OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

THE GOLF FOUNDATION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Company number: 00519615 Charity number: 285917 Scottish charity number: SC049780

THE GOLF FOUNDATION

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS

CHAIRMAN’S STATEMENT
REPORT OF THE BOARD OF TRUSTEES
REPORT OF THE INDEPENDENT AUDITORS
ACCOUNTING POLICIES
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
CONSOLIDATED BALANCE SHEET
BALANCE SHEET (CHARITY ONLY)
CONSOLIDATED CASH FLOW STATEMENT
ANALYSIS OF CHANGES IN NET DEBT
NOTES TO THE FINANCIAL STATEMENTS		 PAGES
2-3
4-16
17-19
20-22
23
24
25
26
27
28-43

THE GOLF FOUNDATION

CHAIRMAN’S STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Chairman’s Statement

April 2020 to March 2021 has been an extraordinary year for the Golf Foundation as Covid-19 took its toll on the health, economy and emotional wellbeing of the whole country and our charity adapted to respond to the closure of schools, community groups and golf clubs for large parts of the year.

The absolute priority for the charity at the start of the pandemic and announcement of the first national lockdown at the end of March 2020 was to ensure that we protected our reserves and finished the financial year (March 2021) in a strong and viable financial position. Thanks to the decisions we took at the outset, some of them extremely unpalatable such as reducing the size of the workforce, I am pleased to report that we have achieved a substantial surplus for the 2020/21 financial year.

I would like to express my sincere gratitude to our core funders – The R&A, HSBC, PGA and Sport England – for their continued support and funding over the past 12 months and their flexibility in extending their belief in the Golf Foundation into the 2021/22 operational year. The R&A in particular provided an additional £100k of support from its Emergency Covid Fund.

The Golf Foundation faced a major challenge trying to operate under Covid restrictions as schools and community groups were closed for almost two-thirds of the year and even when operational were limited in the activities that they could deliver, with bans on coaches visiting schools and equipment being used. Although golf clubs were closed for one-third of the year and they experienced a welldocumented boom in interest from adult golfers, this also placed a strain on junior opportunities at golf facilities including the cancellation of our much lauded GolfSixes League. This has led to a 90% decrease in activity at our HSBC Golf Roots Centres compared to pre-Covid levels although we have seen more retention of juniors into membership.

However, I am pleased by the way that the Senior Management Team has responded to the challenge of Covid supported by the Board of Trustees and in particular Finance Committee. We have used the time wisely to test new digital ways of delivering our programmes, written a new 5-year Business Plan with the help of an external consultant and restructured our Board of Trustees ensuring new ideas, digital expertise and energy. We will be investing our surplus into a digital structure that will transform the organisation and help us to reach many more schools and golf clubs, £400k will be earmarked in a designated fund for this purpose.

Our new 5 year business plan has helped us to refine our key programmes going forward, develop a clear and measurable fundraising strategy and reinvigorate working partnerships both inside and outside of the sport. Considerable progress has been made in developing our inclusion offers and working with new partners such as Sporting Equals and London Youth. In turn, our new programmes have helped us to re-engage with significant partners such as the European Tour, Premier League and StreetGames.

2

THE GOLF FOUNDATION

CHAIRMAN’S STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Chairman’s Statement (Continued)

The future is very exciting as we rebuild and develop our new programmes in the foundation year of our 5-year strategy. Thank you for your support and I hope that you will join us on our journey to introduce more young people to golf, from all backgrounds, creating golfers.

STEPHEN LEWIS Chairman 14 September 2021

3

THE GOLF FOUNDATION

REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Board of Trustees of The Golf Foundation submit their sixty seventh Annual Report, together with the Consolidated Financial Statements of The Golf Foundation and its subsidiary, Golf Foundation Enterprises Limited, for the year ended 31 March 2021.

OBJECTIVES OF THE FOUNDATION

Mission

Introducing young people to golf – from all backgrounds – creating golfers.

Aims

We help young people to ‘Start and Stay’ in golf. We take adapted versions of the game to schools and community groups, introduce young people to golf clubs, teach playing and transferable life skills and keep young people playing in golf clubs.

Participation Targets and their Measurement

With its new 5-year business plan, the Golf Foundation has set itself the following ambitions to be achieved by March 2026:

The Golf Foundation seeks to further its aims as set out in Paragraph 3 of its Memorandum of Association by pursuing the following objectives:

Each of the above objectives (a) to (e) primarily relate to expenditure reported in the “Grants Made” section of Note 2.2 to the Financial Statements.

4

Each of the above objectives (f) to (i) primarily relate to expenditure reported in the “Operations” section of Note 2.2 to the Financial Statements.

This objective relates to expenditure reported in the “Staff and Support” section of Note 2.2 to the Financial Statements.

This activity relates to expenditure reported in Note 2.3 to the Financial Statements.

The Golf Foundation additionally engages in fund-raising operations in order to provide the income to fund the above operations and thereby to further its charitable objectives and deliver public benefit.

PUBLIC BENEFIT

The Trustees are aware of and are in compliance with their duty under section 17 of the Charities Act 2011 to have due regard to the guidance available from the Charity Commission on public benefit when reviewing the Foundation’s aims and objectives and in planning future operations. In particular, the Trustees consider how planned operations will contribute to the aims and objectives which they have set.

The Charities Act sets out a number of descriptions of charitable purposes, and the Trustees consider that the following three are most relevant to the aims, objectives and operations of The Golf Foundation:

The Golf Foundation’s stated objectives of grant provision to PGA Coaches working in schools, teacher and young volunteer training, support for School Games and the roll out of community projects show it to be actively engaged in providing financial, logistic and advisory support to the education sector.

The grants made by The Golf Foundation show it to be actively engaged in promoting local golf development projects which widen golfing opportunity at a community level. It does this primarily by ensuring that its work in the education sector is not being pursued in isolation but rather in effective partnership with golf clubs and facilities and relevant arms of the public sector, such as local authorities, StreetGames doorstep clubs, Sporting Equals community groups, Sport England satellite clubs and law enforcement agencies.

The Foundation believes that the sport of golf has certain inherent core values and that involvement in the sport can provide young people with enhanced life skills as well as improved sporting abilities. The Foundation reflects this in the concept of “Skills for Life” which is built into the design of all its resources and activities. The Trustees consider that these aims, objectives and operations provide public benefit in that they develop communities by increasing the breadth and quality of sporting opportunity and advance citizenship through the promotion of “Skills for Life” to the young people within those communities.

The partnership working with other core organisations in golf across England, Scotland, Wales and Ireland plus the promotion of competitive opportunities through the School Games show it to be actively engaged in advancing the sport of golf. It does this by contributing to effective collaborations with other golfing organisations, and through those collaborations delivering financial, logistic and advisory support to facilitate the provision of golf tuition to young people. The young people involved thereby not only receive an enhanced educational experience, and the

5

chance to acquire valuable life skills, but are also provided with an opportunity to take up long-term participation in the sport, and in some cases, to develop performance abilities at an elite level.

The Trustees believe that these aims, objectives and operations provide public benefit in that they promote wider participation and a player pathway (Star and Stay) which contribute to the advancement of the sport.

Objectives around safeguarding, equality and operating a regional development workforce are pursued in support of the above charitable purposes.

FINANCIAL REVIEW

The results for the year are set out in the Statement of Financial Activities on page 22.

Total income for the year was £1,744,824. This was 10.1% higher than the £1,584,655 achieved in 2019/20. The increase in income was primarily due to an increase in the donation from The R&A. The Trustees would like to thank all of the donors of The Golf Foundation for their continued support.

Total expenditure for the year was £1,250,747 compared to £1,820,917 in 2019/20. This decrease in costs arose from management efforts to reduce the cost base and because of a lack of coaching and development opportunities available throughout the year due to COVID-19 and the national lock downs throughout the year. The surplus for 2020/21 was £494,077 (2019/20 Deficit: £236,262) which was in-line with the budgeted surplus for the year. The charity achieved its target of eliminating the prior 2 years deficits.

The surplus is stated before revaluation of investment assets and gains on investments. In 2020/21 surpluses on investments totalled £478,397 (2019/20 – loss of £285,789). These unrealised gains were the result of a bounce back adjustment in asset prices due to the impact of the COVID-19 in the first quarter of 2020. At present, The Golf Foundation is not planning on utilising any investment assets in 2021/22.

Total investment funds under management rose by £578,238. In addition to the revaluation surplus of £478,397, £107,963 of dividend income, less £8,123 management fees, was retained within the investment portfolios.

During the year, The Golf Foundation has contributed £1,087,838 (2019/20 - £1,592,730) to its charitable aims (see note 2.6 of the Financial Statements).

RESULTS OF OPERATIONS

The Golf Foundation has addressed its objectives through its operations as follows:

a) School Games

This national initiative coordinated by the Youth Sport Trust and promoting more competition in state schools has been important for the Golf Foundation in reaching over 3,500 schools and enabling 51,000 pupils to play golf for their school against other schools in district and county competitions.

Despite the challenges of Covid-9 and schools being closed for almost two-thirds of the academic year, the Golf Foundation has worked closely with the Youth Sport Trust to develop online resources that pupils can play either at home or at their school.

28,000 pupils were involved in some form of golf activity through this online approach and the support of county Active Partnerships.

b) Club and Support

Due to the impact of Covid and national lockdowns on schools, youth groups and clubs, 248 clubs were registered as HSBC Golf Roots Centres in England and Wales, reaching 13,380 pupils in schools and 5,626 pupils visiting a golf club.

£40,345 was spent in 2020/21 on grants to golf clubs in England and Wales under HSBC Golf Roots, compared to £173,730 in 2019/20. This decrease reflects the impact of Covid.

