Chance to Succeed SCIO : SC046179
Report of the Trustees and Financial Statements For the year ended 31 December 2020
Remote Operating Licence : 000-045490-R-324706-001 Non Remote Operating Licence : 000-045490-N-329303-001
Chance to Succeed
SCIO: SC046179
Contents
Administrative Information Report of the Trustees Statement of Trustees' Responsibilities Independent Auditors' Report Statement of Financial Activities Balance Sheet Statement of cash flows Notes to the Financial Statements
Page 2 Page 6 Pages 7 to 9 Pages 10 to 11 Page 12 Page 13 Pages 14 to 20
Page 1
Chance to Succeed
SCIO: SC046179
Administrative Information For the year ended 31 December 2020
Chance to Succeed is a Scottish Charitable Incorporated Organisation in Scotland and is regulated by the Office of the Scottish Charity Regulator (OSCR).
SCIO registration details
SCIO name: Chance to Succeed SCIO registration number: SC046179 Registration date: 4 December 2015 Principal office: c/o 110 Queen Street Glasgow G1 3BX
Trustees
The Trustees at any point in the period, up to the date of the approval of the financial statements were:
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External lottery manager
Independent auditors
STV ELM Limited PricewaterhouseCoopers LLP Pacific Quay 141 Bothwell Street Glasgow G51 1PQ Glasgow G2 7EQ
Principal bankers
Website
Barclays Bank plc 1 Churchill Place London E14 5HP
www.chancetosucceed.co.uk
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Chance to Succeed
SCIO: SC046179
Report of the Trustees
For the year ended 31 December 2020
Governance, structure and management of Chance to Succeed
Governing document
Chance to Succeed is a Scottish Charitable Incorporated Organisation (SCIO) and its activities are governed by its constitution.
Organisational structure
Membership of the SCIO is open to any person (legal or natural) who, in the view of the Charity Trustees, demonstrates a genuine commitment to further the purposes of the SCIO. Application for membership is approved by the Charity Trustees and the member must also be appointed as a Charity Trustee contemporaneously.
Procedures are in place for newly appointed Trustees to receive an induction covering the objectives, policies and protocols for the operation of the SCIO in addition to the legal obligations and responsibilities of a charity trustee. This induction is overseen by the Chairman of the Board or a nominated representative.
The Board of Trustees have outsourced the operation of its lottery activities to STV ELM Limited, a licensed external lottery manager regulated by the UK Gambling Commission. The charity’s lottery activities are conducted in association with partner charities Chance to Study (SC046178), Chance to Connect (SC046173) and Chance to Flourish (SC046177) and are promoted under the brand of The Scottish Children’s Lottery.
STV ELM Limited works with of the Board of Trustees and the performance of the lottery activities is reviewed at regular meetings with the Board of Trustees.
Risk management
The principal risks faced by the charity are reputational and financial.
UK Gambling Licence conditions Whilst the responsibly for operating the lottery and ensuring the terms of the licence are adhered to lies with the external lottery manager, there is reputational risk to the charity if there are any serious licence breaches which could result in sanctions, financial penalties and revocation of licences. The Board of trustees has oversight to the internal controls that have been put in place by the external lottery manager to ensure that the terms of the operating licence are adhered to.
- Financial risk
Under the arrangements existing at the balance sheet date, if the lottery was unsuccessful, the charity would have a financial liability to STV ELM Limited and the continued existence of the charity would be in doubt. Through the year, this risk was monitored and managed in part through the charity’s business plan, and through receipt of a letter of support from STV Group plc, the ultimate parent company of the STV ELM Limited. Subsequent to year-end, as explained on pages 4 and 5, there was a change in the ownership of the external lottery manager The arrangements for meeting costs and providing working capital are now such that the net asset position of the charity will be maintained. COVID-19
The STV ELM Limited team has been working from home since March 2020 and will continue to do so throughout most of 2021. Whilst lockdown has had an impact on retail sales with less customers entering shops on a regular basis this is a relatively small proportion of ticket sales. The vast majority of Lottery ticket sales are online and the SCIO’s cash outflows are largely driven by the level of income received, accordingly the impact of COVID-19 on the liquidity position has not been as significant for Chance to Succeed as for many other organisations.
