Charity Registration No. 1189920
THE SPEEDOMICK FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
THE SPEEDOMICK FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr P Bibby (Chair) | (Appointed 12 June 2020) |
|---|---|---|
| Mr A Moss | (Appointed 12 June 2020) | |
| Mr A Bell | (Appointed 12 June 2020) | |
| Mr A Gough | (Appointed 1 July 2020) | |
| Charity number | 1189920 | |
| Principal address | c/o DSG, Chartered Accountants | |
| Castle Chambers | ||
| 43 Castle Street | ||
| Liverpool | ||
| L2 9TL | ||
| Independent examiner | Mr Peter Taaffe FCA CTA DChA | |
| BWM | ||
| Suite 5 | ||
| 12 Tithebarn Street | ||
| Liverpool | ||
| L2 2DT | ||
| Bankers | Triodos Bank | |
| Deanery Road | ||
| Bristol | ||
| BS1 5AS | ||
| Solicitors | MSB Solicitors Limited | |
| 17a-17b Allerton Road | ||
| Mossley Hill | ||
| Liverpool | ||
| L18 1LG | ||
| Accountants | DSG Chartered Accountants | |
| Castle Chambers | ||
| 43 Castle Street | ||
| Liverpool | ||
| L2 9TL |
THE SPEEDOMICK FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Statement of trustees' responsibilities | 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 12 |
THE SPEEDOMICK FOUNDATION
TRUSTEES' REPORT
FOR THE PERIOD ENDED 31 MARCH 2021
The trustees present their annual report and financial statements for the period ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ).
The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
Objectives and activities
The charity's objects as set out in its constitution are for the public benefit to advance such exclusively charitable purposes (according to the l aw of E ngland and W ales) as the trustees see fit from time to time including (but without limited the generality of the foregoing) by making grants to:
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Advance education;
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Prevent or relieve poverty; and/or
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Relieve those in need because of youth, age, ill-health, disability financial hardship or other disadvantage.
We look to provide grants to organisations in the UK to assist the provision of opportunities for young and or d isadvantaged people to help remove themselves from poverty .
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
SpeedoMick Foundation was formed as a charitable incorporated organisation to provide a more suitable vehicle for fundraising and grant making activities than the company through which fundraising was previously undertaken, being Speedo Mick CIC (Reg No 12300249).
Achievements and performance
The charity was formed in July 2020 and, due to the various Covid restrictions and lockdowns, was unable to undertake any substantive activity during the period to 31 March 2021. However, during the period, the charity received a substantial donation from Speedo Mick CIC being the majority of the funds raised by Michael Cullen during his heroic John O’Groats to Lands End walk in his speedos.
Over £260,000 has been donated to the Foundation which will take on the task of distributing the funds raised to such charities, the activities of which meet the aims of the Foundation, as well as undertaking further fund raising efforts. The intention is for the CIC to become dormant once all donation sources have been redirected to the Foundation.
A significant donation of £140,000 has been agreed from Bill Kenwright which has been gratefully received post period end. This together with other monies will be primarily used to provide grants to charities around the UK and Ireland who’s aims and objectives are aligned with those of the Foundation. Michael Cullen, AKA Speedo Mick, will be undertaking a 2000 mile ‘Giving Back Tour’ around the UK and Ireland taking in the five capital cities as well as many other regional towns and cities finishing in Liverpool in December 2021. The restrictions and lockdowns have given the charity the time to plan the Tour route, which starts in Scotland, and for Mick to get fit to undertake this huge challenge which will be a solo walk, once again in just his speedos. As well as ‘giving back’ monies raised from the initial John O’Groats to Lands End walk, Michael will be raising further funds to provide the charity with a firm base for its future.
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THE SPEEDOMICK FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021
Financial review
During the short period since formation, the charity has received the funds from Speedo Mick CIC and a significant donation from The AJ Bell Trust. At the period end a surplus of £281,650 was recorded.
Going concern
At the period end the charity's unrestricted funds were £281,650, Having considered the level of these funds, the board are confident that the charity will have sufficient funds to continue as a going concern.
Reserves
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the period.
Risk
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for future periods
As mentioned above, Michael Cullen will be donning his speedos to undertake a walk around the British Isles and Ireland to not only give back some of the monies previously raised but also to raise additional funds for the charity’s future. As part of this, Michael will be raising awareness of mental health issues in conjunction with a team from the BBC which will form the basis for a documentary to be broadcast in 2022.
Structure, governance and management
The charity is a charitable incorporated organisation , registered 12 June 2020 (Reference: CE022161)
The trustees who served during the period and up to the date of signature of the financial statements were:
Mr P Bibby (Chair) (Appointed 12 June 2020) Mr A Moss (Appointed 12 June 2020) Mr A Bell (Appointed 12 June 2020) Mr A Gough (Appointed 1 July 2020)
The trustees review the need for additional skills and experience by the board. When a gap in trustee skills is identified a recruitment process is undertaken.
The charity operates under the direction of the board of trustees, who delegate the day to day fundraising activities to Michael Cullen, who is employed by the charity in the role of Fundraising Manager/fundraiser. The grant making activity is at the discretion of the board.
The trustees' r eport was approved by the Board of Trustees.