6

Plans to significantly expand GolfSixes League to 4 Home Nations with considerable financial support from The R&A were put on hold due to Covid. Instead, 67 clubs ran an intra version of the initiative involving 1,481 participants downloading resources for their own juniors to participate at the club.

c) National Partnerships

The Golf Foundation supports the aims of each Home Nation’s junior strategy by working closely with each respective Home Nation.

In Scotland, The Golf Foundation made a contribution of £20,000 towards 2 School and Community Officers employed by Scottish Golf. This amount was considerably less than previous years due to the staff being on furlough for much of the year. In 2019/20 this was £95,247.

The Golf Foundation is an integral part of the Wales Golf Development Group and part funded 3 development officers and 2 community officers in Wales. In 2020/21, the Golf Foundation contributed £21,000 towards officer posts in Wales and £10,423 towards HSBC Golf Roots Centres and HSBC Golf Roots Plus projects compared to 2019/20 when the Golf Foundation contributed £29,000 towards officer posts in Wales and £14,884 towards HSBC Golf Roots Centres and HSBC Golf Roots Plus projects.

d) Skills Progression Schemes

Expenditure on the Junior Golf Passport (“JGP”) in 2020/21 was £1,610 compared to £21,876 in 2019/20.

Income for the Junior Golf Passport was £3,683 in 2020/21 compared to £19,106 in 2019/20.

65 of clubs were registered on the scheme by March 2021 compared to 194 clubs in March 2020.

e) Training Opportunities

Due to Covid, the Golf Foundation adapted and delivered several workshops online including 2 Unleash your Drive, 7 Girls Leadership and 1 disability.

f) Safeguarding Children

Child protection and ensuring a positive experience for all juniors in golf clubs is a major focus for the charity.

The Golf Foundation works closely with the case management groups of both the PGA and England Golf to ensure that any disclosures are reported to the appropriate governing body. In addition, all HSBC Golf Roots centres have a SafeGolf coach, up to date safeguarding policy and a trained Club welfare officer.

g) Equality, Diversity and Inclusion

The Golf Foundation believes in introducing young people to golf from all backgrounds and does this via the following activities:

7

h) Development Officers

During 2020/21, as result of Covid, the Golf Foundation restructured its staff organisation and reduced the number of RDOs from 10 to 7 with an additional part-time Special Projects Officer role.

The total for staff and support costs for the Development Officer network in the year was £451,676 (2019/20 – £543,485).

i) Promotions and Publicity

Due to Covid, the Golf Foundation was unable to deliver its annual Presidents Awards at the BMW PGA Championships and the 149[th] Open Championship at Royal St Georges was postponed until July 2021.

The Golf Foundation sent out weekly updates on its activities and in support of juniors at golf clubs via weekly newsletter. The #Lockdownknockdown online challenge at the start of the first national lockdown in April 2020 was well received with over 265,000 twitter impressions and several of the ambassadors taking part.

Golf Monthly provided good coverage of Golf Foundation activities throughout the year.

j) Satellite Clubs

Satellite Clubs is a Sport England funded programme which has run from 2013 to date and ended in March 2021. These clubs aim to target young people aged 14-19 who aren’t currently active, particularly those who are in groups typically under-represented in sport.

With the backing of Sport England, the Golf Foundation was able to use its satellite club funding to support 7 Go Sketch clubs that link golf delivery with art and design. These were delivered online.

During 2020/21, a total of £6,000 was spent on Satellite Clubs (2019/20 - £17,750)

FUTURE PLANS AND THE IMPACT OF COVID-19

With the help of an external consultant alongside meetings with external partners both within and outside the sport, the Golf Foundation has developed a 5-year business plan and refined its mission statement to:

The number of key programmes has been reduced to 6 and differentiated between Start and Stay:

START STAY
School Games Centres of Excellence
Schools Programme GolfSixes League
Community Programme Unleash your Drive

In addition, the charity recognises the need to reach more schools, community groups and clubs via a digital platform and will be recruiting the help of a digital transformation specialist to help guide the Golf Foundation through the next 12 months.

Fundraising has been re-categorised into 7 distinct categories: Golfing Bodies, Government, Corporate, Trusts and Foundations, Clubs, Digital, Individuals. Each category will have its own action plan and activities. An external bid writer will be appointed to help with some of the categories.

After a rigorous comparison project comparing equipment, the charity took the decision to switch its adapted equipment partner from Davies Sport to Masters Golf and the new Golfway range for schools and community groups.

It will also announce FJ as its official clothing partner moving away from Davies Sports and Findel Education.

The Trustees would like to thank both Davies Sports and Findel Education for their support over the past 20 years.

8

FUNDRAISING

For April 2020 to March 2021, the Golf Foundation’s staff carried out all of its fundraising activities. No external agencies were employed to raise funds on behalf of The Golf Foundation. Going forward, the charity will employ an external bid writer and as such recognises the requirement to agree appropriate standards of performance as well as the implementation of appropriate monitoring approaches to protect donors and from poor practices.

The Golf Foundation is registered with both English and Scottish Fundraising regulators. No complaints about fundraising activities where received in 2020/21.

From April 2020 to March 2021, the Golf Foundation drew its funding from six sources:

a) Core Funders

In 2020/21, the Golf Foundation received generous support from core funders, principally The R&A, HSBC, Ryder Cup Ltd, Sport England and the Professional Golfers’ Association.

The R & A contributed £771,200 over the year compared to £510,150 in 2019/20. This included a generous £100k Covid emergency payment from The R&A, which was greatly appreciated.

HSBC contributed £230,000 to The Golf Foundation over the year (2019/20: £230,000). A portion of this income is budgeted for activities in the 2021/22 reporting period. In addition, a further £52,500 of sponsorship from HSBC has been recorded as deferred income and is also budgeted for activities in 2021/22.

The PGA contributed a total of £46,000 in the year compared to £66,285 in 2019/20.

The Ryder Cup contributed £91,646 in the period compared to £152,737 in 2019/20.

Sport England funding is shown below under e) Grants Receivable.

The Trustees wish to record their great appreciation for the support and commitment of all these funders.

b) Other Donations and Gifts

Donations from sources other than the core funders totalled £183,850 in 2020/21 (2019/20 – £208,794). Excluding donations which have been allocated to specific Designated or Restricted projects, the total of unrestricted other donations and gifts was £156,850. This amount included a £50,000 legacy from Dinah Oxley.

c) Appeals and Events

The Golf Foundation operates several well-established fund raising activities through the year. These include:

The total amount raised from these and other activities in 2020/21 was £17,333. This represents a decrease from 2019/20 when the equivalent total was £59,880.

9

d) Charitable Trading

Income sources under this heading include:

The total income from these sources in the year was £25,783. In 2019/20 the total was £52,025.

e) Grants Receivable

In 2020/21 the figure for Grants Receivable was £270,907. In 2019/20, the total was £194,500.

In 2020/21, The Golf Foundation received £157,000 from Sport England via England Golf (2019/20: £187,000). The reduction in the grant is in line with the four-year funding awarded in the current funding cycle. The grant will remain at £157,000 for 2021/22.

In reaction to the COVID-19 emergency, Sport England announced a series of measures to support their partners. One is the extension of the funding cycle from 2020/21 to 2021/22 and Sport England also offered flexibility as to the use of their funding for 2020/21.

Grants worth £78,907 were received from the Corona Job Retention Scheme (2019/20 - £Nil).

With regard to funding from Sport Wales, this derives from The Golf Foundation’s role in the Golf Development Wales partnership. The grant was £Nil in 2020/21 (2019/20: £7,500).

Other grants of £35,000 were received in 2020/21 (2019/20 - £Nil).

f) Investment Income

Investment income totalled £108,105 in 2020/21 (2019/20 - £110,284). In 2020/21, £99,840 was reinvested in the investment portfolio (2019/20 – £101,453).

g) Golf Foundation Enterprises Limited

During 2011 certain of the income generating activities from which The Golf Foundation benefits were determined to be trading activities which due to an increase in scale would need to be conducted through its wholly owned subsidiary company, Golf Foundation Enterprises Limited (company number 03347443). These financial statements therefore, continue to be, presented in a consolidated format. The trading subsidiary also continues to prepare its own publically available unconsolidated financial statements.

Only certain specific trading activities are affected, and the subsidiary is not engaged in trading on a day-today basis. The activities operated through the trading subsidiary are those in the nature of commercial sponsorship - which forms part (£70,000) of the income detailed under Note 1.1 to the Consolidated Financial Statements; and royalty income - which forms part (£18,766) of the income detailed under Note 1.4 to the Consolidated Financial Statements. Expenditure associated with these income generating activities includes an allocation of support costs from the Charity (£71,185) which form part of the expenditure detailed under Note 2.2 to the Consolidated Financial Statements; and audit costs, which form part of the expenditure detailed under Note 2.5 to the Consolidated Financial Statements. A profit of £12,874 was made all of which was gift aided to The Golf Foundation.

10

CONSTITUTION AND GOVERNANCE

President

Sandy Jones is the President of the Golf Foundation.

Board of Trustees

Stephen Lewis* is the Chairman of the Board of Trustees.

The Golf Foundation Trustees are:

Ms D Jhamat – appointed 29[th] September 2020 Mrs K Wild – appointed 10[th] December 2020 Mr J Brigden – appointed 10[th] December 2020 K Barker Mr S.K.Proctor N. Bragg N.Sladden Mr Robert Maxfield – appointed 28[th] January 2021 Mrs S. Stewart Mr Sanjit Atwal – appointed 10[th] December 2020 Mr J Tomlinson

Debbie Allmey, Ian Armitage, Evie Carter and Di Horsley resigned as Trustees in September 2020. The Chairman and the Board of Trustees thank them for their long and dedicated service to The Golf Foundation.

