# COMPANY REGISTRATION NUMBER: 04740154 CHARITY REGISTRATION NUMBER: 1160980 ## Kendal Rugby Union Football Club Limited Company Limited by Guarantee Unaudited Financial Statements 30 April 2022 ## MR IAN THOMPSON FCA Chartered accountants Saint & Co The Old Police Station Church Street Ambleside Cumbria LA22 0BT ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Financial Statements ## Year ended 30 April 2022 ||Page| |---|---| |Trustees' annual report (incorporating the director's report)|1| |Independent examiner's report to the trustees|8| |Statement of financial activities (including income and expenditure account)|10| |Statement of financial position|11| |Notes to the financial statements|13| ## Kendal Rugby Union Football Club Limited Company Limited by Guarantee Trustees' Annual Report (Incorporating the Director's Report) (continued) ## Year ended 30 April 2022 The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 30 April 2022. ## CHAIR'S REPORT It is very pleasing to be able to report our 1st team’s promotion to Level 5 in the new Regional 1 North West League. This was not confirmed until mid-May when, having tried and failed to play Douglas Isle of Man at home twice, they finally conceded that they could not raise a side and we were awarded the game. This meant that we overtook Waterloo for the third promotion place by one point. Overall, we have had a successful season, but some injuries took their toll in the second half and we won only 6 games since the start of the year. Promotion means we shall join Kirkby Lonsdale and restore the local derby clash in a League, which has been reduced to 12 teams. This change was delayed by Covid and is yet another blow to the Club’s potential earnings as the reduction in away travel costs is far outweighed by the loss of income from two home fixtures. The RFU promises a Cup competition in April to compensate, but details are yet to be published. We have had success throughout the Club, from the 5-year-old Little Stingers (free membership next year) to the slightly older Auld Greys who have a large regular following playing Walking Rugby. The AGs have led the way in expanding interest in Walking Rugby. They recently had a successful Tournament with five visiting teams and an article praising the initiative published on the RFU website. Our 2nds finished 4th in their League, the Under18 Colts came top of their League and won the Cup. Our Lady Wasps finished 4th in a small league and were frustrated by lack of opposition. We are proud that a good number of Kendal players were selected for the Cumbria County squads at Senior Men’s, Women’s and U17 level. The Club is in a good place post-covid and many members and visitors have commented positively about the atmosphere at the Club. The Board continues to work hard to ensure financial stability and we are pleased to have recently co-opted Claire Park, who brings a wealth of experience from the Charity sector. We also welcome Laura Scott, as Bar Steward, to our team who manage the Club so well. Volunteers are the backbone of the Club and Claire Park has recently assembled a register of volunteers and their interests that revealed 110 members were willing to help in various ways. Stacey Selby has made an immense contribution by taking on the organisation of the events and we are all very grateful to her. The formation of a Social Committee is yet another example of the strong community ethic within the Club. - 1 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Trustees' Annual Report (Incorporating the Director's Report) (continued) ## Year ended 30 April 2022 Our Trading Company accounts for the year ending April 2022 show the contrast between a 'Covid' year and a gradual return to 'normal' activity. Our turnover rose to just over £500k and we posted a profit for the second year running of £37k, up from £22k in 2021. We have also managed to reduce our debt to the Trading Company by some £26k. Our commercial business is expanding, with an emphasis on trading through the summer months to ensure funds to support all our rugby teams. The contribution to income from camping, events such as the Harley Davidson Festival and weddings is essential to the overall success of the Club. The Club has prepared a 3-year financial plan under the guidance of Billy Coxon and Helen Halsall, a Chartered Accountant and member of the Auld Greys. We are very grateful for their efforts. One of the worrying aspects for the future are our energy costs. The Club pays approximately £4,000 per month for utility costs. Our broker has advised that when our current electricity contract expires in January it is likely that our costs will increase by a factor of 2.5 resulting in £10,000 per month, which has to be found from our business. This is just one aspect of the coming economic crisis with interest rates rising in the face of inflation. The Club is not immune to these pressures and the Board is carefully monitoring our financial position. Despite these difficulties we look forward to the new season with the Club in a good position to prosper, both on and off the field. Kind regards, Stephen Green Chairman KRUFC - 2 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Trustees' Annual Report (Incorporating the Director's Report) (continued) ## Year ended 30 April 2022 |Reference and administrative|details| |---|---| |Registered charity name|Kendal Rugby Union Football Club Limited| |Charity