Charity Registration No. 1162785
Company Registration No. 09570335 (England and Wales)
SPORTINSPIRED LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2022
SPORTINSPIRED LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr Supratim Mukherjee Ms Linda Susan Hindle Ms Michelle Blayney Mr Charles Smith
Charity number 1162785 Company number 09570335 Registered office Kemp House 152-160 City Road London UK EC1V 2NX Senior Management Team Richard Raynes – CEO Auditor Knox Cropper LLP 65 Leadenhall Street London EC3A 2AD
SPORTINSPIRED LTD
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 – 7 |
| Independent auditor's report | 8 – 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the accounts | 13 – 20 |
SPORTINSPIRED LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 AUGUST 2022
The trustees present their report and accounts for the year ended 31 August 2022. The Company was incorporated on 1 May 2015 and the Charity was registered with the Charity Commission on 22 July 2015.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”.
A message from our CEO
2021-22, the first full financial year where we could mostly operate outside of covid restrictions, was challenging but ultimately extremely rewarding, whilst some concerns for the future remained due to the financial impact from Covid.
The year started with dealing with the aftershocks of Covid. Our relationships with schools had suffered, our ability to access venues and sports clubs had been undermined AND a difficult financial climate made fundraising an ongoing challenge.
With these challenges in mind, we decided to keep things simple and focus all of our efforts on helping children living in poverty to lead happy, healthy and active lives, which of course has been directly and significantly impacted by the pandemic.
We focussed on getting in-person festivals back on in earnest, and continuing to deliver legacy clubs as we had throughout Covid, and we are very proud that by the end of the year we had held 19 festivals in 13 communities, attended by 3211 children.
Our plan was to simplify operations and focus on making a difference in the communities we serve. This meant concentrating our efforts on our loyal long-term partners (UBS, DC Advisory, Sport England etc) while keeping our fixed costs as low as possible since future funding was uncertain.
This plan recognised that while our operations were impacted by Covid, it was nothing compared to how children in deprived communities were impacted. Children growing up in deprived communities were already three times more likely to experience mental health issues and twice as likely to be obese by age 11 than their more affluent peers. The pandemic and its associated waves of lockdowns exacerbated these issues, resulting in many children being confined to cramped living conditions, unable to see friends regularly and access space to play and have fun. Even after schools returned, many cut back on sporting activity beyond basic P.E, and teachers told us that they were experiencing a deterioration in children’s behaviour due to lack of proper contact with peers.
A cross-party House of Commons Public Accounts Committee report into grassroots participation levels in sport and physical activity, published in December 2022, showed that "prior to the pandemic, between November 2016 and November 2019, the percentage of adults who were active increased by 1.2 percentage points, from 62.1% to 63.3%. Participation rates then fell to 61.4% in the year to November 2021, the lowest on record".
And not surprisingly this drop "exacerbated some of the existing inequalities in activity for the least affluent, Asian people and disabled people". While this report focusses on adults, it is reasonable to assume that children have been affected in a similar way, and likely to a greater degree.
This is precisely why we are motivated to deliver our vision and mission now more than ever.
Our objectives
SportInspired’s governing document, the memorandum and articles of association, set out our purposes:
To act as a resource for young people, but not exclusively, by providing advice and assistance, and organising programmes of physical, educational and other activities as a means of:
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a) advancing mental and physical health and wellbeing;
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b) advancing education (including developing employability, leadership and enterprise skills through training and development);
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c) promoting volunteering (where to do so furthers a charitable purpose or purposes);
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SPORTINSPIRED LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 AUGUST 2022
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d) providing recreational and leisure time activity in the interests of social welfare for people who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons, and
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e) the promotion of any other charitable purpose for the benefit of the public (charitable under English law).
The Trustees are aware of the public benefit guidance published by the Charity Commission. We have considered the objectives of the Charity and have given regard to how these objectives and the associated activities meet the public benefit criteria.
Our vision and mission
SportInspired exists so that every child, regardless of background, can develop the confidence and courage to follow their dreams.
In the UK, over 4.1 million children live in poverty, facing an uphill struggle to live healthy, happy lives. The wellbeing of these children, a fundamental human right, is compromised. These children can fall into a vicious cycle from an early age. Consequences include poor health and low academic attainment along with a depleted sense of purpose, low aspirations and confidence. Children growing up in poverty are three times more likely to suffer mental health issues and twice as likely to face obesity than their more affluent peers. These children are less likely to be active, less likely to achieve high grades and more likely to engage in anti-social behaviour.
