CLARETS IN THE COMMUNITY LIMITED (• company Ilmited by guarantee) ANNUAL REPORT AND CONSOUDATED FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2022 Company Number 08615704 Registered Charity Number: 1155856 Iiiiilliii 2W3r2023 COMPANIES FIOUSE Oafets in the Community LA77it¢d-*nnual Report artl Finan¢i* Staten*nts 2021-2022 CLARETS IN THE COMMUNifY LIMifED la company Ilmlt•d by guaranleo) coKrENTS Page Directors and offKers Directors. report Statement of Directors. resp)nsibIlit￿5 10 Independent Auditols report 11 consol￿¥ted Statement of FInar￿la1 Actrrfities 14 c￿SO11d81ed Slaternent of Fina￿la1 Posrlion 15 Charity Only Slaternenl of Financial Position 16 COnsol￿ated Cash Flow Statement 17 Noles to the Consolidaled Cash Flow Slalemenl 18 Noles to Ihe ￿nSol1daled fina￿la1 statements 19 Clarets in the ComThwnity Limited -Annval Rep)rtand Finartolstattments 2021-2022 CLARETS IN THE COMMUNITY UMITED la company1Smlted by guarantee) DIRECTORS ANO OFFICERS Directors H Al-Kailani A N Allen (resgned l Oclol)er 2021) A Anw8r (apwnted 4 July 2021) M L Garlick B C Kilby O M Lawson Y Naheed (apptynted 8 Alarch 2022) B T Nelson (Chairl A G Pace (app￿nted 4 July 2021) L Patel (resigned 10 October 2022) D L Rothwell (oppoinled 4 Jufy 2021) R H J Sulton M Thompson (appointed 26 Januwy 2023) R Webb (re￿gned 20 December 2021) M R Williams {oppoinled 26 January. 20231 P A S Wilson The d*ectots are also da55ed as Trustees for the purposes of the Chanty Commission. Chlef Executivè Olficer H L Gumian fappointed 16 January 2023) Dr S J Ward (reswned 13 Januay 2023) Registered offi¢* Turf Mo Harry Potts Way 8umley Lancashire BB10 4BX Company number 08615704 RegiSter•d charlty numbor 1155856 Independent Audltors Azets Audit Services Crown House Bridgewater Close Bumley BB11 STE Bankers 8arclays Bank plc 72178 St James Street Burnley Lancashire 8B11 1NH Oar￿$ in Comrnunty Linrted-I￿￿￿al Reffi aThl ￿nam￿al Statements 2021-2022 CLARETS IN THE COMMUNITY UIATED (a u)mpany limiled by guarantse) DIRECTORS. REPORT YEAR ENOED 30 JUNE 2022 The directors present their reFKJrt and thè audiied financi81 statements of the group the CA)m pany for the year ended 30 June 2022. Structure. Gov*rnw¢e and Management The eomptny is regstered as a charity (number. 1155￿) wrlh the Charity Commission. The charity is constituted as a company limited by guarantee (number. l)8615704) and is governed by its Articles of Assfxiation. The charity operates under its working name of'Bumley FC in the Communty,. The charity either 8dverhses for new (Jire¢tors. or approaches indimduals 7Mth the appropriate skli Is andlor experierKe lo ￿ntribUte lo the management of the organis8bon. All directors are appointed following a formal ￿¢[ullMent process and 8ttend a comprehensNe irMJuclIc￿ progromme. New ￿1￿Cl(*S undergo training on their *al obligalions under charity and company la￿. the content ol the Memorandum and Articles of A$S￿ation. the committee and decision-rnaking pr¢)cess', the busrness plan and recent financial perf0rrnar￿ of the tharity. During the induction training pro9ramme. rwi directors leam about the organisation's purpose. history. aims and objectives, services, staff and volunteers, facilit￿$. se￿[ty. fvnding, safeguarding requirements. ressdents, participat￿n. slr8tegic wryk. multi-agency involvement and partnership involvemenl. They also meet key stsff personr*l lo leam about their roles. The directors are all volunteers and do not receive any remuneration for their services. The remuneration of the chanty's key management personnel is set by amual review and confirmed by the directors. The Bumley Football & Alhlelic Company Limited I'BFC'I ts a related party. Related p¥ty transactions befvleen the charity and BFC are dL8cJosed in the notes lo the finanrAal statements. The charity continues lo control its whdly-ovmed trading subsidiary, BFCITC Facilities (Enlerprisesl Ltd - a company limited by shares (number.. 109516841- which has been assigned to operate the Whitehough ￿t￿00T Centre and Ihe Leisure Box communty leisure faality, both in Ihe Bor0￿ of Pen¢Je. Public ben•fll The directors have had ￿gard to the Charty commiss￿.$ gumlanee on public beneffts in carrying out the aclivits.es of the ch8rty. OblectIv￿ and Actlvities Bumley FC in the Communty is a self-financing registered eharty wth a rnission to inspi￿, support and deliver postwe change for all. Ths is atheved throw Ihe delivery of 2 overarching outcomes and 3 targeted outcomes.. Overarching Outcomes 1. To hamess ihe unique standing of Bumky FC to dekver lastirvJ tharvJe in Ihe bcal mmunity. 2. To embed ourselves w) the local communty ky the I￿19 tem operating outstanding facilities. Clarets in the Community Lfjftthed -Annual Re￿ and FIA)n¢ial St*ements 2021-2022 CLARETS IN THE COMMUNITY LIM￿E0 (a ¢ompany limrt¢d by guarantee) DIRECTORS. REPORT YEAR ENDED 30 JUNE 2022 Targeted Outcomes 1. Engage with our communities lo raise aspirations. 2. SupF*Jrt our community to live healthy lives. 