registration number|1160980| |Company registration number|04740154| |Principal office and registered|Mint Bridge| |office|Shap Road| ||Kendal| ||LA9 6NY| |The trustees|| ||Mr R J Burrow| ||Dr S A Green| ||Mr J Nicholson| ||Mr A Perie| ||Mr C I Wheatman| ||Mr R Wilson| ||Mr W Coxon| ||Mr C A Ross| ||Mr D Airey| ||Mr M Bowerbank| ||Mrs S J Selby| |Company secretary|Mr M J W Barr| |Independent examiner|Ian Thompson FCA| ||Saint & Co| ||The Old Police Station| ||Church Street| ||Ambleside| ||Cumbria| ||LA22 0BT| - 3 - ## Kendal Rugby Union Football Club Limited Company Limited by Guarantee Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 30 April 2022 ## Structure, governance and management ## Legal status The Charity is a company limited by guarantee and as such, does not have a share capital. Every member undertakes to contribute such amounts as may be required (not exceeding £10) to the company's assets if it should be wound up whilst he or she is a member, or within one year after he or she ceases to be a member, for payment of the company's debts and liabilities contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves. ## Governing document Kendal Rugby Union Football Club Limited is an independent registered charity governed by its memorandum and articles of association dated 22 April 2003 as amended by special resolution dated 17th March 2015. ## Organisational structure The Charity Trustees are all volunteers and are responsible for general control and management of the Charity. Regular meetings are held by Trustees and also by Team members to discuss finance, training and other relevant issues. ## Method adopted for the recruitment and appointment of new trustees New trustees are invited to stand for election by reference to their skills and experience and to the needs of the charity. Candidates are then voted on by the charity's members at the Annual General Meeting (AGM). If elected each trustee agrees to serve for a three year term after which they either resign or hold themselves up for re-election. ## Trustee induction and training New Trustees are shown a copy of the Charity's Articles of Association and advised on the policy, procedure and responsibilities of the Charity under the Charities Act. ## Major risks to which the charity is exposed The trustees have examined the major strategic, business and operational risks which the charity faces and confirms that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen these risks. - 4 - Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 30 April 2022 ## Objects and activities ## Summary of the objects set out in the governing document The Charity’s objects are as follows: 1) To promote community participation in healthy recreation by providing for playing rugby union football and other sports. 2) To provide and assist in providing facilities for sport, recreation or other leisure time occupation of such persons who have need of 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 3) To advance the education of children and young people through such means as the directors think fit in accordance with the laws of the charity. ## Summary of the main activities in relation to these objects Senior Rugby – Coaching and training of senior rugby teams for both men and ladies and the playing of matches in various leagues. Youth Rugby – Coaching and training of several age related teams of rugby players from the age of 13 to 18 and playing in matches and tournaments. Mini Rugby – Coaching and training of several age related teams for boys and girls from the ages of 5 to 12 and playing in matches and tournaments General – Through schools and specific courses open to the public, the club offers rugby playing opportunities to the wider community In addition, in line with its objectives, the Charity offers opportunities for the community to take part in Touch Rugby sessions for all age ranges, Walking Rugby (for mixed genders) for the over 50s and the use of facilities for Rugby Camps. ## Public benefit The trustees confirm that they have referred to the guidance contained in the Charity Commissioner’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities. The trustees are satisfied that the charity continues to meet the required public benefit test through its objectives and activities. ## Achievements and performance The 1st team finished 3rd in the League and were promoted to Level 5 in the reorganised League now called Regional 1 North West. - 5 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Trustees' Annual Report (Incorporating the Director's Report) (continued) ## Year ended 30 April 2022 We have had success throughout the Club, from the 5-year-old Little Stingers (free membership next year) to the slightly older Auld Greys who have a large regular following playing Walking Rugby. The AGs have led the way in expanding interest in Walking Rugby. They recently had a successful Tournament with five visiting teams and an article praising the initiative published on the RFU website. Our 2nds finished 4th in their League, the Under18 Colts came top of their League and won the Cup. Our Lady Wasps finished 4th in a small league and were frustrated by lack of opposition. We are proud that a good number of Kendal players were selected for the Cumbria County squads at Senior Men’s, Women’s and U17 level. ## Financial review ## Reserves policy It is the desired policy of the board to create and retain