Within the framework of the Memorandum and Articles of Association “the affairs of the Foundation shall be governed by the Board of Trustees”. Under Article 26.1 the Board are empowered to make appointments of new Trustees, subject to ratification at the next Annual General Meeting. Article 27 sets out procedures for the retirement by rotation of Trustees of the Board, and their re-election (if willing to stand) at an Annual General Meeting.

The Board usually meets on at least five occasions each year. The Board has also delegated part of its authority to a Finance Committee which comprises the Chairman, three additional Members of the Board, along with the Chief Executive and the Finance Manager. Neither the Chief Executive nor the Finance Manager is a Member of the Board.

The Board is comprised of a maximum of 12 individuals, and there are currently 12 Trustees including the Chairman. Three Trustees have a connection to other golfing organisations; the rest, who should always form the majority, are independent. New Trustees are generally appointed as a result of recommendations made by existing Trustees. On appointment, they are provided with a pack of reference materials which includes the Memorandum and Articles of Association and a copy of Charity Commission leaflet CC3. An induction is provided by the Senior Management Team.

The Board of Trustees is committed to the highest standards of governance and recognises the updated Governance Code for charities that was published in December 2020. To date, the Board of Trustees has been following the recommendations in the Sport England Code of Governance and is currently undertaking a review of the recommendations of the updated Charity Governance Code with the aim of ensuring all recommendations are addressed in 2020/21.

Board Members’ Remuneration

No Member of the Board drew any remuneration in the year to 31 March 2021.

Vice Presidents

The following individuals have been appointed as Vice Presidents in recognition of their service to The Golf Foundation, their playing achievements, or their contribution to the development of golf:

Sir Michael Bonallack OBE Mrs C.I.Matthew MBE C.S. Montgomerie OBE Ms A.Nicholas MBE Dame Laura Davies CBE K.D Schofield CBE Sir Nick Faldo MBE I.D.Peacock OBE B.Gallacher OBE D.J. Willett C. Harrison Ms K.Stupples Ms Georgia Hall W.J.Uzielli A.Jacklin CBE A.R.Wheeler P.S.Lawrie MBE A.W.B.Lyle MBE

11

All Vice Presidents are also ex officio Members of The Golf Foundation.

Members

The following individuals are Members of The Golf Foundation:

Miss L.E.C.Attwood MBE H.Hunter D.Turner FCA P.Ball T.Morrison J.Vickers E.Bullock Dr A.White OBE Ms J.Carter M. Round P.D.German J.Shepley

The following organisations are also Members of The Golf Foundation:

England Golf The R & A Scottish Golf PGA European Tour Wales Golf Professional Golfers’ Association Ladies’ European Tour British Golf Industry Association

Honorary Members

One of the results of the Extraordinary General Meeting held on 10 November 2005 was to introduce the concept of Honorary Membership. The status of Honorary Member is intended to recognise a valued service or contribution to The Golf Foundation, but does not carry any formal role in the governance of the Foundation. Several individuals who were formerly full Members of the Foundation have opted to assume the status of Honorary Members:

T.Adams I.E.R Dickson Mrs M.Horsburgh N.A.C.Moore N.Winton Mrs D.Brown Mrs S.Fox D.Houlihan A.Morgan Mrs D.Rothschild R.A. Chalkley D.Hamilton T.Hutton I.Murphy R.Snell B Chapman G.Hammond Mrs G.Jones D.Owen Mrs M. Vine Mrs G.Collins L. Hancock M.Lumsden A.R. Payne P. Woodcock J.Collins Ms K. Hannay D.McCarthy J.Taylor D.Cule Smith T.A.Hilliard OBE J.Martin H.Thomas P.Davidson D.Horsburgh D.B.Miller A.J.Wellan

Executives

On a day to day basis the organisation is run by a management team headed by the Chief Executive and three Heads of Department, each with a team of Officers and Administrators:

Brendon Pyle Joan McCrohan (Chief Executive) (Communications Officer) Mark Cooke Paula Williams Linda Bird (Head of Finance) (Finance Officer) (Office & IT Administrator) Martin Crowder Andy Leigh Ian Harvey (Head of Development) (England – North West) (England – North East & North Yorkshire) Paul Aitkens Tom Sparks (England – West Midlands) (England – South West) Katie Moggan Stacey Mitchell (Special Projects) (England – East Midlands & South Yorkshire) Alice Lowe Daisy Brierley / Mike Hollis (maternity cover) (Central) (England – South East) Vanessa Bell (Head of Fundraising)

12

STATEMENT OF THE RESPONSIBILITIES OF THE BOARD OF TRUSTEES

The Members of the Board of Trustees, who are also the Directors for the purpose of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Members of the Board of Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of its net incoming resources for that period. In preparing these financial statements, the Members of the Board of Trustees are required to:

The Members of the Board of Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the transactions of the Charitable Company and disclose with reasonable accuracy at any time the financial position of the Charitable Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each Member of the Board of Trustees is aware, there is no relevant audit information of which the Charity’s auditor is unaware. The Trustees have each taken all the steps required of them as Trustees in order to make themselves aware of any relevant audit information and to establish that the Charity's auditor is aware of that information.

RESERVES

Total Reserves at 31 March 2021 were £3,618,651 (2020: £2,646,177) of which £1,715,704 (2020: £1,389,555) was an Expendable Endowment fund and £362,561 (2020: £163,785) was restricted in accordance with the wishes of funders and donors. This leaves £1,540,386 (2020: £1,092,837) as Unrestricted Funds.

During the year ended 31 March 2021 the trustees continued with the policy of designating unrestricted funds for specific use without restricting or committing the funds legally. Previous designations have been for unrestricted fixed assets and fundraising for Regional Development Officers in Scotland. During the year to 31 March 2021 a new five-year business plan was approved by the trustees requiring additional investment of approximately £400,000 and this has also been recognised as a designated fund for future expenditure. As a result, at 31 March 2021 total unrestricted designated funds were £465,235 (2020: £88,600) being:

The remaining unrestricted funds, the reserves or General Fund, at 31 March 2021 therefore amounted to £1,075,151, which is below the target level of reserves of £1.5m.

13

Given the activities of the Charity, the trustees’ target level of reserves, in line with Charity Commission guidance, is set to:

Given these requirements the Trustees consider that the target for unrestricted reserves, after any designations, should be approximately £1.5m.

The future implementation and achievement of the objectives specified in the five-year business plan will be vital in bridging this financial gap of £0.4m between the current funds of the Charity and its target level of funding. The Board of Trustees will continue to monitor The Golf Foundation's reserves and its reserve policy annually.

RISK ASSESSMENT

At Board meetings, the Trustees review the risks to which the charity is exposed as part of the discussion around individual agenda items. They are dedicated to improving and refining that the systems in place mitigate the Charity’s exposure to major risk. The Golf Foundation has plans and strategies to manage the key risks in Funding, IT and Health & Safety through its governance structure, outsourced IT supplier and rigorous staff training respectively.

INVESTMENT POLICY

Under paragraph 3(B)(g) of the Memorandum of Association The Golf Foundation has the power to invest “as may be thought fit”.

The investment policy of the Board of Trustees is to minimise investment risk by favouring low-risk holdings, and this is reflected in a policy of only holding accumulation units in the Charity Multi-Asset Fund administered by Schroder & Co. The investment target annual return of the fund is 4% net of commission.

The overall value of the portfolios rose from £2.38m to £2.96m during the year. Significant gains occurred in the second quarter of 2020 as asset prices rebound following a crash as a result of the COVID-19 emergency.

GRANTS

It is the policy of The Golf Foundation to make grants to provide financial assistance to organisations providing formal golf tuition or a less formal introductory golfing experience to children and young people. The purpose of the grant is to provide the organisation delivering the tuition or experience with a means to recover all or part of the expenditure incurred as a result of such provision. In this way, the tuition or experience can be provided at no or nominal cost to the children and young people, or their parents. Thereby the opportunity to benefit from the tuition or experience is made more easily and widely accessible.

In order to ensure that demand for grants does not exceed the budget available The Golf Foundation each year identifies closed lists of organisations – primarily schools and golf clubs or facilities – which are advised that they will be eligible to apply for a grant during the coming year. These lists are comprised mostly by continuation from the previous year, with vacancies being filled if budgetary constraints allow. There is a budget target for each region managed by a Regional Development Manager.

Each organisation eligible to apply for a grant is advised of the maximum grant they can expect to receive. Claims are then made by the organisation which is required to provide evidence in writing that golf tuition or an introductory golfing experience has been provided. If The Golf Foundation is satisfied with such evidence the application is approved and a grant cheque issued.

The HSBC Golf Roots Centres programme works differently in that 50% of the grants are awarded in advance to golf facilities and local projects and 50% after completion. Eligibility to apply for such a grant award is based on certain criteria being achieved, and the grant award decision is dependent on a satisfactory action plan being agreed. Future grant decisions would then be influenced by the results achieved compared with the action plan. Note 10.3 of the Financial Statements details the level of grants unpaid.

14

REMUNERATION POLICY OF KEY MANAGEMENT

The salary increases given to the Golf Foundation staff are annually benchmarked against the increases given by peer organizations in the UK golfing industry. All posts are internally evaluated based on agreed criteria that determine the grade and salary for the post. With regards to the executive pay, the salary of the highest paid employee is less than 3 times the median salary of the charity. A salary freeze was maintained in the year but payments of 1.85% of the overall salary bill were made in March 2021 for meritorious performances.

