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2021-09-30-accounts

REGISTERED COMPANY NUMBER: 09760575 (England and Wales) REGISTERED CHARITY NUMBER: 1165153

REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 FOR

ROYAL NAVY RUGBY UNION

Gibson Whitter Chartered Accountants and Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP

ROYAL NAVY RUGBY UNION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

Page
Report of the Trustees 1 to 11
Independent Examiner's Report 12
Statement of Financial Activities 13
Balance Sheet 14-15
Cash Flow Statement 16
Notes to the Cash Flow Statement 17
Notes to the Financial Statements 18-31

ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2021. The Trustees have adopted the provisions of 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 2015).

CHAIRMAN'S OVERVIEW

This report covers the year to 30 September 2021.

In terms of impact felt because of COVID-19, this financial year has been as limited as the last by means of rugby output. Restrictions imposed by the Service, Government and National Governing Body continue to be adhered to and the Union is now following the RFUs ‘Return to Rugby Road Map’ for the Community Game. We did eventually see some rugby played over the summer months with the RNRU Sevens team, the Sharks, competing in the GB Super Seven Series, achieving some very credible victories. The Trustees remain committed to maximise the delivery of rugby, in its many formats, at all levels.

Regrettably for the second year running the annual Army v Navy fixture at Twickenham was cancelled. This cancellation severely limits the cash flow of the union and will further stretch our financial reserve. On a positive note our sponsors have stood by us and continue to support us financially, and we will be forever grateful. Their support has meant that the levels of support and governance imposed during the previous financial year has been maintained throughout this one. Income generation from merchandise sales remains a challenge. Historically the Army v Navy fixture generated visits to our website and led to increased merchandise sales, without the fixture these visits to the website and subsequently the web shop have been curtailed.

The Trustees have continued to curtail expenditure in order to meet our contractual commitments. No further loans or financial support has been required from outside agencies although the Royal Navy Sports Lottery stands by to provide support if and when required. The Trustees keep the situation under constant review and through good governance, diligence and planning continues to ensure the charity can appropriately respond to any challenges presented.

The landscape regarding COVID-19 is forever changing however the future looks positive. Return to Rugby is happening throughout the Community Game, not just in the Royal Navy but in clubs across the country. The challenge now is to ensure that those who have ‘filled’ the hole created by the cancellation of sport with other hobbies and pastimes come back to our game. Notwithstanding that, the trustees continue to exercise informed governance and believe that it remains appropriate to plan on a going concern basis.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

OBJECTIVES AND ACTIVITIES

Objectives and Aims

The explicit objectives endorsed by the RNRU support the over-riding aim to 'promote and foster' the game within the Royal Navy, and its local communities, as follows:

Achievements and Performance Against Objectives

A summary of the RNRU's achievements against our strategic plan as outlined in last year's Report and Accounts can be found in the table below.

We said that we would do

Deliver assured governance and regulation, with the financial strength to maintain and increase investment in the game to drive performance and community participation.

We achieved

All areas of governance and finance continue to be impacted by the after affects of COVID-19. The Army v Navy fixture did not take place for the second year in a row and the continued loss of income related to the fixture meant that we yet again had to severely reduce our expenditure to compensate for the loss of income from the fixture. Our financial reserve has done exactly what it was there for, although it has had to stretch for 2 years and not the one year it was intended for.

By the end of the 5 years we will have introduced Services rugby, at grass roots level, to 7000 more men and 700 more women whilst creating a player pathway from club level to the highest representative level.

Additionally, we aim to be the Services’ leading rugby team, across the Senior XV, U23 and Sevens sides by 2022, with the Women’s side achieving parity with at least the RAF.

We will simultaneously deliver and host the best rugby events, including the Commonwealth Nations Rugby Cup, and other competitions throughout the structured season.

Both targets will need to be reviewed. This is another area that has been affected by the cancellation of sport in the community area. The RNRU continues to follow the RFU ‘Return to Rugby’ pathway with a target of the 21/22 season to be delivering back at full capacity.

COVID-19 continued to impact sport at all levels and for an unprecedented second year, the Inter-Service Rugby Competition for 2021 was cancelled. This does not detract from our stated aims, although, as for 19/20, we may amend the timeframe to reflect the impact that COVID has had.

This year’s Navy Cup, Inverdale Challenge and the Marine Nationale fixture were once again all cancelled due to COVID19 and we look forward to reinvigorating them during the 21/22 season.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

OBJECTIVES AND ACTIVITIES (continued)

Achievements and Performance Against Objectives (continued) We said that we would do We achieved

Wherever possible, as part of that growth path we will look for further opportunities to share financial benefits within the broader church of Services’ sport, with appropriate checks and balances in place to evidence how those benefits are used.

The overall financial position of the RNRU precluded making any grants to other sports associations, however this is something that will be rectified once our major income stream is back on track. Smaller annual donations were made to both United Services Portsmouth and Devonport Services Rugby Clubs.

Purpose of the RNRU

The Royal Navy Rugby Union has a long and distinguished history dating back to 1906. On its formation rugby was fairly embryonic, with ratings and other ranks not eligible to play. However, the Officers saw the games’ value to Naval Service ethos and after the RN were able to select from all their personnel in 1920 there was a burgeoning of service rugby clubs, including Devonport Services and United Services Portsmouth, formed to provide playing opportunities in RFU league structures. Whilst in the early years these latter clubs were restricted to the use of service personnel approximately 30 years ago membership was opened to the local civilian community, who now form a significant element of the club, providing a valuable opportunity for outreach to the local community through sport. The adult section of both clubs supports 3 senior sides and one Colts team plus a vibrant youth section from U7 to U16. In addition, Devonport Services maintain a Ladies Youth team. RN ships and units are also active and engage in matches around the globe whilst the Union supports five representative teams (Senior Men, Senior Women, U23, Veterans and Sevens) to provide the pinnacle of Navy sport. In the modern day the Union remains relevant, upholds the values of the Royal Navy in building partnerships with other navies around the world in support of RFU initiatives.