The Board of Trustees regularly evaluate the risks to which the charity is exposed and the systems in place to manage them. The Board of Trustees consider that the systems in place are adequate to manage the risks faced by Chance to Succeed.
Objectives, activities and achievements of Chance to Succeed
Charitable objectives
The charitable objectives of Chance to Succeed as set out in its constitution are to support and promote (through financial distributions to charities, community groups and others) employment skills and the employability of young people. In doing so the financial distributions will seek to alleviate the impact of poverty, financial hardship, disability, illness or socio-economic disadvantage, with the aim of ensuring that all young people in Scotland have the opportunity of a productive future where they can become young adults with a positive contribution to make to society.
To achieve those objectives, the primary activities of Chance to Succeed are:
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To generate funds through the operation of a society lottery which is regulated by the Gambling Commission under licence 000-045490R-324706-001. Chance to Succeed has engaged STV ELM Limited (who operate under the brand name, the Scottish Children’s Lottery) as its external lottery manager. This was the case in the year but changed after year end as described later in this report.
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To distribute the net funds generated by the society lottery to charities and other organisations which engage in activities aligned with Chance to Succeed’s charitable objectives as outlined above.
We believe that every young person in Scotland deserves a chance. A chance to be seen; A chance to prove themselves; A chance to forge a successful career for themselves.
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Chance to Succeed
SCIO: SC046179
Report of the Trustees
For the year ended 31 December 2020
Activities (cont’d)
Without intervention, not everyone gets that same chance. Whether as a result of financial hardship, disability, illness or situations often beyond their control, many Scottish children simply do not enjoy the same opportunities as others. We are working to change that. Operating as a grantgiving charity, Chance to Succeed strives to ensure that all young people in Scotland can make a positive contribution to society through gainful employment. With projects aimed at building employment skills and instilling confidence, we help the youth of today find their feet so that they can be prepared for the workplace of tomorrow.
Using the funds generated by our promotion of the Scottish Children’s Lottery scheme, we strive to alleviate the impact of child poverty and make steps toward securing brighter futures.
Achievements
In 2020, Chance to Succeed, made 23 awards to charities all over Scotland. These projects are detailed in note 13. The total value of the grants awarded in 2020 was £247,018 (2019: £366,490).
Projects supported by Chance to Succeed
The following are some of the projects supported by Chance to Succeed in 2020.
Helm Training Limited
Helm Training Limited received £10,000 from Chance to Succeed. They used the money to cover staff, travel and material costs incurred whilst delivering their Supplementary Programmes project. The elements included Mental Health and Wellbeing, Breakfast Clubs, Excursions, Spick and Spanners Social Enterprises and Mobile Beauty Social Enterprise. The project was delivered to up to 200 excluded young people aged 15-18, facing a range of adversity and challenges and struggling to reach their potential and make a positive transition in to adulthood.
The Volunteer Centre Glasgow
The Volunteer Centre Glasgow received a grant of £10,000 from Chance to Succeed in August 2020. The Centre exists to enhance the lives of people in Glasgow. They do this by creating and developing volunteering opportunities, supporting organisations to engage with volunteers to maximum benefit, enabling individuals to find the best volunteering opportunity to match their aspirations and managing services which harness the energy and contributions of volunteers for the benefit of individuals, families and communities. Covid-19 update: Their volunteer befrienders have continued to support their young people throughout the pandemic and as restrictions ease, some matches are returning to face to face befriending, subject to risk assessment. In addition they have provided support to families with shopping, prescription and activity resources deliveries.
Measuring success
The evaluation of our investments is essential to ensure that maximum benefit can be derived from the funding we provide.
In the case of larger awards, each project's impact is measured against agreed target outcomes and will typically be required to be reviewed. In recognition that the smaller projects have limited resources, the reporting requirements upon them are less onerous though still necessary to ensure objectives are met.
