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2023-05-31-accounts

CHARITY REGISTRATION NUMBER: 1183432

FC Hartlepool CIO Unaudited Financial Statements

31 May 2023

CENSIS

Chartered accountants Exchange Building 66 Church Street Hartlepool TS24 7DN

FC Hartlepool CIO

Financial Statements

Year ended 31 May 2023

Page
Trustees' annual report 1
Independent examiner's report to the trustees 4
Statement of financial activities 5
Statement of financial position 6
Notes to the financial statements 7

FC Hartlepool CIO

Trustees' Annual Report

Year ended 31 May 2023

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 May 2023.

Reference and administrative details

Registered charity name FC Hartlepool CIO Charity registration number 1183432 Principal office Exchange Building 66 Church Street Hartlepool TS24 7DN

The trustees

Independent examiner

Mr S Shaheen Mr J Gould Mr T Hill Mr P Hackwell Mr C Birbeck Censis Exchange Building 66 Church Street Hartlepool TS24 7DN

Structure, governance and management

The entity is a Charitable Incorporated Organisation, registered with the Charities Commission of England & Wales on 15 May 2019.

The organisation primarily operates as a community football club and as such is also governed by the regional Football Association, that being the Durham FA.

FC Hartlepool CIO is managed by committee with the ultimate responsibility of the entity being with the named trustees.

Objectives and activities

The object of the CIO is the promotion of community participation in health and recreation in particular by the provision of facilities for the playing of football and other sports capable of promoting physical health and fitness.

1

FC Hartlepool CIO

Trustees' Annual Report (continued)

Year ended 31 May 2023

Achievements and performance

The charity has continued to develop and to grow despite the exceptionally difficult circumstances that all sectors have faced in recent years.

The charity has maintained its commitment to the development of Grayfields, having implemented various infrastructure upgrades and expanding the site usage significantly through the organic growth in participants operating under the FC banner, in addition to engaging with several local community support entities whom now also regard Grayfields as their central hub for the community driven services.

FC Hartlepool is fast becoming an important institution at the centre of helping communities within our great town.

Our community Football Club now hosts more than 40 teams in addition to a thriving 'FC Kickers' section collectively having a huge positive impact of the health and well being of around 500 children and young people in and around Hartlepool.

The structure that has been set will facilitate controlled and sustained growth from both football operations and community engagement perspectives in each year that we continue to operate.

Our pool of qualified (and soon to be qualified) coaches continues to grow in line with our operations in general.

Looking forward, the charity has grand designs of expanding its services across the local and wider community both through our core offering of Football orientated services, but also through further engagement with other third sector entities and the commencement of numerous social enrichment projects.

The clubs' adult male first team achieved promotion to the Northern League at the conclusion of the 2022/23 football season. This is a huge achievement for the club and will prove to be of great benefit to Hartlepool in terms of exposure in the sporting world, with the town having no presence in Step 6 of the football pyramid for a number of decades. The promotion came with great off-field challenges in terms of ensuring the site met facility standards to allow entry into the Northern League though through the support of the Football Foundation, local businesses, trusts, and our valued network of volunteers all challenges were surmounted.

Sic Itur Ad Astra.

Financial review

The unrestricted reserves of the charity at 31 May 2023 amounted to £124,764 of which free reserves (i.e. those not tied up in fixed assets and designated funds) amounted to £50,847.

The designated funds amount to £34,121 representing:

2023
£
Team Funds 31,106
Sinking Fund 3,015

2

FC Hartlepool CIO

Trustees' Annual Report (continued)

Year ended 31 May 2023

The trustees' annual report was approved on 25 September 2024 and signed on behalf of the board of trustees by:

Mr S Shaheen Mr J Gould Trustee Trustee

3

FC Hartlepool CIO

Independent Examiner's Report to the Trustees of FC Hartlepool CIO

Year ended 31 May 2023

I report to the trustees on my examination of the financial statements of FC Hartlepool CIO ('the charity') for the year ended 31 May 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Censis Independent Examiner Exchange Building 66 Church Street Hartlepool TS24 7DN

4

FC Hartlepool CIO

Statement of Financial Activities

Year ended 31 May 2023

2023 2022
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 32,719 21,156 53,875 65,401
Other trading activities 5 131,630 131,630 81,653
Investment income 6 957 957 86
Other income 7 1,164 1,164 1,350
   
Total income 166,470 21,156 187,626 148,490
   
Expenditure
Expenditure on charitable activities 8 143,467 20,640 164,107 135,829
   
Total expenditure 143,467 20,640 164,107 135,829
   
   
Net income and net movement in funds 23,003 516 23,519 12,661
   
Reconciliation of funds
Total funds brought forward 101,761 4,464 106,225 93,564
   
Total funds carried forward 124,764 4,980 129,744 106,225
   

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 7 to 18 form part of these financial statements.