Sport has the power to overcome the consequences of poverty, raise aspirations and unite communities, and we provide the platform for this change. We connect a diverse community of stakeholders to create sustainable networks that help children and young people from deprived communities to thrive. For 8 and 9-year-olds, we kick-start healthy habits strong enough to last a lifetime. And we help 12 to 16-year-olds get on a positive path, develop essential vocational skills and improve their employment prospects.
Our expertise for engaging children and young people is honed by combining grassroots experience with national best practices. Sport England's research highlights that lack of enjoyment is a major barrier for children taking up sport. Inspiring children to have fun is at the core of everything we do.
Volunteers are an important part of our programmes. In an environment of maximum fun and excitement for all, volunteers help to create life-changing moments for children and young people (and themselves).
The SportInspired model
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SPORTINSPIRED LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 AUGUST 2022
Activities and Achievements
Between September 2021 and August 2022, through our usual face-to-face festivals we worked with:
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3,211 children across 19 multi-sports festivals
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42 primary schools and 4 secondary schools
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227 Young Leaders, who gained valuable employability skills
Due to the severe day to day challenges for schools, measuring impact made using the usual questionnaire-based methodology has been virtually impossible.
In addition to our usual face-to-face festivals and clubs, we continued the delivery of new evidence-based programmes to meet communities’ needs, especially our ‘Leaders of Fun’ programme in partnership with UBS, designed to encourage active play during breaktime.
The summer of 2022 saw us also expand our fund-raising initiatives. We launched the pilot of the Thames200, a daylong team triathlon which involves groups of friends or colleagues running, swimming and cycling through 200 kilometres of Berkshire countryside next to and including the River Thames, and we had participants in Ride London representing the charity.
Income and expenditure
Before the pandemic, we had renewed our longstanding partnerships with UBS, London Borough of Barking & Dagenham, Lloyds, East End Community Foundation, and DC Advisory, as well as a major new partnership with Sport England. Given our delivery was disrupted throughout 2020, we are still satisfying some of these existing partnerships in 2022 (and 2023).
Operating amid an uncertain economic outlook provided challenges for us operationally. To ensure we could continue to deliver programmes to serve our communities, we had to reduce our fixed costs in 2021 and 2022. This helped mitigate the fact we have not been able to raise significant new income. This meant foregoing office space and focusing the team on delivery. We borrowed office space from Pentland Brands, and we managed our salary cost base to ensure we were lean but still able to execute. Our staff expenses are kept to a bare minimum. We have had Covid emergency funds to specifically address core costs, and some partners have agreed to un-restrict funds, furthering our financial viability into 2023 and beyond.
Looking to the future: strategic objectives for 2023 and beyond
We intended to begin implementation of our 2030 vision – to help all 9-year-olds living in deprivation to enjoy the benefits of sport – at the start of 2021. However, given that the effects of the pandemic are still being felt and that our desired progress has not been achieved, many of our strategic objectives remain the same in 2023.
As noted in our 2021 report, we have developed five core programmes which are designed to improve physical and mental wellbeing, nutrition and core skills in children and young people; and engage whole families in meaningful activity together. We will continue to deliver these programmes in 2023.
However, we will remain flexible in our approach. This will involve adapting our programmes to meet each community’s needs and piloting other evidence-based programmes which fit within our broad strategy, such as the successful ‘Active Families’ and ‘Leaders of Fun’ programmes which we executed in 2021.
Over time, we intend to enable communities to deliver our programmes for themselves. We developed our interactive ‘Playbook’ e-tool for this purpose between 2020 and 2022 and will pilot it’s use in the community in 2023, so that communities can use the Playbook to increase wellbeing in their area with remote support from us.
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SPORTINSPIRED LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 AUGUST 2022
We will continue to invest in the following core areas to achieve the growth we aspire to in line with our 2030 Vision:
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Capacity: investing in our people, growing both our programme delivery and fundraising teams, and investing in technology to improve efficiency
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Impact: upskilling schools and other local assets, and developing products to make communities self-sufficient
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• Organic growth: continuing to deliver programmes ourselves, building our understanding of communities’ needs before upskilling them
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Charity profile: developing new marketing and communications methods to grow our supporter base, raise funds and position SportInspired as a pioneering leader in raising children’s wellbeing
Financial review
The Trustees recognise that the Covid-19 outbreak in February 2020 and subsequent events has had, and will continue to have, a long-term impact on the Charity’s incoming resources and resources expended in the coming years and on the fair value of its assets and liabilities. They have considered the likely impact on its incoming resources and how the Charity can react to that impact and are confident that it has sufficient reserves and enough flexibility to ensure that it can continue to exist for the foreseeable future.
