## **THE ARSENAL FOUNDATION** 

**Annual Report and Financial Statements For the year ended 31 May 2023** 

**Company Number: 07923266 Registered Charity Number: 1145668** 



**The Arsenal Foundation** 

|**The Arsenal Foundation**<br>|**The Arsenal Foundation**<br>|**The Arsenal Foundation**<br>|
|---|---|---|
|**Annual Report and Financial Statements for the year ended 31 May 2023**|||
|<br>**Content**||**Page**|
|**Directors and Trustees - Legal and Administration Information**||**1**|
|**Trustees’ Annual Report**||**2-10**|
|**Auditor’s Report to the Trustees of the Arsenal Foundation**|**11-13**||
|**Statement of Financial Activities (Incorporating the Income and Expenditure Account)**||**12**|
|**Balance Sheet**||**13**|
|**Cash Flow Statement**||**14**|
|**Notes to the Financial Statements**|**15-23**||





**The Arsenal Foundation** 

## **Directors and Trustees - Legal and Administration Information** 

The Trustees present their annual report and the audited Financial Statements for the year ended 31[st] May 2023. 

## **Charity Name** 

The Arsenal Foundation 

## **Company Number** 

07923266 

## **Charity Number** 

1145668 

## **Registered Office** 

Highbury House 75 Drayton Park London, N5 1BU 

## **Constitution** 

Incorporated on 25[th] January 2012 as a Company limited by Guarantee and a Registered Charity to take over the activities of the unincorporated Charitable Trust, The Arsenal Foundation. 

## **Directors and Trustees** 

The Trustees who have served throughout the year 2022/2023 and up to the date of signing (as noted below) are: 

A Sefton S Geissmar A Jolly F Hudson V Venkatesham K Friar (Resigned 26[th] September 2022) M Maloney (appointed 20[th] April 2023) K Simpson Lloyd (appointed 21[st] July 2023) 

## **Bankers** 

Barclays Bank Plc Holloway & Kingsland Business Centre London, E8 2JX United Kingdom 

## **Solicitors** 

Muckle LLP Time Central 32 Gallowgate Newcastle Upon Tyne, NE1 4BF United Kingdom 

## **Auditor** 

Deloitte LLP 3 Rivergate Temple Quay Bristol BS1 6GD United Kingdom 

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**The Arsenal Foundation** 

## **Trustees’ Annual Report** 

The Trustees, who are also directors of the charitable company, present their Annual Report, including a Directors’ report and the audited Financial Statements for the year ended 31 May 2023. 

## **1.Governing Document** 

The Arsenal Foundation is a company limited by guarantee (Company no. 07923266) incorporated in the UK and a registered charity (Charity no.1145668) in England and Wales. Registration address is Highbury House, 75 Drayton Park, London N5 1BU. 

The Financial Statements have been prepared in accordance with the Companies Act 2006 and the Statement of Recommended Practice – Accounting and Reporting by Charities 2019 (SORP 2019), and applicable UK accounting standards. We have taken due regard to public benefit guidance published by the Charity Commission. The Trustees’ Report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemptions, and accordingly exemption has been taken from the requirement to prepare the Strategic Report. 

## **2.Key Management Personnel** 

The Trustees consider the Board of Trustees as the Key Management Personnel of the charity in charge of directing and controlling the charity. All Trustees give their time freely and no Trustee remuneration was paid in the year (2022: £nil). Details of Trustee expenses are disclosed in note 2 of the accounts. 

During the financial year Ken Friar resigned as Trustee on 26[th] September 2022 and Mike Maloney was appointed as a Trustee on 20[th] April 2023. In addition to this, at the date of signing, we have also appointed Katie Simpson Lloyd as a Trustee on 21[st] July 2023. 

The trustees would like to thank Mr Friar for his significant contribution, commitment, and years of expert advice to the board. Mr Friar’s input, insights and passion have been invaluable in creating impact for young people and in creating a sense of belonging in our communities, locally and globally. In recognition of this significant contribution, one of our local pitches funded by The Arsenal Foundation has been dedicated to Mr Friar. 

## **3.Risk Management** 

The principal risk to The Arsenal Foundation is that donations reduce, and projects cannot be funded. We continue to review our **5-year Forecast** which is reviewed monthly by our Chair, and at our Trustee meetings. In line with previous audit recommendations, **Going Concern** remains a standing agenda item at all Trustee meetings. We regularly assess and monitor if there are any risks to income that will require us to stop giving grants in order to maintain a going concern. 

## **3.1. Grant Commitments** 

- **Coaching for Life** - To continue with our flagship programme Coaching for Life, a commitment was made to our global charity partner Save the Children in 2021 for implementation during March 2022/ February 2023. The 2022/23 partnership agreement with Save the Children covered implementation for one year. Following on from the above, we were extremely grateful to receive funds donated by Arsenal supporters through the _Arsenal Vision podcast_ in April 2023. This commitment enables the programme to run without a gap in implementation to February 2024. This commitment also enabled us to retain key staff and coaches on the ground. 

- **Local Programmes** - Since the implementation of many of our local community projects was delayed because of Covid restrictions, our restricted donations for these activities were brought forward to the 

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## **The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

following year 2022/23, as well as the receipt of further restricted income throughout the year. This is reflected in our year end reserves figures of £1,840,970 (2022: £1,350,114). 

Trustees reviewed these figures and agreed a revised minimum level of reserves of £400,000, with the intention to continue to build up reserves as reflected in our five-year forecast. 

## **3.2 Income** 

- **Supporters** - Arsenal Vision podcast - In 2022/23 donations from Arsenal Supporters through the Arsenal Vision podcast in April 2023 exceeded expectations. With a target of £150,000, supporters raised a staggering £484,000 in one month, restricted to Coaching for Life. One of the main broadcasters of the pod series had been to visit Za’atrai refugee camp and interviewed participants, parents, male and female coaches and the north London coaches from our local community programme who also travel to Za’artari and are embedded in the programme and train up local coaches. Making a link back to north London and emphasising the values of the Club and the role Arsenal has in helping others and achieving a sense of belonging in our local and global communities resonated with fans across the world. 

