Commonwealth Sport Foundation
Trustees' Report and Financial Statements Year ended 31[st] March 2022
Charity Number 1173238 Company Number 10363544
Commonwealth Sport Foundation
Report and financial statements for the year ended 31[st] March 2022
Contents
Page:
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1 Legal and Administrative Information
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2 Report of the Trustees
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7 Independent Auditor's Report
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10 Statement of Financial activities – Year ended 31 March 2022
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11 Charity Balance Sheet
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12 Charity Cash Flow Statement
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13 Notes Forming Part of the Financial Statements
Commonwealth Sport Foundation
Legal and administrative information
Trustees
Dame Louise L Martin DBE Christopher J Jenkins Jeya Wilson Gurpreet Bhatia DL Kylie Bates (Appointed 16 June 2022) Christian N Brodie (resigned 17 October 2022) Baroness Tanni Grey-Thompson (resigned 31 August 2022)
Registered Charity Number
1173238 (England and Wales)
Company Number
10363544
Principal Address
55-58 Pall Mall London England SW1Y 5JH
Auditor
Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG
Solicitors
Bates Wells 10 Queen Street Place London EC4R 1AG
Bankers
HSBC City of London Corporate Centre Level 6 71 Queen Victoria Street London EC4V 4AY
1
Commonwealth Sport Foundation
Report of the Trustees for the year ended 31 March 2022
The Trustees present their report along with the financial statements of the Commonwealth Sport Foundation (“CSF”) for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Structure, Governance and Management
The primary purpose of the CSF is to support sport for development initiatives across the Commonwealth in line with the Commonwealth Sport Movement’s values.
The Trustees who have served during the year and since the year end are set out on page 1. The Board currently comprises five Trustees in total with three having been appointed as independent Trustees. Christopher Jenkins was appointed Chair on October 17 2022. Gurpreet Bhatia was appointed to the Board in July 2021 as the nominee of the Birmingham 2022 Organising Committee, and Kylie Bates was appointed in June 2022. All Trustees are formally approved by the Commonwealth Games Federation (CGF) as sole member of CSF.
The Chair of the Board of Trustees is responsible for the induction of any new Trustee which involves awareness of a Trustee's responsibilities, the governing document, administrative procedures, the history, and philosophical approach of the charity. New Trustees receive copies of the previous years' annual report and accounts and a copy of the Charity Commission leaflet 'The Essential Trustee: What You Need to Know'. The charity’s advisors, Bates Wells, delivered training to the Board in June 2021 which included topics on Trustee duties and liability, policies and role of the Board. Trustees’ responsibilities include the requirement to provide all appropriate information to the external auditors Haysmacintyre LLP on request.
The CSF has updated its business plan to carry it through to the end of 2022. An interim Executive Director was recruited in July 2021 and from August 31 2022 moved to part time following the completion of the Birmingham 2022 Commonwealth Games . A Head of Safeguarding for the Commonwealth Sport Movement joined in July 2021 for a two-year fixed term and is a shared role between CSF and the CGF. An interim Head of Philanthropy joined in March 2022 for six months on a part time basis.
The Trustees meet quarterly, and currently meet virtually due to Trustees being resident in multiple countries as well as travel restrictions due to COVID-19. An Audit and Risk Committee was formed in December 2021 which will also meet quarterly, with oversight of audit, risk and financial management. Ad hoc matters that arise between scheduled Board meetings are reviewed as required via email or virtual meeting throughout the year, and any immediate issues or points for discussion are dealt with as necessary.
The Trustees are aware of their responsibilities for ensuring the charity operates for the public benefit and are cognisant of the Charity Commission guidance in this area. The sections of this report relating to the CSF’s charitable activities set out how we further achieve our charitable purpose for public benefit and to support our missions and aims to promote sport for development initiatives in the Commonwealth. Advice is sought from our legal advisor Bates Wells when necessary to ensure that the charity purpose is being achieved.
During the financial year the charity has not actively raised funds from the public.