TAXATION

As The Golf Foundation is a registered charity under the Charities Act 2011 it is potentially entitled to the exemptions from tax afforded by sections 466 to 493 of the Corporation Tax Act 2010 and sections 521 to 536 of the Income Taxes Act 2007 so far as its income and gains are applied for charitable purposes. No tax charge has arisen in the year. No tax charge has arisen in its subsidiary company as it has transferred all of its taxable profit to the Charity under the UK gift aid tax rules.

AUDITOR

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor. It is proposed that they be reappointed Independent Auditor to the Charitable Company for the ensuing year.

BANKERS AND PROFESSIONAL ADVISORS

Bankers Investment Advisors HSBC plc Schroders plc 8 Canada Square 100 Wood Street London E14 5HQ London EC2V 7ER Barclays Bank plc Independent Auditor 54 Lombard Street London EC3V 9EX Crowe U.K. LLP Statutory Auditor Carrick House, Lypiatt Road Cheltenham Gloucestershire GL50 2QJ

CORPORATE STATUS

The Golf Foundation is a company limited by guarantee and is incorporated in Great Britain under registration number 00519615. The Governing Document of The Golf Foundation is the Memorandum & Articles of Association. The Articles of Association were last updated by Special Resolution of the Company passed on 29 September 2020.

In preparing this Report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

CHARITABLE STATUS

The Golf Foundation is a Registered Charity under registration number 285917. In December 2019 The Golf Foundation registered as a charity with the Scottish Charity Regulator under registration number SC049780.

REGISTERED OFFICE

Ambition Broxbourne Business Centre Pindar Road Hoddesdon Hertfordshire EN11 0FJ

15

BY ORDER OF THE BOARD

STEPHEN LEWIS Chairman

Date: 14 September 2021

16

THE GOLF FOUNDATION

Independent Auditor’s Report to the Members and Trustees of the Golf Foundation Limited

Opinion

We have audited the financial statements of the Golf Foundation Limited (the “charitable company”) for the year ended 31 March 2021 which comprise Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Cash Flows and notes to the financial statements, including 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:

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 group 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the

17

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 13, 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

We have been appointed as auditor under section 151 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustees Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder

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

18

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:

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities SORP (FRS102) 2019, Charities Accounts (Scotland) Regulations 2006 and Companies Act 2006.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the recognition of income. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, sample testing on income recognised in the accounts and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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, and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees 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, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Guy Biggin Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP

Statutory Auditor

St James House St James Square Cheltenham GL50 3PR Date: 27 September 2021

……………………………………..

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

19

THE GOLF FOUNDATION

(Limited by Guarantee)

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 MARCH 2021

The Golf Foundation is incorporated in Great Britain as a company limited by guarantee (company number 00519615). The entity is also a registered charity in England and Wales (charity number 285917) and in Scotland (charity number SC049780). The principal and registered office address is shown on page 17. In the event of the charity being wound up, the liability of each member is limited to £1 per member.

The financial statements have been prepared in accordance with 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) issued in October 2019, the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019 and the Charities Trustee Investments (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).

The financial statements have been prepared under historical cost convention with the exception of investments which are included at market value.

The Golf Foundation meets the definition of a public benefit entity under FRS 102.

The Financial Statements consolidate the results of the Charity and its wholly owned subsidiary Golf Foundation Enterprises Limited (company number 03347443) on a line by line basis. A separate Statement of Financial Activities (“SOFA”), and income and expenditure account, for the Charity itself are not presented because the Charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. The net result of the parent is shown on the Balance Sheet and note 14.1.

The Charity has taken advantage of the exemption in FRS 102 from the requirement to present a charity only cash flow statement.

After making enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue its activities for the foreseeable future. The Trustees are satisfied that the Charity has taken the necessary actions to protect its reserves in light of the uncertainty that COVID-19 has generated. The Trustees are satisfied that there are no material uncertainties about the charity’s ability to continue as a going concern and accordingly they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of the Responsibilities of the Board of Trustees on page 14.

The principal Accounting Policies of the Charity are set out below:

Investment income comprises interest and dividends receivable on listed investments.

Tangible fixed assets are stated at cost, less accumulated depreciation and any provision for impairment. Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets by equal annual instalments over their expected useful lives. The rates applicable are:

Office Equipment - 10% Computer Equipment - 20% Improvements to Leased Premises - over the term of the Lease

The policy of The Golf Foundation is only to capitalise expenditure of £1,000 and above.

20

c)

Investments

Investment assets are included in the Balance Sheet at their market value. The unrealised and realised revaluation surplus or deficit is reflected in the SOFA.

It is the Foundation’s policy to keep valuations up to date such that when investments are sold there is no realised gain or loss arising. As a result the Statement of Financial Activities does not distinguish between the valuation adjustments relating to sales and those relating to continued holdings as they are together treated as changes in the investment portfolio throughout the year.

d) Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. All exchange differences are dealt with through the Income and Expenditure Account.

e) Income

All income is included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies apply to categories of income:

Donated services: are included at the value to the Charity where this can be quantified. In line with SORP (FRS 102) no amounts are included in the financial statements for services donated by volunteers.

Gifts in kind: where donated for distribution are included at the value to the Charity and recognised as income when they are distributed.

Grants receivable: are recognised when there is entitlement, probability of receipt and the amount can be measured reliably.

Government grants: are accounted for under the performance model as permitted by the Charity SORP. CJRS grant income is therefore recognised on a straight line basis over the furlough period for each relevant employee.

Legacies: entitlement is governed by the three point test in SORP (FRS 102) governing the probability of receipt. Upon sufficient probability of receipt the legacy is recognised. At which time the value of the resource can be measured more accurately.

f)

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Overhead costs that are premises related are allocated on a floor area basis, staff costs are allocated on an estimate of time usage and other overheads have been allocated on the basis of head count.

Grants: are charged to the SOFA when a constructive obligation arises.

Fund raising costs: are those incurred in seeking voluntary contributions. Costs of disseminating information in support of the Charitable Activities are shown under the heading of Promotions and Publicity.

Governance costs: are the costs associated with the governance arrangements of the Charity which relate to the general running of the Charity as opposed to the costs associated with fund raising or charitable activities. Included within this category are costs associated with the strategic as opposed to day-to-day management of the Charity’s activities.

Support costs: include the central office functions such as general management, payroll administration, budgeting and accounting, information technology, human resources and financing and are allocated across the categories of charitable expenditure, governance costs and the cost of raising funds.

g) Recognition of Liabilities

Liabilities are recognised when there is a legal or constructive obligation that commits the Charity to the obligation.

21

h)

Financial Instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments, these being cash at bank, debtors and creditors (see notes 9 and 10). Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. The Charity also has a holding of investments at market value.

i) Debtors are trade and other debtors, recognised at the settlement amount due and prepayments are valued at the amount prepaid.

j) Creditors are creditors and provisions, recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

k)

Stock

Stock is included in the Balance Sheet at the lower of cost or net realisable value. The Charity holds stock of donated golf balls as well as purchased stock relating to programmes such as the Junior Golf Passport. Due to the impact of COVID-19, materials purchased in March 2020 for the 2020 GolfSixes League competition have not been distributed to clubs and are also held as stock driving the increase in the stock balance from prior year.

l) Operating Leases

Rental costs on operating leases are charged on a straight-line basis over the period of the lease.

m) Funds held for Designated and General Purposes

Designated Funds comprise funds which have been set aside at the discretion of the Board of Trustees for specific purposes. The purposes and uses of the designated funds are set out in Note 12.1 to the accounts. They form part of the Unrestricted funds together with the General Fund from which funds can be spent on any objective of the Charity.

n) Funds held for Restricted and Endowment Purposes

Restricted Funds represent donations or grants made to the Charity for specific purposes. The purposes and uses of the Restricted Funds are set out in Note 12.2 to the accounts.

In February 2000 The Golf Foundation received £1,673,814 in the form of cash and equities by way of a gift from a charitable trust in Scotland. The gift was made subject to the condition that it be expended for the benefit of junior golf in Scotland. The Board of Trustees (then the Council) in accepting this gift resolved that the capital be set aside, thereby creating an expendable endowment. Two further gifts of £100,000 cash were made by the same charitable trust in 2002 and 2005, and another and final gift of £16,031 was made in 2010. All were accepted subject to the same original conditions.

o) Pension Scheme Arrangements

The Golf Foundation operates a group personal defined contribution pension scheme into which both the Foundation as employer and the majority of the employees make payments. All such contributions are held in Royal London funds as completely independent of the Foundation’s finances. The pension cost charge represents employer’s contributions paid during the year.

p) Estimates and Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statement where the estimates and judgements have been made include the following:

22

THE GOLF FOUNDATION

(Company No: 00519615 Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

(Incorporating Income and Expenditure Account)

