Ospreys in the Community Charlty Number: 1169850 OSPREYS IN TIIL COMMUNITY OSPREY5 Ospreys in the Community Ospreys in the Communlty swansea.com Stsdium Landore Swansea SAI 2FA Dear Sirs Durlng the course of your Independent examination of the financial statements of the charity for the period ended 30 June 2021, the following representations were made to you by management and trustee5. We have fulfilled our responsibilities as trustees under the Charitie5 Act 2011 for preparing financial statements, in accordance with the applicable financial reporting frameworL that give a true and fair view and for making accurate representations to you as our examiner and for the financial statements which you have prepared on our behalf for the£harity. We confimi that all aecountlng records have been made available to you forthe purpose of your examination, in accordance with your terms of engagement. and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related infomiation. including minutes of all rnanagemen¢ trustees, and members. meetings, have been made available to you. We have given you unrestricted ac￿SS to persons within the charity in order to obtain evidence and have provided any additional information that you have requested for the pU￿oSeS of your examination. We confimi that significant assumptions used by us In maklng accounting estimates, including those measured at fair value, are reasonable. We confirm that all known actual or possible litigation and claims whose effects should be consldered when preparing the financial statements have been disclosed to you and accounted forand disclosed in accordance wlth the applicable financial reporting framework. We confirm that the￿ had been no évents slnce the balance sheet date which require disc105ure or which would materially affect the amounts in the financlal ststements, other than those already dlsclosed or included in the financial statements. We confimi that we are aware that a related party of the charity is a person or organlsation which either directly or indirectly) controls, has joint control of, or sigrsificantly influen￿$ the charity or vice versa and as a result will include.. tNstees/director5. Other key managemenL close famiby and other business interests of the previous. We confirm that all related party relationships and transactions have been accounted for and disclosed In accordan￿ wf(h the applicable financial reporting framework. We confirm that the Charity has had, at no time during the year, any arrangement. transaction or agreement to provide credit facilities lincludlng advances and credits granted by the charity) for trustees. nor lo provide guarantees of any kind on behalf of the trustees. We confirm that the charity has not contracted for any capitsl expenditure other than as dlsclosed In the financlal ststements. OSPREYS IN TIII COMMUNITY OSPREYS OSPREY.S IN THL Ospreys in the Communlty Charity Number: 1169850 COMMUNITY OSPREYS io. We confirm that we are not aware of any pos51ble or actual Instan￿ of non-compliance wlth those laws and regulations which provlde a legal framework within which the chartty conducts its activities, and which are central to the charivs abillty to conduct its artivities, exopt as explained to you and as disclosed in the financial statements. ii. We acknowledge our reswnsibility for the design and implementation of Internal controls to prevent and detett fraud. We conflnn that we have di5c105ed to you the results of our own risk a55essment that the financlal statements may be misstated as a result of fraud. We confimi that there have beerb no attual or susperted instan￿$ of frauL1 involving trustee5. management or employees who have a 51gnificant role In intemal control or that could have a material effect on the financial ststements. We also confirm that we are not aware of any allegations of fraud by former trustee5, employees, regulators or others. We confirm thaL having considered our expectations and intentlons for the next 12 months and the availabillty of unrestricted reseNes, the charity is a going concern. We confirm that in our opinion the effects of unadjusted mi55tatements are immaterial. both individually and in aggregate, to the financial statements as a whole. We confirm that all grants. donations and other income. includlng those subjects to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income. We confirm that we are not aware of any matters of material SignificaTr￿ that should be reported to the Charity Commission. We corbfirni that we have reviewed the fixed assets register and confirnied all assets are stlll in use, not impaired, the dep￿riatIOn rate5 are reasonable to rellect the economic consumption of the asset5 and no residual values are estimated. 12. 13. 14. 15. 16. 17. We confirm that the above representations are made on the basis of enquiriesofrnanagement and staff with relevant knowledge and experience land. where appropriate of SUPFK)rting documentationl sufficient to satisfy us that we can properly make each of the above representations to you and that to the best of our knowledge and belief they accurately reflect the representstions made to you by the trustees during the course of your examinatlon. Yours falthfully, signed on behalf of the board of trustees Trustee .... OSPREYS IN 1111 { COMMUNITY OSPREY5 REGISTERED COMPANY NUMBER: 09578656 (England and Wales) REGISTERED CHARITY NUMBER: 1169650 OSPREYS IN THE COMMUNrrY UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Gerald Thomas Chartered Accountants 3 New Mill Court Swansea Enlgrprise Park Swansea SA7 9FG OSPREYS IN THE COMMUNITY CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JVNE 2021 Page Chalrman's Report Report of the Trustees 2 to 9 Independ9nl Examlner's Report Statement of Flnanclal Activities 11 Balance Sheet 12 10 13 Notes to the Flnancial Statements 14 to 24 OSPREYS IN THE COMMUNrrY CHAIRMAN'S REPORT FOR THE YEAR ENDED 30 JUNE 2021 On behalf ol the Board of Trustees of Ospreys in the Community, l am delighted lo present this Annual Report. Once again, this has proved lo be another unusual and difficult year lor our work in the community. Ngverlheless, we as trustees have been thoroughly impressed by the work carried out by our stall and partners, improving our presence and ilature in communi118s across Ospreylia. This group ol proactive individuals working as a team have again achieved impressive results working with children, young people, adU￿s, and those that are vulnerable in our communities. Furthermore, in somewhat challenging limes, they have been able to enhance the programmes and projects Ospreys in the Community offer and even secured further grant funding to ensure there is continuity moving lO￿ard and further growth within the organisation. Therefore, we can look forward w(th conlldence that our current partners will continue lo work with us and others have already Come lOn￿ard lo join with us in developing future projects that will have a positive itnpact across the region and beyond. Thus, l am sure you will agree that our heartfett thanks