5

FC Hartlepool CIO

Statement of Financial Position

31 May 2023

2023 2022
Note £ £
Fixed assets
Tangible fixed assets 12 73,917 52,283
Investments 13 200
 
74,117 52,283
Current assets
Debtors 14 27,387 12,508
Cash at bank and in hand 54,927 42,692
 
82,314 55,200
Creditors: amounts falling due within one year 15 26,687 1,258
 
Net current assets 55,627 53,942
 
Total assets less current liabilities 129,744 106,225
 
Funds of the charity
Restricted funds 4,980 4,464
Unrestricted funds 124,764 101,761
 
Total charity funds 17 129,744

106,225


These financial statements were approved by the board of trustees and authorised for issue on 25 September 2024, and are signed on behalf of the board by:

Mr S Shaheen Trustee

Mr J Gould Trustee

The notes on pages 7 to 18 form part of these financial statements.

6

FC Hartlepool CIO

Notes to the Financial Statements

Year ended 31 May 2023

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Exchange Building, 66 Church Street, Hartlepool, TS24 7DN.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

7

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

8

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Improvements to leasehold - Over terms of lease Plant and machinery - 20% reducing balance Fixtures and fittings - 20% reducing balance Equipment - 20% reducing balance

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.

Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.

Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

9

Notes to the Financial Statements (continued)

FC Hartlepool CIO

Year ended 31 May 2023

3. Accounting policies (continued)

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

10

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

3. Accounting policies (continued)

Financial instruments (continued)

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Donations
Donations and sponsors 31,219 31,219
Grants
Football Foundation 9,736 9,736
Tees Valley Combined 3,000 3,000
East Durham College 500 500
Arnold Clarke 1,000 1,000
Sported Foundation 2,000 2,000
Grantscape 4,980 4,980
Charities Trust 940 940
Hartlepool Borough Council 500 500
  
32,719 21,156 53,875
  

11

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

4. Donations and legacies (continued)

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Donations
Donations and sponsors 10,675 10,675
Grants
Grants receivable 4,000 4,000
Football Foundation 36,805 36,805
PFC Trust 3,900 3,900
Co Durham Community Fund 2,021 2,021
Street Games 6,500 6,500
Education & Skills Funding Agency 1,500 1,500
  
14,675 50,726 65,401
  

5. Other trading activities

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Player subscriptions & registration 68,077 68,077 50,487 50,487
Fundraising & events 39,857 39,857 11,852 11,852
Facility hire 23,696 23,696 19,314 19,314
   
131,630 131,630 81,653 81,653
   
6. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Bank interest receivable 957 957 86 86
   
7. Other income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Prize Winnings 25 25 535 535
Misc Income 1,139 1,139 815 815
   
1,164 1,164 1,350 1,350
   

12

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

8. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Football operations 143,467 143,467
Football Foundation - Groundworks 12,700 12,700
Education & Skills 1,500 1,500
Tees Valley Combined 3,000 3,000
East Durham College 500 500
Sported Foundation 2,000 2,000
Grantscape 940 940
  
143,467 20,640 164,107
  
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Football operations 91,741 91,741
Football Foundation - Groundworks 11,567 11,567
Co Durham Community Fund - Made by Sport 2,021 2,021
PFC Trust - Salary Costs 24,000 24,000
Street Games - Affordable Sessions 1,500 1,500
Street Games - Inequality 5,000 5,000
  
91,741 44,088 135,829
  
9. Net income
Net income is stated after charging/(crediting):
2023 2022
£ £
Depreciation of tangible fixed assets 8,675 7,964
 
10. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2023 2022
£ £
Wages and salaries 28,292 28,499
Employer contributions to pension plans 601 411
 
28,893 28,910
 

13

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

10. Staff costs (continued)

The average head count of employees during the year was 1 (2022: 1).

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

11. Trustee remuneration and expenses

All trustees provide their services on a volunteer basis and therefore, no remuneration was paid.

