a SI￿lfiCant contribution to the UK MficTUS trials and support for the teaTn's training and prcparation for the 2020 INVlC'fus games in The Hague (subsequently postponed to 2021 and now again to 2022). Having agr¢¢ these rninor changes, the objects were ￿rther amended in Aug 2020 to reflect the cot]tribution the charity mak¢5 towards mental and well as physical wellbeing in its suppon io the serving and veteran community- This was passed at the special resolution in Aug 2020 and formally updated with thc obj¢cts, featur¢s aDd principles for Ifunding) distribution in Dec 2020, they now read.. to promo* the efficiency of Her Majesty's arnied forces and veterans of the Crown by such charitsble Means as Trustees think fi( including (but not lirnited to).. improving physical fitness and Tnental wellboing, fostering esprit de ¢grp5, promoting diwersity and inclusion and raising morale of serving armed forces personnel by encouraging participation it) sports and adventurous activities and providing asSSStante in the provision of sporting facilities, and o the provision and 5UPPOrt of facilities, amenittes and activitie5 for the well-being of serving and forn)er arned forces personnel the relief of serving or fomier armed forces personnel and their dependents ondlor families who are in Deed by r¢ason of youth. age, ill health, disability, financial hardship or other disadvantage. TEAM ARlblY SPORTS FOUIYDATION TRUSTEES, REPORT (coDtittued) FOR THE YEAR ENDED 30 NOVEMBER 2020 The charity aims to rdise its funds through three major activities.. Attrdcting benevolent donations (from individual and corporate donors and by association with 3rd ndraising events). Conducting in-house fundraising events that showcase Forces 8POrt' and Appealing to relat¢d inthisty parMers and their wish to commit CSR or other charitable welfare funding to the TASF caus¢. The charity 5e¢k.% to achieve public benefit through the operation of the a¢tivities described above. The trustees confirni they have had regard to the Charity Commission's guidance on publie benefit. The ctwity does not fundraise through members of the public. Activitie5 8nd Performanee The impact of COVID-19 during most of the financial year had th¢ restrictions on sport and evenrs has inevitably had a significant effect on the norma] cycle of events from which the charity would rtorni&lly expect to benefit. The reality is that the only events of note have been.. lor5e of thc Year Show Dec 19 Nevertheless. thé charity has rerxived Some donations totalling £375,000 from a n￿nber of sources: All)0 Donation fro Ethos Fundraising Limited Other (cory)orates) £355,000 £20.000 TOTAL £375,000 With all sporting activity either stopped or severely curtailed from Apr 2020 the cbarity awarded significantly less wts and donatitsns than would hawe been the c&5e in a normal year. The total has been £1 57,895 and ￿ade up as follows.. Recipient Recipi ent Amount Atnount (£) (£) Infanty Sailing REME Sports AFC HwTogate Sport5 UKAF Cricket UKAF Winter Sports UKAF Point to Point Grand Military Jockey Conimitt¢e UI(AF Rugby UKAF Equestrian Amed Force8 Rowing £12.0(KJ £22,000 £3.000 £4,500 £7,200 £11,250 £2,700 £32,146 £2,700 £900 Veterans Sub Aqua Club Amied Forces Para Snowsport Tearn Kartforce TeamBrit Adaptive Motorcycling Team Endeavour Racing Taluga River Expedition Climb to Recovery SSAFA Charity Royal NaNy Winter Sports AAC Cycling and Triathlon £6,505 £13,500 £3,000 £2,000 £3,600 £3.000 £2,500 £5,000 £1,794 £18,000 £600 TOTAL £157J95 TEAM ARhtY SPORTS FOUNDATION TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 30 NOVEMBER 2020 Grant mkking policy Th¢ trustees have agreed a set olprinciples which help to detemiine how t() distribute charity funds (revised Nov 20191.. To respect, as far as possible, the wishes of donors To promote excellence and success by 5UPPOrting the full breadth of Anned Forces representational level sports and by supporting individuals w compete at elite and international level To increase opportunity by maximising participation in sp)rt through support to grass roots a¢tivity thus rnaking sport more a¢c¢ssible To ¢nable recovery and rehabilitation by supporting wound¢d, injured & sick (WIS) servicemen and veterans to take part in Co￿petItive