As both a registered charity and Constituent Body of the Rugby Football Union, we are committed to promoting participation and enjoyment of rugby at all levels within the Naval Service. We are consolidating our position, having professionalised much of what we do, with success in the long running Inter Services Championship (particularly in the U23 area), and specifically the annual fixture against the Army at Twickenham remaining a central pillar of our strategy. At the same time we are developing our structures and facilities and investing heavily in grass roots and community rugby, as this will provide the foundation upon which we can grow our representative teams. The provision of a Women’s Development side is providing increased opportunities for emerging players who otherwise would not be sufficiently proficient to break into the hitherto single female representative side. Elsewhere, the provision of coaching and refereeing courses is resulting in greater exposure to sport for all age groups.

Public Benefit

The charity exists to support the military efficiency of the Naval Service as a key component of the nation's Armed Forces and thereby to the defence of the nation. The Trustees have complied with the duty in Section 17 of the Charities Act 2011 and given due regard to the Charity Commission guidance on public benefit. In addition, the RNRU provides public benefit by enhancing and promoting military efficiency, strengthening the moral component of the Royal Navy's and Royal Marines' esprit de corps, which in turn brings tangible benefit to the public:

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

FINANCIAL REVIEW

Financial position

The structure of the Charity has now been in operation for five years; the charitable activities are managed by the RNRU and Navy Rugby Ltd (NRL), a totally owned subsidiary of the charity RNRU, operates the trading activities.

These accounts cover the 12-month period to the 30 September 2021. This is the third discrete 12-month period since the financial year (FY) end was moved to 30 September, in 2018.

Statement of Financial Activities (SOFA)

The Consolidated SOFA for the 12-month period ended 30 September 2021 reflects the impact of the Covid19 pandemic and accounts for the difference to prior years. The income for 2021 was £198k, which was significantly lower than £353k generated in 2020, as a result of the cancellation of all rugby, including the Army Navy Match at Twickenham. Expenditure also reduced to £219k compared to £613k in 2020, as more activities were cancelled due to the pandemic. However, in spite of this reduction, expenditure was still £22k more than the annual income, although significantly less than the over-expenditure of £259k in 2020.

The financial activities of the charity, the RNRU, shows income of £118k for 2021 compared with £143k in 2020 and £614k for 2019 (Note 2 to the Consolidated Financial Statements). Income is normally and primarily derived from the distribution from NRL but this year only a small profit of £27k was generated for distribution from trading activities. Expenditure at £146k was lower than last year (£402k) with >90% of that expenditure attributable to charitable activities (Royal Navy Rugby and Community Rugby), as in previous years. The charity was also supported by utilisation of the Coronavirus Job Retention Scheme (furlough scheme).

Balance Sheet

The consolidated group’s net assets decreased by £22k from £319k on 30 September 2020 to £298k at 30 September 2021. The movement is reflected in net current assets with cash balances increasing by £38k due principally to income received in advance which is included in current liabilities.

The movement on the charity’s standalone balance sheet reflects that of the group noted above.

On 30 September 2021 net assets of £298k were made up entirely of general charitable funds (£319k at 30 September 2020) with no designated funds.

Review of the Year

The on-going COVID-19 pandemic during 2021 has continued to impact the RNRU and NRL, with all rugby cancelled until the summer when 7s rugby partly resumed. This again resulted in a loss of >90% of the prepandemic income. Several long running contracts were not renewed during 2021, which assisted the cashflow. A significant proportion of the personnel costs were covered by the Naval Service Sports Charity (NSSC), which also provided a substantial grant to assist with resuming playing rugby. Four sponsors continued to support the Charity throughout the pandemic to the tune of £60k. Patron income remained constant but is relatively small in comparison to the other income. The RFU Constituent Body grant and Regional Development Officer funding was also reduced compared to previous years as a result of the pandemic. Overall, the current year’s cash inflow was 30% of that in 2018/19. However, there was sufficient funds to enable the Charity to survive the current crisis and have reserves to move forward into the next financial year when it is hoped rugby will resume.

Both Community Rugby and Representative rugby expenditure was significantly lower than in previous years, due to the crisis and this was accounted for in the budget process. All expenditure was in line with expectations. The cancellation of the Army Navy match at Twickenham, for a second year, resulted in the loss of the main source of income for the Charity, and although this was a known risk, it was not possible to insure against this loss. The main match sponsor, Babcock International, continued to support both Unions and also made a charity donation to Richmond Council. The RNRU is extremely grateful to them and all the sponsors who have continued to show financial support during this period.

Overall, whilst drawing on reserves, the cashflow has been resilient. There remain sufficient funds in reserve to support a full 2021/22 rugby season, however, this will be on a more modest budget than in pre-pandemic years.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

FINANCIAL REVIEW (continued)

Going concern

The impact of COVID-19 for a second year on both the charity and its trading subsidiary has been noted elsewhere in this report.

The Trustee Board and the Directors of NRL have implemented cost reductions over a second financial year across both entities to ensure that they are able to continue to operate through this difficult period to a time; no rugby has been played this year, but these financial measures have ensured that rugby can pick up again and be watched by large crowds.