are due lo our management team. stall and partners, and l urge everyone to continue to engage with us on social media. in person, and through other channels lo witness and celebrate the work being carried out. Very besl wishes Karl Napleralla OBE Chalr Ospreys In the Communlty Pago 1 OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 095786561 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 The Iruslees who are also directors of tho charty for the purpos85 ol the Companies Act 2006, present their report with the financial statetnenls ol the charity lor the year ended 30 June 2021. The Iruslees have adopted the provisions ol Accounting and Reporting by Charities.. Slal8mgnl ol Rec0￿mended Practice applicable lo charities preparing Ihgir accounts in accordan¢e with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} leffective 1 January 20191. Ospreys in the Community is a nol-lor-prolit foundation that uses the power ol sport and the Ospreys brand to empower people across our règion lo make positive life choices. Ospreys in the Community operates on an independent basis to the professional rugby organisalion. Al Ospreys in the Community, we passionately believe In the power ol sport and ils ability lo tran51orrn lives. Our range ol programmes promote wellbeing and inclusivity and help to improve opportunities lor our communities. This report outlines our Pillars and programmes and some ol the impa¢l il has had on the people we work with through 2020121 season, where we have continued to support the vulnerable as we continue through and hopefully begin emerging from the COVID-19 pandemic. Due to the pandemic, we saw a considerable shift from physical lo digital engag8menl in order to support those most in need, while working with minimal staff. The 7th year ol the foundation will s88 us1aunch our new strategy. driving the foundation further ané reaching more people than before. OBJECTIVES AND ACTIVITIES Oblectives and aims The objectives ol the charity are to promote community participation and provide education in heakthy recreation by providing facilities lor the playing ol rugby and other sports in Swansea and the surrounding area. Public bangflt The Irus16es have referred to the guidance contained in the Charity Commission's general guidance on public benefit and have had regard lo il when reviewing the aims and objectives ol the charrf(y and in planning ils future activities. In particular, the trustees consider how planned aclivities will contribute to the objectives set by the charity, specifically the promotion ol community participation in healthy recreation by providing lacilfties lor the playing of rugby and other sports capable ol improving health as wall as advancing the education of children and young people and improving the wellbeing of all individuals. Volunteers Volunteers play a huge part irL our operations,. we recogni&2Jth value that volunteèring has wlh any organisalion and are proud to play our part in SUPFJOrting volunteers. Page 2 OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 09578656) REPORT OFTHE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 ACHIEVEMENT AND PERFORMANCE Charitable actlvltles Education & Employabillly Plllar TACKLE Tackle has 3 focus 9roups Schools Programme 12- 16 years Traineeship 18 - 18 Years, working with those who are NEET Employability 18 - 24 Years Traneeships were adapted and moved initially online and again as restrictions eased, we were able lo work in a blended way. with some lace lo lace returning. Despite challenges, we had 25 sign ups lo the summer programme- 1 completed a week. 1 comp￿￿ 2 weeks and 23 completed lh& lull programme, which allowed us lo generate some vital unrestri¢1￿ funds to support the core work the foundation does. Tackle Schools programme resources were turned digital. but are yel to be rolled out as we are in a pilot phase to monitor the onjoyment and functionality. A total 01138 school pupils managed lo slay with the programm&, with 98 /. having posilive oul¢omes ol staying in education or having found employment. One ol these students has now joined the OITC team as an ambassador lor the next cohort ol students. Thg programmes funding, which is due lo end in February 2022, has been reviewed and a decislon Its increase and support more young people has been Made, despite being an extremely competitive lime lor funds. Stage 1 has been submitted, with an aim Ihal the funds wll be agreed in time lor the end ol the programme. We welcomed our first Cynnydd funded programme al Celn Hengoed, with those who are at most risk of becoming NEET. The programNe ran lor 10 weeks and supported 7 challenging young people lo work together, gan skills and qualilicalion5 including mock interviews and C.V. writing skills. Bouncing Back Following successful fundraising efforts, we were able to kick start our partnership with Action for Children this came in the form of a secondary school 2-week programme supporting learners to be more confident, bLJilding resilience andloarning coping strategies to promote positive mental and physical hea￿h. So lar, the programme has hacl a huge effect on students and teachers and 1.895 children have gone through the bouncing back programme this year. 108 groups & 17 schools 67LTr/o increased their confidence 66 /ts improved stress coping skills 80Qk rated the programme 4slar + Sport & Physical Activlty Plllar As we &merye frortS the pandemic, the need lo gel people ol all ages active and reengaged in regular activity has never been so important. OITC have actively tried lo play a part in keeping people active during lockdtswns and easing ol regulations including an Easter hunt acfOSS the region, where we placed 50 golden masks and asked young people and Iheir parents lo hunt them down. Durillg the Easter period, we also managed to support Cubslscouts groups via an online camp and player Q&A, supporting 250 young people to slay active and keep engaged with each other. Our School's Prograrnme was adapted to allow schools lo still engage via 'virtual Sony & stadium tours and player Q&As cinline. Over 1,500 young Key Stage 2 pupils were able lo engage as schools returned and lake part with our added Wellbeing module from our charity partners Action lor Children, supporting participanis with coping strategies and the eonlidence to speak lo their peers. Page 3 OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 09578656) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 Club Nights 7 Club Nights have been run lo help boost a retum lo sport and the numbers of children plawng al the clubs. These 7 events welcomed 500 children al the local sports grounds and gave an opportunity for clubs lo recruit new members lo theirjunior teams. These prove a popular programme and have in the past Provided 60+ new players lo the game. Vlrtual Ospreys cup To complete our Ospreys Cup, we decided to gel the clubs engaging with us through Twitter. All clubs had a chance lo engage their own lans and supporters to vole them through lo the next round and all the way to the