- **Arsenal Football Club Supporters** – A donation of £401,274 from the General Admission Season Ticket waiting list clear down, where supporters who opted to be removed from the waiting list donated their deposit to The Arsenal Foundation. These funds are unrestricted. 

- **Player Giving** – many of our players participated in our annual ask of them to support the Arsenal Foundation by donating a day’s salary. The total in 2022/23 was £99,733. These funds are unrestricted. 

- **Retail** – donations from Arsenal Football Club’s retail division was achieved through a cause-related marketing campaign aimed at supporting the local community. Supporters, who purchased the new kit in May 2023, were informed that £5 from the sale of every shirt would go towards projects within the local community. This raised £163,000 in 2022/23. These funds are restricted to local work. 

- **Events** - In relation to income, our largest fundraising event, ‘A Night to Inspire’, did not take place in 2022/23. This was due to a significant increase in the costs of running such an event post pandemic and the increased costs due to the need for extra resource including an external agency to project manage an event of this size. Also due to the success on the pitch, the availability of players could not be guaranteed. The income lost in 2022/23 based on the prior charity ball totals approx. £310,000. We are hopeful of reinstating our Night to Inspire gala in future seasons. 

In summary in 2022/23, through our supporters, player giving, Arsenal Vision podcast and the Club we were in a position to make a commitment to Willow, Islington Giving, the Gunners Fund and Save the Children in 2022/23. 

We continue to review our income streams with plans in place to fundraise by expanding our engagement with our supporters, our players and owners, high-net-worth donors, and potential institutional donors through direct asks. 

## **3.3 Compliance** 

The Trustees have also ensured the activities of The Arsenal Foundation were and continue to be compliant by adhering to government regulations, in relation to the health and safety of those participating in the programmes we support. This was reviewed regularly with our partner organisations on the ground. 

We continue to review grant applications and will consider them on a case-by-case basis considering the levels of income and reserves at the time of application and the timeframe of the cashflow required. We are hopeful that once income levels return to previous levels, we will be able to make longer-term commitments to partners once again. 

To mitigate any reputational risk, The Arsenal Foundation carries out appropriate due diligence on its core partners and on grantees. Further, regular reporting from significant grantees ensures that donations are appropriately used. 

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## **The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

## **3.4 External Factors** 

- **Cost of Living Crisis -** In 2022 and 2023, the impact of the cost-of-living crisis continued to be felt in our local communities. The Arsenal Foundation continued to respond via the Gunners Fund which supports local community initiatives. Many of the applications continue to be from local food banks which we had supported through the pandemic. In 2022/23, there were applications from local organisations running online nutrition and cookery classes aimed at helping people affected by the cost-of-living crisis in our communities. We will continue to monitor our applications and future rounds of Gunners Funds grants to reflect the needs in our local community, particularly through the lens of the cost-of-living crisis. 

- **Climate Crisis** - In November 2020 Arsenal FC became the first Premier League club to sign up to the UN Sports for Climate Action Framework. The UN initiative aims to bring together the global sports community with a commitment to align with the goals of the Paris Agreement and support the ambition to achieve climate neutrality by 2050. We are proud of the work the Club is doing in this area and encourage positive climate action to the millions of supporters of the Club around the world. At the Arsenal Foundation we undertake due diligence on all partners, including reviewing climate change practices. In 2023 an Environment Sustainability Governance Director was appointed by the Club, who works closely with The Arsenal Foundation to ensure environmental and social outcomes are embedded in the Club’s ESG strategy. 

As The Arsenal Foundation is a grant making foundation and has no direct employees other than those seconded from the Club, the Trustees do not believe that there are any other material risks. 

## **4.Objectives** 

The objectives of the charity as per our governing document, Articles of Association are: 

- To relieve sickness or distress of any persons through such means as the Trustees think fit, including, in particular (but not by way of limitation) among those who may be injured while participating in any sport and of any dependent of any person(s) who may be injured or killed while participating in any sport. 

- To promote community participation in healthy recreation by providing facilities for the playing of association football and other sports capable of improving health (“facilities” for this purpose, means land, buildings, equipment and organising sporting activities). 

- To provide and assist in providing facilities for sport, recreation or other leisure time occupation to such persons who have need for such facilities by reason of their youth, age, infirmity or disablement, poverty or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving their conditions of life. 

- To advance the education of children and other persons (including their academic, social, physical education and skills training) through such means as the Trustees think fit in accordance with applicable laws. 

- To relieve poverty, hardship and economic deprivation within the community by providing financial and other material assistance for those in need or by such other means as the Trustees think fit. 

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**The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

## **5. The Arsenal Foundation Activities** 

The Arsenal Foundation continues its work to provide inspiration and support to young people to build their confidence and life skills to help them envisage a future in which they can fulfil their potential. At The Arsenal Foundation we fund projects in our local community in Islington, Hackney, and Camden and internationally, largely through our global partnership with Save the Children. 

The Foundation works closely with partners including Save the Children and Islington Giving to assess needs and respond appropriately. Through these partnerships, we continue to be able to reach a substantial number of young people in the UK and overseas using the Arsenal name and expertise in football to motivate and inspire beneficiaries through several diverse projects. 

## **5.1 Supporting our Global Communities - Coaching for Life Partnership** 

This year, through our partnership with Save the Children, we continued to co-design and deliver the Coaching for Life project, creating specialist modules that utilise football activities to provide participants with the opportunity to improve their physical and mental health and wellbeing and to further their life skills. This project continues to be developed and implemented in the Za’atari refugee camp in Jordan. 

## **5.1.1 Coaching for Life (CfL), Jordan, Impact Report March 2022 - February 2023** 

- **3,178** children, parents, caregivers, and community members were reached during the reporting period. 

- • **1,054** children (552 girls and 502 boys) took part in Football for Resilience sessions, with 960 children (480 girls and 480 boys) completing more than 80% of sessions and therefore graduating from the programme. This represents over 90% of children graduating which is a huge achievement. 

- An additional **927 children** (510 boys and 417 girls) took part in the themed tournaments and open sessions. 