Over the past two years, the focus has been on reducing ongoing financial commitments together with careful management of the grants and loans received. Based on cashflow forecasts over the next two years, both entities are expected to be able to fulfil their current ongoing financial commitments until at least September 2023.

The Trustee Board were optimistic that the Army Navy match would be able to be played again after a twoyear absence, in front of a capacity crowd at Twickenham in April 2022. We are pleased to report that the Army Navy match went ahead as planned at Twickenham with a reduced crowd.

The 2022 Army Navy match went ahead with c.23,000 navy tickets sold rather than 35,000 tickets and this affected the overall profit considerably. However, a heathy profit was still realised from this singular fundraising match and the future distribution from Navy Rugby Limited should be ample to both pay for the 2022/23 season and allow for the rebuilding of reserves to commence.

It is hoped that reserves will be able to be built back up quickly over the coming few years.

The Trustee Board, based on the above, have therefore concluded that it remains appropriate to prepare these financial statements on the going concern basis.

Governance and Administration

The Trustee Board guided by the Investment Finance and Audit Committee (IFAC) approve the annual budget set by the Executive Committee. The accounting services for the RNRU are now in-house at HMS TEMERAIRE using a newly appointed finance officer and Xero accountancy software.

Risk

The Executive Committee, the IFAC and the Trustee Board consider financial risks. The key risk remains the hosting of a successful Army v Navy match, as the primary bearer of all income streams. As clearly demonstrated in 2020 the loss of this match, and the associated revenues, has had a significant impact on the operation of the RNRU. The mitigating action taken during 2020 to reduce all activities to a minimal level has enabled the Charity to continue to operate whilst drawing on reserves. Given the cancellation of the 2021 Army v Navy match the Charity will again draw on reserves to run a reduced programme with the expectation that a successful Army v Navy match is held in 2022 (this expectation has now been met). The Trustee Board, Executive Committee and the IFAC will continue to monitor this risk closely and will adapt the operating plans depending on how the rules change as the Country emerges from the Covid -19 pandemic.

Investments

The RNRU has a single investment, £100k invested in the trading subsidiary NRL. A long-term investment policy is kept under review and could be re-established in the future if sufficient excess funds have been generated.

As a result of the financial and operating impact COVID-19 has continued to have on NRL, the Trustee Board have considered whether the charity’s investment in NRL of £100k is still an ongoing concern and agree it should not be impaired. The trustees have reviewed the forecasts prepared by NRL and they remained optimistic that the Army Navy match would return to Twickenham in 2022 which has now happened. The return of this key event in 2022 should see the NRL return to donating profits to the charity of at least a similar amount as before COVID-19.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

FINANCIAL REVIEW (continued)

Investment Restrictions

The Trustee Board do not consider ethical investment restrictions to be appropriate or in conflict with the objectives of the RNRU.

Reserves Policy

Prior to COVID-19 the Trustee Board had a reserves policy to set aside sufficient free reserves to meet the needs of current beneficiaries, whilst remaining sustainable for future generations. The reserves should give sufficient comfort that the charity can pursue its objectives and smooth out any unexpected fluctuations in charitable expenditure or shortfalls in income. The Trustee Board agreed a new reserves policy in April 2018 based on free reserves that would cover the costs of a basic season’s rugby. The policy was amended in 2019 to have a minimum free-reserves level of £300k and a maximum of £500k.

However, before 2020, Free Reserves were never true savings in the sense of being kept aside but were partially consumed over the financial year together with direct income and then replenished from the NRL distribution at the end of the year.

During the past two years, when the COVID-19 pandemic stopped all rugby, the reserves bolstered by other grants and loans have ensured that the RNRU can continue operating as a going-concern into the foreseeable future. The result is that the reserves have fulfilled the function they were intended for and will allow the RNRU to continue to operate through FY21/22; during this year ahead, we expect to start growing the reserves again.

The charity’s free reserves are calculated by taking total unrestricted funds and deducting designated reserves, investments held for the long term and operational tangible fixed assets. The calculation of free reserves at 30 September 2021 is shown in the table below:

30 Sep 19 30 Sep 20 30 Sep 21
£'000 £'000 £'000
Total unrestricted Funds 579 319 298
Less: Designated Fund for CNRC (32) 0 0
Less: Designated Fund for Overseas Tours (18) 0 0
Less: Longterm Investments (100) (100) (100)
Less: Operational Tangible Fixed Assets (10) (7) (5)
Free Reserves 419 212 193

The reserves policy has not been adjusted as it is expected that once sufficient income flows in, expected from 2022, then the Trustee Board will rebuild reserves whilst continuing to be mindful of ensuring that the charity fulfils its charitable objectives. The impact of COVID-19 on the charity’s main income sources has highlighted that having one year of reserves may not be sufficient and therefore it may be determined to increase the level of reserves held over time to levels higher than before. In rebuilding this reserve, the trustees are also now looking to hold a minimum level of reserves equal to a year’s expenditure on Rugby throughout the year, given that the Charity dependence on a single event for its annual income.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

FINANCIAL REVIEW (continued)

Principal Risks and Uncertainties

The Trustees of the RNRU monitor the principal risks faced by the Charity via a risk matrix that is scrutinised by the IFAC and discussed by the Board at least annually. In the opinion of the Trustees, the Charity has established systems that, under normal circumstances, should allow the risks identified by them to be mitigated to acceptable levels.