final. This proved to be a huge success, not only allowing the Clubs lo keep their players and supporters ongaged in a difficult time, but also il allowed us to generate good relationships wth the clubs. increas8 followers and raise rnoney lor the NHS. Online Voles- 23,484 Impressions - 193,193 Engagernents - 29,718 Rugby Camps The return to outdoor activities returned in early July 2020, allowing us to provide activities lor limited numbers DI chikjren, following the government guidance. It was important this was started as soon as possible due lo the impact that lockdown has had on young people and we were keen to SUPFXIrt group activities and 50cialising wher8 sale and possible. These guidelines only allowed us an initial number 0115 children per group. This meant the potential income generation was signilicanlly reduced. We ran s&ssions lor 6-8, 8-10 and 11-12 years old to ensure our usual age bands could attend and enjoy,. these were also sel across 3 locations. We Tnanaged lo arrange 21 camps that were scattered across 10 drfferenl locations around the region. Due to number reslri¢litrns, 920 young pgople were able lo allend these sessions and look part in fun physical aclivily. These werg also vital lor core funding lor the foundation. bringing in just over £10,000, allowing us to increase support in the wider community. To support the loss ol unrestricted funding, we were lortunale enough lo receive a grant from the Economie Resilience Fund. The lockdown reslriclions returned in October and December 2020, which meant our planned events were no longer able lo lake place. Inclusion Oljr weekly ICC groups had moved lo online sesslons lo k8ep people engaged and friendships moving. The nature of some of the disabilities meant we were unable to return lo fac& lo lace right away due lo risk. However, as restrictions eased, we managed lo get back to il subsequent lo the Christmas lockdown, with 10 children regularly attending and with 210 overall engagements in the programme lor the laller end ol the reporting year. A welcome return to our Wheelchair Rugby in late May meant a new venue was needed, due to their current venue being used as a field hospital. A much-needed return was restricted lo just 20 members including carers and support staff. This still allowed for the team lo get back lo training ready lor the return lo play and the relL*rn ol the comp81ilions. Page 4 OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 09578656> REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 Walklng Rugby A change ol pace within schools allowed lor more support lo other projects. Walking rugby is the Satesl movement, allowing a garne lor ovor 35s and those who have finished the traditional game. This allows for lifelong participation and to still reap the banelils that learn sports bring in mental and physical wellbeing. 70 Men aged 30-70 have been gelling a¢live weekly over the second hall of the season al 5 clubs in Glais, Ponlycymer, Maesteg, Briton Ferry and Yslradgynlais RFC,. this is likely to grow and will hopefully lorTn the start of a fixture matrix and a new forrnat ol the gatne we love. We saw a total engagement ol just over 1,750 participants. all benefiting from moderate weekly activity and comradgry. Health & Wellbeing Plllar Sportlng Memorles From the start ol the pandemic, we have continued to interact anrl support our sporting memories groups by connecting online, lending tablets, and dropping oll weekly quiz and activity packs. Our popular sunflower growing competition returned, with 55 individuals getting involved lo win a 'High lea" in the gardenl The Sporting Memofies l&am had regular garden visits when reslriclions allowed. lo help the members interact and to see il there was anything they needed. As several Mem￿r$.. "Ospreys in the Community were the only people we had contact with through the pandemic.. Our groups were reslricled lo numbers but allowed lo return lo outdoor activities and a much-needed relum of socialisalion. The sessions allow lor Refnini5cence and sharing of memories. Awropriate Physical activity lor all participants lo support physical and mental wellbeing. Social inclusion a space lor people with dementia to be active in a community setting. Safely in the home- providing contact points between agencies lo improve the safely ol people living with dementia. To encourage physical activity and to get fflembers out ol the house. we ran a photograph competition where members had to lake a soft loy lo their lavourlte p￿aCe. This engaged around 25 of our members and encouraged them to walk lo the woods, beaches, and local parks lo take the photos. Our clubs began lo build momentum following the Christma5 lockdown and saw a huge increase in numbers attending. We managed lo get lo a weekly engagement with 88 new members registered. This was then boosted by the ability of us to open new clubs in February., a much-needed space and an opportunity lor peoplè lo &ngage in conversation. This was boosted by support from the likes ol Phil Steele and Mike Ruddock. The total engagement through the 2020121 season was just over 3,300 participants (returning to sessiDnsl and 200 opportunities lor reminisconce and conversation. including the referral 0115 people to 0￿Upational Iherapisls, dementia nurses and physiolherapisls. The renewal of funding from March 2021 will allow us lo continue lo support nearly 100 fflembers through what we hope is Ihe end of the pandemic and keep Ihem active and sale al home. In the Squad- Veterans A successful joint bid with Swansea City AFC Foundation was awarded in (ktober 2020 from the Armed Forces Covenant Fund. allowing us lo work with veterans with an aim to support m&nlal health, gel groups communicating and interacting and, at the same lime, active. These sessions began running weekly online due to restrictions, but once dlowed we were able lo work with 9 veterans al Briton Ferry and included both loolball and walking rugby. These weekly sessions are supported by trained eouncillors. Pag& 5 OSPREYS IN THE COMMUNITY {REGISTERED NUMBER: 09578656} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 Everyone Deserves a Chrlstmas 2020 saw a Christmas very much like no other, with more people than ever in need of support through a spike in COVID-19 and an enforced lockdown, uncertainly ol jobs and the constant worry ol being able lo have a "proper" Christmas. The campaign had supported 500 people the year previous, bul the efforts ramped up, with support from the likes ol Michael Sheen and Gareth Bale, which meant we were able lo raise an incredible £60.000 lo supply 1,500 people locally with a Christmas hamper. The packing and deliv8ry were allowed despite the national lockdown, as this was classed as an essential service., Ospreys staff. along with Swansea AFC and local MPS packed vans and cars and delivered to those most in need. Worldor¢e Despite the challenges, Ospreys in the Community were pleased to be able lo support stall throughout the pandernic and with a n&8d lo support our vulnerable groups and members, we