- **1,197** (558 females and 639 males) parents, caregivers, and community members participated in a variety of activities, including football tournaments and child rights advocacy sessions on topics such as access to education, access to health services, and living in an environment free from violence. 

- **Gender Equity** Since we launched in 2018, girls' participation in CfL has doubled. Both Arsenal and Save the Children are extremely proud of this achievement. CfL continues to challenge and influence gender norms through the participation of girls in football activities and the advocacy conducted by children and parents in the camp on issues that disproportionally affect girls, including child marriage, gender-based violence, and sexual harassment including cyber harassment. 

We also strengthened our delivery model by: 

- Adapting the programme based on feedback from children and community members to ensure it reflects their needs and is led by the community as far as possible. Based on their feedback, approval was secured from the Syrian Refugee Affairs Directorate (SRAD) to extend the opening times of the pitches from 4pm to 6pm, to be more inclusive of children who are unable to participate in the day due to their work commitments, as child labour remains a challenge in the camp. 

- Promoting inclusivity of all children, working with children, parents, caregivers, and the wider community to address discriminative norms and stereotypes. During the reporting period, more girls than boys engaged in the Coaching for Life programme (552 girls vs 502 boys) and 12 children with disabilities (7 boys and 5 girls) graduated. 

The end of this reporting period marks the fifth anniversary of CfL and we are extremely proud of the achievements we have made together. As we embark on the next phase, which will include an adapted delivery model, a greater focus on gender, and stronger connections between Arsenal’s community work in London and Za’atari, we look forward to building sustainable resilience amongst children and support them to lead happy and healthy lives. 

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## **The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

**5.1.2 Coaching for Life, Jordan, Impact Report March 2023 – Aug 2023 Interim Report** (the programme runs from Mar 2023 – Feb 2024, with the year-end report due in April 2024) 

- **668 children, parents, caregivers, and community members** were reached, and 3,206 indirect beneficiaries were reached. We are on track to achieve our target reach figures by the end of February 2024. 

- **258 children** (128 girls and 130 boys) demonstrated a high level of commitment by successfully completing more than 80% of the sessions up to this point. 

- For the **mini leagues** , 241 children (120 girls and 121 boys) showcased strong dedication by completing more than 80% of the sessions to date. 

- **169** (106 females and 63 males) parents, caregivers, and community members took part in a wide variety of activities, including football tournaments, advocating for child rights (such as access to education, access to health services, and living in a safe environment) and supporting each other through different challenges they faced with their children. 

Building on the success and lessons learned from previous phases of Coaching for Life (CfL), Save the Children and The Arsenal Foundation continue to implement the programme in Jordan, with the current phase starting in March 2023 and ending in February 2024. During this phase, we continue to support Syrian refugees in Za'atari Refugee Camp through the delivery of two further cycles of Football for Resilience sessions and various activities, with the goal of sustaining and expanding the impact of the programme and improving the physical, emotional, and mental well-being of **1360 children aged 10 to 18 years** . During this current phase, Save the Children and The Arsenal Foundation have introduced changes to the programme with the aim to have a greater impact on children and to ensure the sustainability and legacy of the programme. These included: 

- Strengthening the support for coaches and children to address the significant barriers that girls face. 

- Added more flexibility and longevity into the delivery model with **mini leagues** . The mini-league sessions were structured into different components, starting with warm-up activities designed to prepare participants physically and mentally for the themed football activities. This evolved model placed a specific emphasis on nurturing mental and emotional resilience among the participants, aligning with the programme's overarching objectives related to six main themes: **Identity, communication skills, emotions, interpersonal relationships, conflict management, and decision-making** . The Community Development Programme (CDP) coaches played a pivotal role in the programme by offering constructive feedback to local and junior coaches after each coaching session. This feedback helped coaches refine their techniques, ensuring that the sessions kept the children motivated, and engaged. 

- Better equipped parents, caregivers, and local coaches (adults and junior) to support children’s wellbeing and other issues affecting them from participating in the programme. 

- Continuing gender training, covering critical topics, including the importance of equal rights for all genders, recognizing unconscious biases, and coaches' pivotal role in promoting positive change. It also highlights the significance of male coaches supporting their female counterparts and encourages female coaches' active participation and development within the CFL programme. 

- Our communications and brand team visited Za’atari in March 2023 to gather content and case studies. A video of Jana’s story was launched across our social media channels on International Women’s Day to highlight the impact Coaching for Life is having on girls’ empowerment within the camp. 

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**The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

## **CASE STUDY** 

**Jana is a 13-year-old girl from Dar’a** , Syria, who lives in Za’atari camp following the conflict in her hometown. Jana’s commitment to Coaching for Life means she travels by bike across the camp to attend the sessions. A shy and quiet girl, before joining the programme, Jana found it hard 

to express her emotions and opinions. 

“I was so happy I signed up with Arsenal. When I play football, I feel happy. I feel full of energy and optimism,” Jana. 

Reflecting on five years of Coaching for Life, Vinai Venkatesham, CEO of Arsenal, said **:** 

“The positive stories we’re hearing from the children and their families in Za’atari shows the power football has to make a difference in our communities worldwide. From the impactful work we’ve been doing in north London for nearly 40 years, to now implementing this blueprint to support young children who’ve fled from the Syrian war, it’s inspiring to see the effect we can have. None of this would be possible without the Arsenal family coming together to embody our inclusive values and the sense of belonging we’re nurturing around the world.” 

## **5.1.3 Supporting our Global Communities - Save the Children’s Türkiye & Syria earthquake appeal** 

Following the devastating earthquake across the border of Türkiye and Syria, we wanted to let the Arsenal family know how we are standing in solidarity with those affected by the disaster, and how we can all show support. 

The 7.8 magnitude earthquake – one of the strongest to hit the region in 100 years – could be felt in surrounding nations in Lebanon, Cyprus, Jordan, and Iraq and left major devastation and a horrific and increasing death toll in the thousands. 

Through The Arsenal Foundation, we granted a donation to Save the Children’s appeal to further support children, families and local communities devasted by this tragic humanitarian disaster.  Save the Children provided aid by: 

- Supplying temporary shelter for staff and their families 

- Distributing shelter kits to families whose houses have been significantly damaged by the earthquake and are now unsafe, providing items such as tarpaulin, rope, blankets, and mats. 