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Report of the Trustees for the year ended 31 March 2022
Commonwealth Sport Foundation
Risk Management
The Trustees oversee all risk for CSF, with the newly formed Audit and Risk Committee taking on management of our risk framework. Trustees consider the principal risks to be; the lack of, or delay in securing, a Host for future Commonwealth Games; use of grants awarded to third party organisations and the associated reputational risk that could arise from the use of funds by third parties for unapproved activities outside of the charity’s objectives; lack of diversified income from multiple sources. Looking forward to future fundraising, the economic impact of COVID-19 has delayed the quantum and timing of donations and support. It is too early to quantify any long-term financial impacts, however, the Trustees note the short-term impact of delayed fundraising.
The Trustees have continued the appointment of Haysmacintyre LLP as external auditor.
The Trustees note that all programmes supported by the CSF undergo a thorough review of funding applications presented, to ensure the proposed activities meet the charity’s objectives. Grant agreements are in place to oversee all conditions associated with any approved grant and ensure appropriate due diligence. The Trustees report that there are appropriate measures in place to monitor and review programme oversight.
For all programmes supported via funding received from the UK Government’s Department of Digital, Culture, Media and Sport, the Birmingham 2022 Development Working Group provides additional oversight to these programmes. The Birmingham 2022 Development Working Group comprises members from relevant stakeholders, including Birmingham 2022, UK Sport and an athlete representative, which are themselves subject to a high level of public scrutiny and audit.
Objectives and Activities
The objectives of the CSF are for the public benefit:
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to promote community participation in health recreation by providing facilities for participating in healthy sports ("facilities" means land, buildings, equipment and organising sporting events);
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provide and assist in providing facilities for sport, recreation or other leisure time occupation of such persons who have need for such facilities by reason of their youth, age, infirmity or disablement, poverty or social or economic circumstance or for the public at large in the interests of social welfare and with the object of improving their conditions of life;
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to relieve people with physical sensory and mental disabilities by encouraging and facilitating their participation in sporting activities, sporting programmes and assisting in the provision of training, facilities and equipment;
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to advance the education of children and young people; and
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• to advance any other purpose that is charitable in accordance with the laws of England and Wales.
Through the CSF an opportunity exists to use sport as an inclusive and inspiring catalyst for creating peaceful, sustainable and prosperous communities across the Commonwealth. The CSF’s work addresses some of the world’s largest challenges and supports sport-focused projects covering five priority impact areas: Youth Empowerment; Equal Rights; Historical Injustice; Small States and Island States; and Sustainable Cities and Communities. Our five priority areas are centred around sport and informed by our unique Commonwealth geography, diversity and shared history. We believe that Sport is just the beginning.
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Commonwealth Sport Foundation
Report of the Trustees for the year ended 31 March 2022
Objectives and Activities (continued)
The Trustees report that in the year CSF has supported eight programmes, including;
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Game Changers - Programming for Commonwealth Games Associations to leverage and to support socially focused initiatives to achieve impact locally. While encouraging a partnerships approach, sustainable programming will focus on Commonwealth Games Associations identified needs – education, equality, skills, leadership, communities, climate change etc.
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Commonwealth Sport Women’s Leadership Programme - Supporting 20 women from the Commonwealth on their personal development journeys to being strong role models and agents of change that guide the next generation of women in sport. By awarding scholarships, we are supporting emerging female leaders to access appropriate educational and experiential opportunities which will empower them as leaders for equal rights within their sport and communities.
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eqUIP - Commonwealth Sport Youth Leadership, a Commonwealth wide approach to develop youth leaders through internship and employment opportunities empowering them to make a positive contribution to communities through sport.
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GAPS - Commonwealth Athlete Inclusion Programme, offering emerging Commonwealth athletes, coaches and support staff access to additional skills, knowledge and resources with the aim of advancing education, relieving disabilities and developing amateur sport which becomes a catalyst for positive social change.
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B2022 Jobs and Skills Academy - Delivered by Birmingham 2022 Organising Committee as Host City of the 2022 Commonwealth Games, supports local people with training, including higher level skills training and high-quality work experience to help them to access key Games roles and promote volunteering as a key way to develop skills and experience.
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B2022 Bring the Power - Birmingham 2022’s Youth Programme creates pathways for children and young people to get closer to the Games and be a part of this once in a lifetime celebration of sport and culture.