ensured that stall were ulilised and able lo be agile ID ensure we played our part in the recovery. The introduction of Furfough safeguarded the core of the business and allowed us to be flexible on the relum ol staff at the right lime, without suffering any losses. Our volunteer worktorce is where we suffered the most,. with the inability to èngage and run courses, r( meant that p80ple drifted away. We have tri￿ to drive volunteer recrLJilmenl and work hard lo gel more peop18 on board, as this is what makes many ol the above programmes run elleclively. FINANCIAL REVIEW Financial positlon This was the charity's sixth lull year ol operating, and the initiatives and projects undertaken have continued lo expand. The charity recorded a surplus of £79,571 lor the 2020121 period. compared lo a surplus of £39,734 in the prior period. Total income for th8 period has increased by 7/0 in 2020121 compared to the prior year. This has been largely driven by increased grant income, up Irorn £118k lo £155k in the year. This is primarily being driven by th8 new In the Squad- Veterans and PHW Mental Health grants which began in the year. Income IrorH charitable activities did not increase from the prior year, however this shortfall was ollsel by increased donations in the period. Overall expenditure decreased 6.1. from the prior year. This decrease was mostly due to the lack ol expenditure on charitable activities. At the balance sheet dale, the charity had a surplus on reserves of £99,42912020'. £19,858). Unrestricted reserves had a surplus of £6,556, wfLh the reslricled reserves surplus being £92,873. Prlnclpal funding sources The charity receives funding from various Soufces such as grants, donations and corporate sponsorship revenue. The main sources ol grant funding during the yèar weTe the PHW Mental Health board, the Big Lollery Fund from The National Lottery and the Integrated Care Fund income from Swansea Bay University Health Board. The charity also generates income from the running Df Sport festivals and events, summer camps and school programmes in the local community- Details of the funds in use during the period can be found in the notes to the financial statements. Page 6 OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 09578656) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 Reserves pollcy 11 is the policy ol the charity that unrestricted funds which have not been designated lor a specific use shoukl aim to be maintained al 2 level equivalent lo between three and six-monlh's expenditurè. The Iruslees consider that reserves at this level will ensure that, in the event ol a significant drop in funding. they will be abl6 10 continue the ¢harills current activities while consideration is given to ways in which additional funds may be raised. The trustees recognise that the balance sheet position. in relation lo the unreslricled reserves. needs to be addressed and have takèn steps lo resolve this by seeking lo source increased unrestricted funding through Corporate sponsorship and service conlracls. as well as donations from group companies. Over the coming years, the trustees will be aiming lo increase the charities reserves in line with the reserves policy and ¢urr8nl projections show that this will be achieved within the next 24 months. Golng concern The charity has recorded unrestricted surplLJses for the year of £31,251 and, as slated in the reserves policy note. the Iruslees projected that the current unreslricled surplus will be improve over the next year or so. The lalesl management a¢counts show a positive outcome in the 2021122 year to dale and key income streams from grants and other lunders have been secured. The charity has the confirmed support ol fellow group companios ané should the general econornic uncertainty curtail the charitls activities. the trustees have received assurances that the group companies will provide cash support lo reducg the burden ol fixed costs ol the char(ty. The trustees currently consider that Ihg current and projected financial position ol the charity is satislaclory and therefore the going concern risk has been satisfactorily addressed. FUTURE PLANS With Wellbeing al the lorelront as we continue to emerge trom the pandemic. we aim to keep supporting as many people in our community as possible lo build their confidence ol getting back out and into some normality, exercising and socialising. Bounclng Back + A Primary School version ol the Bouncing Back programme has been designed lo support Key Stage 2 students with their rnenlal health, resili&nce, and physical wellbeing. Sportlng Memorles Alter a successful few years ol Sporting Memories, there is a need to increase club nutnbers and reach further into our communities. Over the next year we aim to increase these clubs to 8 across the Swansea Bay University Health Board foDtprint. Rug-BEE With the new curriculum coming in 2023. we are beginning lo look al how we adapt our schools programme, with a look at the environment, the impact we can make and how gre8n space and physical activity can support our wallbeing and help relieve stress or anxiety. STRUCTURE. GOVERNANCE AND MANAGEME Governlng document The charity is controlled by its goveming document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. Page 7 OSPREYS IN THE COMMUNITY (REGISTERED NUMBER.. 09578656} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 Management The charity is administered and managed by elected committee members and Iruslees. in aecordance wfth ils conslilulion. Tho charities trustees are shown on page 9. The parent company has the ultimate control over the charity, and the trustees are responsible lor the management ol the charities day lo day acliwties. Some ol the trLJStee5 are also board mernbers lor Ospreys Rugby Limited., the Iruslees and members have given due consideration lo the Charity Commission's guidance on conflicts ol interest and have sufficient policies in place lo mitigate any risk. Recruitment and appolntment of new trusteey New Iruslees are elected by existing Iruslees to provide the board wth the skills necessary lo operalg the charity and achieve its objectives. All trustees have been appoiriled on a skills basis. Sinee appoinlmenl, they IDllow an induction process that highlights the lollowing areas,. roles and responsibilities. cofflpany valuas, 3- year strategy and areas ol development. All ol the ¢urrent tnjstees have previously been trustees with other charities and therefore are able lo bring a lot ol experionce lo the Ospreys in the Comrnunity board. Risk management The Irusle&s have identified and reviewed the risks to which the charity is exposed and have implemented appropriate systems and controls to manage those risks. The main financial risk lacing the ¢harily is the sourcing of funds., th9 charity's main sources ol income are grants, operational income in relation lo contracts won through successful lenders, as well as corporalo sponsorship. The trustees have attempted lo mitigate this risk by diversifying income streams lo trnsure that the charity is not reliant on one source ol income. The Iruslee5 Continue lo actively seek new opportunities for external funding. Page 8 OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 09578656) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021 REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 09578656 IEngland and Wales1 Rggisterod Charity number 1169850 Registered offlce Liberty Stadium Landore Swansea SA1 2FA Trustees A Davies Iresign8d 1917120211 K A Napierala W R Blyih C A Richards J James RJLock A J Millward M Waygood K V Evans Company Secretary P A WhaphaFn Independent Examlner Gerald Thortias Chartered Accountants 3 New Mill Court Swansea Enterprise Park Swansea SA7 9FG This report has been prepared in accordance with the special provisions ol Part 15 01 the Companies Act 2006 relating lo small companies. Approved by order ol the board ol trustees on behalf by.. I?"