- Offering winter kits, including essentials such as heaters, clothes and shoes to keep people warm as temperatures plummet. 

- Setting up safe spaces for women and children and other vulnerable people 

- Save the Children also offered psychological first aid to affected children and families, including front line responders. 

In addition to our donation to Save the Children, we also worked with our long-standing partner, HIS Church, a charity we previously worked with to deliver more than 500,000 meals during the covid-19 lockdown, to support the disaster response by the Turkish community in north London. 

## **5.2 Supporting our Local Communities** 

Our relationship with **Islington Giving** continues to provide a partnership through which we can identify local needs and work together to address such needs whether this is for young people or those in adulthood, including the elderly. Our combined local experience means we understand the level and complexity of need in the local borough and can tailor projects and/or grants to these local needs whilst being flexible enough to adapt where needs change. 

Smaller organisations and projects local to Arsenal Football Club continued to benefit from **The Arsenal Foundation’s Gunners Fund** grants throughout the year. The Gunners Fund awards grants of up to £2,500 per application, making a significant difference to smaller projects which benefit the local community in Islington, Camden, and Hackney. This year The Gunners Fund distributed to a variety of local initiatives. Some of the grants supported by The Gunners Fund include: 

- An Arsenal in the Community amputee football player to go to the world cup 

- Online healthy eating classes, a local history group for older people in Old Street 

- Youth work at a community centre in Hackney 

- Defibrillators at local schools 

- A basketball club for adults with learning disabilities in Camden 

- Equipment for Islington Boxing Club 

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## **The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

- An arts project for the Orthodox Jewish community in Hackney 

- A sensory room at Drayton Park and St Joan of Arc Primary Schools 

- Islington Girls District football team 

- A homework club in Holloway, a swimming project for adults with special needs 

- A disability cycling project 

- Food banks in Essex Road an Holloway 

- A hospital bedside visiting scheme 

- An OAP film club in Holloway 

- A drama project for older people with dementia 

- An inter-faith event 

- Equipment for terminally ill children 

**The Willow Foundation** (Willow) received £30,000 from The Arsenal Foundation in 2022/23 which continued to help fund unique special days for young people with conditions such as motor neurone disease, muscular dystrophy, and Huntington’s disease. Special days include family breaks, theatre shows, sightseeing trips and music concerts, as well as experiences with Arsenal Football Club principally around match days. Willow’s special days offer great opportunities to create powerful memories in challenging times for sick young people and their families. 

**Arsenal in the Community (AITC),** the community department of Arsenal Football Club, has been delivering community programmes in Islington, Camden and Hackney since 1985 with over 30 programmes delivered on a weekly basis. 

The Arsenal Foundation supported AITC through The Arsenal Community Coach Development Programme, which provides training, qualifications, and experience to aspiring football coaches. Coaches are supported for up to twelve months. As part of the programme some of the coaches have supported the Coaching for Life programme in Za’atari refugee camp. The Arsenal Saturday Jobs Programme which provides paid work experience to young people aged 16-18 in a variety of positions to enhance their future employment prospects also continued with programmes running in Camden and Islington. AITC’s long-standing relationship with Freedom From Torture continued to develop which sees weekly football sessions as recovery for torture survivors. 

## **6.Financial Review** 

During the year ended 31 May 2023, the Foundation had total income of £1,270,886 (2022: £1,119,835). 

In April 2023 Arsenal Football Club’s Player Giving appeal in support of The Arsenal Foundation raised £99,733 (2022: £138,297), with generous donations from the Players of the Arsenal Men’s First team and the Women’s Team who donated a day’s wages to The Arsenal Foundation. 

The Trustees expended resources of £740,305 (2022: £774,654) which includes grants which were donated to a range of causes reflecting the objectives of The Arsenal Foundation. 

All resources expended, are expended in line with the objectives of The Arsenal Foundation. Full details of grants made by The Arsenal Foundation are contained in note 4 of the Financial Statements. Restricted funds are regularly reviewed to ensure the funds are being spent in line with the restrictions imposed by the donor. 

The attached accounts show the state of The Arsenal Foundation’s finances at 31 May 2023, which the Trustees consider to be satisfactory. The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning The Arsenal Foundation’s future activities. 

## **6.1 Grant Policy** 

The Trustees reviewed and updated the Grant Making Guidelines to reflect current and best practice in 2021 and further reviewed in and updated in November 2023. 

Requests for grants received are all individually evaluated against predefined criteria to ensure they meet The 

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## **The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

Arsenal Foundation’s objectives. Monitoring and evaluation of projects supported by The Arsenal Foundation are carried out through a reporting process from the grantees. 

## **6.2 Reserves Policy** 

The Trustees regularly discuss the status of The Arsenal Foundation’s reserves to ensure that adequate reserves are in place. As of 31 May 2023, The Arsenal Foundation had total funds of £1,840,970 (2022: £1,357,114), of those funds £980,601 (2022: £915,818) were restricted. 

The Trustees, in considering the reduction in income due to the pandemic, agreed a revised level of reserves for 2022/23. This was set at a minimum of £400,000. 

## **6.3 Plans for Future Periods** 

Fundraising plans include direct approaches to the supporters, players, and staff of the Club as well as high net worth donors. We continue to review our income streams with plans in place to fundraise by expanding or engagement with our supporters, our players and owners, high net donors and potential institutional donors through direct asks. A second fundraiser by Arsenal Vision podcast is planned for April 2024. 

## **6.4 Going Concern** 

Having considered the reserves level and the actions above, the Trustees have considered forecasts for the next 5 years, including a range of potential income levels and consider that they can manage the cash flows and liabilities of The Arsenal Foundation and therefore the Trustees consider that they have a reasonable expectation that The Arsenal Foundation will have adequate resources to continue as a going concern for at least twelve months from the date of signing this report. 