gport with particular emphasis on activities which 'level the playing field. for para athletes Support AT activiti¢s which are very challenging, ttuly adventurous and provide highly rewarding developmental and recovery exp¢ri¢nrKs for both serving and veteran personnel Aim to support a worthy and h￿h-profI]e sporting or adventurous projects with an annual flagship grant To contribute an almuai Su￿TruS io the reserve to ensure funds are available for lean years and to srnooth out income levels for key beneficiaries Build a capital fund of roughly one year's grant making Partner with other charities with aims coherent with our own, through and with whom the Foundation deliver its goals in order lo promote coherence, good governance and sharing of best practice When involved tn fimdraising events the charity will typically seek to partner with other charities and may explicitly identify other charities as recipients of fvnds {typi¢ally those whose objects are services welfar¢ related and all￿ed with those of the charity). TEAM ARMY SPORTS FOUNDATION TRUSTEES, REPORT {continued) FOR THE YEAR ENDED 30 NOVEMBER 2020 Risk manag¢mellt The Trustees have a duty to identify and review the risks to which the charity is ¢xposed and io ensure appropriate controls arc in place to provide reasonable aSsur￿ce agaiiist fraud and error. The trustees have considered th¢ risks in the year and established appropriate msligating action. The following are the maiD risks the charity is exposed and how they are mitigated.. RISK MITIGATION COMMENT TASF'S main donor Ethos Fundrdising Ltd (EFL) fails and stops trading •TASF requires an understanding of EfL's sustsinability. •TASF Teguires cash platjned for donation to be ring-fenced or paid regularly to reduce exposure •TASF is id¢ntifying altemative income streams EFL seeks to ake payments into the ¢iwity at least quarterly Ultra Electronics have ￿ade donatsons directly to thc charity to help enable a Covid Bounce Back fund New pamership with Crafy brew¢ry (now Military Beer Company) LS expect¢d result in increased donations The Armed Forces lose trust in Team Armyl Team Etho$ as a concept The T¢am Arniyl Tcam Ethos progralnme and benefits need to be Clear to all parties and proven through measured perfomianc¢ The role of the Amied Forceg and sports in working with Ethos, sponsors and TASF. along with the undeTpinning operating mod¢l, need to be learer and better undersiood. In a iemiination of Ethos event TASF could look to develop. as per mitigation above into a Trading Fund in order to tske over from Ethos. TASF has a key part to play in giving donors (in whatever fortn) a shared passion for Forces sport and its benefits There ba5 b¢¢n increased use of social media, particularly Linkedln, 10 provide news stories to highlight the worf( of the Lharity in providing grants for g(x)d caus¢s. This has proven to be exceptionally u%ful in broadc3Sting the wot* ot the charity. TEAM ARMY SPORTS FOUNDATION TRUSTF.ES? REPORT (continued) FOR THF, YEAR F.NDED 30 NOVEMBER 2020 Risk management (continued) TASF is unabl¢ to ￿eet finaDria] committnenls Be clear on f]rtancial exposure at any stage Ensure the Board ha5 appropTiat¢ financial expertise to help fjscal planning. Build a suitable financial contingency to cover the unexpected. Widen the numbers of direct donoTS to TASF Cash res¢rv¢ has b￿n established and will b¢ inLreased in the next FY. As a result of the increased activity on so¢ial media, there now stronger interest within Defence industry to support the work of Team Ethosl Team Army COVID-19 and its impact on the charity's business iiu7)ugh reduced income Preserve funds by stopping payments Inforn) sports that grants will be withheld in the short term to reflect reduced 5POrting activity Invite sports and other adventure pur5Ults to submit justified requests for fi]nding only when activ%ty resume5. Reduce overheads wherever possible which includes management fees (to be covered in the 2020 renewal of the SLA with EFL) The tn￿e¢S are acutely aware of the likely impact on cashflow due to COVID- 19 restrict20ns on sporting social acttviiies. However, taking actioll to p￿SerVe payThents' will help keep this situation under control and will remain under reyiew. There are Strong