Future plans
STV Group plc, the ultimate parent company of the STV ELM Limited, has indicated an intention to dispose of STV ELM Limited. In the intervening period it remains the aim of Chance to Succeed to continue to invest in projects and activities which are focused on working in the areas of community development and citizenship, giving young people in Scotland to live in a safe, supportive and stimulating community. Chance to Succeed will maintain this as a focus within the current ownership structure. There is no intention for the aims of the organisation to change post disposal.
Going Concern
The Trustees of Chance to Flourish (the “SCIO”) have prepared the financial statements on a basis of going concern for the year ending 31 December 2020, while acknowledging that the SCIO is in a net liability position as at the year-end.
During the year STV Group PLC, the ultimate parent of STV ELM, the External Lottery Manager of the SCIO, publicly communicated their intention to dispose of the STV ELM and the associated SCIOs.
As set out in note 13, the sale to MBC Lotteries Limited was finalised in August 2021. On completion of the sale, all balances due from the SCIO to STV Group PLC were formally forgiven. This debt forgiveness moved the SCIO into a net asset position. Additionally, £400,000 of working capital was provided by the new owners at the point of completion. Under the new management structure, charges for the costs of operation of the lottery will be recouped from available lottery proceeds rather than accruing as liabilities within the SCIO going forward, ensuring the net asset position is maintained.
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Chance to Succeed
SCIO: SC046179
Report of the Trustees
For the year ended 31 December 2020
The Trustees have also considered future budgets and forecasts of the SCIO itself. Following consideration of the above factors, the Trustees deem it appropriate to prepare the financial statements on a basis of going concern.
Events subsequent to the balance sheet date
The Scottish Children’s Lottery and the associated SCIOs, including Chance to Succeed, were sold by STV Group PLC to MBC Lotteries Limited in August 2021 following approval by the Gambling Commission. The acquirer is responsible for the provision of lottery management services to the SCIOs from this date.
Financial review of Chance to Succeed
Chance to Succeed’s activities in the year to 31 December 2020 generated total incoming resources of £1,306,349 (2019: £1,556,775) through the net proceeds of the Scottish Children’s Lottery. The operating costs and grants awarded for the year are £1,177,662 (2019: £1,643,118) and lottery gaming prizes paid are £452,886 (2019: £561,023) resulting in a deficit of £324,178 (2019: £647,366).
Factors relating to the charity’s ability to continue as a going concern, despite the net liability position as at the end of the year, are set out on page 4. A reserve of funds has been retained by Chance to Succeed so that it can meet its obligations (as a charity and under its gambling licence) to provide support to charities and projects which seek to help young people into work.
Income
20% of all Lottery ticket sales are reserved to be made available for awards to good causes. Of the remaining proceeds from ticket sales an average of 43% covers prizes and the rest is used to cover operating costs.
Reserves
The reserves of the charity at 31 December 2020 were a deficit of £3,331,414 (2019: deficit of £3,007,234) of which £3,370,415 (2019: £3,036,984) were unrestricted. These unrestricted funds in deficit are as a result of the lottery being in the growth phase and at this point operating costs are exceeding income. Restricted funds were in a surplus position as at 31 December 2020. During this period funding requirements have been supported by the STV ELM Limited. When the charity’s reserves are in a surplus the trustees would expect to hold adequate unrestricted reserves in order settle commitments to the STV ELM Limited for services provided.
The trustees of Chance to Succeed strive to keep reserves to a minimum but ensure that the charity’s restricted funds are at a level that enables the charity to meet its funding commitments to charitable objectives.
Chance to Succeed’s reserves policy is monitored and reviewed by the trustees on an annual basis in order to maintain reserves at the agreed minimum level.
1. Ring-fenced funds for charitable contributions As required under the provisions of its gambling licence, Chance to Succeed must retain a minimum of 20% of the value of ticket sales of any given lottery draw for distribution to good causes in accordance with its charitable objectives. Where, at the year end, not all funds have been committed, the Trustees shall endeavour to identify and evaluate suitable projects to which surplus funds may be awarded.