## **6.5 Structure, Governance and Management** 

The Trustees have overall responsibility for the direction, management, and control of The Arsenal Foundation. The Trustees have equal voting rights, and meet on a biannual basis, at a minimum. The appointment of Trustees must be made by the current Trustees. A trustee recruitment agency, NuRole was engaged to recruit new Trustees, interviews conducted by Chair and another Trustee with recommendations put forward to be agreed by all. All references and DBS check were undertaken. Each Trustee has been given the appropriate induction and training. 

The Arsenal Foundation is independently run however, has a close relationship with Arsenal Football Club Ltd with Mr K J Friar, who resigned as Trustee on 26[th] September 2022 and Mr V Venkatesham a Trustee, are a former director (resigned 31 August 2020) and the CEO, respectively, of that company. The Trustees would like to give special thanks to several individuals including the Ambassadors of The Arsenal Foundation who have so generously supported us with their donations, time, and expertise. Thank you to Mikel Arteta, Edu Gaspar, Leah Williamson, Per Mertesacker, Liam Brady, Martin Keown, Robert Pires, David Seaman, Bob Wilson, Dermot O’Leary, and Matt Lucas. 

In addition to the above, the Trustees are extremely grateful to supporters of Arsenal Vision podcast and Arseblog who raised an astonishing £484,000, to Elliot Smith of Arsenal Vision podcast for his commitment to fundraising, to Khilen Nathwani Peter Olsen, Andrew Mangan and our players who have so generously supported The Arsenal Foundation. Finally, our heartfelt thanks to all those of the Club’s staff who so generously gave their time or have made donations to The Arsenal Foundation enabling our projects to continue, increase in scope and diversity and reach even more individuals around the world, ensuring that these individuals could see hope and potential in their futures. 

## **7. Trustees’ Statement of Responsibilities** 

The Trustees (who are also directors of The Arsenal Foundation for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. 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 

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## **The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. 

In preparing these Financial Statements, the Trustees are required to: 

- Select suitable accounting policies and 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’s inappropriate to presume that the charitable company will continue in business for the foreseeable future. 

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

So far as the Trustees are aware, there is no relevant audit information of which the charitable company's auditors are unaware. The Trustees have taken all the steps to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information. 

Deloitte LLP have been appointed in office as auditor. 

The Trustee's Annual Report was approved and signed on behalf of the Trustees. 


## **Svenja Geissmar** 

Chair, Trustee 27 February 2024 

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**The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

Independent auditor’s report to the Trustees of The Arsenal Foundation 

Report on the audit of the financial statements 

Opinion 

**In our opinion the financial statements of The Arsenal Foundation (the ‘charitable company’):** 

- **give a true and fair view of the state of the charitable company’s affairs as at 31 May 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;** 

- **have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’; and** 

- **have been prepared in accordance with the requirements of the Companies Act 2006.** 

## **We have audited the financial statements, which comprise:** 

- **the statement of financial activities (incorporating the income and expenditure account),** 

- **the balance sheet,** 

- **the cash flow statement; and** 

- **the related notes 1 to 13.** 

**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).** 

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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. 

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**The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

## **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 charitable company’s ability to continue as a going concern for a period of at least 12 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. 

## **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 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

12 



## **The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

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. 

We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and Trustees about their own identification and assessment of the risks of irregularities, including those that are specific to the charitable company’s business sector. 

We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified the key laws and regulations that: 

- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Charities Act and UK Companies Act; and 

- did not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty. These included the Charity Commission for England and Wales (Charity Commission) regulations. 

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. 

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our specific procedures performed to address it are described below: 

- we identified a risk in relation to the completeness of grant expenditure. We have addressed this risk by selecting a sample of grants recognised in the year and reviewing the grant agreements, Board minutes, cash payments and related information to understand the purpose of the grant, any conditions present in order to ascertain the correct level of expenditure and related liability to recognise. 

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. 

In addition to the above, our procedures to respond to the risks identified included the following: 

- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; 

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; 

- enquiring of management concerning actual and potential litigation and claims, and instances of noncompliance with laws and regulations; and 

- reading minutes of meetings of those charged with governance and reviewing any correspondence with the Charity Commission. 

13 



**The Arsenal Foundation** 

## **Auditor’s Report to the Trustees of the Arsenal Foundation** 

## **Report on other legal and regulatory requirements** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Trustees’ report, which includes the Directors’ report 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 Directors’ report included within the Trustees’ report has been prepared in accordance with applicable legal requirements. 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors’ report included within the Trustees’ report. 

## **Matters on which we are required to report by exception** 

Under the Companies Act 2006 we are required to report in respect of the following matters 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 take advantage of the small companies’ exemption from the requirement to prepare a strategic report. 

We have nothing to report in respect of these matters. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

**Michelle Hopton FCA (Senior Statutory Auditor) For and on behalf of Deloitte LLP Statutory Auditor Bristol, United Kingdom** 

## **27 February 2024** 

14 



## **The Arsenal Foundation** 

## **Statement of Financial Activities (Incorporating an Income and Expenditure Account) For the year ended 31 May 2023** 

|**Income from:**<br>**Notes**<br>Donations<br>3<br>Grants<br>3<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>5<br>Charitable activities<br>4<br>**Total expenditure**<br>**Net income   before**<br>**and after tax**<br>**Reconciliation of**<br>**funds**<br>Total funds brought<br>forward<br>Net movement in funds<br>for the year<br>Total funds carried<br>forward|**Unrestricted**<br>**2023**<br>**£**<br>623,150<br>-<br>623,150<br>(39,725)<br>(157,352)<br>(197,077)<br>426,073<br>434,296<br>426,073<br>**860,369**|**Restricted**<br>**2023**<br>**£**<br>647,736<br>-<br>647,736<br>-<br>(582,953)<br>(582,953)<br>64,783<br>915,818<br>64,783<br>**980,601**|**Total**<br>**2023**<br>**£**<br>1,270,886<br>-<br>1,270,886<br>(39,725)<br>(740,305)<br>(780,030)<br>490,856<br>1,350,114<br>490,856<br>**1,840,970**|**Unrestricted**<br>**2022**<br>**£**<br>421,983<br>-<br>421,983<br>(32,499)<br>(212,240)<br>(244,739)<br>177,244<br>257,052<br>177,244<br>**434,296**|**Restricted**<br>**2022**<br>**£**<br>197,852<br>500,000<br>697,852<br>-<br>(562,415)<br>(562,415)<br>135,437<br>780,381<br>135,437<br>**915,818**|**Total**<br>**2022**<br>**£**<br>619,835<br>500,000|
|---|---|---|---|---|---|---|
|||||||1,119,835|
|||||||(32,499)<br>(774,655)|
|||||||(807,154)<br>312,681|
|||||||1,037,433<br>312,681|
|||||||**1,350,114**|



The above results all derive from continuing operations. 