3. Create a level playiro field for al to engage in sport arml physul actNty. Bumley FC in the Communty is commrtted lo developing a range of community-based projects across the Iyyou￿5 of Burntey, Pendle, Rossendale. Ribble Valley and Calderdale. The charity has four core values which are i(Jeals it strives to achieve every day in the delivery of ils aclivities and CharIts￿e work.. Inclusrve, Integrity, PaSsK￿&te and ResI1￿nI. The charity delivered a wide range of communty projects during 2021-22 financial year including.. Premier League Primary Stars Premier League K￿kS Premier League I￿pireS Female Football Disability Sport Schools Sport Football Coaching Youth Crime Reductitin Clarets Wel¢ome- Refugees Proje¢t Veterans Pfograrnme Active Clarets- Health and Wellbeing Prc*3rammes Mental Wellbeing PrtsJramme Achieving Moof Ilnlervention Project) Gel Outdoors Project {* Whrtehwgh Outdo(w Centre) A¢hiov•m•nts and P•rfomiance This financial year represents Ihe chanty's eKJhth full year of operatb)ns. During the year. the charity engaged Mth over 40.C(10 indivKluals. delNering over 50 community projeels in Bumley and the wider region. Despite the lessening of COVID resth'ctions we continued to experience a S￿nIfiCant increase in demand for our foodbank. the Bumley Communty lQlchen. We have continued to work in partnership with several organisalions in the area as part of BurnleyTogether to ensure that we were able lo support the most vulnerable in Ihe town. Al the year end. the charity employed 83 full time staff and 62 part time staff aThl has further established a strong team of coaches. teachers. mentors. administrators, managers and other skilled practitioners to develop the work of the charity further. Financial R•view A Summary of the financ￿1 performance for the year ended 30 June 2022 can be found in the Consolidated Slalemenl of Financk41 Activities (page 141 and a summary of the financial position as at 30 June 2022 can be found in the consol￿JaIed Statement of Financi81 Position Ipage 15). Consolidated income generated for the financial year was £3,340,010. The income generated increased bv £763.288 compared lo the prior year, which wa5 severely impacted by the COVID-19 pandemic that forced the closure ol the Irading f￿lIrtIeS at The Leisure Box an(J Whilehough. Resources expanded during the financial year were £3,240,752, an irtrease of £720.056 compared to the pyior year. as the charity returned to ful operations followitYJ the end of COVID_ 19 restrictions. Cla￿ts in ComrnYn￿ Lkniied-Annual Report and Financkal Ststerner￿ 2021-2022 CLARETS IN ThE COMMUNITY UMITED la company Ilmtted by guarantee) DIRECTORS. REPORT YEAR ENDED 30 JVNE 2022 Net ir*come for the year was £99,258. an improvement over £56.026 the prior year. Cash and cash equIva￿ntS at 30 June 2022 were £633.979. an increase of £77.799 over the reporting period. The group targets days cash on hand in excess of ￿ days and Ihh8 ￿Mained ab)ve 60 days throughout the year. Fundraising The charity undertakes some fvndraising aclNity in the f¢)m of furKlraising events, the purpose of Ythich 15 to generate unrestricted income for the charity. Any incoming resources from fundraI￿ng are recognised in the Consolidated Statement of Financial Activities ortt the charity is enlilkd to the fundraising in￿rne and prowded Ihal Ihe income has been ieliabty measured. A number of fundraigng events were suttessful in rnL%ng vital fund5 for the charity. including: Burnley FC in the Communty Charty Golf Day Trim on the Turf Burnley FC In the Communty Chwity Thnner Zipline Challenge The charity did not approach the general p￿11¢ ¥￿th regards to bJrKlrai5ing in an unsdiciled manner aTrJ does not intend to do so in future years. The chavity did rKJl receive any ¢))mplaints during the year al)oul its fvndraising octiwtses. In add￿lOn lo the unrestitted funds and donations received, the charity is gr8tefrJl to the following fU￿#erS and donors VIKJ has supported us by way of restricted grants and donations during the year thich have been used to directly deliver provbsion and services.. Premier League Charilabfe Fund The Football FourKlatiL Barclays Integrated Cc4nmuni*es Innovaknon Furnl The Amied Forces Covenant Fund Lancashi￿ County Council Lancashire Care FoUndat￿n Trust BBC Children in Need The Masonic charitsb￿ Fund Burnley Borough c￿jncil East Lancashire Clinical Commissioning Group Charles Hayivard Foundation The Duchy of Larraster 8er￿V￿ent Fur¥J Lancashife Environrnenlal Fund Groundwth UK Cash for Kids Communty FouTrJation for LarKashire The Evan C(rrish Foundalic Investment Policies Under the Memorandum and Artides of Associth"on. the tharty has the r*)wer to make any investment which the director5 see fit and as necessary carying out Ihe tharilable aclivities. During 2021-22. the charity did not uivest any further shaffjs in ils trading Subs￿liary. BFCITC Facdilies {Enlerprisesl Ltd. Clarets in the cO￿U￿6fy LSrnrted-AThrwJal Rewt ar#1 ￿na￿la1 Statements 2021-2022 CLARETS IN THE COMMUNiff UMITED (a ¢ompany limit•d by guarantsa DIRECTORS. REPORT YEAR ENDED 