signs that sncome will rise signihcanty in the next Finance Review The charity's income was £375.366 in this year of a¢tivtty ended on 30 Novernber2020. Thetotal ¢xpenditurewas £227,471 for the year. The fund balance c￿Tled fonvard at 30 November 2020 was £327,023. Reserves policy In accordance with guidelines issued by the Charity CoTnmission, the Trustees have adopted a policy regarding￿ reserves which should ensure that there are adequate ￿t]dS to ensure ihat the charity is able t(} meet dil curreni and known future With a reduced income from EFL during the Pandern￿C ye8r, the ¢harily has needed to call on some reserves in order to rneet requests and support to the few activities that continued. At 30 November 2020 the Charity had reserves totalling £327,023 {2019- £179,128) all of which were unrestricted. These reserves are available to be part of the funds to meet the cbarity's grant ¢omtDittnents (whi¢h are for¢cast¢d &8 being £155.481 as itemised on pag¢ 19), a number of the 2019 commitments that us￿81]Y cleared in the spring have been Tnerely carried forword until the resumption of activity as spring lockdown took effect. The Trustees believe the level of reserves is sufficient for the Charity's need5. As predicted and ¢oveTed in the 2019 audiL COVID-19 ilnpacted on the shoTt-tenn cashflow for the charity but with a prudent approach by reducing or holdsng back grattts where there was no sporting activity, meant it was possible ta ¢ontrol a reasonable balance between income and expenditure. With grdnts made at the dis¢r¢tion gf th¢ charity and its trustees. there is no reason to significantly reduce reserves or change policy as there are no signifi¢ant binding cotnmitments. TKAM ARMY SPORTS FOUNDATION TRUSTFES, REPORT (¢ontinued) FOR THE YEAR ENDED30 NOVEMBER 2020 Plans for the future Th¢ charity's fuwre plans are to.. Continue to deliver suitable fundraising events. Conduct a series of campaigns to attract increasing levels of b¢n¢vol¢nt donations- Develop relationships with other charities whose objects are aligned with those of the Team Arniy sports Foundation and become the choscn channel through which funds are directed to Forces sports. Identify corporate charitsble schemes with a view tohaving specific forces sport (particularly for disabl¢d athl¢t¢s) nominatcd as the charity of choice for staff fundraising- Continue to build the ie5erve fund in line with the charity's short-ternj goalg. and Continue to develop a funding prafile and allocation to enable a post-covid bounce back especially target¢d at those individuals and groups pursuing those one-oty. iconic w)d inspirational activities. Maximise the use of social media to broaden awareness of the charity's work and effect Encourage industy to Consider the charity wh¢n demonstrattng its support and contributiOD to social valu¢ COVID-19 its impact plans going forward Covid continues to hav¢ au impact on expected revenue and activity levels into FY 2020121. However. the outlook is generally positive in that EFL, the Principal donor io the charity, is expected to quickly resume business in ternjs of organising and generating revenue with sporting and other hospitality events and attract sponsors. This is ¢XP¢¢ted to allow donations to resume, in Q4 of FY20121 cven if not back to more nomial levels until Covid stops iTnpacting on operations. TEAM ARMY SPORTS FOUNDATION TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 30 NOVEMBER 2020 Trustses, responsibilities Statemetyt CoTnpany law requires the Tjustees to prepare financial statements for each fjnancial year which giv¢ a true and fair vkew of the state of the affairs of the chariry as at the balance sheet date and of its income and expenditure, for th¢ year th¢n ¢nded. In pr¢paring those fjnancial statements which give a tw¢ and fair view, the Trustees should follow best prdCti¢e and.. select suitable accounting policies and then apply them eonsistently" observe the methods and principles of the Charities SORP: make judgements and estimate5 that are reasonable and prudent; state wheiher applicable accounling standards and statements of recommended practice have been followe subject to any mat¢rial depathres disclosed and explained in the financial Matements. prepare the