2. Total Funds of the Charity
Where total funds of the charity as reflected in the balance sheet are reserved, Chance to Succeed will strive to award all available cash funds to charitable projects and therefore to minimise reserves. Where not all funds have been committed, the Trustees shall endeavour to identify and evaluate suitable projects to which surplus funds that are reserved may be awarded.
Signed on behalf of the Board of Trustees
P| Trustee and Chairman
Date: 1[st] September 2021
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Chance to Succeed
SCIO: SC046179
Statement of Trustees' Responsibilities
For the year ended 31 December 2020
The trustees (who are also directors of Chance to Succeed for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulation.
Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). 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 the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2019);
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make judgments and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 20065. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Chance to Succeed
SCIO: SC046179
Independent auditors’ report to the trustees of Chance to Succeed
Report on the audit of the financial statements
Opinion
In our opinion, Chance to Succeed’s financial statements (the “financial statements”):
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give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, and cash flows for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
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have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005.
We have audited the financial statements, included within the Report of the Trustees and Financial Statements (the “Annual Report”), which comprise: the Balance Sheet as at 31 December 2020; the Statement of Financial Activities (incorporating the income and expenditure account) and the Statement of cash flows for the year then ended; the accounting policies; and the notes to the financial statements, which include a description of the significant accounting policies .
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
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 charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charity’s ability to continue as a going concern.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Report of the Trustees and Financial Statements other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
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Chance to Succeed
SCIO: SC046179
Independent auditors’ report to the trustees of Chance to Succeed (continued)
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
Based on our work undertaken in the course of the audit, The Charities Accounts (Scotland) Regulations 2006 (as amended) require us also to report certain opinions and matters as described below.
Trustees’ Report
Under the Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion, the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.
Responsibilities for the financial statements and the audit
Responsibilities of the trustees for the financial statements
As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
We are eligible to act and have been appointed under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the charity/industry, we identified that the principal risks of non-compliance with laws and regulations related to charity regulations, gambling regulations and UK company law and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities and Trustee Investment (Scotland) Act 2005 and The Charities Accounts (Scotland) Regulations 2006 (as amended). We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the inappropriate use of charitable funds, for example through inappropriate awards. Audit procedures performed by the engagement team included:
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Chance to Succeed
SCIO: SC046179
Independent auditors’ report to the trustees of Chance to Succeed (continued)
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enquiring with management to identify any instances of non-compliance with laws and regulations, claims, litigation, fraud or inappropriate use of charitable funds;
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understanding the approach taken by management and the directors to monitor compliance with laws and regulations, to prevent fraud or inappropriate use of charitable funds, and to detect irregularities;
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review of board minutes; and
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incorporating an element of unpredictability into our testing plan.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulations made under that Act (regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended)) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Charities Accounts (Scotland) Regulations 2006 (as amended) exception reporting
Under the Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion:
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we have not received all the information and explanations we require for our audit; or
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proper accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Glasgow 1 September 2021
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Chance to Succeed
SCIO : SC046179
Statement of Financial Activities (incorporating the income and expenditure account) For the year ended 31 December 2020
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2020
Unrestricted Restricted Total
Notes Funds Funds Funds
Income and endowments £ £ £
Other trading Activities:
Lottery Gaming Proceeds 2 1,045,079 261,270 1,306,349
Total income and endowments 1,045,079 261,270 1,306,349
Expenditure
Expenditure on raising funds 3 (1,366,074) - (1,366,074)
Expenditure on charitable activities:
Awards to charitable causes 3 - (252,018) (252,018)
Other 3 (12,436) - (12,436)
Total expenditure 3 (1,378,510) (252,018) (1,630,528)
Net (expenditure)/income and net movement in funds (333,431) 9,252 (324,179)
Reconciliation of funds
Total Funds brought forward (3,036,984) 29,750 (3,007,234)
Total Funds carried forward 9 (3,370,415) 39,002 (3,331,413)
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The charity has no recognised gains and losses other than those included in the results above and therefore no separate statement of recognised gains and losses has been presented.