...￿.￿L ..2o.I'l...... and signed on its C A Richards - Truste& Page 9 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 09578656) Independgnt gxaminer's report to the trustge$ of ospreys In the Commtsnlty I'the Cornpany'l I report lo the charity Iruslees on my examination ol the accounts ol the Cornpany for the year ended 30 June 2021. Responsibllitles and basls of report As the charity's trustees ol the Cotnpany land also ils directors lor the purposes ol company lawl you are responsible for tho preparation of the accounts in accordance with the requirements ol the Companies Act 20061'the 2006 Act'l. Having satisfied rnyse￿ that the accounts of the Company are not required to be aud(ted under Part 16 01 th8 2006 Act and are eligible for independent examination, I report in respect of my examinalitsn tsl your charity's accounts as Carried out under section 145 of the Charities Act 2011 Ilhe 2011 Acl'l. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145151 Ibl ol the 2011 Act. Independent exarnlner's statement Since your charity's gross income excees1&£25C>,000 your examiner rnLJSt be a member ol a listed body. I can confirrn that l am qualilied to undertake the examination because l am a registered rnember ol for and on behalf of Gerald Thomas which is one DI the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause lo believe.. accounting records ware not kept in respect ol the Gompany as required by section 386 of the 2006 Act., or Ihe accoun15 do not accord with those records,. or the accoLJnts do not comply with the accounting requirefflenls ol section 396 01 the 2006 Act other than any requirement that the accounts give a true and lair view which is not a rnatter considered as part ol an independent examination- or the accounts have not been prepared in accordance with the methods and principles of the Slalement of Recomfflended Practice lor accounting and reporting by charities lapplicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in th8 UK and Republic ol Ireland IFRS 10211. I have no concems and have corne across no other matters in connection with the examination to which attention should be drawn in this report in order lo enable a proper understanding ol the accounts lo be reached. Rachel Doyle ACA FCCA lor and on behalf ol Gerakl Thomas Gerald Thomas Chartered Accounlants 3 New Mill Court Swansea Enterprise Park Swans&a SA7 9FG Date: .............................-............... Page 10 OSPREYS IN THE COMMUNITY STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPEND￿uRE ACCOUNTI FOR THE YEAR ENOED 30 JUNE 2021 2021 Total funds 2020 Total funds Unrestricted funds Reslricled funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 132.239 132,239 28,894 Charitable actlvltles Charitable activities 10.000 144,577 154,577 117,662 Other trading activities 51,454 51,454 168,993 Total 193,693 144.577 338,270 315,549 EXPENDITURE ON Charitsbl8 actlvltlgs Charitable activities 153,051 100.447 253,498 271,284 Other 5,201 5,201 4,531 Total 158,252 100,447 258,699 275,815 NET INCOME 35,441 44,130 79,571 39,734 Transfers bètween lunds 4.191 Net movement In lunds 31,251 48,320 79,571 39,374 RECONCILIATION OF FiINDS Total lunds brought lorward 124,6951 44,553 19,858 119.8761 TOTAL FUNDS CARRIED FORWARD 6,556 92.873 99,429 19,858 CONTINUING OPERATIONS Al income and expendilurg has arisen from continuing activities. The notes lom part ol these financial slalemenls Page11 OSPREYS IN THE COMMUNITY {REGISTERED NUMBER: 095786561 BALANCE SHEET 30 JUNE 2021 2021 Total funds 2020 Total funds Unrestricted Restricted funds funds Notes FIXED ASSETS Taroible assets 7,073 7.073 2,084 CURRENT ASSETS Debtors Cash al bank 37,858 42,163 7,736 45,973 45,594 88,136 22,114 32,877 80,021 53,709 133,730 54,991 CREDITORS Amounts Idling due within one year 15 117,2521 19,5801 126,8321 128,4211 CURRENT ASSETS 62,769 44,129 106,898 28,570 TOTAL ASSETS LESS CURRENT LIABILITIES 69,842 44,129 113.971 30,654 ACCRUALS AND DEFERRED INCOME 17 114,5421 114,5421 110,7961 ASSETSI{LIABILITIES) 55,300 44,129 99,429 19,858 FUNDS Unrestricted funds Restricted funds 6,556 92,873 124,6951 44.553 TOT AL FUNDS 99.429 19,858 The charitable company is entitled lo exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2021. The members have not required the company lo obtain an audit ol its financial slalemfjnls for the year ended 30 June 2021 In accordance wllh Section 476 of the Companios Act 2006. The trustees acknowledge their r&sponsibililies lor lal ensuring that the charitable company keeps ac¢ounling records that Cofnply with Sections 386 and 387 of lfve Companies Act 2006 and preparing financial slalements which give a true and lair view ol the state ol aftairs ol the charitable company as at the end ol each financial year and ol ils surplus or deficit lor each financial year in accordance with the requirements of Sections 394 and 395 and which tslherwise comply with the requirements ol the Companies Act 2006 relating lo financial statements, so lar as applicable lo the charitable company. Ibl The notes lonm part ol these financial statements Page 12 continued... OSPREYS IN THE COMMUNITY (REGISTERED NUMBER: 09578656) BALANCE SHEET- contlnued 30 JUNE 2021 Thsse financial statements have been prepared in accordance with the provisions applicable lo charitable companies subject to the small companies regime. The financial slalements were approved by the Board of Trustees and authorised lor issue on 29"...6V.QlL./c.