fmancial statement5 on the going concern basis unless it is inappropriate to assume that the charitable cotnpany will ¢ontinue on that basis. The Trustees are responsible for keeping prop¢r accounting records that disclose with rcosonable 2¢cura¢y, at any time, the financial position of the ch2ritable company, enabling theln to ensure that the financial staterncnts comply with the CompaDi¢S Act 2006. They are also responsible for safcguardints the assets of the charitable company and hen¢e fortaking reasonabl¢ steps for the prevention and detection of fraud and other irregularities. In 50 far as we are aware: There is no relevant audit information of which the charitable cornpany's auditor is unaware. and The Trustees have taken all steps that they ought to have taken to make them5elv¢s aware of any relevant audit infomiaÉion and to ebtablish that th¢ auditor is aware Of that infonnation. The Trustees. Report has b¢¢n prepared in accordaTkce with the special proviSLons of part 15 of the Companies A￿ 2006 relating to small companies. This report was approved by the Trustees on and signed on their behalf by: Trustee c.le INDEPEfiDENT AUDITOR'S REPORT TO THE MEMBERS OF TEAM ARMY SPORTS FOUNDATiof4 Opinion We have audited the financia] ststements of Team Arniy Sports Foundation the year ended 30 November 2020 which comprise the Statement of Financial Activiti¢s, the Balance Sheet and notes to the financial statements: including a summary of significant accounting policies. The financial reporting framework thai has been applied in their preparation l5 applicable law and United Kingdom Accounting Standards, it)cluding Financial Reportints Standard 102 The F£Nanciul Reporlifrjg Siandard upplicable in ihe UK Gnd Republic of Ireland (Ullited KingdoTn Generally Accepted A¢¢ounting Practice). In our opinion, the finatjcial statements.. give a true and fair view of the state of the charitabl¢ cornpany's affairs as at 30 November 2020 and of the charitable company's net movement in fi]nds, including the income and cxpenditure. for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted A￿oll￿ting Practice,. and have been prepared in accordance with the requirements of the Compantes Act 2006. Basis for opillion We condu¢t¢d our audit in ac¢ordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities underthos¢ Standards are ￿rther described in the Auditor's responsibilities forthe audit of the f]nancial stateinents scction of our report. We are independent of the eharity in accordancc with the eihi¢al requirements that are relevgnt to our audit of Ihe fiDanci81 statements in the UK, including the FRC'S Ethical Standard. and w¢ have fulfilled our othcr ethi¢al responsEbilitÈes in accordanc¢ with these requiretnents.. We believe that the au(fii evidence w¢ have obtained is sufficient and appiopriate to provide a basis for our opifiion. Conclusions relating to goiDg concern auditing the financial statements, we have concluded that the lrnstees, use of the going con¢¢m bÈsis of accounting in the pr¢paraiion of the financial statements is appropriate. Based on the work we hav¢ perfornied, we have not identified any Tnaterial uncertainties Telating to eyents or conditions that, individually or collectively.. may cast significant doubt on the charitable Company's ability to continue as a going concern for a period of at l&ist tw¢lve months from when the fjnancial statements are authori5ed for issue. Our responsibilities 2nd the responsibiliti¢5 of the trnstees with r¢spe¢t to going concern are described in the relevant sections ofthis report. Other information The trnstees are T¢sponsible for the other infomiation. The othcr i)fomiation comprises the infoFmation included in the Trustees, Ar￿￿al Report. Our opinion on the financial statements does not cover thc other infomiation and, except to the extent otherwise explicitly stated in our report, wc do llot express any forni of asgurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to re&d the other infomiation and, in doing so. ¢onsider whether the other infonnation is materially inconsistent with the fllwicial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify 5u¢hmalerial inconsistencies or apparent material misst2tements. we are required to deterniine