The notes on pages 15 to 17 form part of these financial statements.
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Chance to Succeed
SCIO : SC046179
Statement of Financial Activities
For the year ended 31 December 2019
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2019
Unrestricted Restricted Total
Notes Funds Funds Funds
Income and endowments £ £ £
Other trading Activities:
Lottery Gaming Proceeds 2 1,245,420 311,355 1,556,775
Total income and endowments 1,245,420 311,355 1,556,775
Expenditure
Expenditure on raising funds 3 (1,842,895) - (1,842,895) -
Expenditure on charitable activities:
Awards to charitable causes 3 - (351,013) (351,013)
Other 3 (10,234) - (10,234)
Total expenditure 3 (1,853,129) (351,013) (2,204,142)
Net (expenditure)/income and net movement in funds (607,709) (39,658) (647,367)
Reconciliation of funds
Total Funds brought forward (2,429,276) 69,408 (2,359,868)
Total Funds carried forward 9 (3,036,984) 29,750 (3,007,234)
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The charity has no recognised gains and losses other than those included in the results above and therefore no separate statement of recognised gains and losses has been presented.
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Chance to Succeed
SCIO : SC046179
Balance Sheet
As at 31 December 2020
Current Assets
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2020 2019
Note £ £
Cash at bank and in hand 7 42,753 40,037
Total current assets 42,753 40,037
Liabilities
Creditors: amounts falling due within one year 8 (3,374,166) (3,047,272)
Net liabilities (3,331,414) (3,007,235)
The funds of the charity
Unrestricted funds (3,370,415) (3,036,984)
Restricted income funds 39,001 29,750
Total charity funds 9 (3,331,414) (3,007,234)
The Financial Statements were approved by the Board of Trustees on 1st September 2021 and
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The Financial Statements were approved by the Board of Trustees on 1st September 2021 and signed on their behalf by :
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SCIO : SC046179
Chance to Succeed
Statement of cash flows For the year ended 31 December 2020
| 2020 £ |
2019 £ |
|
|---|---|---|
| Cash flows from operating activities: | ||
| Net expenditure for the reporting period (as per the statement of | (324,179) | (647,366) |
| Adjustment for: financial activities) |
||
| (Decrease)/Increase in Creditors | 326,894 | 553,402 |
| Net cash (used in)/provided by operating activities | 2,715 | (93,964) |
| Change in cash and cash equivalents in the reporting period | 2,715 | (93,964) |
| Cash and cash equivalents at the beginning of the reporting period | 40,037 | 134,001 |
| Cash and cash equivalents at the end of the reporting period | 42,752 | 40,037 |
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Chance to Succeed
SCIO : SC046179
Notes to the Financial Statements
For the year ended 31 December 2020
1 Accounting policies
Statement of Compliance
The financial statements have been prepared on a going concern basis under the historical cost convention and the requirements of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Chance to Succeed is a public benefit entity.
Going Concern
The Trustees of Chance to Succeed (the “SCIO”) have prepared the financial statements on a basis of going concern for the year ending 31 December 2020, while acknowledging that the SCIO is in a net liability position as at the year-end.
During the year STV Group PLC, the ultimate parent of STV ELM, the External Lottery Manager of the SCIO, publicly communicated their intention to dispose of the STV ELM and the associated SCIOs.
As set out in note 14, the sale to MBC Lotteries Limited was finalised in August 2021. On completion of the sale, all balances due from the SCIO to STV Group PLC were formally forgiven. This debt forgiveness moved the SCIO into a net asset position. Additionally, £400,000 of working capital was provided by the new owners at the point of completion. Under the new management structure, charges for the costs of operation of the lottery will be recouped from available lottery proceeds rather than accruing as liabilities within the SCIO going forward, ensuring the net asset position is maintained.