However, the COVID-19 pandemic which continued into 2021 was not normal circumstances and the RNRU found one of their principal risks became an issue – the Army v Navy match could not be held at Twickenham (and was in fact cancelled for the second year in a row). The lack of income generated from the Army v Navy match had significant consequences for the financial situation of the RNRU and for the trading company Navy Rugby Ltd. The risk register was updated to reflect the increase in this risk.

The risk matrix identifies major risks to which the RNRU is exposed under the following headings: Strategic; Financial; and Operational. Controls have been identified to limit each of these risks. The top three risks and the mitigation for them are detailed in the table below. All are high impact risks and because of the continuing uncertainty generated by the covid-19 pandemic, two remain high impact despite the mitigation measures in place and the third is considered reduced to medium level.

Risk Mitigation
There is a risk that the Trading
Company proves ineffective due to
lack of income generation.		 2. Approach NSSB for grant to cover the cost of delivery of RNRU activity.
3. Approach Sports Lottery for a long-term loan to aid cash flow and
facilitate rugby activity.
5. Investigate NavySports Board appetite for furthergrants in next FY.
4. Investigate NRL and Charity “insolvency” figures – i.e. minimum balance
required to enable winding up before becoming insolvent.
1. Review all expenditure to minimum essential spend including review of
3rdparty contracts.
There is a risk that the Army/Navy
game
may
no
longer
be
at
Twickenham (RFU/Met Police do
not allow the match to be held at
Twickenham
or
it
is
not
cost
effective to hold the match there).		 1. Contractual arrangement between RFU, A/N Match Committee,
Babcock (sponsor) reviewed in 2018, 4 year contract is in place from 2019
with options for either party to withdraw annually. Decision point for
Babcock is Nov 22 if they want to continue beyond the 2023 fixture.
2. The RNRU should always retain at least one season running cost (circa
£235k and Reserves Policy is to increase Reserves to £525k – to be
reviewed annually.
3. Maintain a firm grip/continued development of the Marketing Strategy
for the A v N such that we continue to draw the crowds and the general
public are aware of the fixture, the costs and why it is such good VfM.
4. Maintain a healthy and proactive relationship with Twickenham HQ to
keep the RNRU in their sights (for all the right reasons).
6. Work with Met Police, RFU and Richmond Council to mitigate concerns
of all parties.
5. Maintain a proactive Single Service public perception.
7. Review Reserves Policy/Investment Strategy in order that RNRU activity
could continue if our revenue was seriously impacted by changes to the A
v N match day (and associated revenues).

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

FINANCIAL REVIEW (continued)

Principal Risks and Uncertainties (continued)

Risk Mitigation
There is a risk that sponsors will
withdraw
all/most
sponsorship
financial/non-cash support.		 2. Attractive and rewarding sponsorship opportunities.
3. Contract Letters (who gets what) have been reissued – DoM.
5. Ability to encourage sponsors to commit to 3 yr contracts – ongoing.
6. Letter from RNRU President thanking Sponsors for their continued
support of the RNRU in these challenging times.
1. Maintain a strong communications link to demonstrate the value of the
relationship.
4. Clear parameters for return and maintain optimum number (12) and
minimum amount (£5K).

PLANS FOR THE FUTURE

The governance element of the charity continues on a solid footing, and the Union is now in the fourth year of its 5 year strategy (which will be reviewed during the next financial year and reissued from year 1), aligned with the RFU’s overarching strategy for game development, it is determined that the head marks set out in the charity remain fit for purpose:

Delivering assured governance and regulation, with the financial strength to maintain and increase investment in the game to drive performance and community participation, such that by the end of the 5 years we will have introduced Services rugby, at grass roots level, to 7000 more men and 700 more women whilst creating a player pathway from club level to the highest representative level. Additionally, we aim to be the Services’ leading rugby team, across the Senior Men, U23 and Sevens sides by 2022, with the Senior Women’s side achieving parity with at least the RAF. We will do this whilst, simultaneously, delivering and hosting the best rugby events, including the Commonwealth Nations Rugby Cup, and other competitions throughout the structured seasons. Wherever possible, as part of that growth path we will look for further opportunities to share the financial benefits with a broader church of Services’ sport, with appropriate checks and balances in place to evidence how those benefits are used.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational Structure

The RNRU is a regulatory body, which on behalf of the President, directs, controls, administers and promotes the sport of Rugby Football Union within the Royal Navy. The objects of the RNRU are reviewed by the Trustees and specific targets and objectives, which are compatible with those laid down by the Rugby Football Union (RFU) as the governing body for the sport, are set.

The aim of the RNRU is to promote and foster the game of Rugby Union in the Royal Navy and its local communities in accordance with the Laws of the Game promulgated by World Rugby and the rules, regulations and bye laws issued by the RFU.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Organisational Structure (continued)

The governing body of the RNRU is the Board of Trustees, which comprises up to 8 members and meets twice a year to review charitable objectives, strategy, risk register and performance. Trustees are elected or appointed for a three-year term, and may, subject to Board approval, serve for further three-year terms. New appointee’s induction training is personalised to meet the requirements of the appointee. The President and Secretary attend all Board of Trustees meetings.

The Board is supported by an Investment, Finance and Audit Committee (IFAC) sub-committee, with specific terms of reference and functions delegated by the Board and with a Trustee as Chairman, appointed by the Board. An independent member (qualified accountant) attends all meetings together with the Executive Committee Vice Chair.

The Board decide on the strategy of the Union, with implementation of strategy and day-to-day operational management of activity in support of its objectives delegated by the Board to the Executive Committee. The Executive separately, and independently, act as the delivery arm of NRL.