12. Tangible fixed assets

Improve-
ments to Plant and Fixtures and
leasehold machinery fittings Equipment Total
£ £ £ £ £
Cost
At 1 June 2022 30,998 23,246 6,793 61,037
Additions 28,226 2,083 30,309
    
At 31 May 2023 28,226 30,998 23,246 8,876 91,346
    
Depreciation
At 1 June 2022 4,235 2,712 1,807 8,754
Charge for the year 203 5,353 2,053 1,066 8,675
    
At 31 May 2023 203 9,588 4,765 2,873 17,429
    
Carrying amount
At 31 May 2023 28,023 21,410 18,481 6,003 73,917
    
At 31 May 2022 26,763 20,534 4,986 52,283
    

14

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

13. Investments

Fixed asset investments represent shares held in the charity's wholly owned subsidiary FCH Enterprises Limited.

FCH Enterprises is a trading company that operates within the hospitality sector, predominantly through what is regarded as FC Hartlepool's club house.

The subsidiary details are as follows:

Trading address: Grayfields Sports Pavilion Jesmond Gardens Hartlepool TS24 8PJ

Registered Office: Exchange Building 66 Church Street Hartlepool TS24 7DN

Company Reg No: 13383702

All statutory information and published financials of FCH Enterprises Limited is on public record and can be found on the Companies House register.

14. Debtors

2023 2022
£ £
Trade debtors 27,387 5,200
Other debtors 7,308
 
27,387 12,508
 

15. Creditors: amounts falling due within one year

2023 2022
£ £
Social security and other taxes 1,557 1,128
Other Loan 25,000
Other creditors 130 130
 
26,687 1,258
 

16. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £601 (2022: £411).

15

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

17. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At
1 June 2022 Income Expenditure Transfers 31 May 2023
£ £ £ £ £
General 29,790 152,037 (134,792) (30,309) 16,726
Team Funds 19,688 11,418 31,106
Sinking Fund 3,015 3,015
Fixed Asset Pool 52,283 (8,675) 30,309 73,917
    
101,761 166,470 (143,467) 124,764
    
At At
1 June 2021 Income Expenditure Transfers 31 May 2022
£ £ £ £ £
General 4,879 95,201 (59,241) (11,049) 29,790
Team Funds 17,125 2,563 19,688
Strip Sponsorship 11,500 (11,500)
Clubhouse Fundraising 21,000 (21,000)
Fixed Asset Pool 12,984 39,299 52,283
    
67,488 97,764 (91,741) 28,250 101,761
    

16

FC Hartlepool CIO

Notes to the Financial Statements (continued)

Year ended 31 May 2023

17. Analysis of charitable funds (continued)

Restricted funds
At At
1 June 2022 Income Expenditure Transfers 31 May 2023
£ £ £ £ £
Football Foundation -
Surfaces 2,964 11,236 (14,200)
Education & Skills -
Develop womens game 1,500 (1,500)
Tees Valley Combined -
Equipment 3,000 (3,000)
East Durham College -
Education 500 (500)
Sported Foundation 500 (500)
Grantscape 4,980 4,980
Charities Trust 940 (940)
    
4,464 21,156 (20,640) 4,980
    
At At
1 June 2021 Income Expenditure Transfers 31 May 2022
£ £ £ £ £
Sir James Knott Trust 2,076 (2,076)
PFC Trust 24,000 (24,000)
Football Foundation 22,274 (22,274)
Street Games -
Affordable Sessions 1,500 (1,500)
PFC Trust - Equipment 3,900 (3,900)
Football Foundation -
Surfaces 14,531 (11,567) 2,964
County Durham
Coomunity Fund - Made
by Sport 2,021 (2,021)
Street Games -
Inequality 5,000 (5,000)
Education & Skills -
Develop womens game 1,500 1,500
    
26,076 50,726 (44,088) (28,250) 4,464
    

17

Notes to the Financial Statements (continued)

FC Hartlepool CIO

Year ended 31 May 2023

18. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Tangible fixed assets 73,917 73,917
Investments 200 200
Current assets 77,334 4,980 82,314
Creditors less than 1 year (26,687) (26,687)
  
Net assets 124,764 4,980 129,744
  
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Tangible fixed assets 52,283 52,283
Current assets 50,736 4,464 55,200
Creditors less than 1 year (1,258) (1,258)
  
Net assets 101,761 4,464 106,225
  

18