Note
INCOME
Donations and legacies
1.1
Charitable Activities
Grants receivable
1.2
Appeals and events
1.3
Charitable Trading
1.4
Investments
1.5
TOTAL INCOME
EXPENDITURE
Raising Funds
2.1
Investment management fees
7
Charitable Activities:
Coaching and development
2.2
Promotions and publicity
2.3
Competitive opportunity
2.4
TOTAL EXPENDITURE
2.6
Net Income / (Expenditure) before:
Net gains / (losses) on investments
7
NET INCOME / (EXPENDITURE)
12
Transfers between funds
12
NET MOVEMENT IN FUNDS
Reconciliation of funds
Total funds brought forward
12
TOTAL FUNDS CARRIED FORWARD
12		 Unrestricted
Funds
£
1,101,496
113,907
17,333
25,783
44,042		 Unrestricted
Funds
£
1,101,496
113,907
17,333
25,783
44,042		 Restricted
Funds
£
221,200
157,000
-
-
64,063		 Restricted
Funds
£
221,200
157,000
-
-
64,063		 Expendable
Endowment
Fund
£
-
-
-
-
-		 TOTAL
2021
£
1,322,696
270,907
17,333
25,783
108,105		 TOTAL
2020
£
1,167,966
194,500
59,880
52,025
110,284
1,302,561 442,263 - 1,744,824 1,584,655
116,126
3,293
884,786
219,219
70		 -
178
21,873
-
550		 -
4,652
-
-
-		 116,126
8,123
906,659
219,219
620		 165,070
8,415
1,362,106
279,726
5,600
1,223,494 22,601 4,652 1,250,747 1,820,917
79,067
193,482		 419,661
-		 (4,652)
284,915		 494,077
478,397		 (236,262)
(285,789)
272,549
175,000		 419,661
(220,885)		 280,263
45,885		 972,474
-		 (522,051)
-
447,549
1,092,837		 198,776
163,785		 326,149
1,389,555		 972,474
2,646,177		 (522,051)
3,168,228
1,540,386 362,561 1,715,704 3,618,651 2,646,177

The notes on pages 28-43 form part of these financial statements

23

THE GOLF FOUNDATION

(Company No: 00519615 Limited by Guarantee)

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2021

FIXED ASSETS
Tangible assets
Investments
TOTAL FIXED ASSETS
CURRENT ASSETS
Stock
Debtors and prepayments
Cash at bank and in hand
TOTAL CURRENT ASSETS
LIABILITIES
Creditors falling due within one year
NET CURRENT ASSETS
NET ASSETS
THE FUNDS OF THE CHARITABLE GROUP
General Funds
Designated Funds
Unrestricted Income Funds
Restricted Income Funds
Expendable Endowment Fund
TOTAL CHARITABLE GROUP FUNDS		 Notes 2021
£
£
51,390
2,958,883
3,010,273
75,993
273,600
413,204
762,797
154,419
154,419
608,378
3,618,651
1,075,151
465,235
1,540,386
362,561
1,715,704
3,618,651		 2020
£
£
74,755
2,380,645
2,455,400
67,939
68,028
318,279
454,246
263,469
263,469
190,777
2,646,177
1,004,237
88,600
1,092,837
163,785
1,389,555
2,646,177		 2020
£
£
74,755
2,380,645
2,455,400
67,939
68,028
318,279
454,246
263,469
263,469
190,777
2,646,177
1,004,237
88,600
1,092,837
163,785
1,389,555
2,646,177
6
7
9.1
10.1
11
12.1
12.3
12.5
2,646,177

The Financial Statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 (and applicable law) and FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements and accounting policies on pages 23 to 43 were APPROVED by the Trustees, AUTHORISED for issue on 14 September 2021, and are SIGNED on their behalf by:

......................................................

S. Lewis

N. Bragg

DIRECTORS

24

THE GOLF FOUNDATION

(Company No: 00519615 Limited by Guarantee)

BALANCE SHEET (Charity only)

AS AT 31 MARCH 2021

FIXED ASSETS
Tangible assets
Investments
TOTAL FIXED ASSETS
CURRENT ASSETS
Stock
Debtors and prepayments
Cash at bank and in hand
LIABILITIES
Creditors falling due within one year
NET CURRENT ASSETS
NET ASSETS
THE FUNDS OF THE CHARITY
General Funds
Designated Funds
Unrestricted income funds
Restricted income funds
Expendable Endowment fund
TOTAL CHARITY FUNDS		 Notes 2021
£
£
51,390
2,958,884
3,010,274
75,990
273,600
358,669
708,259
99,882
608,377
3,618,651
1,075,151
465,235
1,540,386
362,561
1,715,704
3,618,651		 2020
£
£
74,755
2,380,646
2,455,401
67,939
131,698
198,699
398,336
207,560
190,776
2,646,177
1,004,237
88,600
1,092,837
163,785
1,389,555
2,646,177		 2020
£
£
74,755
2,380,646
2,455,401
67,939
131,698
198,699
398,336
207,560
190,776
2,646,177
1,004,237
88,600
1,092,837
163,785
1,389,555
2,646,177
6
7
9.2
10.2
11
12.1
12.3
12.5
2,646,177

The Financial Statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 (and applicable law) and FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The total increase in funds for the Charity for the year was £972,471 (Year to March 2020: £(522,049)).

The financial statements and accounting policies on pages 23 to 43 were APPROVED by the Trustees, AUTHORISED for issue on 14 September 2021, and are SIGNED on their behalf by:

......................................................

S. Lewis

N. Bragg

DIRECTORS

25

THE GOLF FOUNDATION

(Company No: 00519615 Limited by Guarantee)

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 M
CASH FLOWS FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends received
Interest received
Interest paid and bank charges
Investment fees
Capital expenditure
Investments into the investment portfolio
Redemptions from the investment portfolio
Net Income reinvested
TOTAL CASH FLOW FROM INVESTING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
RECONCILIATION OF NET INCOMING RESOURCES
TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Net incoming resources before other recognised gains or losses
Depreciation
Loss on asset disposals
Dividends received
Interest received
Investment fees
Interest paid and bank charges
(Increase) / decrease in Stock
Decrease / (increase) in Debtors
(Decrease) / increase in Creditors
NET CASH INFLOW
FROM OPERATING ACTIVITIES		 ARCH 2021
Year Ended
2021
100,282
107,963
142
(2,404)
(8,123)
(3,095)
-
-
(99,840)
(5,357)
94,925
318,279
413,204
£
494,077
25,408
1,051
(107,963)
(142)
8,123
2,404
(8,054)
(205,572)
(109,050)
100,282		 Year Ended
2020
(147,034)
109,868
416
(4,333)
(8,415)
(20,553)
(50,000)
245,000
(101,453)
170,530
23,496
294,783
318,279
£
(236,262)
23,940
1,768
(109,868)
(416)
8,415
4,333
(40,909)
215,324
(13,359)
(147,034)

The notes on pages 28 to 43 form part of these financial statements.

26

THE GOLF FOUNDATION

(Company No: 00519615 Limited by Guarantee)

ANALYSIS OF CHANGES IN NET DEBT

FOR THE YEAR ENDED 31 MARCH 2021

Cash

TOTAL

At start of Acquistion/disposals New Finance Fair Value Foreign exchange Other non-cash At end of
year Cash-flows of subsidiaries Leases movements movements changes year
£ £ £ £ £ £ £ £
318,279 94,925 - - - - - 413,204
318,279 94,925 - - - - - 413,204

27

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1.
1.1		 ANALYSIS OF INCOME
Donations
Core funders:
The R & A
HSBC
Professional Golfers' Association
Ryder Cup Limited
Legacies
Trusts & Foundations
Other Donations:		 2021
£
771,200
230,000
46,000
91,646
60,000
52,000
71,850
1,322,696		 2020
£
510,150
230,000
66,285
152,737
50,000
77,000
81,794
1,167,966

The total of £230,000 for the contribution from HSBC include £70,000 of commercial sponsorship but are consolidated in donations so as to more accurately report the full value received from this supporter.

Ryder Cup Limited is a joint venture in which the Professional Golfers' Association, the PGA of Europe, and the PGA European Tour are partners.

None of the individual gifts in the "Other Donations" category were larger than £25,000.

1.2 Charitable Activities - Grants Receivable

1.
1.3		 Wales Golf
Sport England
Other grants
Corona Virus Job Retention Scheme
ANALYSIS OF INCOMING
RESOURCES (CONTINUED)
Charitable Activities- Appeals and Events
Annual Appeal to Golf Clubs
Acushnet
Goodwood GolfSixes
Other		 -
157,000
35,000
78,907
270,907
2021
£
6,948
10,385
-
-
17,333		 7,500
187,000
-
-
194,500
2020
£
12,664
6,876
40,277
63
59,880

28

THE GOLF FOUNDATION (Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Box of Tricks
GolfSixes Registrations
Junior Golf Passport
Sponsorship
StreetGolf
Training Workshops
Tri-Golf		 -
3,334
3,683
-
-
-
18,766
25,783		 29
12,095
19,106
900
2,666
3,610
13,619
52,025

Charitable Trading includes £18,766 (Year to March 2020: £16,285) of Royalty Income generated by the subsidiary.

1.5 Investments

Dividends
Bank Interest		 107,963
142
108,105		 109,868
416
110,284

All investment income derives from investments held in the United Kingdom.

2.
2.1
2.2		 ANALYSIS OF EXPENDITURE
Raising Funds
Operations:
Annual Appeal
Club Fundraising
Make Your Mark
Goodwood GolfSixes
Staff and Support Costs:
See Note 2.8
Governance Costs
See Note 2.5
Charitable Activities:
Coaching and development
Grants Made:
Box of Tricks
Feel Inspired
Girls' Golf Rocks
Golf Development Wales
Golf Roots Centres
HSBC Golf Roots Plus
Road to the Open
Satellite Clubs
Scottish Golf
Wales Golf		 20

3
1

All grants are made to institutions and none to individuals. Full details of grants made are available from the Charity.