There were no gains and losses in the current or prior year other than as set out in the statement of financial activities above, and accordingly no separate statement of total recognised gains and losses is presented. 

To determine the cost of fundraising, we have apportioned 33% of the cost of seconded staff and governance costs (e.g. legal fees) with the remainder of costs attributable to charitable activities. 

15 



## **The Arsenal Foundation Balance Sheet as at 31 May 2023** 

|**Notes**<br>**Current assets:**<br>Debtors<br>7<br>Accrued Income<br>7<br>Cash at bank and in hand<br>**Total Current Assets**<br>**Liabilities:**<br>**Creditors: amounts falling due within one year**<br>8<br>**Net current assets/Total assets less current liabilities**<br>**Creditors: amounts falling due after more than one year**<br>8<br>**Net assets**<br>**Funds**<br>9/10<br>Unrestricted funds<br>Restricted funds<br>**Total Funds**|**2023**<br>**£**<br>383,975<br>21,538<br>1,789,441<br>**2,194,954**<br>(353,984)<br>**1,840,970**<br>-<br>**1,840,970**<br>860,369<br>980,601<br>**1,840,970**|**2022**<br>**£**<br>4,677<br>-<br>1,847,152<br>**1,851,829**<br>(501,715)<br>**1,350,114**<br>-<br>**1,350,114**<br>434,296<br>915,818<br>**1,350,114**|
|---|---|---|



For the year ended 31 May 2023, the financial statements have been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemptions. 

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. 

The financial statements of The Arsenal Foundation (company number 07923266) a charitable company were approved and authorised for issue by the Trustees on 27 February 2024. 

Signed on behalf of the Trustees. 


S. Geissmar Chair, Trustee 27 February 2024 

16 



## **The Arsenal Foundation** 

|**Cash Flow Statement for the Year Ended 31 May 2023**<br>**Net Cash (Outflow)/Inflow from operating activities**<br>**Net (decrease)/Increase in cash and cash equivalents**<br>**Cash and cash equivalents at beginning of year**<br>**Cash and cash equivalents at the end of the year**(Note 10)<br>There were no cash equivalents in 2023 (2022: £nil).<br>**Reconciliation of net Income to net cash from operating activities**<br>Net income for the year<br>Adjustments for:<br>(Increase)/Decrease in debtors<br>(Decrease) in creditors<br>**Cash (Outflow)/Inflow from by Operating Activities**|**Total funds**<br>**2023**<br>**£**<br>(57,711)<br>(57,711)<br>1,847,152<br>**1,789,441**<br>**2023**<br>**£**<br>490,856<br>(400,837)<br>(147,730)<br>**(57,711)**||**Total funds**<br>**2022**<br>**£**<br>167,778<br>167,778<br>1,679,374<br>**1,847,152**<br>**2022**<br>**£**<br>312,681<br>1,328<br>(146,231)<br>**167,778**|
|---|---|---|---|
|||||
|||||
|||||



17 



**The Arsenal Foundation Notes to the Financial Statements For the year ended 31 May 2023** 

## **1: Accounting policies** 

The Arsenal Foundation, a public benefit entity, is incorporated in England and Wales as a private company limited by guarantee not having a share capital. The members of the company, which is also a registered charity, are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity. 

The financial statements have been prepared in accordance with 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) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

The Arsenal Foundation meets the definition of public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention. 

The functional and presentation currency of The Arsenal Foundation is considered to be pounds sterling because that is the currency of the primary economic environment in which The Arsenal Foundation operates. 

## **Critical accounting judgements and key sources of estimation uncertainty** 

In the application of The Arsenal Foundation’s accounting policies, which are described in this note, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

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

There are no critical accounting judgments or key sources of estimation uncertainty at the reporting date other than those set out in the accounting policies. 

## **Financial assets and liabilities** 

Financial assets and financial liabilities are recognised when The Arsenal Foundation becomes a party to the contractual provisions of the instrument. 

Financial assets which qualify as basic financial instruments as laid out in FRS 102 paragraph 11.8, including trade and other receivables and cash and bank balances. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

Financial assets are derecognised when and only when (a) the contractual right to the cash flows from the financial asset expire or are settled, (b) The Arsenal Foundation transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) The Arsenal Foundation, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. 

Financial liabilities are classified according to the substance of the contractual arrangements entered into. All financial assets and liabilities are initially measured at transaction price (including transaction costs) unless the arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. 

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled, or expires. 

## **Going concern** 

The Trustees have a reasonable expectation that The Arsenal Foundation will have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements, being at least 12 months from the date of approval of these financial statements. For additional details on the Foundation’s future plans and other considerations relevant to going concern, please see the ‘Plans for Future Periods’ and ‘Going Concern’ sections of the annual report on page 9. 

18 



**The Arsenal Foundation Notes to the Financial Statements For the year ended 31 May 2023** 

## **Income** 

All income becoming available to The Arsenal Foundation during the period is included when there is entitlement to the income, receipt is probable, and amounts can be measured with sufficient reliability.  Appropriate proportions of income and expenditure are recognised from events organised jointly with third parties. Where the charity has received income in advance of a related event or where there are conditions that have not yet been met the income has been deferred. 

## **Grant Income** 

Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. 

Grant funding agreements may contain conditions that specify the services to be performed by The Arsenal Foundation in receipt of a grant. Income is only recognised to the extent that The Arsenal Foundation has provided the specified goods or services as entitlement to the grant only occurs when the performancerelated conditions are met. 

## **Fund accounting** 

Unrestricted funds comprise the accumulated surplus or deficit and are available for use at the discretion of the Trustees in furtherance of the general objectives of The Arsenal Foundation. 