The Executive Committee consist of the following appointments:

Chairman Treasurer Vice Chair Director of Marketing RFU Council Member Director of Communications Director of Rugby Project Officers (non-voting) Director of Community Rugby Sports Development Officer (non-voting) Company Secretary & Director of Operations

The majority of RNRU officials are serving Royal Navy/Royal Marines personnel, who undertake the roles on a voluntary basis on top of their high-pressure military appointments. The exception is the RNRU Secretariat and Community Rugby team which is staffed by 3 permanent staff; the Secretary is a full-time MOD Civil Servant and the Company Secretary, Assistant Secretary and Rugby Development Officer are funded by the charity. Due to the ongoing financial impact of Covid-19, salary for the Company Secretary and Rugby Development Officer are being underwritten by the NSSC. All vacancies within the RNRU are advertised on the RNRU website inviting volunteers, both serving and civilians, to be considered for selection; all Executive Committee appointments are re-appointed at the AGM.

Management and Administration

The day to day control and administration of the RNRU is delegated to the Chair of the Executive Committee. The Executive Committee are tasked with achieving the objectives set by the trustees in their current five-year strategic plans.

Volunteers and Related Parties

The Trustees all gave their services voluntarily and received no remuneration for their activities, other than travel and incidental expenses. The serving members of the Board undertake their RNRU duties as volunteers in addition to their normal line duties.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

STRUCTURE, GOVERNANCE & MANAGEMENT Navy Rugby Limited

Navy Rugby Limited (NRL) has now operated for six full accounting periods as a separate but wholly owned subsidiary of the Royal Navy Rugby Union (RNRU). It is a VAT registered company whose objective is to generate income for the RNRU through trading activities including, but not limited to, receipts from ticket sales to Navy Rugby games, the sale of merchandise associated with Navy Rugby and the support of RNRU sponsors. NRL has three directors: the shareholding director (a member of the Trustee Board of the RNRU), a managing director (the member of the RNRU Executive Committee responsible for Marketing) and an independent Chairman. The RNRU Company Secretary and Treasurer also perform the appropriate professional duties for NRL, which has a separate bank account and operates as a separate entity in legal and financial terms from the RNRU. Established with a £100,000 share issue from which all trading activity is resourced, all its operating profits are donated to the RNRU on completion of its annual audit. The NRL Board of Directors meet at least twice a year and oversight is maintained on the RNRU Board of Trustees by inviting the Chairman to report its activities at Trustee Board meetings. In addition, the managing director of NRL reports to the RNRU Trustee Board’s Investment, Finance and Audit sub-committee.

Governing Document

The RNRU is controlled by its governing document, its Memorandum and Articles of Association dated 3 September 2015, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company Number

09760575 (England and Wales)

Registered Charity Number

1165153

Registered Office

HMS Temeraire Burnaby Road Portsmouth Hampshire PO1 2HB

Patron

HM The Queen

President

Vice Admiral Sir Ben Key KCB CBE ADC

Trustees

The Trustees in this period were:

Rear Admiral M J Parr CB (Chaiman) Mr A Bujalski Mr M H Connolly Mr J M R Saunders Watson Mr J B Inverdale Commander K Marlor Royal Navy Captain R Readwin ADC Royal Navy Appointed 10 May 2021 Captain S E Oakley Royal Navy Captain A Kellett MBE Royal Navy Resigned 10 May 2021

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS (continued)

Independent examiner

Gibson Whitter Chartered Accountants and Chartered Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP

Legal Advisors

Wilsons Solicitors LLP Alexandra House St Johns Street Salisbury SP1 2SB

Bankers

National Westminster Bank PLC 130 Commercial Road Portsmouth Hampshire PO1 2EJ

ACKNOWLEDGEMENTS

The Board wish to place on record their gratitude to all those who have contributed to the on-going success of the RNRU. These are too numerous to mention in full and the list that follows is just a representative sample of our growing band of supporters.

Peter Cooper VW MBDA Babcock International Group PLC BMT ESS (part of the Compass Group UK) Rolls Royce MLS Qinetiq SAAB Thales SA-Group Canterbury of New Zealand Limited i-Pro

Approved by order of the board of trustees on ..…............ and signed on its behalf by:

Rear Admiral M J Parr CB - Trustee

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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

ROYAL NAVY RUGBY UNION

Independent examiner's report to the trustees of Royal Navy Rugby Union ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts 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 your 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 Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts 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 accounts 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)).

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.

Gavin Whitter ICAEW Gibson Whitter Chartered Accountants and Chartered Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP

Date:

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ROYAL NAVY RUGBY UNION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2021

Year
ended
30.9.21
Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
22,101
Charitable activities
6
Royal Navy Rugby
-
Community Rugby
43,235
Other trading activities
4
122,450
Investment income
5
-
Other income
7
9,886
Total
197,672
EXPENDITURE ON
Raising funds
8
90,278
Charitable activities
9
Royal Navy Rugby
67,197
Community Rugby
61,994
Total
219,469
NET INCOME/(EXPENDITURE)
(21,797)
RECONCILIATION OF FUNDS
Total funds brought forward
319,468
TOTAL FUNDS CARRIED FORWARD
297,671		 Year
ended
30.9.20
Total
funds
£
26,172
-
14,300
272,723
10
40,400
353,605
232,764
199,537
180,720
613,021
(259,416)
578,884
319,468