Mr P Bibby (Chair) Mr A Moss Trustee Trustee 26 January 2022
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THE SPEEDOMICK FOUNDATION
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE PERIOD ENDED 31 MARCH 2021
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The 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 state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material 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 operation.
The trustees are responsible for keeping sufficient accounting records that 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 its Constitution. 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.
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THE SPEEDOMICK FOUNDATION
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE SPEEDOMICK FOUNDATION
I report to the trustees on my examination of the financial statements of The Speedomick Foundation (the charity) for the period ended 31 March 2021.
This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my examination, for this report, or for the opinions I have formed.
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 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared accounts in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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 financial statements to be reached.
Mr Peter Taaffe FCA CTA DChA Independent Examiner BWM Chartered Accountants
Suite 5 12 Tithebarn Street Liverpool L2 2DT
Dated: 27 January 2022
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THE SPEEDOMICK FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 MARCH 2021
| Unrestricted | ||
|---|---|---|
| funds | ||
| 2021 | ||
| Notes | £ |
|
| Income from: | ||
| Donations and legacies | 3 | 311,611 |
| Interest | 4 | 68 |
| Total income | 311,679 | |
| Expenditure on: | ||
| Charitable activities | 5 | 29,989 |
| Net income for the period/ | ||
| Net movement in funds | 281,690 | |
| Fund balances at 12 June 2020 | - | |
| Fund balances at 31 March 2021 | 281,690 |
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing activities.
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THE SPEEDOMICK FOUNDATION
BALANCE SHEET
AS AT 31 MARCH 2021
| 2021 Notes £ Current assets Debtors 10 1,046 Cash at bank and in hand 282,498 283,544 Creditors: amounts falling due within one year 11 (1,854) Net current assets Income funds Unrestricted funds The financial statements were approved by the Trustees on 26 January 2022 Mr P Bibby (Chair) Mr A Moss Trustee Trustee |
£ 281,690 281,690 281,690 |
|---|---|
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THE SPEEDOMICK FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021
1 Accounting policies
Charity information
The Speedomick Foundation is a charitable incorporated organisation, registered in England and Wales on 12 June 2020 (No: CE022161) and registered at the Charity Commission (No: 1189920). The principal office is c/o DSG, Chartered Accountants, Castle Chambers, 43 Castle Street, Liverpool, L2 9TL.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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THE SPEEDOMICK FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Governance costs include the costs of governance arrangements which relate to the general running of the charity and are primarily associated with constitutional and statutory requirements.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
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THE SPEEDOMICK FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
1.8 Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.
The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted | |
|---|---|
| funds | |
| 2021 | |
| £ | |
| Donations and gifts | 311,611 |
| Donations and gifts | |
| Speedo Mick CIC | 261,452 |
| AJ Bell Trust | 50,000 |
| Other | 159 |
| 311,611 |
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THE SPEEDOMICK FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021
4 Interest
| Unrestricted | |
|---|---|
| funds | |
| 2021 | |
| £ | |
| Interest receivable | 68 |
5 Charitable activities
| Charitable | |||
|---|---|---|---|
| Expenditure | |||
| 2021 | |||
| £ | |||
| Staff costs | 28,110 | ||
| Other c haritable expenditure | 218 | ||
| Legal and professional fees | 540 | ||
| Insurance | 161 | ||
| Share of governance costs (see note 6) | 960 | ||
| Unrestricted Funds | 29,989 | ||
| Support costs | |||
| Support | Governance |
2021 |
|
| costs | costs |
||
| £ | £ |
£ |
|
| Legal and professional | - | 960 |
960 |
6 Support costs
Governance costs includes payments to the independent examiners of £ 96 0 for independent examination fees and are allocated to charitable activities.
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.
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THE SPEEDOMICK FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021
8 Employees
| The average monthly number of employees during the period was: Employment costs Wages and salaries Social security costs There were no employees whose annual remuneration was more than £60,000. 9 Financial instruments Carrying amount of financial assets Debt instruments measured at amortised cost Carrying amount of financial liabilities Measured at amortised cost 10 Debtors Amounts falling due within one year: Prepayments and accrued income 11 Creditors: amounts falling due within one year Other taxation and social security Accruals and deferred income |
2021 Number 1 2021 £ 25,500 2,610 28,110 2021 £ 282,498 960 2021 £ 1,046 2021 £ 894 960 1,854 |
|---|---|
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THE SPEEDOMICK FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021
| 12 | Analysis of net assets between funds | |
|---|---|---|
| Unrestricted | ||
| funds | ||
| 2021 | ||
| £ | ||
| Fund balances at 31 March 2021 are represented by: | ||
| Current assets/(liabilities) | 281,690 | |
| 281,690 |
13 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
| 2021 | |
|---|---|
| £ | |
| Aggregate compensation | 28,110 |
During the period, the charity received a substantial donation (£261,452) from Speedo Mick CIC being the majority of the funds raised by Michael Cullen during his heroic John O’Groats to Lands End walk in his speedos. The CIC was formed as a vehicle to collect donations from this walk and due to the success of the fundraising, the funds have been transferred to The Speedomick Foundation as this is considered to be a more suitable vehicle for fundraising and grant making activities.
The charity also received a donation of £50,000 from the AJ Bell Trust of which A Bell, a trustee of The SpeedoMick Foundation, is also a trustee.
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