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three months’ unrestricted operating expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised.
The level of reserves, as at 31 August 2022, at £94,000, is above the minimum target level of £76,000.
Perceived risks to SportInspired
As we come out of the Covid Pandemic fire, we have jumped straight into a cost of living crisis frying pan which is having a significant impact on the lives of the very people we are attempting to reach. Rising energy costs are putting sports clubs at risk, especially in the winter months, and the rising cost of food is in some case forcing parents to choose between food and sport for their children.
We are not immune to this. Rising costs of hiring leisure centres for festivals is a significant risk, and of course, the impact of the associated uncertain financial climate makes it harder for us to secure funding from our corporate funders as well as Housing Associations. The trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
As a result of the challenges in generating income, without sufficient mitigation we acknowledge there could be a critical risk to our income and reserves as a result of a range of political and economic factors. The post Covid
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SPORTINSPIRED LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 AUGUST 2022
pandemic cost of living crisis is affecting the funding available for the Charity’s work, even as demand for both the work and the funding available increases. A series of economic factors are limiting the funding made available by corporate partners, and austerity and continued pressures on public finances are limiting funding available for the Charity from statutory sources.
The Charity has, and continues to implement, a range of mitigating measures to address these risks. It is a major priority for the Charity to obtain as much unrestricted funds as possible in order to increase our level of reserves. We will strengthen our relationships with our key funding partners and continue to re-engage existing funders year-onyear (which we have a strong record in doing). We will develop new funding streams, in particular high-value networks and major donors, and will leverage communications to increase engagement and profile.
SportInspired has a risk register, and reports to the Trustees on major risks. Given the nature of our work, we take child protection and safeguarding extremely seriously and ensure robust processes and procedures to reduce the risks of any issues arising. All staff complete safeguarding training on induction, and all volunteers are given safeguarding training at the start of their volunteering. There are written policies and procedures, which are updated as necessary and are reviewed at most every two years. All our employees have an enhanced DBS check upon starting their role and are re-checked every three years.
Financially we currently use a process of a commissioned accountancy consultant and one programme manager internally to help input invoices and receipts regularly. While it was the Charity’s intention to improve this system by recruiting a dedicated, internal financial expert to support the CEO, with regular oversight of effective financial administration of the Charity and regular analysis of its financial performance, the Charity does not have sufficient resources for this additional resource at present.
Staff remuneration
Salaries are set based on perceived market rates for the level of skills, experience and responsibility required. SportInspired has a talented team of employees and strives to achieve an effective balance of awarding remuneration which is affordable to the charity while enabling us to retain our highly talented staff. Whilst it is difficult to understand reliably what “normal” is for a charity of the size and scope of SportInspired, we have benchmarked salaries using publicly available salary benchmarking guides (e.g. the Harris Hill salary survey) and our own research into advertised salaries for equivalent roles at similar-sized charities.
Trustee selection
Trustees have been selected based on their ability to nurture and guide a small but ambitious organisation, focused on building a reliable and sustainable source of revenue. As our income has always been mostly from the private sector, it has been important to have Trustees who have a proven track record of success there to enable the best strategy to be devised and followed and the best guidance to the executive issued.
During the reporting period, SportInspired strengthened its governance procedures by strengthening its conflict management policy and procedures, putting in place a “Matters Reserved and Delegated Authority” policy, and requiring all trustees and senior management to annually complete “fit and proper person” declarations.
Structure, governance and management
The Charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the period were:
Mr Supratim Mukherjee Ms Gemma Louise Bourne Ms Linda Susan Hindle Ms Michelle Ashley Mr Charles Smith Mr Peter Thomond Mr Steve Hobbs (appointed July 21[st] )
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SPORTINSPIRED LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 AUGUST 2022
Statement of trustees' responsibilities
The trustees, who are also the directors of SportInspired Ltd for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and the Republic of Ireland”.
Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs 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 accounts, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
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There is no relevant audit information of which the charitable company’s auditors are unaware; and
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The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information
Auditor
Knox Cropper LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Mr C A Smith
Trustee Dated: ___
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SPORTINSPIRED LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPORTINSPIRED LTD
Opinion
We have audited the financial statements of SportInspired Ltd (the ‘charitable company’) for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
In our opinion the financial statements:
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Give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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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 the Republic of Ireland’; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors 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 FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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SPORTINSPIRED LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPORTINSPIRED LTD
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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The charitable company is required to comply with both company law and charity law as applicable in England and Wales and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance.
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We gained an understanding of how the charitable company complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures and controls.
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The audit team, which is experienced in the audit of charities, considered the charitable company’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override.
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Our approach was to check that all restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions.
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SPORTINSPIRED LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPORTINSPIRED LTD
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
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 auditors' 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.
Richard Billinghurst FCA (Senior Statutory Auditor) For and on behalf of Knox Cropper LLP 65 Leadenhall Street London EC3A 2AD 30/06/2023 Date: ............................................
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SPORTINSPIRED LTD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2022
| Notes Income from: Donations and legacies 3 Charitable activities 4 Total income Expenditure on: Charitable activities 5 Net income/(expense) for the year/ Net movement in funds Opening Fund balances at 1 September Closing Fund balances at 31 August |
Unrestricted funds £'000 Restricted funds £'000 Year ended 31 Aug 2022 £'000 Year ended 31 Aug 2021 £'000 86 - 86 39 205 92 297 542 |
|---|---|
| 291 92 383 581 266 92 358 576 |
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| 25 - 25 5 |
|
| 86 - 86 81 |
|
| 111 - 111 86 |
All income and expenditure derive from continuing activities.
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SPORTINSPIRED LTD
BALANCE SHEET
AS AT 31 AUGUST 2022
| Notes Non-Current assets Fixed Assets 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Net Assets Income funds Unrestricted funds Restricted funds |
31 August 2022 £'000 31 August 2021 £'000 4 7 54 12 265 341 |
|---|---|
| 319 353 (212) (274) |
|
| 107 79 |
|
| 111 86 |
|
| 111 86 - - |
|
| 111 86 |
These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.
The accounts were approved by the Trustees on 23[rd] May 2023.
Mr C A Smith
Trustee
Company Registration No. 09570335
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
1 Accounting policies
Charity information
SportInspired Ltd is a private company limited by guarantee incorporated in England and Wales, and is a public benefit entity. The registered office is Kemp House, 152-160 City Road, London, EC1V 2NX, UK. The Company was incorporated on 1 May 2015 and the Charity was registered with the Charity Commission on 22 July 2015. The Company presents its financial statements for the year ended 31 August 2022.
1.1 Accounting convention
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 accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £'000.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
1.2 Going concern
At the time of approving the accounts, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. In forming this opinion, they have considered the impact of the Covid-19 pandemic on both its income and expenditure for at least a period of twelve months from the date of approval of these financial statements. Covid-19 reduced the Charity’s ability to raise new income, in particular income from sales within charitable activities which decreased because the Charity was unable to deliver its usual face-to-face programmes. The Charity invested in staff in late 2020 and early 2021 to build management and delivery infrastructure on the expectation the end of the pandemic was going to arrive shortly after. This would have meant both the need to start executing our 10-year plan and to catch up on our delayed 2020/2021 delivery. However, when it was clear the pandemic would in fact continue into late 2021 and beyond, the charity took steps to reduce its higher expenditure on staff wages by not replacing staff who left. Rent commitments had already been further reduced by cancelling the office altogether. The Charity has continued to secure some new funding since the start of the pandemic, from a number of existing and new funders, which has ensured the Charity’s ability to continue as a going concern until 2023.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
1.4 Incoming resources
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
1.5 Resources expended
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure is classified under the following activity heading:
Expenditure on charitable activities includes the costs of projects undertaken to further the purposes of the charity and their associated support costs.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
1.8 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
3 Donations and legacies
| Donations and gifts | Unrestricted funds £'000 Restricted funds £'000 Year ended 31 August 2022 £'000 Year ended 31 August 2021 £'000 86 - 86 39 |
|---|---|
| 86 - 86 39 |
4 Income from charitable activities
| Sales within charitable activities Performance related grants Other grants Analysis by fund: Unrestricted funds Restricted funds |
Year ended 31 August 2022 £'000 Year ended 31 August 2021 £'000 238 260 59 275 - 7 |
|---|---|
| 297 542 |
|
| 205 249 92 293 |
|
| 297 542 |
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
5 Analysis of expenditure
| Staff costs Games programmes Share of governance costs (see below) |
Year ended 31 August 2022 £'000 Year ended 31 August 2021 £'000 265 450 91 124 |
|---|---|
| 356 574 |
|
| 2 2 |
|
| 358 576 |
Governance costs constitute £2,000 (2021: £2,200) of audit fees which have been fully allocated to charitable activities.