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of the financial statements

Page 13

ROYAL NAVY RUGBY UNION

CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2021

Notes
FIXED ASSETS
Intangible assets
16
Tangible assets
17
Investments
18
CURRENT ASSETS
Stocks
19
Debtors
20
Cash at bank
CREDITORS
Amounts falling due within one year
21
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
22
NET ASSETS
FUNDS
23
Unrestricted funds
TOTAL FUNDS		 Group
30.9.21
£
10,444
4,610
-
15,054
24,762
80,250
363,612
468,624
(95,405)
373,219
388,273
(90,602)
297,671
297,671
297,671		 Group
30.9.20
£
13,926
6,614
-		 Charity
30.9.21
£
-
4,610
100,000
104,610
-
50,954
261,741
312,695
(69,635)
243,060
347,670
(50,000)
297,670
297,670
297,670		 Charity
30.9.20
£
-
6,614
100,000
20,540
42,032
68,308
325,179		 106,614
-
76,799
212,245
435,519
(36,591)		 289,044
(26,191)
398,928
419,468
(100,000)
319,468		 262,853
369,467
(50,000)
319,467
319,468 319,467
319,468 319,467

The notes form part of the financial statements Page 14

ROYAL NAVY RUGBY UNION

BALANCE SHEET - CONTINUED AT 30 SEPTEMBER 2021

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the Board of Trustees on …..........and were signed on its behalf by:

Rear Admiral M J Parr CB- Trustee

The notes form part of the financial statements Page 15

ROYAL NAVY RUGBY UNION

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021

Notes
Cash flows from operating activities:
1
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Interest received
Net cash provided by (used in) investing activities
Cash flows from financing activities:
New loans in the year
Net cash provided by (used in) financing activities
Cash generated from operations
Cash and cash equivalents at the beginning of the reporting
period
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the end of the reporting period		 Year
ended
30.9.21
£
38,433
38,433
-
-
-
-
-
-
38,433
325,179
363,612		 Year
ended
30.9.20
£
(288,979)
(288,979)
(17,408)
-
10
(17,398)
100,000
100,000
(206,377)
531,556
325,179

The notes form part of the financial statements

Page 16

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Adjustments for:
Depreciation and amortisation charges
Interest received
Decrease/(increase) in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operating activities
At 1.10.20
Net cash
Cash at bank and in hand
325,179
Debt
Debts falling due within one year
-
Debts falling due after one year
(100,000)
(100,000)
Total
225,179
ANALYSIS OF CHANGES IN NET DEBT
Net (expenditure)/income for the reporting period (as per the
statement of financial activities)		 Year
ended
30.9.21
£
(21,797)
5,486
-
17,270
(11,942)
49,416		 Other
non-cash
changes
-
(9,398)
9,398
-
-		 Year
ended
30.9.20
£
(259,416)
7,102
(10)
8,180
23,345
(68,180)
38,433 (288,979)
Cash flow
38,433		 At 30.9.21
363,612
-
-		 (9,398)
(90,602)
- (100,000)
38,433 263,612

2. ANALYSIS OF CHANGES IN NET DEBT

Page 17

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.

Going Concern

The charity has for a second year been impact by the global pandemic as noted in more detail in the Trustees Annual Report.

Since the balance sheet date the 2022 Army v Navy match has taken place at Twickenham albeit with a reduced crowd. This has generated sufficient profits for Navy Rugby Limited that a sizeable distribution will be received by the charity in respect of the year ended 30 September 2022. This will mean that the charity will be able to meet its planned expenditure for the year ended 30 September 2023 and begin rebuilding its reserves.

The Trustee Board, based on the above, have therefore concluded that it remains appropriate to prepare these financial statements on the going concern basis.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the charitable company and its subsidiary.

The financial statements of the subsidiary undertaking included within the consolidated figures are adjusted where appropriate, the conform to Group accounting policies.

Significant judgements and estimates

In preparing these financial statements, the trustee directors have made the following judgements:

Page 18

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES- continued

Income

Voluntary income including donations, gifts and legacies and grants that provide core funding or are of a general nature are recognised where there is entitlement, the receipt is probable and the amount can be measured with sufficient reliability. Such income is only deferred when:

Income from activities to generate funds, such as sponsorship, merchandise sales, patrons scheme, Army v Navy match, Navy v RAF match and investment income are recognised on a receivable basis.

Income from charitable activities relates to Community Rugby grants and courses. Such income is only deferred when:

Volunteers and donated services

The value of services provided by volunteers is not incorporated into these financial statements.

Where goods or services are provided to the charity as a donation that would normally be purchased from suppliers, this contributions is included in the financial statements at an estimate based on the value of the contribution to the charity.

Expenditure

Expenditure is recognised when a liability is incurred. Contractual arrangements are recognised as goods or services are supplied.

Irrecoverable VAT

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Page 19

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES - continued

Intangible fixed asset

Intangible fixed assets includes websites and databases. Websites have been capitalised where they are capable of directly generating income. Websites and databases are amortised, using the straight line basis, over their estimated useful lives of three and five years respectively.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Player training equipment - 20% on cost Motor vehicles - 25% on reducing balance Medical Equipment - 20% on cost

Individual fixed assets costing £500 or more are capitalised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is computed on the first in first out basis. Net realisable value is the estimated proceeds from the sale of stock less any future costs to be incurred.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity.

Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 20

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

2. FINANCIAL ACTIVITIES OF THE CHARITY

The financial activities shown in the consolidated statement includes those of the Royal Navy Rugby Union and its wholly owed trading subsidiary Navy Rugby Limited.