sufficient reserves to enable the club to maintain and enhance its facilities and provide rugby opportunities to the communities in the Kendal area. ## Review of the financial position of the Charity Five of the Charity Trustees are also Directors of the Trading Company, which manages the First team and the operation of the bar, servery and other catering facilities. The Charity charges the Trading Company a rent (currently £17,500 per annum) for use of the facilities. . A separate set of accounts is prepared for the Trading Company and a summary is shown at Note 24. Last year the Charity donated £50k to the Trading Company to pay legitimate expenses incurred by the Charity supporting its aims and objectives relating to the local community. The Supporter’s Club donated £1k to the Trading Company to fund player expenses. Loans to the Trading Company decreased by £26k from £279k to £254k. ## Investment The Trustees have the power to invest the Club's assets as they see fit. The investment committee is chaired by Chris Wheatman together with three other Trustees and reviews the opportunities for a return on the Club's capital while protecting its assets. The net investment income less charges plus net gains over the year was £57k with a year end valuation of £1,594k (2021: £1,614k) ## Covid-19 Fortunately, with the exception of the testing requirements for the away trip to the Isle of Man, there were no restrictions on playing during the season. The Club did not have a full program of events (e.g. Christmas Parties) as Covid was, and remains, endemic within the UK. - 6 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Trustees' Annual Report (Incorporating the Director's Report) (continued) ## Year ended 30 April 2022 ## Small company provisions This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by: Dr S A Green Trustee - 7 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Independent Examiner's Report to the Trustees of Kendal Rugby Union Football Club Limited ## Year ended 30 April 2022 I report to the trustees on my examination of the financial statements of Kendal Rugby Union Football Club Limited ('the charity') for the year ended 30 April 2022. ## Responsibilities and basis of report As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## Independent examiner's statement I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or 2. the financial statements do not accord with those records; or 3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or 4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). - 8 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Independent Examiner's Report to the Trustees of Kendal Rugby Union Football Club Limited (continued) ## Year ended 30 April 2022 I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Ian Thompson FCA Independent Examiner Saint & Co The Old Police Station Church Street Ambleside Cumbria LA22 0BT - 9 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Statement of Financial Activities ## (including income and expenditure account) ## Year ended 30 April 2022 |||2022|2022|2021| |---|---|---|---|---| |||Unrestricted||| |||funds|Total funds|Total funds| ||Note|£|£|£| |Income and endowments||||| |Donations and legacies|5|4,815|4,815|20,483| |Other trading activities|6|17,500|17,500|–| |Investment income|7|33,137|33,137|38,829| |||---------------------------------|---------------------------------|---------------------------------| |Total income||55,452|55,452|59,312| |||=================================|=================================|=================================| |Expenditure||||| |Expenditure on raising funds:||||| |Costs of Clubhouse and other fundraising||||| |trading activities|8|3,815|3,815|3,609| |Investment management costs|9|11,492|11,492|12,128| |Expenditure on charitable activities|10|55,340|55,340|5,447| |Other expenditure|11|154,346|154,346|184,233| |||--------------------------------------|--------------------------------------|--------------------------------------| |Total expenditure||224,993|224,993|205,417| |||======================================|======================================|======================================| |Net (losses)/gains on investments|12|(38,251)|(38,251)|202,356| |||--------------------------------------|--------------------------------------|--------------------------------------| |Net (expenditure)/income and net movement in funds||(207,792)|(207,792)|56,251| |||======================================|======================================|======================================| |Reconciliation of funds||||| |Total funds brought forward||9,581,055|9,581,055|9,524,804| |||-------------------------------------------------|-------------------------------------------------|-------------------------------------------------| |Total funds carried forward||9,373,263|9,373,263|9,581,055| |||=================================================|=================================================|=================================================| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 13 to 27 form part of these financial statements. - 10 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Statement of Financial Position ## 30 April 2022 |||2022||2021| |---|---|---|---|---| ||Note|£|£|£| |Fixed assets||||| |Tangible fixed assets|17||7,518,362|7,671,906| |Investments|18||1,594,015|1,613,650| ||||-------------------------------------------------|-------------------------------------------------| ||||9,112,377|9,285,556| |Current