>XL....... and were signed on ils behalf by: C A Richards - Trustee Page 13 continued... OSPREYS IN THE COMMUNITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 ACCOUNTING POLICIES Statutory Informatlon ospreys in the Cofflmunity is a charitable ¢ompany, limited by guarantee. registered in England & Wales. The ¢harilable company's registered number and registered ollice address can be found in the Trustees, Report. The presentation currency ol the financial slalernents is the Pound Sterling (£1. Accounting conventlon The financial slalements of the charitable company, which is a publlc benefit entity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 1021 'Accounling and Reporting by Charities.. Statement ol Recommended Practice applicable lo charf(ies preparing their accounts in accordance with the Financial Rpporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 lellective 1 January 20151.. Financial Reporting Standard 102 The Financial ReF)orbng Standard applicabl& in the UK and Republic of Ireland, and the Companies Act 2006. The linancial statements have been prepared under the hislori¢al cost convention. Golng concern The charity is reliant on the ability lo Continue to source incom8 streams, whetheT by way ol grants, donaliong or other operational incorne. Grants and sponsorship contracts are generally awarded lor 12 month periods that coincide with the a¢¢ounting reference dale and the Tugby season. 11 future income levels were lo fall short ol budget and no allernativg funding could be sourcod, the charity woukl be forced lo reduce staff ing numbers and service levels in order to Continue operating within ils ongoing funding sources. The charity is reliant upon the support of its parent company, especially in relation lo short term cash flow and the use of shared lacililies. The trustees have received assurances from its parent company that cash flow support will be available lo address any shortfall in projected surpluses. The trustees have roviewed current and projected resources and taken into account assessed risks and have concluded that Ihg charity is a going concern and the financial statements have therefore been prepared on this basis. Signiflcant ludgernents and e$llmates The trustees make estimates and assumptions conceming the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk ol causing material adjustments lo the carrwng amounts of assets and liabilrtios wilhin the next year are addressed below.. Doubtful debts are reviewgd on a regular basis and consKlered lor wrile-off provision il the balance has been dormant lor a significant period. Wrile-off is only provided when recoverability is considered remote. ii. The incorne recognition policy results In judgements being made with regard lo project perfomance. Contractual largels and detailed KPIS are selected as appropriate in order lo recognise income during the year. Income All income is recognised in the Statement of Fin8ncial Activities On￿ the charfty has 8nti119mgnt to the income, it is probable that the income wi11 be received and the amount can be measur8d reliably. The following specifi¢ policies are applied lo the particular categories ol income.. Page 14 continued... OSPREYS IN THE COMMUNITY NOTES TO THE FINANCIAL sTATEmE￿S- conllnued FOR THE YEAR ENDED 30 JUNE 2021 ACCOUNTING POLICIES- continued Non erformance related rants and donations Grants and donations are recognised when the charity has unconditional enlillement tts the resour￿. Incomg Conlraclual income and s onsorshi r6emenls Such income is recognised in the period in which the underlying goods or services w8ro delivered. Income derived IroTn the provision ol services is staled after trade discounts, other sales taxes and net of VAT. Performance related rants Grant income is recognised when the charity earns the right to consideration by its pertormanc8. Gifts in kind Gifts in kind are accounted lor al a reasonable estimate ol their value lo the charity or the amount actudly realised. it such gifts are subsequently disposed ol or realised. Donated servlces or facllltles Such amounts are recognised as incom& and expenditure when the bengfil to the charity can be reasonably quanlilied or measured and is considered material to the charity except in the case ol volunteers where these have been disclosed in a note to the accounts. Financial instmments The ¢harity only has financial assets and linanclal liabilities ol a kind that qualify as basic financial instruments. Basic financial instruments are recognised al transaction value and subsequently measured at their settlement value. Expendilurg Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charlty lo that expenditure. it is probable that a transfer ol economic benefits will be required in settlement and the amount ol the obligation can be measured reliably. Expenditure is accounted lor on an accruals basis and has been classified under headings that aggregate all cost r&lated lo the category. Where costs cannot be directly attributed lo particular headings they have been allocated lo activities on a basis consistent with the use ol resources. Allocalion and apportlonment ot costs All costs are allocated between the expenditure calegolies on a basis designed lo r8fle¢t the use ol that resource. Support and govemance co$t$ Governarice costs comprise of all costs involving the public accounlabilily ol the charity and ils compliance with regulation and good practice. These costs include costs related lo the independent examination and legal lees. Support costs include all management and administrative costs ol the charity. Charitable actlvltles Costs ot charrtablo activities comprise all costs incurred in the pursuit ol the charitable objects ol the charity. Tanglble flxed assets Fixed assets costing £250 or more (including VATI are capilalised and slated al cost less accumulated depreciation calculated so as to write ofl Ihgir cost less any residual vaue over their expected useful lives. Depreciation is provided al the following annual rates.. Page15 continued... OSPREYS IN THE CQMIAUNITY NOTES TO THE FINANCIAL STATEMENTS- contlnuod FOR THE YEAR ENDED 30 JUNE 2021 ACCOUNTING POLICIES - conllnued Computer Equipment 250/p slraighl line Fixtures and Fittings 330/0 slraighl line All fixed assets are employed in the furtherance ol the charity's objectives. Taxation The charity is exempt Irotn corporation lax on its charitable activitie5. Fund accounting Unrestricted funds can be used in accordance with the charftable objectives at the discretion ol the Iruslees. Restricted funds can only be usod for particular reslricled purposes within the objects ol the charity. Reslriclions arise when specified by the donor or when funds are raised lor particular restricted purposes. Further explanation ol the nature and purpose of each fund is included in the notes lo the fi'nancial statements. Hlre purchase and leaslng commltments Rentals paid undèr operating leases are charged lo the Slalemenl of Financial Activities on a slraighl line basis oveT the period of Ihe18as8. Pension costs and other post.rgllrement benellts The charitable company operates a delin&d contribution pension scheme. Contributions payable lo the charitable companys pension scheme are charged to the Slalemenl ol Financial Activities in the period to whlch they relate. DONATIONS AND LEGACIES 2021 2020 Donations 132,239 28.894 OTHER TRADING ACTIVITIES 2021 2020 Operational income Sponsorship Tournarnents, competitions and other events Other income Government grants 7.018 5,000 9,238 6,833 23,365 84,611 36,000 26,024 496 21,862 51,454 168,993 Page16 continued... OSPREYS IN THE COMMUNITY NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30 JUNE 2021 INCOME FROM CHARITABLE ACTIVITIES 2021 2020 Activity Charitable