A summary of the financial activities undertaken by the Royal Navy Rugby Union, is set out below:

Total income
Expenditure
Raising funds
Charitable - Royal Navy Rugby
Charitable - Community Rugby
Net income
Total funds brought forward
Total funds carried forward
3.
RFU Constituent Body income
RN Sports Lottery - salary contributions
4.
Army v Navy match income
Navy V RAF match income
Merchandise sales
Sponsorship
International ticket sales
Patrons scheme income
Government grants
OTHER TRADING ACTIVITIES
DONATIONS AND LEGACIES		 Year ended
30.9.21
£
118,231
(14,009)
(69,513)
(62,506)
(27,797)
319,467
291,670
Year ended
30.9.21
£
6,403
15,698
22,101
Year ended
30.9.21
£
14,506
-
27,600
60,000
524
18,570
1,250
122,450		 Year ended
30.9.20
£
143,002
(22,157)
(221,581)
(158,680)
(259,416)
578,883
319,467
Year ended
30.9.20
£
26,172
-
26,172
Year ended
30.9.20
£
64,776
18,641
37,671
109,750
22,335
19,550
-
272,723

Page 21

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

5. INVESTMENT INCOME

Bank interest
6.
Year ended
30.9.21
Royal Navy
Rugby
Grants
-
RFU - RDO contribution
-
-
NSSC
RNRMC
RN RM Sports Lottery
7.
Coronavirus Job Retention Scheme grants
INCOME FROM CHARITABLE ACTIVITIES
OTHER INCOME
Grants received, included in the above, are as follows:		 Year ended
30.9.21
£
-
Year ended
30.9.21
Community
Rugby
£
39,735
3,500
43,235
Year ended
30.9.21
£
22,000
-
17,735
39,735
Year ended
30.9.21
£
9,886		 Year ended
30.9.20
£
10
Year ended
30.9.20
Total
activities
£
3,800
10,500
14,300
Year ended
30.9.20
£
2,000
1,800
-
3,800
Year ended
30.9.20
£
40,400

Page 22

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

8. RAISING FUNDS Other trading activities

Year ended
30.9.21
£
Merchandise purchases
19,875
Army v Navy match expenditure
-
Navy v RAF match expenditure
-
Marketing and hospitality
4,580
Patrons scheme costs
4,933
International ticket costs
-
Fulfilment and other trading costs
51,986
Support costs (see note 11)
8,904
90,278
Direct costs
(see note 10)
(see note 11)
£
£
Royal Navy Rugby
13,778
53,419
Community Rugby
35,283
26,711
49,061
80,130
DIRECT COSTS OF CHARITABLE ACTIVITIES
Year ended
30.9.21
£
Staff costs (see note 14)
34,965
First XV team costs
10,784
Mariners team costs
-
Women's team costs
38
Under 23 team costs
2,343
Sevens team costs
613
Refereeing costs
-
IDRC costs
-
Foreign tours
-
Community Rugby expenditure
318
Presidents XV costs
-
Stakeholder manager costs
-
49,061
CHARITABLE ACTIVITIES COSTS
Support
costs		 Year ended
30.9.20
£
27,242
27,319
27,737
4,153
4,933
30,161
93,994
9,204
224,743
Totals
£
67,197
61,994
129,191
Year ended
30.9.20
£
94,385
55,026
2,480
7,838
9,555
2,395
6,396
10,000
7,013
31,657
5,373
225
232,343

9. CHARITABLE ACTIVITIES COSTS

10. DIRECT COSTS OF CHARITABLE ACTIVITIES

Page 23

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

11. SUPPORT COSTS

Management
£
Other trading activities
8,619
Royal Navy Rugby
51,706
Community Rugby
25,854
86,179		 Governance
costs
£
285
1,713
857
2,855		 Totals
£
8,904
53,419
26,711
89,034

Activity Basis of allocation Management Staff hours Governance costs Staff hours

Support costs, included in the above, are as follows:

Page 24

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

11. SUPPORT COSTS- CONTINUED

Management

Wages (see note 14)
Pensions (see note 14)
Motor and travel expenses
General insurance
Telephone
Executive expenses
Director of Rugby expenses
Management accounts
Bank charges
Communications
Donations
Depreciation
Postage, stationery and other
costs
Social security (see note 14)		 Other
trading
activities
£
4,392
253
276
1,445
93
165
241
-
241
300
204
808
-
201
8,619		 Royal
Navy
Rugby
£
26,351
1,521
1,655
8,671
559
986
1,442
-
1,450
1,800
1,225
4,844
-
1,202
51,706		 Community
Rugby
£
13,176
761
828
4,335
280
492
721
-
725
900
613
2,422
-
601
25,854		 Total
activities
£
43,919
2,535
2,759
14,451
932
1,643
2,404
-
2,416
3,000
2,042
8,074
-
2,004
86,179
Year
ended
30.9.21		 Total
activities
£
71,600
5,203
5,012
12,179
934
2,300
2,118
1,270
3,501
11,500
2,173
32,794
5,000
3,620
Year
ended
30.9.20
159,204

Governance costs

Independent examiner' fees
Legal and professional fees
Other governance costs
Governance costs		 Other
trading
activities
£
222
51
12
285		 Royal
Navy
Rugby
£
1,332
309
72
1,713		 Community
Rugby
£
666
155
36
857		 Total
activities
£
2,220
515
120
2,855
Year
ended
30.9.21		 Total
activities
£
2,050
2,435
661
Year
ended
30.9.20
5,146

Page 25

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED

FOR THE YEAR ENDED 30 SEPTEMBER 2021

12. NET INCOME/(EXPENDITURE)

Independent examination - RNRU
Amortisation intangible assets
Depreciation - owned assets		 2,220
2,004
3,482
Year
ended
30.9.21		 2,050
3,620
3,482
Year
ended
30.9.20

13. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2021 nor for the period ended 30 September 2020.