assets||||| |Debtors|19|254,622||279,269| |Cash at bank and in hand||9,972||20,216| |||--------------------------------------||--------------------------------------| |||264,594||299,485| |Creditors: amounts falling due within one year|20|(3,708)||(3,986)| |||--------------------------------------||--------------------------------------| |Net current assets|||260,886|295,499| ||||-------------------------------------------------|-------------------------------------------------| |Total assets less current liabilities|||9,373,263|9,581,055| ||||-------------------------------------------------|-------------------------------------------------| |Net assets|||9,373,263|9,581,055| ||||=================================================|=================================================| |Funds of the charity||||| |Unrestricted funds|||9,373,263|9,581,055| ||||-------------------------------------------------|-------------------------------------------------| |Total charity funds|21||9,373,263|9,581,055| ||||=================================================|=================================================| For the year ending 30 April 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors' responsibilities: - The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476; - The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime. The statement of financial position continues on the following page. The notes on pages 13 to 27 form part of these financial statements. - 11 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Statement of Financial Position (continued) 30 April 2022 These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by: Mr R J Burrow Trustee The notes on pages 13 to 27 form part of these financial statements. - 12 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements Year ended 30 April 2022 ## 1. General information The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Mint Bridge, Shap Road, Kendal, LA9 6NY. ## 2. Statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006. ## 3. Accounting policies ## Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure. The financial statements are prepared in sterling, which is the functional currency of the entity. The charity meets the definition of a public benefit entity under FRS102. ## Going concern There are no material uncertainties about the charity's ability to continue. ## Consolidation The charity is not required to prepare consolidated accounts in accordance with the Charities Act 2011, and has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertakings comprise a small group. ## Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. - 13 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 3. Accounting policies (continued) ## Judgements and key sources of estimation uncertainty (continued) The judgement that the trustees have made that has a significant risk of causing a material adjustment to the carrying amount of assets in the next financial year is with regard to debtors, specifically loans to Kendal Rugby (Trading) Limited. The accounts have been prepared assuming that the outstanding capital repayments and interest due will be paid in the near future. ## Taxation The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Current tax is recognised on taxable income or expenditure for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. ## Fund accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds. ## Income All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of 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. - legacy income is recognised when receipt is probable and entitlement is established. - 14 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 3. Accounting policies (continued) ## Income (continued) - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. ## Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: - expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. - expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. - other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. ## Operating leases Lease income is recognised in income or expenditure on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income. - 15 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 3. Accounting policies (continued) ## Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities. ## Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: - Freehold property 2% straight line buildings, no depreciation freehold land - Fixtures fittings and Equipment 25% straight line or 20% reducing balance equipment ## Investments Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment. Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure. ## Investments in associates Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. - 16 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 3. Accounting policies (continued) ## Investments in associates (continued) Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition. ## Investments in joint ventures Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition. ## Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. - 17 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 3. Accounting policies (continued) ## Financial instruments A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss. ## 4. Limited by guarantee Kendal Rugby Union Football Club Limited is a company limited by guarantee; each member's contribution not exceeding £10 on dissolution. ## 5. Donations and legacies ||Unrestricted|Total Funds|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|2022|Funds|2021| ||£|£|£|£| |Donations||||| |Donations|3,740|3,740|3,105|3,105| |Grants||||| |RFU grants|–|–|75|75| |SLDC Coronavirus support grants|–|–|16,503|16,503| |Charity Aid Foundation|–|–|800|800| |Gateway Group - Volunteers grant|1,075|1,075|–|–| ||---------------------------|---------------------------|---------------------------------|---------------------------------| ||4,815|4,815|20,483|20,483| ||===========================|===========================|=================================|=================================| - 18 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 6. Other trading activities ||Unrestricted|Total Funds|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|2022|Funds|2021| ||£|£|£|£| |Lease of property to Kendal Rugby||||| |(Trading) Limited|17,500|17,500|–|–| ||=================================|=================================|================|================| |Investment income||||| ||Unrestricted|Total Funds|Unrestricted|Total Funds| ||Funds|2022|Funds|2021| ||£|£|£|£| |Interest receivable Kendal Rugby||||| |(Trading) Ltd|2,778|2,778|3,532|3,532| |Investment portfolio dividends &||||| |interest|30,109|30,109|34,397|34,397| |Environment Agency river guaging||||| |station|250|250|900|900| ||---------------------------------|---------------------------------|---------------------------------|---------------------------------| ||33,137|33,137|38,829|38,829| ||=================================|=================================|=================================|=================================| ## 7. Investment income ## 8. Costs of clubhouse and other fundraising trading activities ||Unrestricted|Total Funds|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|2022|Funds|2021| ||£|£|£|£| |Costs of other trading activities -||||| |Clubhouse and other fundraising||||| |trading costs|3,815|3,815|3,610|3,610| ||===========================|===========================|===========================|===========================| |||Total Funds||Total Funds| |||2022||2021| |||£||£| |Light and heat||–||129| |Insurance||3,815||3,481| |||---------------------------||---------------------------| |||3,815||3,610| |||===========================||===========================| - 19 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 9. Investment management costs ||Unrestricted|Total Funds|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|2022|Funds|2021| ||£|£|£|£| |Portfolio management|11,492|11,492|12,128|12,128| ||=================================|=================================|=================================|=================================| |Expenditure on charitable activities by fund type||||| ||Unrestricted|Total Funds|Unrestricted|Total Funds| ||Funds|2022|Funds|2021| ||£|£|£|£| |Provision of rugby facilities|52,261|52,261|200|200| |Support costs|3,079|3,079|5,247|5,247| ||---------------------------------|---------------------------------|---------------------------|---------------------------| ||55,340|55,340|5,447|5,447| ||=================================|=================================|===========================|===========================| |||Total Funds||Total Funds| |||2022||2021| |||£||£| |Provision of rugby facilities||||| |Contributions to Kendal Rugby||||| |(Trading) Limited to cover rugby||||| |expenses||51,000||–| |Other rugby costs||1,261||200| |||---------------------------------||----------------| |||52,261||200| |||---------------------------------||----------------| |Support costs||||| |Bank charges||97||63| |Sundries||18||78| |Bookkeeping||574||1,000| |Governance - accountancy and||||| |independent examination||2,355||4,080| |Governance - other||35||26| |||---------------------------||---------------------------| |||3,079||5,247| |||---------------------------||---------------------------| |||---------------------------------||---------------------------| |Total expenditure on charitable||||| |activities||55,340||5,447| |||=================================||===========================| ## 10. Expenditure on charitable activities by fund type - 20 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 11. Other expenditure ||Unrestricted|Total Funds|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|2022|Funds|2021| ||£|£|£|£| |Depreciation on tangible fixed assets|153,544|153,544|184,233|184,233| |HMRC late payment interest|2|2|–|–| |Doantion to Army Veterans charity|800|800|–|–| ||--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------| ||154,346|154,346|184,233|184,233| ||======================================|======================================|======================================|======================================| |Net (losses)/gains on investments||||| ||Unrestricted|Total Funds|Unrestricted|Total Funds| ||Funds|2022|Funds|2021| ||£|£|£|£| |Gains/(losses) on investment portfolio|(38,251)|(38,251)|202,356|202,356| ||=================================|=================================|======================================|======================================| ## 12. Net (losses)/gains on investments ## 13. Net (expenditure)/income Net (expenditure)/income is stated after charging/(crediting): ||Net (expenditure)/income is stated after charging/(crediting):||| |---|---|---|---| |||2022|2021| |||£|£| ||Depreciation of tangible fixed assets|153,544|184,233| |||======================================|======================================| |14.