6 Net incoming resources for the year
This is stated after charging:
| Year ended | Year ended | |
|---|---|---|
| 31 August | 31 August | |
| 2022 | 2021 | |
| £'000 | £'000 | |
| Operating lease rentals: Property | - | 9 |
| Remuneration to auditors for audit of the | ||
| financial statements | 2 | 2 |
7 Description of charitable activities
Games programmes
Delivery of games programmes support young people to develop their skills and have better physical wellbeing. Our programmes are tailored to the needs of the local community and use the power of sport to help develop young people’s employability skills and confidence while also helping to get them active in a sustainable way.
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Charity. No other trustee was reimbursed expenses during the year or the prior year.
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
9 Employees
Number of employees
The average monthly number employees during the period was:
| Charitable activities Wages and salaries Employer pensions contributions Social security costs |
Year ended 31 August 2022 Year ended 31 August 2021 10 13 |
|---|---|
| Year ended 31 August 2022 £'000 Year ended 31 August 2021 £'000 242 404 5 9 18 37 |
|
| 265 450 |
There were no employees whose annual remuneration was £60,000 or more.
The key management personnel of the Charity are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any trustee of the entity. For SportInspired Ltd they comprise the Trustees and senior management team. The total employee benefits, including employer pension contributions, payable to key management personnel during the year amounted to £63,000 (2021: £146,000).
10 Fixed assets
| Cost As 1 September 2021 Additions At 31 August 2022 Accumulated depreciation As 1 September 2021 Depreciation charge for the year At 31 August 2022 Net book value As 1 September 2021 At 31 August 2022 |
Computer Equipment £'000 15 - |
|---|---|
| 15 | |
| 8 3 |
|
| 11 | |
| 7 | |
| 4 |
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
11 Debtors
| Amounts falling due within one year: Trade debtors Prepayments and accrued income Other debtors 2 Creditors: amounts falling due within one year Amounts falling due within one year: Trade payables Accruals and other creditors Deferred income |
31 August 2022 £'000 31 August 2021 £'000 39 - 13 9 2 3 54 12 31 August 2022 £'000 31 August 2021 £'000 2 2 11 19 199 253 |
|
|---|---|---|
| 229 274 |
12 Creditors: amounts falling due within one year
Deferred income relates to income received from funders which is due to be spent on delivery costs not yet incurred but expected to fall due shortly after the year end and is not repayable to the funder because of the expectation that delivery of programmes will occur after the year end.
13 Related party transactions
Transactions with related parties
During the period there were no transactions with related parties.
14 Movement in funds
| Restricted Funds: Performance related grants Unrestricted funds: General |
At 1 September 2021 Incoming Resources Outgoing Resources Transfers At 31 August 2022 £’000 £’000 £’000 £’000 £’000 - 92 (92) - - |
|---|---|
| 86 291 (283) - 111 |
|
| 86 383 (358) - 111 |
Performance related grants reflect grants received with limitations to the use of the funds within the general activities of the charity. These restrictions may be geographical or relate to specific programmes or expenditure within those programmes.
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SPORTINSPIRED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2022
15 Comparative Statement of Financial Activities – year ended 31 August 2021
| Income from: Donations and legacies Charitable activities Total income Expenditure on: Charitable activities Net income for the period/ Net movement in funds Fund balances at 1 September 2020 Fund balances at 31 August 2021 |
Unrestricted Restricted Total funds funds 2021 £'000 £'000 £’000 39 - 39 249 293 542 |
|---|---|
| 288 293 581 283 293 576 |
|
| 5 - 5 |
|
| 81 - 81 |
|
| 86 - 86 |
All income and expenditure derive from continuing activities
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