The Trustees have also considered future budgets and forecasts of the SCIO itself. Following consideration of the above factors, the Trustees deem it appropriate to prepare the financial statements on a basis of going concern.
Accounting Period
The financial statements are for the 12 month period to 31 December 2020.
Fund accounting
Unrestricted funds may be used in accordance with the charitable objectives of Chance to Succeed and at the discretion of the Trustees.
Restricted funds can only be used for specific purposes within the objectives of Chance to Succeed. Restrictions arise where specified by a donor or where funds are raised for a particular restricted purpose.
Surplus funds may be retained to finance fundraising activities in subsequent years or be used, subject to the charitable objectives of Chance to Succeed, for additional charitable activities not specifically identified by the Trustees at the year end.
Incoming resources
Income is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Income generated from the sale of lottery tickets and online gaming is recognised before deduction of prizes and operating costs.
Irrecoverable VAT
Irrecoverable VAT is charged to the statement of financial activities where appropriate.
Recognition of financial assets and liabilities
Assets and liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. They are released when the obligation is fulfilled. Cash, debtors and creditors are held at cost.
Resources expended
Expenditure is accounted for on an accruals basis.
Taxation
Chance to Succeed is exempt from corporation tax on its charitable activities.
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Chance to Succeed
SCIO : SC046179
Notes to the Financial Statements
For the year ended 31 December 2020
2 Other Trading Activities
Income and endowments
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2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Lottery proceeds 978,576 244,644 1,223,220 1,121,384 280,346 1,401,730
Gaming proceeds 66,503 16,626 83,129 124,036 31,009 155,045
1,045,079 261,270 1,306,349 1,245,420 311,355 1,556,775
2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Lottery proceeds 978,576 244,644 1,223,220 1,121,384 280,346 1,401,730
Lottery prizes paid (404,699) - (404,699) (469,043) - (469,043)
Gaming proceeds 66,503 16,626 83,129 124,036 31,009 155,045
Gaming prizes paid (48,167) - (48,167) (91,980) - (91,980)
592,213 261,270 853,483 684,397 311,355 995,752
3 Expenditure
Fundraising Charitable 2020 Fundraising Charitable 2019
Activities Activities Total Activities Activities Total
£ £ £ £ £ £
Expenditure on raising funds:
Lottery operating costs 474,676 - 474,676 632,588 - 632,588
Lottery prizes 404,699 - 404,699 469,043 - 469,043
Gaming operating costs 24,984 - 24,984 33,294 - 33,294
Gaming prizes 48,167 - 48,167 91,980 - 91,980
Marketing costs 413,548 - 413,548 615,989 - 615,989
Expenditure on charitable activities:
Awards to charitable causes - 252,018 252,018 - 351,013 351,013
Governance costs: audit and tax advisory services - 12,271 12,271 - 7,416 7,416
Other - administration costs 164 - 164 2,818 - 2,818
1,366,238 264,289 1,630,527 1,845,712 358,429 2,204,141
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4 Employees
Chance to Succeed had no employees during the period. The services of individuals were obtained from STV ELM Limited and invoiced to the charity. The monthly average number of full time employees working for the charity but employed and paid by STV ELM Limited during the period was 10 (2019: 10).
The table below shows the total costs for staff working for the charity but employed and paid by STV ELM Limited
| Wages and salaries Social Security Costs Other pension costs Total staff costs |
2020 £ 94,926 10,836 2,737 108,499 |
2019 £ 96,851 11,056 2,793 110,699 |
|---|---|---|
No employees received total benefits (excluding employer pension costs) of more than £60,000 in the current period.
5 Trustees' remuneration and benefits
The Trustees of Chance to Succeed received no remuneration, benefits or expenses during the period.