whether there is a material misstaternent in the financial statements or a material misstatement of the other infomation. If, based on the work we have p¢rforrned, we concludc that there is a material misstatemeni of this other informatÈon, we are required to report that fact. We have nothing to rewrt in this regard. Opinion$ on other matters prescribed by the Companies Aet 21106 In our opinion, based on the work undertaken in the cows¢ of the dudit.. the inforniation gtven in the Tn]stees' Annual Report {which includes the strategi¢ report and the directors, r¢port prepared for the purposes of company law) for the fIn￿¢*al year for which the fmancial statemcnts are prepared is conslSt¢nt with the r]nan¢ial statement5. and the 8trdt¢gic report and the directOT5' reptsrt included within the Trustees. Annual Report haye been prepared in accordance with applicable legal requ2rernents. Matters on which we are required to report bv exception In the light of the knowledge and understanding of the charitable company and it% ¢nvironment obtained in the course of the audit, we have not identtfied material tnisstatements in the Tn]stees' Annual Report (which incorporates the 8trdtegic report and the directors, report). INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TEAM ARMY SPORTS FOUNDATION (continued) We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires u5 tt> report to you if, in our opinion.. adequate accgunting records have pot been kept by the ¢haritoble company. or the charitable con]pany f￿ancial statements are not in agre¢ment with the accounting r¢¢ords and returns. or certain disclosures of trustees. remuneration specified by law are not rnade. or we have not received all the infonnation and explanations we requir¢ for our audit. or the trustees were noi eniitled to prepare the fmanciai statem¢nts in accordance with the small companies, regime and take advantage of the small compani¢s' exemptions in preparing the trn$tees' report and from the reqUire￿ent to pr¢pare a strategic rep)rt. Rcsponsibilities of trustees for the finan£iAI Statements As explained more fully in the trustees, responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for th¢ PUfPObes ofcompajy law} are responsible for the preparation of the fmancsal statcments and forbcing satisfied that they give atrue and fair view, and for such intemal control as th¢ trustee5 deterniine 15 nwessary to enable the preparation of f]nancial statements that are free fro￿ Enaterial misstal¢meni, whether due to fraud or crror. In preparing the fIn￿l(la] statements. th¢ trustees are responsible for assessing the charitable COTllPally'S ability to contlDU¢ as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounijng unless the trustees either intend to liquidate the charitable company or to ￿8$¢ operdtion& or haye no realisiic alt¢rnative but to do so. Auditor's responsibilities for the audit of the finaAcial statements Our objectives are to obtain reasonable assurance about whcther the financial statements as a whole are free from mtterial isstatement, whether due to fraud or error, and to issue an auditor's report that includes ouropinion. Reasonable &surance s a high level of ￿SUranCe, but is not a guarant¢e that an audit conducted in accordance with ISAS (UK) will always detect a material misstatem¢nt when it exists. Misststements 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 de¢isions of users taken on the basis of these financial staiements. Irregultiriti¢s, including fraud, are insiances of non-compliante with laws and regulatSOn5. We design procedures in line with our responsibiliti¢s, outlined abov¢ to dotect Tnaterial misstatements ID respect of irregularities, includi￿g fraud. The extent to which our procedures are ¢apable of deterting irregularities, including fvud is detailed below.. Based on our under%t&nding of the charitable ¢ompany and the environment in which it operates. we identified that the prsncipal risks of non-compliance with laws and regulations related to the regulatory requirements of the Chariiy Commission, Chdtities Act and Companses Act. and we considered the extent to which non-compliance might have a material effe¢1 on the financial statements. We aiso considered those laws and