Restricted funds are funds subject to specific restrictive covenants imposed by donors or by the purpose of the appeal. 

## **Expenditure** 

Cost of charitable activities includes all expenditure directly related to the objectives of The Arsenal Foundation. This consists mainly of assessing grant applications and making and monitoring grants. It also includes support costs representing staffing and associated costs. 

Cost of raising funds includes expenditure related to fundraising activities. It also includes support costs representing staffing and associated costs. 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings, they have been recognised as support costs and allocated to activities on a basis consistent with staff time spent. The allocation of support costs is agreed on an annual basis by the Trustees as part of the budget process. 

Governance costs, which include audit, tax and accountancy fees associated with the governance of The Arsenal Foundation, are included within support costs. 

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such as grants, with conditions attached which are recognised as expenditure when the conditions attached are fulfilled. Grants are charged to the statement of financial activities when a constructive obligation exists, notwithstanding that they may be paid in future accounting years. 

Other expenditure incurred in charitable activities disclosed in note 4 are those attributable directly to charitable activities. 

Any services donated by The Arsenal Football Club, such as staff, other than those staff specifically seconded to work for the foundation, are treated as donations with no conditions attached. No value has been ascribed to the time as it is not easily measurable. 

## **Grant creditors** 

Grant creditors are recognised when the grant awarded to a beneficiary is measurable, payment is probable and a present legal or constructive obligation exists at the year-end, but the cash has not yet been paid. Where the expected payment date falls within twelve months of the reporting date, the creditor is classified as a current liability; when payment is due to fall later than this date, the creditor is classified as a noncurrent liability. 

## **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. 

19 



**The Arsenal Foundation Notes to the Financial Statements For the year ended 31 May 2023** 

## **2. Trustees’ remuneration and expenses** 

No remuneration directly or indirectly out of the funds of The Arsenal Foundation was paid or payable for the year to any Trustees or to any person or persons known to be connected with any of them (2022: £nil). Reimbursement of expenses has been made to the Trustees in respect of the period of £nil (2022: £nil). 

## **3. Income** 

|**Donations received**<br>Arsenal Giving Match Day<br>Online Donations<br>AFC GA Waiting List Donations<br>Arsenal Vision Podcast Fundraiser<br>Other donations (£10,000 and over)<br>Other donations (Below £10,000)<br>Grant income<br>**4. Charitable activities**<br>Save the Children<br>Islington Giving<br>Willow<br>Gunners fund<br>Arsenal in the Community<br>Pitch Donations<br>Other grants- To Individuals<br>Other grants- To Institutions<br>**Total Grant Expenditure**<br>Other direct expenditure incurred on charitable activities<br>Support costs (note 6)|**2023**<br>**£**<br>99,733<br>19,515<br>401,274<br>432,466<br>306,729<br>11,169<br>**1,270,886**<br>-<br>**1,270,886**<br>**2023**<br>**£**<br>238,000<br>50,000<br>30,000<br>48,928<br>189,901<br>35,000<br>5,040<br>35,450|**2022**<br>**£**<br>138,297<br>39,608<br>-<br>-<br>114,299<br>327,631<br>**619,835**<br>500,000<br>**1,119,835**<br>**2022**<br>**£**<br>340,415<br>50,000<br>43,100<br>25,700<br>152,000<br>-<br>2,040<br>83,500|
|---|---|---|
||**632,319**|**696,755**|
||27,331<br>80,655|11,916<br>65,983<br>**774,654**|
||**740,305**||



20 



**The Arsenal Foundation Notes to the Financial Statements For the year ended 31 May 2023** 

## **5. Raising Funds** 

|Support Costs (note 6)<br>**6. Support costs**<br>Seconded staff<br>Governance costs|**2023**<br>**£**<br>39,725<br>**39,725**<br>**2023**<br>**£**<br>84,180<br>36,200<br>**120,380**|**2022**<br>**£**<br>32,499|
|---|---|---|
|||**32,499**|
|||**2022**<br>**£**<br>84,902<br>13,580<br>**98,482**|



Support costs are allocated to activities on a basis consistent with staff time spent. 

Governance costs relate to audit, legal and tax work.  The fees payable to The Arsenal Foundation auditor for the audit of the charity’s annual accounts is £14,105 (2022: £13,000). There are no non-audit fees paid to Deloitte, the Foundation auditor. 

Seconded staff costs relate to The Arsenal Foundation’s Director, who is employed by The Arsenal Football Club. The seconded staff costs comprise the following: 

|Wages and salaries<br>Social security<br>Pension<br>The average headcount analysed by function was:<br>Administration and management|**2023**<br>**£**<br>70,633<br>5,585<br>7,962<br>**84,180**<br>**2023**<br>**No.**<br>1|**2022**<br>**£**<br>70,556<br>5,601<br>8,745|
|---|---|---|
|||**84,902**|
|||**2022**<br>**No.**<br>1|



The employee benefits of one employee (excluding employer pension costs) are in the range of £70,000 to £80,000 in the current year. One employee received remuneration of more than £70,000 in the prior year. 

The number of employees disclosed is the monthly average number in line with Companies Act requirements. 

21 



**The Arsenal Foundation Notes to the Financial Statements For the year ended 31 May 2023** 

## **7. Debtors** 

|Trade Debtors<br>AFC Intercompany<br>Player Giving<br>Prepayments<br>**8. Creditors**<br>**Amounts falling due within one year**<br>Trade creditors<br>Deferred Income<br>ASML Intercompany<br>Accrued expenditure<br>Other creditors<br>Accruals for grants payable<br>**Amounts falling due after one year**<br>Deferred Income<br>**Movement of Deferred Income**<br>Deferred income brought forward<br>Income released in the year<br>Income deferred in the year<br>Deferred Income Carried forward|**2023**<br>**£**<br>1,000<br>378,806<br>21,538<br>4,169<br>**405,513**<br>**2023**<br>**£**<br>5,000<br>12,000<br>5,286<br>15,600<br>7,200<br>308,898<br>**353,984**<br>**2023**<br>**£**<br>-<br>_________<br>**-**<br>**2023**<br>**£**<br>12,000*<br>-<br>-<br>**12,000**|**2022**<br>**£**<br>507<br>-<br>-<br>4,169|
|---|---|---|
|||**4,676**|
|||**2022**<br>**£**<br>89,285<br>12,000<br>5,286<br>20,015<br>7,200<br>367,929<br>**501,715**<br>**2022**<br>**£**<br>-<br>_________<br>**-**<br>**2022**<br>**£**<br>113,029<br>(101,029)<br>-<br>**12,000**|



*Deferred income amount relates to table sales for the Night to Inspire Ball which was originally cancelled due to Covid and then subsequently not held since, we intend to hold this event in 2024 where this income will be recognised. 