Trustees' expenses

During the year two trustee was reimbursed expenses by the charity for travel, subsistence and training totalling £182 (30.9.20: one trustee £316).

14. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 £
74,708
4,556
4,914
84,178
Year
ended
30.9.21		 £
154,526
10,857
10,817
Year
ended
30.9.20
176,200

The average monthly number of employees during the year was as follows:

Charitable staff
Support staff		 2
1
3
Year
ended
30.9.21		 4
2
Year
ended
30.9.20
6

No employees received emoluments in excess of £60,000.

Page 26

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

15. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

15. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 26,172
Charitable activities
Royal Navy Rugby -
Community Rugby 14,300
Other trading activities 272,723
Investment income 10
Other income 40,400
Total 353,605
EXPENDITURE ON
Raising funds 232,764
Charitable activities
Royal Navy Rugby 199,537
Community Rugby 180,720
Total 613,021
NET INCOME/(EXPENDITURE) (259,416)
Total funds brought forward 578,884
TOTAL FUNDS CARRIED FORWARD 319,468
16. INTANGIBLE FIXED ASSETS - GROUP AND CHARITY
Website
and database
£
COST
At 1 October 2020 27,080
Additions -
At 30 September 2021 27,080
AMORTISATION
At 1 October 2020 13,154
Charge for year 3,482
At 30 September 2021 16,636
NET BOOK VALUE
At 30 September 2021 10,444
At 30 September 2020 13,926

Page 27

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

17. TANGIBLE FIXED ASSETS - GROUP AND CHARITY

Player
training
equipment
£
COST
At 1 October 2020
14,974
Additions
-
Disposals
-
At 30 September 2021
14,974
DEPRECIATION
At 1 October 2020
14,505
Charge for year
469
Eliminated on disposal
-
At 30 September 2021
14,974
NET BOOK VALUE
At 30 September 2021
-
At 30 September 2020
469
18.
FIXED ASSET INVESTMENTS - CHARITY ONLY
MARKET VALUE
At 1 October 2020 and 30 September 2021
NET BOOK VALUE
At 30 September 2021
At 30 September 2020		 Motor
vehicles
and cycles
£
15,895
-
(1,000)
14,895
11,514
1,095
(1,000)
11,609
3,286
4,381		 Medical
equipment
Totals
£
£
3,584
34,453
-
-
-
-
3,584
34,453
1,820
27,839
440
2,004
-
-
2,260
29,843
1,324
4,610
1,764
6,614
Share
in Group
undertakings
£
100,000
100,000
-		 Totals
£
34,453
-
-
34,453
27,839
2,004
-
29,843
4,610
6,614
100,000
-

This represents 100,000 £1 shares in the charity's wholly owned subsidiary, Navy Rugby Limited (Company number: 10259113).

Page 28

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

19.
STOCK
Group
Group
30.9.21
30.9.20
£
£
Merchandise stock
24,762
42,032
20.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Group
30.9.21
30.9.20
£
£
Trade debtors
17,575
27,962
Other debtors
62,675
40,346
80,250
68,308
21.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Group
30.9.21
30.9.20
£
£
Bank loans
9,398
-
Trade creditors
3,905
24,647
PAYE and national insurance
-
3,155
Other creditors
5,177
8,789
Deferred income (see below)
76,925
-
95,405
36,591
Deferred income		 Charity
30.9.21
£
-
Charity
30.9.21
£
4,114
46,840
50,954
Charity
30.9.21
£
-
3,703
-
10,127
55,805
69,635		 Charity
30.9.20
£
-
Charity
30.9.20
£
10,500
66,299
76,799
Charity
30.9.20
£
-
14,211
3,155
8,825
-
26,191

Deferred income relates to sale of international tickets and grants relating to a future financial period.

Amount released to incoming resources
Amount deferred in the period
Balance carried forward
Balance brought forward		 Group
30.9.21
£
-
-
76,925
76,925		 Group
30.9.20
£
17,928
(17,928)
-
-		 Charity
30.9.21
£
-
-
55,805
55,805		 Charity
30.9.20
£
17,928
(17,928)
-
-

Page 29

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

22. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Other loans		 Group
30.9.21
£
40,602
50,000
90,602		 Group
30.9.20
£
50,000
50,000
100,000		 Charity
30.9.21
£
-
50,000
50,000		 Charity
30.9.20
£
-
50,000
50,000

Bank loans above is in repsect of a Bounce Back loan.

Other loans above is in respect of a loan from NSSC which will only become repayable when the charity has sufficient cashflow to do so.

23. MOVEMENT IN FUNDS CHARITY ONLY

At 1.10.20
£
Unrestricted funds
General fund
319,467
319,467
TOTAL FUNDS
319,467
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:		 Net
movement
in funds
£
(21,797)
(21,797)
(21,797)
Incoming
resources
£
121,231
121,231
121,231		 Transfer
between
funds
£
-
-
-
Resources
expended
£
(143,028)
(143,028)
(143,028)		 At 30.9.21
£
297,670
297,670
297,670
Movement
in funds
£
(21,797)
(21,797)
(21,797)

24. RELATED PARTY DISCLOSURES

There were no related party transactions for the period ended 30 September 2021 (30.09.20: None).

Page 30

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2021

25. ULTIMATE CONTROLLING PARTY

The charity is controlled by its board of trustees acting in concert.

26. SHARE CAPITAL AND LIABILITY OF MEMBERS

The charitable company is a company limited by guarantee and its members have undertaken to contribute to the assets of the company in the event of it being wound up such amounts as may be required not exceeding £1.

Page 31