activities Grants 154,577 117.662 Grants received, included in the above. are as follows= YEAR ENDED 3016121 YEAR ENDED 3016120 Big Lollery Swansea Bay University Heatth Board Welsh Rugby Union Tackle Economic Resilience Fund In The Squad - Veterans PHW Mental Health 30,350 44,500 4,644 25,850 10,000 7,083 48,214 54,448 15,000 154,577 117,662 CHARITABLE ACTIVITIES COSTS Direct Costs (see note 61 Support costs (see note 71 Totals Charitable activities 242.507 10,991 253,498 DIRECT COSTS OF CHARITABLE ACTIVITIES 2021 2020 Staff costs Rental and hire ol facilities Events and competitions Training School programmes Rugby camps Monitoring and evaluation Other project costs Travel expenses Ambassador lee 172,556 2,325 393 175,327 3,941 5,363 2.552 8,100 15,593 7,200 10,350 11,249 24,999 606 3,405 17.471 5,751 40,000 242,507 264.674 Page 17 continued... OSPREYS IN THE commuN￿y NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30 JUNE 2021 SUPPORT COSTS YEAR ENDED 3016121 YEAR ENDED 3016120 Depreciation - owned assets Bank charges Advertising Sundries Telephone Post and stationary Bad debts 2,241 428 3,309 1,030 1,529 1,253 434 2,028 1,053 1,630 212 2,454 10,991 6.610 GOVERNANCE COSTS YEAR ENDED 3016121 YEAR ENDED 3016120 Independent examiner's fee Legal costs 2,750 2,450 2,500 2,031 3,800 4.531 TRUSTEES, REMUNERATION AND BENEFITS There ware no Iruslees, remuneration Of Other bgnelils lor the year ended 3D June 2021 nor for the year ended 30 June 2020. Trustees. expenses There were no Iruslees. expenses paid for the year ended 30 June 2021 nor for the year ended 30 June 2020. 10. STAFF COSTS 2021 2020 Wages and salaries Social security costs Other pension costs 163.975 6.117 2.464 166,458 6,638 2,231 172,556 175.327 The average monthly number ol employees during the year was as follows= 2021 2020 20 Employees Page 18 continued... OSPREYS IN THE COMMUNITY NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30 JUNE 2021 10. STAFF COSTS- contlnued No employees received emoluments in excess of £60,000. 11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds R8slricled funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 28,894 28,894 Charltable activltles Gharilable activities 117,662 117.662 Other trading activities 168,990 168,993 Total 197,884 117,665 315.549 EXPENDITURE ON Charitable activities Charitable aclivili8s 172,757 98,527 271.284 Other 4,531 4.531 Total 177,288 98,527 275,815 NET INCOME 20,596 19,138 39,734 Transfers between funds 1.805 1,8051 Net movernent In funds 22,401 17.333 39,734 RECONCILIATION OF FUNDS Total funds brought lobward 147,0961 27,220 119,8761 TOTAL FUNDS CARRIED FORWARD 24,6951 44,553 19,858 12. VOLUNTEERS The valug ol volunteers, time has not been recognised in the financial statements. Page 19 continued... OSPREYS IN THE COMMUNITY NOTES TO THE FINANCIAL sTATEME￿s- contlnued FOR THE YEAR ENDED 30 JUNE 2021 13. TANGIBLE FIXED ASs￿s FixiuTes and fittings Computer equipment Totals COST Al 1 July 2020 Additions 904 4.620 7,228 5,524 AI 30 June 2021 904 11,848 12.752 DEPRECIATION At 1 July 2020 Charge lor year 821 83 2,619 3,440 2,239 AI 30 June 2021 904 4,775 5,679 NET BOOK VALUE AI 30 June 2021 7,073 7,073 AI 30 June 2020 83 2,001 2,084 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Trade debtors Other debtors Prepayrnenls 41,449 2,090 2.055 12,650 9,464 45,594 22,114 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Bank balance delicil Trade creditors Social security and other taxes VAT Other creditors Accrued expenses 13,224 2,241 2,648 444 195 7.669 3.168 3,447 2,672 195 17,350 26,832 26,421 Page 20 continued... OSPREYS IN THE commuN￿y NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 30 JUNE 2021 16. BANK BALANCE DEFICIT The prior year bank balance lor unrestricted funds amounted lo £13,224 in deficit and £32,877 in hand in relation to restricted funds, resu￿Ing in ng1 cash in hand al the balance sheet dale ol £19,653. 17. ACCRUALS AND DEFERRED INCOME DEFERRED INCOME Deferred income includes grants, sponsorship and other service related income. Grants may be deferred where performance related conditions have not been mel al the balance sheet dale. Sponsorship and service income in recognised in the period lo which il relates. Movetnents in deferred income are as follows: 2021 2020 Opening balance brought lorwald Incotne released lo the statement ot financial activities Income delerred during the period 10,796 19,7961 13,542 12.963 112,9831 10,796 Balance carried forward 14,542 18. MOVEMENT IN FUNDS Nel movement in funds Transfers between funds Al 3016121 At 1t7120 Unrestricted funds General fund 124,6951 35,442 14,1911 6,556 Restrlcted lunds BT grant Wheelchair rugby Big Lottery ICF grant Schools Hub Officer grants PHW Mental health Veterans 14,1911 4,191 6.286 14,891 7,270 16,106 6,286 42,412 10,974 4,981 23,210 5,011 27,520 3.704 111,1251 23,210 5,011 M,129 92,873 TOTAL FUNDS 19,858 79,571 99,429 Page21 onlinued... OSPREYS IN THE COMMUNrrY NOTES TO THE FINANCIAL STATEMENTS- contlnugd FOR THE YEAR ENDED 30 JUNE 2021 18. MOVEMENT IN FUNDS-contlnued Net movement in funds, included in the abovg are as follows.. In¢tsming resources Resources expended Movement in funds Unrestrlcied funds General fund 193,693 1158,251} 35.442 Restilcted funds BT grant Big Lottery ICF grant Schools Hub Officer grants PHW Mental health Veterans 14,1911 128,6801 140,796} 115,7691 18,9401 14.1911 27,520 3,704 56,200 44,500 4,644 32,150 7.083 23,210 5,011 144,577 100,448 44,129 TOTAL FUNDS 338,270 258,6991 79,571 Comparatlves for movement In funds Net movement in funds Transfers belwoen funds Al 3016120 At 1t7119 Unreslrlcted funds General ILJnd 147,0961 20,596 1,805 124,6951 Reslricted funds BT grant Wheelchair rugby Big Lottery ICF grant Schools Hub Officer grants 1.805 6,286 18 11.8051 6,286 14,891 7.270 16,106 14,873 7,270 3,DD51 19,111 27,220 19,138 1,805 44,553 TOTAL FUNDS 19,8761 39,734 19,858 Page 22 continued... OSPREYS IN THE COMMUNITY NOTES TO THE FINANCIAL STATEMENTS- contSnued FOR THE YEAR ENDED 30 JUNE 2021 18. MOVEMENT IN FUNDS- contlnued Comparative nel movement in funds. included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestrlcted funds General fund 197,884 1177,2881 20,596 Restrlcted funds Big Lottery ICF grant Schools Hub Officer grants 48.214 54,451 15,OiX> 133,3411 147,1811 18,0051 14,873 7.270 3,0051 98,5271 19,138 TOTAL FUNDS 315,549 275,8151 39,734 The funds included above which are designated as unrestricted are general funds that are available lor use al the trustees, discretion in furtherance of the objectives ol the charitable company. The restricted funds above ale held lor the following purp)ses'. BT grant This grant was in relation lo the "Tackle" project. Tackle aiTllS lo create the first lully collaborative community rugby activity & education prc>gramme in joint partnership across all four Welsh regions that delivers pathways lo education & opportunity through inspiration ol rugby with dedicated slatt to deliver. Mlllennium grant wheelchair This grant is in relation to the wheelchair rugby project. The