30 JUNE 2022 In addit*)n. uTrJer the Memorandum ar￿ Articles of Assoc48tion, ch￿1 may set aside income as a ￿serve against fulure expeThJrture. but onty in accordance wth ils Reserves Policy. Rlsk Management The directors are aware of their respOn￿bIll￿.eS to identify. assess and manage the major risks to which the charity 15 exposed. During the year. the Charity has furthered its work on risk management making all its slaff and volunteers risk aware. All staff arrfl volunteers continue to have 8 9)od understanding of their day lo day reswnsibiliti.es in managing risk. The charity maintains rts 'lhree lines of defence. mcwjel to help with the management of risk. The 'three lines of defence. are three sets of people who collab)rale to manaye risk. A petson may belong to more than one set.. however. each set as a whde maintsins a degree of independence from the preceding set, and each set is proactive and does not wart for the preceding Sel to ffail," The first'line of defence,. consists of all staff and volunteers. 2. The second 'line of defence. consists of all management colleagues. 3. The Ihiid 'line of defence, consists of the Chief ExKutive Offi¢er and the directo￿. The charity ￿)IdS a Prinapal Risk Inventory. on vthich all idenlif*d risks are categorised and I¢￿ged. Each risk is given a severity rating and 8 like1lhc￿ rating arKI is mapped to a series of controls. in place to mitigale said risks. Conversely, the charity has also a Principal Controls Inventory. which lists all Controls and maps them lo one or rn0￿ risks as appropriate. Where there is a control mops lo more than one risK the charity calls this a key control. The processes in place to identify, IcrfJ arnj manage risk affj reVIvh￿ annualty. The main risks currenlly Klenlified relate to.. reserves ￿ liquidty managemenL facilities risk.. turnover of stsffr, and major incidents which could damage the reputation of the tharity. The Prinapal Risk Irwentory is revwe(l and aFvoved on an annual basis. Resorvos Policy The objective of hawng un￿StrICted lunds in reserve. is lo enable the charity to cope with unplanned events. Very often, the effects of an unplanned event can be managed in the long-temi. bul the Group needs res*ves in the meantime. The direct¢ys are wor1(ing towards maintsiniro an overall targel level for am reserves which is equivalent to th￿e monlhs net operating costs. ￿ere fixed assets are discounted when calculating the level of reserves for the charity. The dire¢tOTS believe this level of reserves will mili9ale against Ihe r¢sk that sc*ne income is more vd&"le in nature to ensure that charity's 0b1fvaa1￿ns can always be met. The directors musl monitor and rewew the level of reserves annualty. in line the guidance issued by the Charity Commission,. however. Ihe level of reserves is monilore¢J throughout the year as part of the normal monitoring and b￿J9etsry reporting processes. The level of reserwe5 is ahvays discussed by the directors at their quarterfy governance meeb.ng during the Finance agenda item. The directors acknowledge that the ￿Ve1 of reseryes for the charity ehanges during the year and could either be a good indicator of the underlwng financial heaNh of the charity.. or could be an indicator of F¥)tential problems. aarets ￿ thÈ Community Limited -Annval Report and Pinancia Stètemems 2021-2022 CLARETS IN THE COMMUNITY UMITED (a company limltsd by guarantee) DIRECTORS. REPORT YEAR ENDED 30 JUNE 2022 er Ihe medium lo longer tefm. in ts event that the charity builds signrfKanl reseThes, the dtreclors mu$t'. klenlthy vknen re5erve5 are dra¥4n on so that they un(lersland Ihe reasons and can cor6ider the corrective ath'on. rf any. that ￿edS lo be taken. Identify vthen reserve levels rise significantty alM)ve target so that they understand the reasons and consider the correeb.ve action, rf any, that needs to be taken. Ensure that Ihe Reserves Policy continL*S lo be relevwt as the chartty develops or rfthe strategy and aclivities of the charity changes. Plans for future periods The charity has a Ihree-year strategy which Tuns from 2022 - 2025 a toJsiness pfan vthich is reviewed and updated annualty, in order to achieve its obj'ectives. The Charity continue to meet further develop existing publr. wiv*e and voluntsry sector partnerships. The tharily NMI look lo enhance and further promote fun1jrats￿9 inibatives, so lo increase ils reserve levds. Go5ng concern At the time of approving the ￿nUal rep(wl and financial statements, the directors have a reasonable ex￿latIon that the charity has adequate resources to conlmue in q*18t￿n81 existerte for the foreseeable fviure. Dlre¢to The directors who served Ihe oynpany during the year were as follows.. H Al-Kailani A N Allen (reS￿ned l October 2021) A Anwar (appointed 4 July 2021) M L Garlick B C Kilby D M Lawson Y Naheed (appoinled 8 March 2022) T Nelson (Chair) A G Pace (appointed 4 July 2021) L Patel freS￿ned 10 October 2022) D L Rothwell (appoin1ed 4 July 2021) RHJSutton R Webb (resigned 20 1)ecemb&r 2021) P A S Wilson Disclosure