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Pride House - Creating a safe space and welcoming, inclusive environment for LGBTIQ+ supporters, athletes, staff, volunteers and organisations at the Birmingham 2022 Commonwealth Games.
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The Princes Trust - Three Youth Summits, the events aim to increase young people’s awareness and engagement in the Commonwealth Games and will inform a youth manifesto offering recommendations for future Games.
.
Grants
Grants awarded this year are related to the Birmingham 2022 of £190,000 (2021 - £nil), Commonwealth Women’s Leadership Program of £85,000 (2021 - £nil), Game changers of £71,410 (2021 - £99,581), Pride House of £50,000 (2021 - £nil) and Prince’s Trust of £50,000 for the year (2021 - £nil).
Charitable Activities
During the year, the Trustees authorised payments for programmes and associated managerial costs totalling £1,287,218 (2021 - £335,788).
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Commonwealth Sport Foundation
Report of the Trustees
for the year ended 31 March 2022
Achievements and Performance
During the year, the Trustees recruited an Interim Executive Director who has led day to day management of the CSF. Work undertaken includes updating our business plan, a strategic review of fundraising opportunities, creation of a philanthropy programme to support fundraising and continued development of governance structures. Partnerships with Birmingham 2022 Commonwealth Games have also been finalised which include a tri partite fundraising campaign in the lead up and during the Games in 2022, working alongside two UK charities.
CSF has begun supporting two new programmes, Pride House and the Commonwealth Sport Women’s Leadership Programme, whilst continuing to expand support for existing programmes Game Changers, GAPS and eqUIP which are now operational in all six Commonwealth regions.
Funds Development
The CSF was successful in applying for grants to support its activities.
During the financial year, the CSF undertook minimal fundraising activities, in part due to continued restrictions caused by the COVID-19 pandemic. One dinner on behalf of CSF was hosted in November 2022 by a supporter of the charity.
CSF is one of three official charity partners of the Birmingham 2022 Games and may receive donations via ticket and merchandise sales aligned to the Games.
Financial Review
The total funds of the CSF at 31st March 2022 stood at £1,664,092 (2021 - £1,161,653), of which £194,045 (2021 - £Nil) represents ‘free’ unrestricted reserves. The restricted reserves are restricted to support sport and development within the commonwealth. The Trustees will continue to monitor the level of general reserves of the Trust to assess the level of grant making in the future.
During the year, the CSF received income of £1,878,585 (2021 - £1,295,000), of which £2,585 (2021 - £Nil) represents ‘free’ unrestricted funds. A total of £1,287,218 (2021 - £335,788) was committed to charitable activities and related expenditure. This total excluded governance costs of £88,928 (2021 - £25,754).
Plans for Future Periods
The top organisational priorities for 2022-23 are summarised below.
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Governance: manage risk and meet statutory and compliance obligations;
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Legacy: maximise the success and positive impact of Birmingham 2022;
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Fundraising: establish financial stability through generation of restricted and unrestricted funds; and
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Impact: deliver prioritised strategic projects, partnerships and communications in line with the CSF’s mission.
The Trustees will continue to fulfil the objectives of the CSF by applying all future income to fund projects that aim to support Commonwealth communities via sport for development initiatives. CSF is working closely with the Commonwealth Games Federation on their wider Strategic Plan process. The Trustees will continue to monitor the success of the projects they have funded in earlier periods and review and revise plans according to requisite funding opportunities. The Trustees note and are continuing to monitor the impact of COVID-19 in regards future plans and operations.
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Commonwealth Sport Foundation
Report of the Trustees for the year ended 31 March 2022
Trustees' Responsibilities in Relation to the Financial Statements
The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice, including FRS 102 the Financial Reporting Standard applicable in the UK and the Republic of Ireland.
Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the charity's financial position at the end of the year. In preparing those financial statements, the Trustees are required to:
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Select suitable accounting policies and then apply consistently;
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Make judgements and estimates that are reasonable and prudent;
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Observe the methods and principles in the Charities Statement Of Recognised Practice;
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State whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Post Balance Sheet Events and Going Concern
The Trustees and management team have worked extensively to navigate the impact and mitigate risks associated with the COVID-19 pandemic, which has continued to impact aspects of our work during this reporting period. The CSF has continued to operate using digital and remote workings during the year and it is noted this has resulted in nominal travel and meeting costs for the period. However, the Trustees recognise that Covid implications are widespread, are being seen in many multi-sport and other events worldwide. The Trustees are pleased to report a strong cash flow position at year end. The impacts of COVID-19, post balance sheet date events and impacts on going concern are being closely monitored with particular focus on the appointment by the CGF of a Host for future iterations of the Commonwealth Games, and future donor and fundraising opportunities.
Approved by the Trustees and signed on their behalf:
Christopher J Jenkins
Trustee
Date:
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Commonwealth Sport Foundation
Independent auditor’s report to the members of the Commonwealth Sport Foundation
Opinion
We have audited the financial statements of Commonwealth Sport Foundation for the year ended 31 March 2022 which comprise the Statement of financial Activities, the Balance Sheet, the Statement of Cash flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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Commonwealth Sport Foundation
Independent auditor’s report to the members of the Commonwealth Sport Foundation
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept by the charitable company; or
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the charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement set out on pages 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.
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Commonwealth Sport Foundation
Independent auditor’s report to the members of the Commonwealth Sport Foundation
We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in certain accounting estimates and judgements such as the income recognition policy applied to grant income. Audit procedures performed by the engagement team included:
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Inspecting correspondence with regulators and tax authorities;
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Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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Evaluating management’s controls designed to prevent and detect irregularities;
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Identifying and testing journals; and
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Challenging assumptions and judgements made by management in their critical accounting estimates including review of how grant income has been recognised at the year end.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Thomas Wilson (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP
10 Queen Street Place London EC4R 1AG
Date: 2 December 2022
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Commonwealth Sport Foundation
Statement of financial activities for the year ended 31 March 2022
| Note Income from: Other income 2 Total income Expenditure on: Charitable expenditure 3 Total expenditure 3 Net movement in funds Funds balances brought forward at 1 April Funds carried forward 31st March |
Unrestricted Funds 2022 2021 £ £ 2,585 - _ _ 2,585 - _ _ 196,630 - _ _ 196,630 - _ _ (194,045) - - - _ _ (194,045) - |
Restricted 2022 £ 1,876,000 _ 1,876,000 _ 1,179,516 _ 1,179,516 _ 696,484 1,161,653 __ 1,858,137 |
Funds 2021 £ 1,295,000 _ 1,295,000 _ 361,542 _ 361,542 _ 933,458 228,195 __ 1,161,653 |
Total Funds 2022 2021 £ £ 1,878,585 1,295,000 __ __ 1,878,585 1,295,000 _ _ 1,376,146 361,542 __ __ 1,376,146 361,542 _ _ 502,439 933,458 1,161,653 228,195 __ __ 1,664,092 1,161,653 |
Total Funds 2022 2021 £ £ 1,878,585 1,295,000 __ __ 1,878,585 1,295,000 _ _ 1,376,146 361,542 __ __ 1,376,146 361,542 _ _ 502,439 933,458 1,161,653 228,195 __ __ 1,664,092 1,161,653 |
|---|---|---|---|---|---|
| __ 361,542 __ 361,542 |
|||||
| __ 933,458 228,195 __ 1,161,653 |
All amounts relate to continuing activities.
The CSF had no recognised gains or losses for the financial year and as such a statement of other comprehensive income has not been prepared.
The notes on pages 13 to 17 form part of these financial statements.
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Commonwealth Sport Foundation
Charity balance sheets as at 31 March 2022
| Charity Number 1173238 Company Number 10363544 Note Current assets Cash at bank Debtors 6 Creditors: amounts falling due within one year 7 Net current assets Total assets less current liabilities Total net assets Income funds Unrestricted funds - unrestricted 9 - restricted 9 |
Charity 2022 £ 283,188 1,750,000 __ 2,033,188 369,096 __ 1,664,092 __ 1,664,092 __ 1,664,092 __ (194,045) 1,858,137 __ 1,664,092 |
Charity 2021 £ 1,328,040 - __ 1,328,040 166,387 __ 1,161,653 __ 1,161,653 __ 1,161,653 |
|---|---|---|
| __ - 1,161,653 __ 1,161,653 |
Approved by the Trustees and authorised for issue on 29 November 2022 and signed on their behalf by:
______ Christopher J Jenkins
The notes on pages 13 to 17 form part of these financial statements.