29

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Charitable Activities:

2.2
2.3		 Coaching and development (continued)
Operations:
Box of Tricks
GolfSixes League
Junior Golf Passport
Manuals & Training Aids
National Training Days
Unleash Your Drive
Workshop & Event Delivery
Young Ambassadors' Programme
StreetGolf
Tri-Golf
Staff and Support costs:
Development Officer Network
Central Support Costs
Grants Made:
Operations:
Staff and Support Costs:
See Note 2.8
Governance Costs
See Note 2.5
Charitable Activities:
Promotions and publicity
Operations:
Advertising & Public Relations
Branding
Promotional Items
Publications
Presidents Awards & Reception
The Open Championship
Other External Events
Staff and Support Costs:
See Note 2.8
Governance Costs
See Note 2.5		 2021
£
-
20,400
1,610
3,177
-
400
-
-
-
-
25,587
451,676
293,921
745,597
104,343
25,587
745,597
31,132
906,659
32,820
-
16,130
6,000
-
-
-
54,950
156,741
7,528
219,219		 2020
£
5,414
27,700
21,876
-
1,956
11,085
834
3,552
279
7,758
80,454
543,485
310,902
854,387
381,883
80,454
854,387
45,382
1,362,106
34,620
5,133
7,578
11,437
8,478
47,137
769
115,152
155,254
9,320
279,726
2.4 Expenditure on The Golf Foundation website is shown under
Charitable Activities:
Competitive Opportunity
Operations:
School Games		 the heading "Publi
20
6		 cations" along with the ne
21
£
20
0		 wsletter "Junior Golf Matters".
2020
£
5,600
5,600
62

30

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

2.5 Governance

2.6
2.7		 Operations:
Audit & Accountancy
Annual Report
Committee Expenses
Staff and Support Costs:
See Note 2.8
Charged to
Raising Funds
See Note 2.1
Coaching and Development
See Note 2.2
Promotions and Publicity
See Note 2.3
Analysis of total expenditure
Charitable Activities:
Coaching and development
Promotions and publicity
Competitive opportunity
Cost of raising funds:
Raising funds:
Investment management fees
Governance
TOTAL RESOURCES EXPENDED
Prior Year Analysis of total expenditure		 See Note 2.8
See Note 2.1
See Note 2.2
See Note 2.3		 Grants made Grants made
104,343
81,157
-
554
-
8,123		 902,338
1,087,838
1,592,730
111,584
112,138
159,570
-
8,123
8,415
104,343
89,834
-
21,174		 1,013,922
1,208,099
1,760,715
21,474
42,648
60,202
104,343
111,008		 1,035,396
1,250,747
1,820,917
Charitable Activities:
Coaching and development
Promotions and publicity
Competitive opportunity
Cost of raising funds:
Raising funds:
Investment management fees
Governance
TOTAL RESOURCES EXPENDED		 Grants made
Operations
£
£
381,883
80,454
-
115,152
-
5,600		 Staff and
Support costs
£
854,387
155,254
-		 TOTAL
March 2020
£
1,316,724
270,406
5,600		 TOTAL
March 2019
£
1,462,376
323,464
6,307
381,883
201,206
-
37,120
-
8,415		 1,009,641
122,450
-		 1,592,730
159,570
8,415		 1,792,147
140,081
9,823
381,883
246,741
-
23,978		 1,132,091
36,224		 1,760,715
60,202		 1,942,051
66,738
381,883
270,719		 1,168,315 1,820,917 2,008,789

31

THE GOLF FOUNDATION (Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

2.8 Analysis of Staff and Support Costs

Staff costs
Office costs
Travel and Motor expenses
Finance and Legal
TOTAL RESOURCES EXPENDED		 Coaching and
Promotions
Activities to
Governance
TOTAL
TOTAL
Development
and Publicity
raise funds
March 2021
March 2020
£
£
£
£
£
£
517,853
100,019
82,098
14,956
714,926
782,082
173,252
52,098
24,258
4,704
254,312
262,003
52,570
4,299
5,033
1,582
63,484
113,679
1,922
325
194
233
2,674
10,553
745,597
156,741
111,583
21,475
1,035,396
1,168,317

Staff costs represent the costs related by staff attached to a particular Department, together with an element representing the apportioned cost of staff attached to the Finance and Administration and Central Services Departments. Reference can be made to the explanations accompanying Note 4 for information as to staff attachments.

Office costs include rental costs, other premises costs, equipment costs (such as computers and photocopiers), telephone, printing, postage, stationery and insurance.

Costs falling within these categories which are capable of being allocated to specific activities have been so allocated. For example, the heading of "Publications" under Note 2.3 will largely consist of printing and postage costs.

Travel and Motor Expenses includes costs for travel, subsistence, accommodation, entertaining, motor fuel costs, and vehicle leasing costs.

Costs falling within these categories which are capable of being allocated to specific activities have been so allocated. For example, the heading of "Open Championship" under Note 2.3 includes elements for travel and accommodation.

Finance and Legal includes such items as bank charges, currency adjustments, and external legal services.

2.9 Prior Year Analysis of Staff and Support Costs

Staff costs
Office costs
Travel and Motor expenses
Finance and Legal
TOTAL RESOURCES EXPENDED		 Coaching and
Development
£
578,641
181,006
87,542
7,198		 Promotions

and Publicity
£
93,091
52,603
7,883
1,678		 Activities to
Governance
raise funds
£
£
88,955
21,395
23,806
4,588
8,981
9,273
709
968		 TOTA
March 202		 TOTAL
March 2019
£
834,104
250,034
112,605
7,679
854,387 155,255 122,451
36,224		 1,168,317 1,204,422

32

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

3. NET INCOME/(EXPENDITURE)

Year ended
Year ended March March
This is stated after charging: 2021 2020
£ £
Operating lease payments (Plant and Machinery) 6,745 10,567
Operating lease payments (Other) 49,410 63,318
Auditor's Remuneration - audit fees 19,450 19,950
- tax services 1,585 2,130
Depreciation 25,408 23,940

4. ANALYSIS OF STAFF COSTS, TRUSTEES REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL

Total Staff Costs
Wages and Salaries
Social Security Costs
Pension Costs and Other Benefits
Recruitment and Other Costs
Cost of key management personnel
Wages and Salaries
Social Security Costs
Pension Costs and Other Benefits
Interim Costs		 Year ended March
2021
£
557,699
57,042
46,145
54,040
714,926
228,918
26,488
15,822
-
271,228		 Year ended
March
2020
£
641,959
66,980
51,663
21,480
782,082
267,333
30,937
20,372
-
318,642

Key Management comprises the Chief Executive, the Head of Finance, the Head of Development, the Head of Marketing & Events and the Head of Fundraising. The key management remuneration disclosed includes gross pay, employer NI and pension costs. In addition to the amounts disclosed above, the key management personnel received benefits in kind totalling £25,231 (2019/20: £35,402).

Redundancy costs amounting to £20,556 (2020: £nil) are included in wages and salaries.

No Member of the Board of Trustees received remuneration in either year. No Member of the Board of Trustees were reimbursed expenses in 2020/21 (2019/20 - two Members were reimbursed £1,536). Expenses reimbursed to Trustees were for travel and accommodation expenses incurred by reason of attendance at meetings and events.

One employee received remuneration in the range £80-90k per annum in the period (Year to 31 March 2020 - one within the £80-£90k range and one within the £60-70k range).

The average monthly number of employees during the year, analysed by function was:

Development Department (Central)
Development Department (Officers)
Central Services
Fundraising
Finance and Administration
TOTAL		 2021
No.
1.0
8.8
2.3
1.3
2.9
16.3		 2020
No.
1.0
9.9
2.8
1.6
3.0
18.3

The Development Department (Central) comprises the Head of Development.

The Development Department (Officers) comprises nine Regional Development Officers for England.

The Central Services Department comprises the Chief Executive Officer and the Communications Officer.

The Fundraising Department comprises the Head of Fundraising and the Fundraising & Workshop Administrator.

The Finance and Administration Department comprises the Head of Finance & Company Secretary, the Finance Officer and the Office Administrator.

All members of staff as detailed above are employed by the Charity.

33

THE GOLF FOUNDATION (Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

5. TAXATION

As the Golf Foundation is a registered Charity under the Charities Act 2011 it is potentially entitled to the exemptions from tax afforded by sections 466 to 493 of the Corporation Tax Act 2010 and sections 521 to 536 of the Income Taxes Act 2007 so far as its income and gains are applied for charitable purposes.

6. TANGIBLE FIXED ASSETS (FOR GROUP AND CHARITY)

Cost
At 1st April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1st April 2020
Charge for the Period
Eliminated on Disposal
At 31 March 2021
Net Book Value
At 31 March 2021
At 1st April 2020		 Computer
Equipment
£
67,352
-
-		 Intangibles
£
113,504
2,400
-		 Office
TOTAL
Equipment
£
£
51,740
232,596
695
3,095
(1,641)
(1,641)		 TOTAL
67,352 115,904 50,794
234,050
55,720
3,444
-		 68,659
18,848
-		 33,462
157,841
3,116
25,408
(589)
(589)
59,164 87,507 35,989
182,660
8,188 28,397 14,805
51,390
11,632 44,845 18,278
74,755

All tangible fixed assets are owned by the Charity.

34

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

7. INVESTMENTS (FOR GROUP AND CHARITY)

Market Value at 1 April 2020
Income Reinvested
Management Fees
(Loss) / Gain on revaluation
Transfers between funds
Market value at 31 March 2021
Represented by:
Schroder Charity Multi Asset
Fund
Cash
Total in Group
Golf Foundation Enterprises
Limited
Total in Charity		 General
Funds
£
991,090
43,900
(3,293)
193,482
18,000		 Designated
Funds
£
-
-
-
-
-		 Endo Expendable
TOTAL
wment Fund
£
£
1,389,555
2,380,645
64,063
107,963
(4,830)
(8,123)
284,915
478,397
(18,000)
-		 TOTAL
1,243,179 - 1,715,704
2,958,883
1,204,924
38,255		 -
-		 1,715,704
2,920,628
-
38,255
1,243,179
1		 -
-		 1,715,704
2,958,883
-
1
1,243,180 - 1,715,704
2,958,884

The historical cost of the investments was £2,518,058 (2020 - £2,417,285). All the investment assets are held in the United Kingdom and are owned by the Charity.