of infornia¢ion to the Independ•nt Audlto Eo¢h d1￿Clor has tsken steps that they ought lo have taken as a director. in order to make themselves aware of any re￿vant audrt infomialion and to establish th* the company's audito￿ are aware of that informat￿n. The directots Confim that there is no relevant information that they know of and vthich they know the auditots are unaware ot. Oarets in the Commuth ￿M[ted-￿nn￿al Repwt •nd Fil￿r￿lI1 Statenynts 2021.2022 CLARETS IN THE COMMUNITY UMITED la ￿MPanY limit¢d by guarantee) DIRECTORS. REPORT YEAR ENDED 30 JUNE 2022 Appolntment of Independent Audltors In accordance wilh the group's finaneial pdicies. ehoti of independent auditor is ￿VieWed every three years. The nexl review is due ahead of Ihe audit of the xcounls for Ihe ye¥ ended 30 June 2023. A ￿$01￿tIon proposing the chtyce of aLwJitor for nex¢ yearfs accounts will be pul at a general meeting of the directors. Liability of members The liability of ea¢h member by way of their guarantee lo the company is to contribute a sum not exceeding ten pounds lo the assets of the company. if w required on Ihe *ind￿g up of Ihe wipany. Approved by the Board on: and ggned on ils behalf by: B T Nelson Oireclor aarets fjn the Comrnunty Limfted-Annual Rep￿ and Financkil Ststtments 2021-2022 CLARETS IN THE COMMUNITY LIMITED (a Company limited by guarantee) DIRECTORS, REPORT YEAR ENDED 30 JUNE 2022 STATEMENT OF DIRECTORS. RESPONSBIUTIES - YEAR ENDED 30 JUNE 2022 The diredors are responsible for preparing the Director5, Report and the financial ststements in accordance with applicat4e law and regulations. Company law requires the dreCtO￿ to prepare financial 5tstements for each finarti81 year. Under Ihat law the directors have elecled to prepare Ihe financk41 stalements in accordance with United Kingdom Generally Accepted Accounting PractKe (United Kingdom Accounting Standards and applicable law). Under company law, the directors musl not 8pprove the financial ststements unless they are satisfied that they give a true and f*r wew of the state of affairs of the group 8nd the company. and of the income arKI expenditure account for that penod. In preparing these financial statements, the directors are required to". select suitsble aecounling policies and appty them con>stenUy: make judgements and aceounts"ThJ esth"m8tes that are reasonable and prudent: observe the methods and principles in the Charrties SORP.. and p￿paTr the financial slalements on the going c￿cern basis unless it is inaFpropriate to presume that the group and the ccffipany will continue in business. The direclots are responsible for keeping adequate accounting reccKds that are sufficbenl to show and explain the group's and the company's trans￿t￿S and disclose wrth reasonable accuracy al any time the financial powlion of the grwp and Ihe company aThJ enab￿ them to ensure Ihat the finarKial ststements ¢omrAy with the Comp8n*s Act 2CQ6. The directors are also responsible for safeguarding the assets of the group and the company and t*nce for tskirwJ reasonable steps lor the prevention and detection of fra￿1 and other irwularities. Oarets in the Cornmur¥ty Llmitsd-Annual Rerth Financial Stateffents 2021-2022 io INDEPENDEKf AUDITOR'S REPORT TO THE MEMBERS OF CLARETS IN THE COMMUNifY LIMITED (a company limited by guarantee) YEAR ENDED 30 JUNE 2022 Oplnion We have audited ts finartial slaternenl$ of Clarets in the Communty Limited (the 'parent ¢ompany'} 8nd ils subsidiaries {Ihe'gr(NJp'l for the year ended 30 June 2022 whth comprise the group statement of financial activities, the group stalement of financial posrtion, the company slalement of financial position. the group slalement of cash flows and note5 to the financial statements. including a summary of s￿nffj￿nI aecounling pjlicies. The financ￿1 rewting framework that has been applied in their preparation is appluble law and United Kingdom Accounting Standards, includiThJ FRS 102 The Financial Reporting Standard aPpI*￿tsIe in the UK and Republic of Ireland {United Kingjom Generalty Accepted Aecounling Praetiee). In our opinion the financial statements.. give a true and fair view of the state of the group's arKI the parent compan￿5 affairs as at 30 June 2022 and of the group's profrt for the year then ended" have been properly prepareil in acc(Ndance with Unrted Kingdom Generally Accepted Accounting Practice.. and have been prepared in acc{￿dar￿ with Ihe requirements of the Companies Act 20￿. Basis for opinion We conducted our audit in ￿dance with International Standards on Auditing IUKI IISAS {UKI) and applicable law. Our respjnsibilrties under Ih05e starKlards are fvrther d?