project's aim is to fund taster sessK)ns al local community venues across 3 local authorities. Thg project is aimed at including 8 - 16 year okts with physical and mental disabilities. Blg Lollery Fund This fund was awarded for use fft running a leadership programme lor disadvantaged younger people and specifically lo fund leadership awards, lulor training and equipment. Integrated Care Fund IICFI granl This grant, received from Swansea Bay University Hea5th Board, is provided with the aim ol Providing wider ranging integrated support lor citizens with care or support needs. The activities ol the Charity are focused towards those citizens with Dementia through the Sporting Memori&s groups, providing reminiscence and physical activity sessions as well as respfce lor family members. Schoolg Hub Offlcer The fund is in relation lo the employment ol a schools Hub OffI￿r whose role is lo develop, deliver, and co-ordinate a programme ol rugby activities with the aim ol increasing participatlDn in rugby in schools and improving the general wellbeing and academic achievement of those involved. Page 23 continued.. OSPREYS IN THE COMMUNITY NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 30 JUNE 2021 18. MOVEMENT IN FUNDS- contlnued The funding was lo be ulilised lo help Create a partnership which aitlls lo improve employmgnl outcomes, or prospects of lulure employment for Iong-term unemployed individuals. PHW Mentsl Hgallh This grant was provided to assist in the purpose of supporting mental health and wellbeing, though online materids, case studies and pod casts. Velerans This grant was provided to support mental health. communicating and activlty lor veterans. RELATED PARTY DISCLOSURES During the year, the charity received income from and incurred CDSts of £123,00012020 - £28,266) and £6.83312020 - £25,276) respectively in relation to Ospreys Rugby Limited. At the balance sheet dale, an amount of £1,08212020 - £1951 was owed lo Ospreys Rugby Limited. 20. ULTIMATE CONTROLLING PARTY The controlling party is Ospreys Rugby Limited, as the sole subscriber and guaTanlor ol the charity. The principal activity ol Ospreys Rugby Lilllited is the operation ol a pro18ssional rugby regional team, together wbth associated activities. The registered office address of Ospreys Rugby Limited is: Liberty Stadium, Landore, Swansea, SA1 2FA Financial statements lor Ospreys rugby Limited are available al Companies House via.. www.gov.uklgovernmenvorganisalionslcompanies-hoLJSB. Page 24 ## **OSPREYS IN THE COMMUNITY** ## **ANNUAL STATUTORY FINANCIAL STATEMENTS** ## **30[TH] JUNE 2021** An independent examination is an external review of the charity’s accounts and is carried out by an independent person with the requisite ability and practical expertise to carry out a competent examination. Independent examination provides a higher level of assurance than an audit exemption report, but is a less onerous form of scrutiny than an audit. The examiner is not required to form an opinion as to whether the accounts show a true and fair view. Rather, the objective of the examination is to enable the examiner to state whether, on the basis of procedures carried out, anything has come to his or her attention that causes him/her to believe that the accounts are not prepared, in all material respects, in accordance with the financial reporting framework. In other words, it is a form of negative assurance. Other matters which may cause concern are reported on an exception basis, if they arise during the course of the examination. This summary presents our findings and recommendations that arose out of our examination of the charity’s accounts for the year ended 30[th] June 2021. Please note that this report has been prepared for the sole use of Ospreys in the Community and it must not be disclosed to third parties, quoted or referred to, without our prior written consent. No responsibility is assumed by us to any other person. |**Observation**|**Impact**|**Recommendation and 2022progress**| |---|---|---| |The charity is partially exempt for
VAT purposes, as it has a mixture
of standard rated and exempt
income streams. This means that
the charity cannot reclaim all of
the input VAT on its expenditure,
subject to annual de-minimus
levels.
We have previously highlighted
the fact that partial exemption
calculations and records were not
being maintained, as part of our
recommendations arising from
thepreviousyear’s Independent|The charity is at risk of incurring penalties in relation to the incorrect
accounting for VAT.
As the net errors are not considered to be significant for reporting purposes,
we do not assess at this stage that any reporting is necessary to the Charity
Commission.
However, if VAT errors became material, it should be noted that ‘failure(s) of
internal controls, including failure(s) in charity governance, that resulted in,
or could give rise to, a material loss or misappropriation of charitable funds,
or which leads to significant charitable funds being put at major risk’ is an
area that the Charity Commission have identified as a Matter of Significant
Concern, which would result in the need for a Whistle Blowing report by
both the trustees and the Independent Examiner.|We have undertaken a detailed
review and recalculation of the each
quarter’s VAT return for the four
years from August 2017 to May 2021
and have prepared draft
correspondence to be sent to HMRC.
However, this calculation now needs
to be updated to May 2022 and this
is being progressed.
Management are considering
whether the charity should
deregister for VAT,subsequent to all| ## **OSPREYS IN THE COMMUNITY** ## **ANNUAL STATUTORY FINANCIAL STATEMENTS** ## **30[TH] JUNE 2020** |Examination. We also previously
identified that output VAT has
been declared and paid over to
HMRC on exempt income
streams.||necessary communication with
HMRC and a ‘cost v benefit’
calculation is in progress.| |---|---|---| |There are significant levels of
restricted reserves carried
forward. This may be because
projects are ongoing or funding
periods do not coincide with the
period end.|There is the risk of:
(1) Unspent grant monies being clawed back by the funder
(2) That the funds are in surplus due to expenditure being incorrectly
allocated.|We understand that restricted funds
have accumulated due to the
restrictions on activities as a result of
the pandemic. We have been
informed that management have
discussed unspent funds with the
relevant funders and obtained
agreement to spend surplus monies
within 2021/22.
We recommend that carried forward
restricted funds are reviewed at least
annually.| |K A Napieralla is twice shown as
director on Companies House
and one of the entries appears to
disclose hispersonal address.|The duplicate entry is obviously an error and there is no requirement to
disclose personal addresses on the public register.|Amend Companies House records
accordingly.| If you wish to discuss the above points in more detail, please do not hesitate to contact Rachel Doyle on rachel.doyle@geraldthomas.co.uk or via the office telephone number.