regulations that have a direct impact on the prepÉwation of the linancial siatements such as the Charities Act 2011. Charities SORP12019) and Cvmpanies Act 2006. We evaluated management's incentives and opportunities forfraudulentlnanipulaiion of ihefinwoial statements (including the risk of override of ci)ntrols). and d¢terniined that the prinripal risks were related to the r¢cognitson of donations tncome and ￿nt expendithre. Audit procedures perfoTmed by the engagement team included.. Enquiries of management regarding COTr¢spondence with regulators and t&x authorities. Dis¢us5ions with management including consideration of known or suspected instanrxs of non-compliance with laws and regulaiion and fraud; Reviewing the controls andprocedures of the charity, particularly in rclation to the recordlng oftncome and processing of payments, to ensure the5¢ were in place throughout the year. including during th¢ Covid-19 remote working period. Evaluating manag¢ment's Controls designed to prevent and detect irr¢gularities- and Reviewing and iesting journal entries made in th¢ y¢ar. particularly those made as part of the year end financial reporting proc¢s$. A further descripiion of our r¢sponsibilities for the audit of the f]nancial statements is 1(Trc2ted on the Financial R¢portiRg Council's website at.. M'ww.fyc.o .ukla ilities. This des¢riptiQT] fortll5 part of our auditor's r¢port. 10 INDEPENDEf4T AUDITOR'S REPORT TO THE IVIEMBERS OF TEAM ARMY SPORTS FOUNDATION (continu¢d) Ust ofour report This report is made sulely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Aci 2006. Our audit work has been undertaken so that we might state to the charitable company'5 members those matters we are requiredto state to them in an Auditor's report 2nd for no other purpose. To the fullest extent permitted by law. we do not a¢¢ept or assurne responsibility to anyone otherthan the charitable company and the charitable company's members, as a body, for our audit worK for this report, or for the opinion5 w¢ haye fomied. Kathryn Burton {Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP. Statutory Auditor Date.. 26 AugLJSt 2021 10 Queen Street Place London EC4R IAG TEAM ARMY SPORTS FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 NOVEMBER 2020 Unrestrieted Funds 2020 2019 Note Income from: Donations and legacies Other income 375,000 366 621.854 243 Total ineome 375,366 622.097 Expenditure on: Charitable aetivities 227,471 8l6.834 Total expenditure 227,471 816,834 Net Incomel(expcnditure) 147,895 (194,737) Reconciliation of funds: Funds at the start of the year 179,128 373,865 Funds at tht efjd of the year £327,023 £179.128 All of the above results ar¢ derived from continuing activities. There were no other r¢¢ognised gains or losses other than those stated above. Movements in funds are disclosed in note 10 to the fjnanciai statements. All income &nd expenditure ig unTestricted in both 2020 and 2019 fjnancial years. The no¢es on pages 15 to 19 part of Éhese fmancial statements. 12 TEAM ARMY SPORTS FOUNDATION (company llumber 07773783) BALANCE SHEET AS AT 30 NOVEMBER 2020 202 2019 Notes CURRENT ASSETS Short ierni deposit and eash in halld 332,423 184,288 CREDITORS." amounls falling du¢ ithin ODe year (5,400) (5,160) F4ET CURRENT ASSETS 179,128 NET ASSETS 327,023 £179,128 FUNDS UDrestricted funds io 327.023 179,128 Totsl lunds £327,023 £179.128 The noles on pages 15 to 19 fomi part of these f￿￿tt¢la1 statements. The financial statements have been prepared in accordan¢¢ with the spccisl provisions of part 15 of the Companies Act 2006 T¢lating to small Companies. The financial statements were approved and authorised for issue by the Board of Trustees on signed below its behalf by.. 2021 and were Truste¢ CJ. L cfv4T 13 TLAM ARMY SPORTS Fouf4DATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 NOVEMBER 2020 2020 2019 C8$h noivs from operating activities: Net cash provided byl(used in) operdting activities (see below) 148,135 (201.077) Change in casb and ¢8sh equlvalents in the year 148,135 (201,077} Cash and cash equivalents at the beginning of the y 184,288 385,365 Cash and cash eqlllvalemts at the ¢Rd of the year £332.423 £184,288 A. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTlVtTIES 2020 2019 Net incomdl(expenditure) for the r¢portiTrg year (as per the statement of fillaD¢ial activitie$) 147,895 {194,737) Adjustsnents for.. InCre￿e/{decrt8sej in creditor5 240 (6,340) Net c#sh provided bvl(used in) operating activities £148,135 £{201,077) ANALYSIS OF CHANGFS IN NET CASH FUTrIDS Ai i December 2019 At 30 November 2020 Cashflows Cash cash equivalents 184.288 148, 135 332,423 Total cash and cash equivalents £184.288 £148.135 £332,423 14 TEAM ARMY SPORTS FOUP4DATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 AccouNfiNC POLICIES Ba$is of prepiration The financial statements have been prepared in accordancc with Accounting 8Dd Reporting by Chariti¢s'. Stat¢tD¢nt of Recommended Pra¢iice for Charities (SORP 2015) (Second Edition, effective l January 2019) applicable to ¢harities preparing a¢¢ounts in accordance with thc Financial Rcporting Standard applicable in the UK and Republic of Ireland (FRS102) and thc Companies Act 2006. The f]nanctal stAte]nellts have been prep<￿ed under the historical cost convention unless otli¢rwise stated in the relevant accounting policy note(s). The charity mects the definition of a public benefit entity und¢r FRSIO2. Critieal aeeounting estimates and areas of judgement Preparation of the accounts requires the Twstees to make significant judsements and estirnate5. It a150 requtres anagement to exercise judgrnent sn applying the Charity's accounting policies. There were no areas thal required the use of judgements. Assessment of going concern The Trustees have assessed whether the use of the gollig ¢oncem &ssumption is ap accounts. The Trustees have made this assessment in respect to a period of one year these accounts. ropriate in pre aring these approval of The Trusrees of the tharity have ¢oncluded that there ar¢ no material uncertainties r¢lated to events or conditions that m2y Cast $￿Enificant doubt on the ability of the charity to continue as a going concern. The Twstees are of the opsnion that the charity will have suff￿cle￿I resources to Tneet its liabilities 8s they fall due. With regard to the next accounting period, the y¢ar ending 30 November 2021. it 15 expected that Q4 will see a ssgnificant Tesumption of sporting artivlty, matched by the ability for EFL to generate funds as COV[D-1￿ftkCd legal and social restrictions are r¢mov¢d. Notifying all sport5 and exer¢2sing prudence in awarding grants during a pcriod of such uncertainty was also important in ensuring the ¢harity remains strong and well placed going forwar As expeoted, the reduced income during FY2020 was largely offset by the reduced demand for grants from sports and associations. However, during this lull, the introduction and promotion of special. post-COVID. Bounce-Back grants for one-off, itonit activities has proved a success in maintaining awareness of the charity's Contribution made to good causes and its continued relevance in its support to the military conununity. There is evidence of ontinu¢d strong 5UPPOrt for th¢ activiti¢s of EFL which bodes well for the charity as EFL remain its principal doner. The t￿￿tee9 are also encouraged by evidence of industy being prepared to directly donate during this last y¢ar and the potential for a growing trailing income generated by sales. The trustees therefore assess that the charity remains strong and viable as a going con¢en). In¢om¢ re¢ognition Incom¢ is recognis¢d when the charity has met the following criteria.. entitlement to the fi￿d5, any performance conditions attached to the item(s) of m¢ome have been meL it is probable that the income will be recejved and the amount Can b¢ measured reliably. Incom¢ received in advance is deferred until the crit¢ria for income recognilion are met. In a¢¢ord8n¢e with the Charities SORP FRS102, volunteer time is not recognised. Interest on funds held on d¢psit is included when receivable and the alnount can be measured reliably by the charity. this is nornially upon notificarion of the interest paid or payable by the bank. 15 TEAM ARMY SPORTS Fouf4DATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 ACCOUNTING POLICIES (continued} Expenditure recogttitlon irre¢oveTable VAT Expendilure is recognised once there is a l¢gal or constructive obli probable that settlement will be required, and tbe