￿ribed in Ihe Audit￿5 responsibilities f(Y the audit of the finanaal statements sects.on of our report. We are independent of the company in ￿CordanCe WFth the ethical requirements that are relevant to our audit of the financial slalemenls in the UK. induding the FRC'S Ethical Stsndard, and we have fU￿illed our other ethical responsibilities in ￿CordanCe with these requirements. We believe that the audit evKlence we have obtair￿¢ is sufficient and appropriate to WOVKle a basis for opinK)n. Conclusions relating to golng concern In auditing the financ￿1 slalements. we have concluded ttlat the direclors. use of the going concern basis of accounting in the preparation of the finan¢wal statements is appropriate. Based on the work we have performed. have not Klentified any material uncertainlw relating to events or conditions that, indivHlually or CA)Ilectively. may cast S1gnrf￿anI doubl on the company's ability to continue as a going concem for a Per￿ of at least t*￿Ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the tjirector wilh resFect lo goivvJ concern are described in the relevant sections of Ihbs reFA%t- Other Inforniation The other information comprises the information ff￿￿ded in the annual rep)rt other than the financial statements and our auditor's thereon. The director is responsitAe for the other information contained within the annual report. Chjr opinion on the financial statements does not cover the other information and, except lo the extent othefwise explic1￿Y slated in tyJr report. we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and. in doing so, consider whether the other infomalion is materially inconsistent ￿th the financial stslements or our knovledge obtained in the C￿rSe of the audit. or otherwise appears to be materially misstated. If we identfy such material inconsistencies or apparent material misstalemenls. we are required to determine whether this gives rise to a material mi5s1atement in Ihe financial slalefflenls them5elve5. If. based on the w(vk we have performed. we conclude that there is a material misslatemenl of this other informatDn, we ￿ required to report that fact. We have nolhing to report in this regard. Clarets in the ComrnuntyUmited-Annual Rew)rt and Finarnial Statemertts 2021-2022 li INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF cLAR￿s IN THE COMMUNtrY LIMtTED (a company lirnited by guarantee) YEAR ENDED 30 JUNE 2022 Opinions on olhor matters prescribed by the Companies Act 2006 In our opinion, based on the undertaken in Ihe course of our audit: the information given in the directors. rep￿ for the financial year for whth the financial slatemenls are prepared is consistent wilh the financial stslemenls,. and the direclo¢s report has been prepared n xcordance applicable legal requirements. Mattèrs on T*•hi¢h we *• raquir￿ to rèport by •x¢•ptitin In the light of the knowledge and understanding of the company and its environment obtain8d in the course of the audit, we have identified material mi5slalements in the director's report. We have nothing lo repxt in respect of the follo4w￿ matters in felalion to which the Companies Act 2006 require5 us lo reFth to you rf, in our opinion.. adequate accountirvJ records have not been kepL or retU[r￿ adequale for our audit have not been received from branches not visited by us. or Ihe financial statements are not in agreement the accounting records and retums," or certain disdosures of directors. remuneralion Spe￿r￿ by law are nol made.. or we have not received 211 the Infomial￿n and ewanations we require for our audft- or Ihe directors were not entitled to prepare the financial stalemenls in xcordance with the small companies regime and take advantage of the small coMpan￿s. exemption in p￿paring the direclorfs report and from the requirement to wepare a strategic report. Responsibilities of directors As explained more fully in the directors. reskM)nsibilities stslement. the directors are responsible for the prepafalion of the financial stslements and for being satisfied that they give a true and fair view, and for such internal control as the directors detemine is necessary to enable the preparation of financial statements that are free from malerral misstatement, whether due to fraud or error. In prepariro the financial statements. the directors are fesponsible for assessing the company's ability to continue as a going concern. disclosing. as applicable, matters related to going concern and using the going concern basis of accwnting unless the direclors either intend lo IKJuidale the company OT to ¢ease operations, or has no realistic allernalive but to do so. Audltorfs responsibllilies for the audlt of the financlal statements Our objectives are lo oblain reasonable assurance at*)ul whether the finan¢ial statements as a whole are free from material mi55latement. whether due lo fraud or error. and lo issue an audilo¢s report that indudes our opinion. ReasonatAe a$5urance is a high level of assurartt but is Th)1 a guarantee Ihal an audit conducted in accordance wrth ISAS IUKI will a￿AyS detect a material misstalemenl when il exists. Misstatements can arise from fraud or error and are consKlered material rf. individually or in the aggregate. they Could reasonably be expected to infiuence the e¢onomic decisK)ns of users taken on the basis of these financial statements. A furthef description of our responsibilities is available on the Financial Reporting