The Charity holds 100% of the shares in its wholly owned subsidiary Golf Foundation Enterprises Limited (Company number 03347443) which is incorporated in the United Kingdom. The activities and results of this company are summarised under Note 14.2.

35

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

7.1 PRIOR YEAR INVESTMENTS (FOR GROUP AND CHARITY)

8. Market Value at 1 April 2019
Additions at Cost
Disposals
Cash movement held within
investments
Income Reinvested
Management Fees
(Loss) / Gain on revaluation
Transfers between funds
Market value at 31 March 2020
Represented by:
Schroder Charity Multi Asset
Fund
Cash
Total in Group
Golf Foundation Enterprises
Limited
Total in Charity
DEFERRED INCOME
As at 1 April
Deferred donations
Utilised during the year
As at 31 March		 General
Funds
£
1,125,801
50,245
(283,342)
38,096
41,998
(3,364)
(98,636)
120,292		 General
Funds
£
1,125,801
50,245
(283,342)
38,096
41,998
(3,364)
(98,636)
120,292		 Designated
Funds
£
-
-
-
-
-
-
-
-		 Designated
Funds
£
-
-
-
-
-
-
-
-		 Endo Expendable
TOTAL
wment Fund
£
£
1,634,181
2,759,982
-
50,245
-
(283,342)
-
38,096
67,870
109,868
(5,051)
(8,415)
(187,153)
(285,789)
(120,292)
-		 Expendable
TOTAL
wment Fund
£
£
1,634,181
2,759,982
-
50,245
-
(283,342)
-
38,096
67,870
109,868
(5,051)
(8,415)
(187,153)
(285,789)
(120,292)
-		 TOTAL

Fun
991,090 - 1,389,555
2,380,645
949,545
41,545		 -
-		 1,389,555
2,339,100
-
41,545
991,090
1		 -
-		 1,389,555
2,380,645
-
1
991,091 - 1,389,555
2,380,646
March
2021
£
52,500
52,500
(52,500)
52,500		 March
2020
£
60,876
-
(8,376)
52,500

The deferred balance represents sponsorship revenue to be recognised in 2021/22.

36

THE GOLF FOUNDATION (Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

9.
9.1
9.2
10.
10.1
10.2		 DEBTORS
DEBTORS (FOR THE GROUP)
Trade Debtors
Other Debtors
Accrued Income
Prepayments
DEBTORS (FOR THE CHARITY)
Trade Debtors
Owed by the Subsidiary
Other Debtors
Accrued Income
Prepayments
CREDITORS: Amounts falling due within one year
CREDITORS (FOR THE GROUP)
Trade Creditors
Other Creditors
Other Taxation and Social Security
Accruals
Deferred Income
(Note 8)
CREDITORS (FOR THE CHARITY)
Trade Creditors
Owed to the Subsidiary
Other Creditors
Other Taxation and Social Security
Accruals		 March
2021
£
1,115
240,164
5,778
26,543
273,600
March
2021
£
1,115
-
240,164
5,778
26,543
273,600
March
2021
£
48,808
4,402
18,802
29,907
52,500
154,419
March
2021
£
48,809
1,372
4,402
18,802
26,497
99,882		 March
2020
£
16,554
8,707
-
42,767
68,028
March
2020
£
15,275
64,949
8,707
-
42,767
131,698
March
2020
£
128,872
-
49,899
32,198
52,500
263,469
March
2020
£
128,872
-
-
49,899
28,789
207,560

10.3 As at 31 March 2021 the Charity has £Nil (2020: £86,151) of contingent grants that have not been accrued. These grants may be payable if certain pre-agreed actions are met by the beneficiaries. It is anticipated that these actions will be met, and the grants will be paid in cash, during the next twelve months. Please refer to pages 15 and 16 of the Trustees' Annual Report for further details.

37

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

11.1 Fund balances at 31 March 2021
are represented by:
Tangible Fixed Assets
Investments
Current Assets
Current Liabilities
11.2 Fund balances at 31 March 2020
are represented by:
Tangible Fixed Assets
Investments
Current Assets
Current Liabilities		 a Unrestricted
nd Designated
£
51,390
1,243,179
400,236
(154,419)		 Restricted
£
-
-
362,561
-		 Endowment
TOTAL
£
£
-
51,390
1,715,704
2,958,883
-
762,797
-
(154,419)		 TOTAL
1,540,386 362,561 1,715,704
3,618,651
a Unrestricted
nd Designated
£
74,755
991,090
290,461
(263,469)		 Restricted
£
-
-
163,785
-		 Endowment
TOTAL
£
£
-
74,755
1,389,555
2,380,645
-
454,246
-
(263,469)		 TOTAL
1,092,837 163,785 1,389,555
2,646,177

38

THE GOLF FOUNDATION (Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12. ALLOCATION OF FUNDS (FOR GROUP AND CHARITY)

12.1 Unrestricted Income Funds (Group and Charity)

General Funds
Designated Funds
Digital Platform Fund
Scottish Designated Fund
Fixed Assets Designated Fund
Total Designated Funds
Total Unrestricted Funds		 Balance
Income
1 April 2020
£
£
1,004,237
1,300,561
-
-
13,845
2,000
74,755
-		 Expenditure &
Disposals
G
£
(1,177,384)
-
(20,000)
(26,110)		 Investments
ains / (Losses)
£
193,482
-
-
-		 Transfers 31 Ma Net movement
£
(245,745)
400,000
18,000
2,745
£
70,914
400,000
-
(23,365)
in funds
88,600
2,000
1,092,837
1,302,561		 (46,110)
(1,223,494)		 -
193,482		 420,745
175,000		 465,235
1,540,386		 376,635
447,549

All turnover in the subsidiary (£88,766), and all expenditure in the subsidiary (£75,891), form part of the movements on General Funds. The net assets of the subsidiary as at 31 March 2021 (£1) form part of the closing balance on General Funds .

The Digital Platform Fund is a fund set aside in March 2021 for achieving delivery of the 5 year business plan.

The Scottish Designated Fund was set aside to represent donations and funds raised from Scottish sources which it is intended to expend in line with the Restricted Scottish Income Fund.

The Fixed Assets Fund represents the net book value of unrestricted tangible fixed assets at the balance sheet date. Fixed Assets forming part of Restricted and Endowment Funds are excluded.

12.2 Prior Year Unrestricted Income Funds (Group and Charity)

General Funds
Designated Funds
Scottish Designated Fund
Fixed Assets Designated Fund
Total Designated Funds
Total Unrestricted Funds		 Balance
Income
1 April 2019
£
£
1,245,745
1,260,912
13,845
13,775
79,910
-		 Expenditure &
Disposals
£
(1,398,448)
(13,775)
(25,491)		 Investments
Gains
£
(98,636)
-
-		 Transfers 31 Ma Net movement
£
(5,336)
-
20,336
£
(241,508)
-
(5,155)
in funds
93,755
13,775
1,339,500
1,274,687		 (39,266)
(1,437,714)		 -
(98,636)		 20,336
15,000		 88,600
1,092,837		 (5,155)
(246,663)

39

THE GOLF FOUNDATION (Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12.3 Restricted Funds (Group and Charity)

Movements in the income funds of the Golf Foundation include restricted funds which are to be expended on specific purposes.

Crown Golf Restricted Fund
East London Legacy Fund
England Fund
Gerald Micklem Fund
Peter Harrison Fund
Girls Golf
London Welsh Fund
National Sports Foundation Fund
Oxfordshire Satellite Clubs
Pro-Am 2017
Road to the Open
Royal Liverpool Fund
Satellite Clubs Fund
Scottish Income Fund
Sport England Fund
R&A GolfSixes League Fund
Sport Wales Fund
Youth Sport Trust Restricted Fund		 Balance
1 April 2020
£
2,109
80
30,365
30,407
-
22,423
630
6,919
1,027
15,752
6,652
8,526
5,932
-
32,963
-
-
-		 Income
£
-
-
-
25,000
25,000
-
-
-
-
-
-
-
-
64,063
157,000
171,200
-
-		 Expenditure
£
-
-
-
(10,423)
-
-
-
-
-
-
-
-
-
(178)
(7,925)
-
(3,525)
(551)		 Transfers
-
-
-
-
-
-
-
-
-
-
-
-
-
(63,885)
(157,000)
-
-
-
-
-		 Balance
31 March		 Net m ovement
2021
£
2,109
80
30,365
44,984
25,000
22,423
630
6,919
1,027
15,752
6,652
8,526
5,932
-
25,038
171,200
3,525


551
 - in funds
£
-
-
-
14,577
25,000
-
-
-
-
-
-
-
-
-
(7,925)
171,200
3,525

(551)
163,785
442,263		 (22,602) (220,885) 362,561 198,776

The Crown Golf Restricted Fund derives from a donation representing contributions made by the members of the clubs and facilities making up the Crown Golf Group. The funds will be applied to a programme of development activities which will be based at those facilities.

The East London Legacy Fund was established in 2010 with funding from Citi (facilitated by East London Business Alliance) and the European Tour. The funding is planned to be applied in three main areas. First, a project called the "Back Nine" was run in late 2010 involving employee volunteers from Citi; second, the funding will support the appointment (from November 2010) of the new East London Activator; and third, the funding will enable expanded activity in the East London area in the context of the Golf Roots City Projects programme.

From April 2005 until 2017 funding previously received direct from Sport England has been received through the England Golf Partnership. Both income sources formed part of the England Fund . Monies received from the England Golf Partnership are allocated to identified programmes of expenditure and are therefore restricted in nature. The England Fund incorporated funding which derived ultimately from Sport England and is to be applied to the support of School Sport Partnerships in England. This was previously shown as a separate Restricted Fund - the "School Links Restricted Fund".