|Independent examination fees||| |||2022|2021| |||£|£| ||Fees payable to the independent examiner for:||| ||Independent examination of the financial statements|2,000|1,090| ||Other financial services|929|3,990| |||---------------------------|---------------------------| |||2,929|5,080| |||===========================|===========================| ## 15. Staff costs The average head count of employees during the year was Nil (2021: Nil). No employee received employee benefits of more than £60,000 during the year (2021: Nil). - 21 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 16. Trustee remuneration and expenses No remuneration directly or indirectly out of the funds of the charity was paid or payable for the year to any trustee or to any person or persons known to be connected with any of them during their time as a trustee. No expenses have been received by any trustee for services provided to the charity. ## 17. Tangible fixed assets ||Freehold|Fixtures|| |---|---|---|---| ||land and|fittings and|| ||property|equipment|Total| ||£|£|£| |Cost|||| |At 1 May 2021 and 30 April 2022|7,686,647|868,739|8,555,386| ||=================================================|======================================|=================================================| |Depreciation|||| |At 1 May 2021|347,756|535,724|883,480| |Charge for the year|86,939|66,605|153,544| ||-------------------------------------------------|--------------------------------------|-------------------------------------------------| |At 30 April 2022|434,695|602,329|1,037,024| ||=================================================|======================================|=================================================| |Carrying amount|||| |At 30 April 2022|7,251,952|266,410|7,518,362| ||=================================================|======================================|=================================================| |At 30 April 2021|7,338,891|333,015|7,671,906| ||=================================================|======================================|=================================================| - 22 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 18. Investments ||Investment| |---|---| ||portfolio -| ||Rathbone| ||Investment| ||Managemen| ||t| ||£| |Cost or valuation|| |At 1 May 2021|1,613,650| |Additions|510,434| |Disposals|(521,882)| |Fair value movements|(38,167)| |Change in cash held on portfolio|29,980| ||-------------------------------------------------| |At 30 April 2022|1,594,015| ||=================================================| |Impairment|| |At 1 May 2021 and 30 April 2022|–| ||=================================================| |Carrying amount|| |At 30 April 2022|1,594,015| ||=================================================| |At 30 April 2021|1,613,650| ||=================================================| All investments shown above are held at valuation. All investments are held to be provide an investment return for the charity. ## 19. Debtors ||2022|2021| |---|---|---| ||£|£| |Trade debtors|300|300| |Kendal Rugby (Trading) Limited|254,322|278,929| |Other debtors|–|40| ||--------------------------------------|--------------------------------------| ||254,622|279,269| ||======================================|======================================| - 23 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 20. Creditors: amounts falling due within one year ||2022|2021| |---|---|---| ||£|£| |Trade creditors|–|241| |Accruals and deferred income|3,050|3,745| |Social security and other taxes|658|–| ||---------------------------|---------------------------| ||3,708|3,986| ||===========================|===========================| ## 21. Analysis of charitable funds ## Unrestricted funds |Unrestricted funds|||||| |---|---|---|---|---|---| ||At|||Gains and|At| ||1 May 2021|Income|Expenditure|losses|30 April 2022| ||£|£|£|£|£| |General funds|295,500|25,343|(59,958)|–|260,885| |Designated tangible|||||| |fixed assets|7,671,906|–|(153,544)|–|7,518,362| |Designated investment|||||| |reserve|1,613,650|30,109|(11,492)|(38,251)|1,594,016| ||-------------------------------------------------|---------------------------------|--------------------------------------|---------------------------------|-------------------------------------------------| ||9,581,056|55,452|(224,994)|(38,251)|9,373,263| ||=================================================|=================================|======================================|=================================|=================================================| ||At|||Gains and|At| ||1 May 2020|Income|Expenditure|losses|30 April 2021| ||£|£|£|£|£| |General funds|279,641|24,915|(9,056)|–|295,500| |Designated tangible|||||| |fixed assets|7,856,139|–|(184,233)|–|7,671,906| |Designated investment|||||| |reserve|1,389,024|34,397|(12,128)|202,356|1,613,649| ||-------------------------------------------------|---------------------------------|--------------------------------------|--------------------------------------|-------------------------------------------------| ||9,524,804|59,312|(205,417)|202,356|9,581,055| ||=================================================|=================================|======================================|======================================|=================================================| The