Council's website at.. https'.Ilwww_frc.org.ukJaudilorsrestKJnsibilities. This description fornis part of our audilorfs report. Clarets in the Commjnity Limited-Annual Reportand Financial Statements 2021-2022 12 INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF CLARETS IN THE COMMUNrrY LIMITED la company 11m1t￿ by guaranteo) YEAR ENDED 30 JUNE 2022 Extent to whlch the audit was considered capable of detecting irr¢gularitios, includlng fraud Irregularilies, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our resFL)nsibilities. outtined aiM)ve and on ts Financial Reporting Council's websrte. to detect materia misslatemenls in re$F￿ of irregularit*s. indudirKJ fraud. We obtain and update our undwstandiro of the entity. its aclivities. its Control environment. and like future developmen15, in¢hJding in relation lo the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this urKlerslanding, we idenlfy and a55ess the risks of material misstalemenl of the financial slatemenls. whether due to fraud or error, design and perform audit procedures responsive to those risks. and obtain audrt evidence Ihal 15 sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the enlty that were contrary to applicable laws and regulations. including fraud. In response lo the risk of irregularities and nonvC#)mpliance with laws and regulations, induding fraud, designed procedures which included.. Enquiry of fflanagemenl and those charged wtth governance around actual and potential litigation and daims as well as actual. suspecte(l and alleged fraud.. Reviewing minutes of meetings of those tharged wrth govemance.. Assessing the extent of compliance with the laws and regulations considered lo have a direct material effect on the financial statements or the operatsons of the company through enquiry and inspection.. Reviewiro financial statement disdosures and lesting to supporttng do￿lMentation lo assess ¢omplian¢e ￿th applicable ￿w5 and regulations" Performing audit work over the risk of management bias and override of controls, including lests'ng of journal entss and other adjustments for appropriateness. evaluating the business rationale of sign￿[cant transactions oulside the normal c(MJrse of bU￿nesS and reviewing accounting estimates for indicators of potential bk45. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities. including those leading lo a malerkql misstatement in the fina￿la1 slalemenls or nontsl awhold kltchen Cost As al 1 July 2021 Additions Disposals .735 38,19) 353.989 37.635 855.474 48.333 2,2￿.721 2,424 40,059 As al 30 June 2022 960.735 38.1 391.624 855.474 Xs.757 2,296.780 Dgpr•ciat•on As al 1 July 2021 Charge for the year Disposals 48.717 17.020 36,725 1.465 217.616 66.167 151.681 77,693 29,642 9,744 484.381 172,089 As at 30 June 2022 65.737 229.374 Net book val As at 30 June 2022 894.998 107.841 626.100 11.371 1.640.310 As al 30 June 2021 912.018 1.465 136,373 703.793 18,691 1,772.340 Charfty only L•a*•hokl Play. dlmbkng and kltthen and and Motor computer oth Ou¢door Improvem•nt¥ vehid•s equipment •guipm•nl equipment Total Cost As al 1 July 2021 Additions Disposals 268.051 14.740 226.724 19.437 7.914 S17,429 2.424 21,861 As at 30 June 2022 246.161 10 338 539.290 Depreciation As al 1 July 2021 Charge for the year Eliminated in respect of disposals 15.4C 3.476 14.740 157.503 38.0 4,617 192,266 43.136 As al 30 June 2022 18,882 14.740 6.277 235,402 N•t bo¢l( valu• As al 30 June 2022 249.169 1.658 4.061 303.888 As at 30 June 2021 252.645 69.221 3.297 325,163 awet5 111 the Commurmty Limited -*Mr￿1 Re(KYt and Financd Ststetr*nts 2021-2022 25 CLARETS IN THE COMMUNrrY UMITED NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 8.Tangible fixed assets {Con¢lnued) Charges In respect of the group assets. wilhin leasehold yoperty and improvements arKI play. clwnbing and other equipment there are items charged as securty in favcwr of The Fcrf)tball FoundalKJn and Sport En918nd on a pari passu basis. The carying amount of such security at 30 June 2022 was £579,961 12021.. £592.3711 in respect of leasehold propety and improvements and £701.092 {2021.. £623,536) in respect of ￿ay. dIm￿ng and olher ewipment. Hlre purchas* and finance lease 855•ts In respect of the group assets. wthin motor vehides there are assets held under hire purchase or finance lease arrangements. The Car￿n9 amount of such assets at 30 June 2022 %*dS £Nil12021". £1.466). Cuslodian Twstseship Disclosure No ass&ts were held 85 Custodian tnjslee during the reptytiNJ perrod. 9. Fixed asset investments Group Charity only 2022 20 2022 2021 Shares in group undertakings 2,040.001 2.040,001 2.040,001 2.040.001 Shares in group und•rtakings and participating Interests S4knidiary undèrtakings Total Cost As al 1 July 2021 As at 30 June 2022 2,040.1)01 2.040.