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Commonwealth Sport Foundation
Charity cash flow statement as at 31 March 2022
| Note | Charity | Charity | |
|---|---|---|---|
| 2022 | 2021 | ||
| £ | £ | ||
| Cash flow from operating activities | |||
| Net movement in funds for the year | 502,439 | 933,458 | |
| Increase in trade and other receivables | 6 | (1,750,000) | - |
| Increase/(decrease) in trade and other payables | 7 | 202,709 | (120,418) |
| __ | __ | ||
| Net cash movement from operating activities | (1,044,852) | 813,040 | |
| __ | __ | ||
| Net (decrease)/increase in cash and cash equivalents | (1,044,852) | 813,040 | |
| Cash and cash equivalents at beginning of the year | 1,328,040 | 515,000 | |
| __ | __ | ||
| Cash and cash equivalents at the end of the year | |||
| 283,188 | 1,328,040 | ||
| __ | __ | ||
| Net Debt | |||
| At 1 April 2021 | Cash outflows | At 31 March 2022 | |
| £ | £ | £ | |
| Cash and cash equivalents | |||
| Cash at bank | 1,328,040 | (1,044,852) | 283,188 |
| __ | __ | __ | |
| 1,328,040 | (1,044,852) | 283,188 | |
| __ | __ | __ |
The notes on pages 13 to 17 form part of these financial statements.
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Commonwealth Sport Foundation
Notes forming part of the financial statements for year ended 31 March 2022
1 Accounting policies
The CSF was incorporated in the UK on 7 September 2016 and was registered as a Charity in England and Wales on 1 June 2017. Details of the company information can be found in page 1.
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied throughout the year presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (“FRS 102”) and comply with the charity's trust deed, the Charities Act 2011 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102.
Basis of preparation
These financial statements have been prepared using the historical cost convention except as disclosed in the accounting policies which indicate that certain items are shown at fair value.
The presentation currency of these financial statements is sterling (GBP).
All amounts in the financial statements have been rounded to the nearest £.
Significant judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Income
Grant income is recognised once the trust has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Where there are terms or conditions attached to a grant, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be satisfied until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Restricted funds
Where funds are received for specific purposes set out by the donor, these are shown as restricted income in the statement of financial activities. Expenditure for the purposes specified is applied against the income and any amounts unexpended at the balance sheet date are shown within restricted funds.
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Commonwealth Sport Foundation
Notes forming part of the financial statements for year ended 31 March 2022 continued)
1 Accounting policies (continued)
Unrestricted funds
Unrestricted funds are donations and other incoming resources received or generated for general charitable purposes.
Going concern
The revenue streams of the CSF are linked to the grant agreements arrangements referenced above and the cost-base is flexible in line with these arrangements. The Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The CSF therefore continues to adopt the going concern basis in preparing its financial statements.
The effect of COVID-19 and its impact on going concern has been considered by the Trustees in the Trustees’ Report on page 6.
Expenditure
Expenditure is accounted for when it is incurred with sufficient reliability that the cost can be measured and will be due and payable within the accounting period.
Support costs policy
Support costs, as summarised in notes 3 and 4, are allocated in accordance with the underlying entities to which they relate.
All costs attributable to the operation and day-to-day running of the CSF, including professional fees, insurance, irrecoverable VAT and storage costs, are disclosed within 'Charitable expenditure' and allocated against each category on a pro rata basis, proportional to the grants, issued in each category as a percentage of total grants awarded.
Governance costs comprise those costs incurred in the governance of the CSF and its assets and are primarily associated with constitutional and statutory requirements.
| 2 Income Grant Receipts - Restricted Donations Receipts - Unrestricted |
2022 £ 1,876,000 2,585 __ 1,878,585 |
2021 £ 1,295,000 - __ 1,295,000 |
|---|---|---|
There were Grants received during the year of £1,878,585 (2021 - £1,295,000) of which £2,585 (2021 - £Nil) was unrestricted and £1,876,000 (2021 - £1,295,000) was restricted.