designated tangible fixed assets fund represents the net book value of freehold property and fixtures fittings and equipment. The designated investment reserve reflects the value of the investments managed by Rathbone Investment Management Limited. - 24 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 22. Analysis of net assets between funds ||Unrestricted|Total Funds| |---|---|---| ||Funds|2022| ||£|£| |Tangible fixed assets|7,518,362|7,518,362| |Investments|1,594,015|1,594,015| |Current assets|264,594|264,594| |Creditors less than 1 year|(3,708)|(3,708)| ||-------------------------------------------------|-------------------------------------------------| |Net assets|9,373,263|9,373,263| ||=================================================|=================================================| ||Unrestricted|Total Funds| ||Funds|2021| ||£|£| |Tangible fixed assets|7,671,906|7,671,906| |Investments|1,613,650|1,613,650| |Current assets|299,485|299,485| |Creditors less than 1 year|(3,986)|(3,986)| ||-------------------------------------------------|-------------------------------------------------| |Net assets|9,581,055|9,581,055| ||=================================================|=================================================| ## 23. Operating lease commitments ## As lessor The total future minimum lease payments receivable under non-cancellable operating leases are as follows: |are as follows:||| |---|---|---| ||2022|2021| ||£|£| |Not later than 1 year|17,500|17,500| |Later than 1 year and not later than 5 years|27,353|44,853| ||---------------------------------|---------------------------------| ||44,853|62,353| ||=================================|=================================| The above reflects the lease between the Trustees of Kendal Rugby Union Football Club Limited and Kendal Rugby (Trading) Limited for the lease of land and property at Mint Bridge for a term of seven years from 24 November 2017 to 23 November 2024, with rent payable at £17,500 per year commencing on 16 March 2018. - 25 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) Year ended 30 April 2022 ## 24. Related parties ## Subsidiary Undertakings The charity has one trading subsidiary undertaking; Kendal Rugby (Trading) Limited (Company Registration Number 09559726). The company is a private company limited by guarantee. The company is registered in England and Wales. The address of the registered office is Mint Bridge, Shap Road, Kendal, Cumbria, LA9 6NY. The trading company's Articles of Association state within its objects that it is to operate a social club and other commercial activities to provide funds to donate to the charity. The charity also provides direction to the trading company. Five of the current trustees of Kendal Rugby Union Football Club Limited (the "charity"), namely R J Burrow, W Coxon, S Green, R Wilson, and A Perie are also directors of Kendal Rugby (Trading) Limited (the "trading company"). The transactions between the charity and the trading company were as follows: Under the terms of a lease agreement dated 12 October 2018 the trading company leases the land and property at Mint Bridge from the charity for the sum of £17,500 per annum, with effect from 16 March 2018; the lease rent received for the year ended 30 April 2021 was £17,500 (2021: £Nil, being invoices raised totalling £17,500 less credit notes raised totalling £17,500). At 30 April 2022 the trading company owed the charity £Nil for lease rent (2021: £Nil). The lease also requires that the tenant pays rates in respect of the property: during the current year rates paid by the charity amounting to £1,432 were re-charged to the trading company via the inter-company loan account (2021: £Nil). Furthermore, the charity is responsible for property insurance and the tenant shall pay to the landlord on demand any relevant property insurance: in the current year the charity paid £3,815 on behalf of the trading company but none was demanded from the trading company (2021: charity paid £3,481 on behalf of the trading company but none was demanded from the trading company). During the year ended 30 April 2022 the charity donated £50,000 to the trading company to cover rugby expenses (2021: £Nil). The supporters club, which is part of the charity also donated £1,000 to the trading company. During the year ended 30 April 2022 the loans to the trading company from the charity were reduced: the total outstanding at 30 April 2022 shown in Debtors is £252,890 (2021: £278,929). This consists of working capital loans amounting to £210,398 (2021: £189,215) for which no interest is charged and five loans amounting to £42,492 (2021: £89,714) which are subject to loan interest payable at 5%. The interest received on the loans to the trading company for the year was £2,778 (2021: £3,532). - 26 - ## Kendal Rugby Union Football Club Limited ## Company Limited by Guarantee ## Notes to the Financial Statements (continued) ## Year ended 30 April 2022 ## 24. Related parties (continued) ## The results of the subsidiary are as follows: |The results of the subsidiary are as follows:||| |---|---|---| ||2022|2021| ||£|£| |Gross Income|586,757|270,356| |Gross Expenditure|(549,613)|(248,180)| |Profit/(Loss) for the year|37,144|22,176| |Gross assets as at 30 April|100,248|78,532| |Gross liabilities as at 30 April|(379,326)|(394,754)| |Funds as at 30 April|(279,078)|(316,222)| - 27 -