¢￿1 2 040 001 2.040,C(11 Not book valu• As a11 July 2021 As a130 June 2022 2,040,001 2.040,001 2.040,001 2.040,001 The subsidiary uThJertaking relates to BFCITC Facilities (Enterprises) Ltd (company number 109516841. the principal actNity of v*hich is to operate and manage the Whilehough Outdc#)r Centre and the Leisure Box communty leisu￿ centre both in tr* Bwough of p￿dIe. Oarets in Community tirnited-Anwal Reportand Statements 2021-2022 26 CLAREfs IN THE COMMUNITY UMITED NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 10. Dobtors Group Charity only 2022 2021 2022 2021 Trade debtors Prepayments and accrued income Due from group undertakings Value added tax Other debtors 40.967 37,889 39.826 31.078 26.468 18.389 83.235 10.618 S.679 20.096 3,408 241.460 10,618 567,053 656.527 70,904 704.389 264.964 Within other debtors for b)th GfOUP and the Charity we amounts falling due after ¢)nè year of the statemenl of financial posilion date 01 £424.259 {2021'. NIL) 11. Creditors: •nounts falling due within on• y Group Charlty only 2022 2022 2021 2021 Obligations under f￿an￿ lease and hire purchase Contracts Trade credrtors Value added tsx Other taxes and social s￿rity Pension costs Accruals and deferred income Other CTedilors 1.055 72.616 31.156 44.760 7.845 382,575 271 4,221 37.233 16.601 32,269 34.719 24,702 14.395 44,760 32,269 7.845 5,464 339,866 406,455 271 435.560 540,278 427.461 Obligations under finance lease and hire purchase contrxts are secured upon the assets to which Ihe contract relates. 12. Credltors: amounts falllng due after mor• than one year Group Charlty only 2022 2021 2022 2021 Accruals and deferred income Obligats'ons under finance lease and hi purchase contracts 424.259 424.259 1.055 424.259 1.055 424.259 Obligations under finance lease and hire pUr&￿Se contracts are secwed upon the assets to which the contract ￿lates. Clarets in the Community LwThited-4knrwal Reportand FiTraroal Statements 2021-2022 27 CLAREfs IN THE COMMUNfTY UMITED NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 13. Obllgation$ under hire purchase and finance lease agreements Group Charlty only 2022 2021 In one ye* or less on demand Be￿een one and years Be￿een and five years 1.055 4,221 1.055 1.055 5,276 14. Movoment in funds Group Rèstricted Othor RestrSet•d CapiLIl As al 1 July 2021 Nel movement in fLWKI$ As at 30 June 2022 371,686 285.201 fJ56.887 82.725 82.725 1.412.610 103218 1,309.392 Charity only Capital As al 1 JLsly 2021 Net movement in funds Transfer bgts¥een fvnds As ai 30 June 2022 1.038.797 467.481 453.516 1.052.762 1.604.359 13,4771 1453.516) 453.516 1.600.882 15. Analysis of net assets b•tw•en funds Group R•strl¢tad Oth•r Unr•strict•d R•$tricie C•pltsl 2022 2022 2022 Fixed assets Current assets Creditors.. amounts falling within one year Credil¢)ts'. amounts falling due after MO￿ than one year 330,918 264,024 61.945 1,309,392 1.026,482 1602,2231 424.259 656,887 1 309 392 Oafets in the Commurwty ￿M￿ed-￿￿￿al Repcrt and Fir*ncial Statements 2021.2022 28 CLARETS IN THE COMMUNifY UMITED NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 15. Anatysis of n•t ass•ts lJet**•n funds {Continu•dl Group Restrieted Olher Unr•strlct•d Regtrlcted Capital 2021 2021 2021 Fixed assets Current assets Creditors.. amounts falling due within one year Credil¢ys'. omovnts falling due after more than one year 359.730 130,771 (117.760) 1.055 371,686 1.412,610 496.313 1413.588) 82,725 1.412.610 Charity only Restricted (Xh•r Rostr•cted Capital 2022 2022 2022 Fixed assets Current assets Creditors= amounts falling due thin one year Credilor5.- amounts falling due after more than one year 743.fr)7 562.948 1253.193> 1,600,882 598,527 1174,268) 424,259 1.052.762 1,600.882 Charity only Restricted Ot￿r Unrestricted Restri¢ted Capital 2021 2021 2021 Fixed assets Current assets Creditors.. amounts falling due within one year Creditors: amounts falling due after more Ihan ￿e year 760.805 315,530 137.538) 1,604.359 445.747 1445.747) 1.038.797 1,604,359 16. Commltments As at 30 June 2022. the group company had amual commth)ents urKJer non-cancellatAe operating leases as set out below.. Group Charlty Only 2022 2021 2022 2021 Not18ler than year Later than one year and nol later than fve yws Later than fNe years 58.418 163.609 72.286 477.375 568,750 699.402 644,444 9.505 8.016 990 12.269 17,521 13,259 Clarets in C¢mmurMty knmiied -Anmual Rwt arwl fin3nual Ststements 2021-2022 29 CLARETS IN THE COMMUNITY UMITED NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 17. Other related party tran5action5 outside of the Group During the year. the company made the followng related paty t￿￿tiOnS outside of the Group: Trustso OoTh•tlons t￿rIng the year, trustee5 collectiveEy donated £110.504 to the group12021". £72.202}. Such donations are made either personally or Ihorough entibes controlled by those trustees. Donat￿nS were typicalty made to further Ihe objectives of particular programmes, hoNbEver no condittons were altached to any of the donalions. The Burnley Football & Athletic Company Lirnit•d {'BFC? Directors M L Garlick and A G Pace are also directors of BFC. Additsonally. directors B C Kilby and T Nelson were directors of BFC until 30th December 2020. During the year. Ihe group re￿1Ve￿ income from BFC lolalling £192.87512021.. £15.726) and