22 



**The Arsenal Foundation Notes to the Financial Statements For the year ended 31 May 2023** 

## **9.Funds** 

|**9.Funds**|||||
|---|---|---|---|---|
||**01-June**|||**31-May**|
||**2022**|**Income**|**Expenditure**|**2023**|
||||||
||**£**|**£**|**£**|**£**|
|**Unrestricted**|||||
|_Unrestricted Funds_|**434,297**|623,149|(197,077)|**860,369**|
|**Restricted**|||||
|Arsenal Kit Launch Fund|||||
|Arsenal in the Community|**-**|163,270|(98,928)|**64,342**|
|Local pitches (Legends fund)|**441,050**|40,000|(64,318)|**416,732**|
|Save the Children (Coaching for Life project)|**232,331**|-|(35,000)|**197,331**|
||**242,437**|444,466|(384,707)|**302,196**|
|**Total Restricted**|||||
||**915,818**|647,736|(582,953)|**980,601**|
|**Total funds**|||||
||**1,350,115**|1,270,885|(780,030)|**1,840,970**|
||||||



The restricted funds (Legends fund) and Arsenal Kit Launch Fund are funds received from The Arsenal Football Club, for the Legends Match. £197,331 has not yet been paid, this has been restricted by the donor and relates to projects for developing and building pitches in the local community and other local community initiatives. The restricted income for ‘Arsenal in the Community’ is for various projects and has been restricted by the donors. 

## **Comparative funds for the year ended 31 May 2022** 

||**01-June**|||**31-May**|
|---|---|---|---|---|
||**2021**|**Income**|**Expenditure**|**2022**|
||**(Unaudited)**||||
||<br>**£**|**£**|**£**|**£**|
|**Unrestricted**|||||
|_Unrestricted Funds_|**257,052**|421,983|(244,739)|**434,296**|
||||||
|**Restricted**|||||
|Sri Lanka|**-**|20,000|(20,000)|**-**|
|Ukraine Appeal|**-**|50,000|(50,000)|**-**|
|Arsenal in the Community|**548,050**|-|(107,000)|**441,050**|
|Local pitches (Legends fund)|**232,331**|-|-|**232,331**|
|Save the Children (Coaching for Life project)|**-**|627,852|(385,415)|**242,437**|
||||||
|**Total Restricted**|**780,381**|697,852|(562,415)|**915,818**|
||||||
|**Total funds**|**1,037,433**|1,119,835|(807,154)|**1,350,114**|
||||||



23 



**The Arsenal Foundation Notes to the Financial Statements For the year ended 31 May 2023** 

## **10. Net assets by fund** 

|**10. Net assets by fund**|||||
|---|---|---|---|---|
|||**Cash and**||**Balance**|
|||**short term**||**31-May**|
||**Debtors**|**deposits**|**Liabilities**|**2023**|
||**£**|<br>**£**|**£**|**£**|
|**2023**|||||
|_General_|405,513|514,441|(59,585)|**860,369**|
|_Restricted_|-|1,275,000|(294,399)|**980,601**|
||||||
|**Total funds**|405,513|1,789,441|(353,984)|**1,840,970**|
||||||
|||**Cash and**||**Balance**|
|||**short term**||**31-May**|
||**Debtors**|**deposits**|**Liabilities**|**2022**|
||**£**|<br>**£**|**£**|**£**|
|**2022**|||||
|_General_|4,676|590,905|(161,285)|**434,296**|
|_Restricted_|-|1,256,247|(340,429)|**915,818**|
||||||
|**Total funds**|4,676|1,847,152|(501,714)|**1,350,114**|
||||||



## **11.Related party transactions** 

The Arsenal Foundation is independently run; however, it has a close relationship with The Arsenal Football Club Ltd.  Mr K J Friar, who resigned as Trustee on 26[th] September 2022, andMr V Venkatesham a Trustee, are also a former director (resigned 31 August 2020) and the CEO, respectively, of that company. The amount collected by Arsenal Holdings Limited on behalf of The Arsenal Foundation and paid over to the Foundation was £76 (2022: £0), along with £1,000 owed to Arsenal Holdings at year end (2022: £14,066). 

In the year, The Foundation has a trade Creditor with Arsenal Holdings of £84,180 relating to staff costs (2022: £84,902). In addition, there is an intercompany balance of £373,520 owed to The Arsenal Foundation in 2023 relating to the donations made by The Club for the GA waiting list clear down and retail donations offset by monies owed to the club for Arsenal In the Community donations and staff costs. 

On occasion, the Foundation will make a donation to a charity at which a Trustee volunteers - any conflicts arising in respect of this are appropriately managed. 

There are no other related party transactions with Trustees or connected persons or entities. 

## **12.Taxation** 

As a registered charity, The Arsenal Foundation is exempt from taxation on its income and gains falling within Part 11 of the Corporation Tax Act 2010 (CTA 2010) to the extent that these are applied to its charitable purposes. The financial statements do not therefore reflect any provision, reserve, or adjustment for taxation. 

## **13.Future funding commitments** 

At the time of signing the accounts, The Arsenal Foundation has committed to funding of £288,000 in December 23 to Save the Children. This commitment will be funded from The Arsenal Foundation’s reserves as well as from funds raised from fundraising activities in the 2022/23 financial year. 

The Arsenal Foundation has also committed to funding of £80,000 for a football pitch at Peregrine House. This will be funded from the Local Pitches Legends Fund restricted income but is subject to planning permission being obtained. 

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