The Gerald Micklem Fund derives from donations made by the Gerald Micklem Charitable Trust. In March 2021 the Golf Foundation received £25,000. £10,423 was used to fund HSBC Golf Roots Plus Projects.

The Peter Harrison Fund is restricted for Feel Inspired disability projects.

Girls Golf (previously called Brooch 2017) represents income and expenditure arising from the Brooch appeal in 2017 and 2018, the 2018 Pro-Am and specific individual donations all of which have been restricted to Girls' Golf programs.

The London Welsh Fund represents funds raised by the London Welsh Golf Society which are to be allocated to HSBC Golf Roots Plus Projects in Wales.

The National Sports Foundation Fund relates to an Expansion Project which began in 2008. The 2008 funding of £225,000 derived from an application of an increased donation from the R & A, which was matched by a grant from the NSF. The 2009 income largely represented a further grant from the NSF matching other income sources.

The Oxfordshire Satellite Club Fund relates to funding from Oxfordshire County Sports Partnership ring-fenced to develop Satellite Clubs in Oxfordshire.

The net proceeds of the Golf Foundation Pro-Am 2017 have been restricted for HSBC Golf Roots Plus Projects.

The R&A provided £10,000 in the form of the Road to the Open grant which was to be used for promoting golf in the north-west region around The Open at Royal Birkdale. This is being used instead for the Open at Royal St Georges in June 2021. The R&A also provided funding for the GolfSixes League.40

The Satellite Clubs Fund represents grants that have been donated by Lincolnshire and London Youth Sports to develop Satellite clubs in their areas.

The Scottish Income Fund derives from the proceeds of the investments held by the Scottish Capital Fund (see Note 12.5) and is subject to the same condition that it be expended for the benefit of junior golf in Scotland. In 2020/21 £20,000 was transferred to pay for the Scottish Regional Development Officers and grants after taking into account funds raised by Scottish Sources for the Scottish Designated Fund shown in note 12.1 and income generated by the Scottish Endowment Fund of £64,063.

The Sport England Fund originally derived from direct funding received in 2013 for the purpose of a pilot scheme for Satellite Clubs. From April 2017 the Golf Foundation receives funding from Sport England through England Golf which is allocated to identified programmes of expenditure and are therefore restricted in nature. The funding is allocated to the Regional development Officer network, the Box of Tricks retention programme, a 9-hole competition pilot and to Satellite Clubs. In 2021 due to Covid, the amount received was Unrestricted as many of the planned programmes could not go ahead.

The Sport Wales Fund derives from a series of grants to help establish and sustain new Starter Centres in Wales.

The Youth Sport Trust Restricted Fund derives from grant funding received for the Youth Sport Trust which is to be applied to the promotion of golf as part of the School Games, and to the establishment of School Golf Clubs.

12.4 Prior Year Restricted Funds (Group and Charity)

Movements in the income funds of the Golf Foundation include restricted funds which are to be expended on specific purposes.

Crown Golf Restricted Fund
East London Legacy Fund
England Fund
Gerald Micklem Fund
Girls Golf
Girls' Golf Rocks Fund
London Welsh Fund
Marketing Fund
National Sports Foundation Fund
Oxfordshire Satellite Clubs
Pro-Am 2017
Road to the Open
Royal Liverpool Fund
Satellite Clubs Fund
Scottish Income Fund
Sport England Fund
Sport Wales Fund
Youth Sport Trust Restricted Fund		 Balance
Income
1 April 2019
£
£
8,939
(4,080)
80
-
46,440
-
24,825
20,000
33,337
12,202
7,533
-
1,096
-
15,000
-
6,919
-
1,027
-
15,752
-
2
10,650
-
8,526
6,807
-
-
67,870
23,263
187,000
-
7,500
3,528
-
194,548
309,668		 Expenditure
£
(2,750)
-
(16,075)
(14,418)
(23,116)
(7,533)
(466)
-
-
-
-
(4,000)
-
(875)
(125,342)
(177,300)
(7,500)
(3,528)
(382,903)		 Transfers
-
-
-
-
-
-
-
(15,000)
-
-
-
-
-
-
57,472
-
-
-
42,472		 Balance
31 March		 Net m ovement
2020
£
2,109
80
30,365
30,407
22,423
-
630
-
6,919
1,027
15,752
6,652
8,526
5,932
-
32,963
-
-
163,785		 in funds
£
(6,830)
-
(16,075)
5,582
(10,914)
(7,533)
(466)
(15,000)
-
-
-
6,650
8,526
(875)
-
9,700
-
(3,528)
(30,763)

41

THE GOLF FOUNDATION

(Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

12.5 Expendable Endowment Funds (Group and Charity)

In February 2000 the Golf Foundation received £1,673,814 in the form of cash and equities by way of a gift from a charitable trust based in Scotland. The Trustees asked that the identity of the donor should remain anonymous. The gift was made subject to the condition that it be expended for the benefit of junior golf in Scotland. In November 1999 the Board had resolved to accept the gift, subject to this Restriction, and further resolved that the capital of the Fund be set aside for the time being, thereby creating an expendable endowment. A second donation of £100,000 was made by the Trust during 2002, subject to the same restriction. A third donation of £100,000 was made by the Trust during 2005, subject to the same restriction. A fourth and final donation of £16,032 was made by the Trust during 2010, subject to the same restriction.

Scottish Capital Fund Balance
1 April 2020
£
1,389,555		 Income
£
-		 Expenditure
£
(4,652)		 Ga Investments
ins / (Losses)
£
284,915		 Transfers 31 Ma Net movement
£
45,885
£
326,149
in funds
1,389,555 -
-		 4,652
 284,915 45,885 1,715,704 326,149

The transfers represent money transferred to the portfolio after helping pay for the Scottish Regional Development Officers and grants after having taken into account funds raised from Scottish Sources in the Scottish Designated fund shown note 12.1

12.6 Prior Year Expendable Endowment Funds (Group and Charity)

Scottish Capital Fund Balance
1 April 2019
£
1,634,180		 Income
£
-		 Expenditure
£
-		 Ga Investments
ins / (Losses)
£
(187,153)		 Transfers 31 Ma Net movement
£
(57,472)
£
(244,625)
in funds
1,634,180 - - (187,153) (57,472) 1,389,555 (244,625)

13. OPERATING LEASE COMMITMENTS (GROUP AND CHARITY)

At 31st March 2021 the Foundation had total commitments under operating Leases as set out below:

Land and buildings
Motor vehicles
Less than one year
27,180
27,221
Between one and five years
11,325
-
Later than five years
-
-
Total future payments
38,505
27,221
March 2021		 La nd and buildings
Motor vehicles

27,180
27,221
s
11,325
-
s
-
-
March 2021		 Land and buildngs
Motor vehicles
40,152
26,659
56,882
-
-
-
March 2020
97,034
26,659

In May 2019, a new agreement was undertaken which extended the premises lease until August 2022. In November 2021 this agreement was amended to reduce one of the units leased.

The motor vehicles leases all expire between October 2021 and December 2021 except for one lease that expires in April 2022.

42

THE GOLF FOUNDATION (Limited by Guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

14. CONSOLIDATION OF ACCOUNTS

14.1 Financial performance of the Charity

The consolidated Statement of Financial Activities includes the results of the Charity's wholly owned subsisidiary, Golf Foundation Enterprises Limited (company number 03347443), through which certain income generating activities in the nature of trading (sponsorship and royalties) are administered.

The summary financial
performance of the charity alone
is:
Net Income (expenditure)
Gift aid from subsidiary company
Expenditure on charitable activities
Subtracted from funds
Total funds brought forward
Total funds carried forward		 Year ende
March 202

14.2 Financial performance of the trading subsidiary

The wholly owned trading subsidiary Golf Foundation Enterprises Limited (company number 03347443) is incorporated in the United Kingdom and pays all of its taxable profits to the Charity via gift aid.

Turnover
Cost of sales and administration costs
Net profit
Gift aided to the charity
Profit
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Total net assets
Represented by share capital
The summary financial perfomance of the subsidiary
alone is:		 Year ended
March 2021
£
88,766
(75,891)
12,875
(12,875)
-
68,785
(68,784)
1
1		 Year ended March
2020
£
127,462
(105,159)
22,303
(22,303)
-
120,860
(120,859)
1
1

All turnover of the subsidiary forms part of the movements on General Funds, and the net assets of the subsidiary as at 31 March 2021 form part of the closing balance for General Funds.

15 RELATED PARTIES

The aggregate of the total amount of donations received from Trustees without conditions during the year was £25,120 (Year to March 2020: £16,980).

Ms Evie Carter was a trustee during the year and was also paid £Nil for professional golf services during 2020/21 (2019/20: £159)

During the year The Golf Foundation paid £Nil to One Ltd (2019/20: £10,560), a company related to Mr Stephen Proctor for design and consultancy services.

Golf Foundation Enterprises Limited (company number 03347443) is a wholly owned subsidiary of The Golf Foundation, the immediate parent Charity. During the year to 31 March 2021 The Golf Foundation recharged £71,185 (year to 31 March 2020 - £76,528) to Golf Foundation Enterprises Limited for expenses which it incurred on Golf Foundation Enterprises Limited's behalf. At 31 March 2021, Golf Foundation Enterprises Limited was owed by The Golf Foundation £1,372 (owed to 2020: £64,949) of which £12,874 is Gift Aid payable to The Golf Foundation. During the year to 31 March 2021 Golf Foundation Enterprises Limited paid to The Golf Foundation £64,949 of which £22,303 was the Gift Aid pledged in 2020.

43