il issued credits of £Nil12021.' £55.000}- Addrtj'onally, BFC provKled goods and services to the group tolalling £64.11812021.. £39,620}. At 30th June 2022 the amount owed from BFC was £708 (2021.. £1.7091. The Sutton Pendle Char•table Trusl ('spcr Director R Sutton is a Iruslee of SPCT. During the year. SPCT provided services to the group tolalliry £61.59312021.. £25,708>. AI 30th June 2022 the amount ¢Jwed to SPCT was £16.051 {2021: £Nill. Nèlson & Coln• Collage {'N&CC? Director D L Rothwell is key management personnd at N&CC. DuriThJ Ihe year. the group re￿iVed income from N&CC totalling £284.98812021.. £18.993). Additionalty. N&CC provided semces lo Ihe group totalling £25.97612021= £8,549}. AI 30th June 2022 the amcmjnt owed to N&CC was £2.31012021: £18,088). Burnley Borough Council I'BBC'} thrector L Patel is key man89ement pe￿(￿ne1 al 88C arKI director A Anwar is Ihe Leader of BBC. During the year, the group ￿￿Ved ineome from BBC toLilling £104.SW {2021." £20.000). Addilionally, BBC provided seryices to the group totalling £416 {2021= £7931. AI 30th June 2022 the ￿ount owed fr(Mn BBC vras £1.130 {2021: £Nil). 18. Prior Year Restatement Income received by the trading sUb%di￿. BFCITC Facilities (Enterprises) Limited. and its associated costs, have historically been Irealed a5 income and expenditure from charitsble acliwlies. This treatment has been reconsidered and is now recognised as inc(xne from other trad￿g activits.es and expenditure on raising funds respedively. Certain donations received during the year ended 30 June 2021 were originalty treated as irKome from Charitable activities. Up¢Jn further investigation. these donatKsns do not provide any signfficanl benefit lo the donor and are not conditional on delivering certain levels or vohjmes of a service or suppty of charilable g&Jds. SUbSeq￿nty this income is now recognised as income from donations. Marketing costs have historically been trgated as expendilure on charil8t4e aclivilies. This treatment ' has been reconsKlered arKI such costs are Tr)w recognised as expenditure on raising funds. These adjustments impact the group Statement of Financial Activitses ￿ Ihe year ende(130 June 2021 and consequently those figures have been restated wrfhin these accounts as detsited bek)w. The changes have no effect on overall income or expenditure. overall movement in funds. Ihe balance sheeL or the casmow ststemenl. Clarets in the CommunityLimited-Annual Reportand Finawal statemen￿ 2021-2022 CLARETS IN THE COMMUNITY uMfrED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 18. Prlor Year R•statem•nt {ContInu￿) 2021 (restated) 2021 las OTiginally stated) T(thl Total In¢omlng resources Income and endowments fr(Mn: Donat￿nS and legacies 359,322 249,322 Charitsble actiwties 1.677.429 1.856.604 Other tr*Ying *th"vities 154.718 85.543 Investments 61 61 Other irKome 385.192 385.192 Total 2.576.722 2.576.722 R•sources •xp•nd•d Expendi￿re on: Raising fvnds 589.186 20,587 Charitable aclivit*s 1.931.510 2.500.109 Total 2.520.696 2.520,696 Net income for the yeav Transfers be￿en fvnds Net movement in fvnds 56.026 Reconclloatlon of funds: Total fund5 brought forwwd 1.810.935 1.810.995 Totsl funds carri￿ forward 1.867.021 1 867 021 Clarets in the Corniunity Limited-Annual Rewt and Financial St•tements 2021-2022 31 CLARETS IN THE COMMUNrrf UMtrED NOTES TO TTrIE CONSOUDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 19. Evènts after the End of the Reporting Peri<>d Following the end of the repoth.ng penod. the facility at The Le￿we Box UThIer￿nt a restr￿lure which resulted in Ihe departure of seven permanent stsff and redurnjw payments of £1,442. 20. Company status The company Is limited by guarantee. The liobdity in respect of ihe guarantee as set out in the Memorandum of Association is limiled to £10 per member. The Company has 8 subsidiary UrKlerta￿ng. In fuwre years. it is expected th* Ihe subsidiary makes a profil.11 is the intention that Ihe subsKliary will gift-aid donate any proffits lo the charity. as per the objective sel out in the Artiths of Ass¢xialion of the subgdiary. 21. Comparatlve Statement of Financial Activities for th• Ythv End￿ 30 June 2021 (r•sLited Nole Unrestricted Restricted ReSts￿led Capitsl To181 Incoming r•sourcos Income and •ndovm*nts Donations and leg8¢ies Charitable ath"wties Other trading activities Investmen15 Oiher income Tolal 252.238 111.983 154.718 61 385.192 904.192 105.834 1.565.446 1,250 359,322 1,677,429 154,718 61 385.192 1.250 2 576.722 1.671.280 Resources oxpended Expenditure on: Raising funds chttrrtab￿ acliwties Other Total 378.793 85.499 360,972 1,568,398 124,924 589.186 2.140 1,931,510 739 765 1653 867 127 064 2 520 696 Nel income for the year Transfers beN•*en funds Ngt movemont In funds 164.427 17.413 1125.814) 56.026 164.427 125814 R¢¢on¢iliation of funds: Tot81 funds brought fomard Totsl funds Carried ft*rward 207.259 371.686 65,312 1.538,424 1.810.995 1412 610 1,867,021 Clarets IDthe Cornrnunity knmitQd-Anr￿￿l Report4nd ￿￿r(la1 Stateffents 2021-2022 32