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Commonwealth Sport Foundation
Notes forming part of the financial statements For year ended 31 March 2022 (continued)
3 Expenditure
Charitable expenditure was £1,376,146 (2021 - £361,542) of which £196,630 (2021 - £Nil) was unrestricted, £1,179,516 (2021 - £361,542) was restricted.
The CSF had no employees during the year (2021: none).
4 Support costs
| Management and administration | 2022 £ 157,828 __ 157,828 |
2021 £ 99,585 __ 99,585 |
|---|---|---|
The support costs include an allocation of restricted and unrestricted project specific costs for the administration of the projects supported by the CSF during the year, a management charge for shared services and managerial support and bank and exchange fees.
5 Governance
| Audit fees Accounting fees Legal fees |
2022 £ 4,200 17,800 66,928 __ 88,928 |
2021 £ 3,900 9,400 12,454 __ 25,754 |
|---|---|---|
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Commonwealth Sport Foundation
Notes forming part of the financial statements for year ended 31 March 2022 (continued)
6 Debtors
| Accrued income 7 Creditors Amounts owed to group entity Accruals and deferred income 8 Statement of funds Fund balances bought forward £ Restricted: DCMS 1,139,817 UK Sport 21,836 Oak Foundation - Wates Foundation - Unrestricted - __ Total funds 1,161,653 |
2022 £ 1,750,000 __ 1,750,000 _ 2022 £ 258,351 110,745 __ 369,096 _ Income Expenditure £ £ 1,750,000 1,099,188 30,000 15,660 89,000 57,668 7,000 7,000 2,585 196,630 __ ___ 1,878,585 1,376,146 |
2021 £ - _ - _ 2021 £ 69,137 97,250 _ 166,387 _ Fund balances carried forward £ 1,790,629 36,176 31,332 - (194,045) __ 1,664,092 |
|---|---|---|
Restricted funds:-
The Trustees recognize the grants received during the year as restricted funds to support Sport and Development within the Commonwealth.
The Purpose of restricted funds included :-
DCMS:- supporting sport and development programmes across the Commonwealth, UK Sport:- supporting GAPS Africa programme,
Oak Foundation:- supporting the Head of Safeguarding post and associated projects, Wates Foundation:- supporting fundraising and strategic planning.
All of the charity’s net assets from its inception until 31 March 2022 were held in restricted funds.
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Commonwealth Sport Foundation
Notes forming part of the financial statements for year ended 31 March 2022 (continued)
9 Transactions concerning Trustees
During the year, none of the Trustees (or any person connected to them) received any remuneration or reimbursed expenses (2021: none).
10 Analysis of net assets between funds
| Current assets Creditors falling due within one year |
Unrestricted Funds 2022 2021 £ £ 2,585 - (196,630) - _ _ (194,045) - |
Restricted Funds 2022 2021 £ £ 2,030,603 1,328,040 (172,466) (166,387) _ _ 1,858,137 1,161,653 |
Total………………. 2022 2021 £ £ 2,033,188 1,328,040 (369,096) (166,387) _ _ 1,664,092 1,161,653 |
|---|---|---|---|
11 Ultimate parent undertaking and controlling party
The ultimate parent controlling party of the CSF, as its sole member, is the Commonwealth Games Federation, a company limited by guarantee in the UK.
Copies of the consolidated financial statements can be obtained from CGF at: 55-58 Pall Mall, London, England, SW1Y 5JH.
12 Related party transactions
CGF is a private company limited by guarantee. As at 31 March 2022, the CSF owed £258,351 (2021 - £69,137) to CGF due to intercompany transactions carried out in the year.
These transactions relate to CSF expenses paid by CGF. See table below for the movement in the year relating to amounts owed to CGF:
| Balance at start of the year Contractors & programme costs Management and governance fee Payments made during the year Balance at end of the year |
2022 £ 69,137 359,232 - (170,018) __ 258,351 |
2021 £ 278,555 112,101 43,000 (364,519) __ 69,137 |
|---|---|---|
There were no further related party transactions during the year or prior year that require disclosure.
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