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Chance to Succeed
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Notes to the Financial Statements
SCIO : SC046179
6 Governance costs
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2020 2019
Audit fees £ £
12,271 6,180
7 Cash at bank and in hand
2020 2019
£ £
Proceeds account 3 1
Charity account 42,749 40,036
42,752 40,037
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8 Creditors: amounts falling due within one year
| STV ELM Limited Sundry creditors - accruals |
2020 £ 3,374,166 - 3,374,166 |
2019 £ 3,026,656 20,616 3,047,272 |
|
|---|---|---|---|
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Chance to Succeed
SCIO : SC046179
Notes to the Financial Statements
For the year ended 31 December 2020
9 Movement in funds
| Unrestricted Restricted 2020 Funds Funds £ |
Unrestricted Restricted 2019 Funds Funds £ |
|
|---|---|---|
| Balance of funds brought forward Incoming resources Resources expended Balance of funds carried forward |
£ £ (3,036,984) 29,750 (3,007,234) 1,045,079 261,270 1,306,349 (1,378,510) (252,018) (1,630,528) (3,370,415) 39,002 3,331,414 |
£ £ (2,429,276) 69,408 (2,359,868) 1,245,420 311,355 1,556,775 (1,853,128) (351,013) (2,204,141) (3,036,984) 29,750 (3,007,234) |
10 Analysis of net (liabilities)/ assets between funds
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2020 2019
Current Current Total Net Current Current Total Net
Assets Liabilities Assets Assets Liabilities Assets
£ £ £ £ £ £
Unrestricted Funds 3 (3,370,419) (3,370,416) 1 (3,403,476) (3,403,475)
Restricted Funds 42,749 (3,747) 39,002 40,036 356,204 396,240
42,752 (3,374,166) (3,331,414) 40,037 (3,047,272) (3,007,235)
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Restricted funds are retained from lottery ticket sales and reserved solely for awards to good causes in accordance with the charitable objectives of Chance to Succeed.
Unrestricted funds are funds available to cover operating costs and any other use subject to the charitable objectives as set out in the constitution of Chance to Succeed.
11 Related party transactions
The STV ELM Limited is considered to be the only related party with related party transactions. All transactions with this organisation are reflected within the financial statements and annual report. These were the only relevant party transactions while under ownership of STV ELM Limited.
These transactions can be represented as:
| Operating costs Lottery operating costs Gaming operating costs Marketing costs STV ELM Limited |
2020 £ (474,676) (24,984) (413,548) (913,208) |
2019 £ (632,588) (33,294) (615,989) (1,281,871) |
|---|---|---|
A balance of £3,374,166 (2019: £3,026,656) was payable to the STV ELM Limited as at 31 December 2020.
STV ELM Limited provides management services to the charity which include;
Marketing - advertising, player management and promotions services Technology - facilitation of ticket sales and player account management Compliance - product compliance, risk management and reporting services Financial management and accounting, including payment processing and banking services Operations management including customer service and management of all 3rd party suppliers
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Chance to Succeed
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Notes to the Financial Statements
For the year ended 31 December 2020
12 Organisations supported by Chance to Succeed
| Project Scotland Bridgend Farmhouse Community Benefit Society Reeltime Music Beith Community Development Trust Yipworld Inverness Blitz (Highland Wildcats) One Parent Families Scotland FoodShare Orkney Foodbank Action for Children Dull & Weems Parish Vhurch Fife Employment Access Trust Young Enterprise Scotland The Buzz Project Whiterose Social & Administration Centre Volunteer Centre Glasgow Eildon West Youth Hub Helm Training The Zone Inititave Community Law Advice Network The Conservation Volunteers Home Start Who Cares Scotland Total grants |
2020 £ 5,000 7,888 5,000 10,000 5,000 5,000 25,000 25,000 5,000 5,000 4,130 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5,000 25,000 25,000 247,018 |
|---|---|
All grants paid in the year were made to institutions.
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Chance to Succeed
Notes to the Financial Statements
For the year ended 31 December 2019
12 Organisations supported by Chance to Succeed
| Scottish Sports Futures Scottish Music Information Centre Leith Sea Cadets Glasgow Acting Academy Connect Berwickshire Youth Project Fuse Youth Cafe Glasgow Youth Connections The Zone Initiative Ltd Articulate Cultural Trust Citadel Youth Centre Day 1 Friends of Tramanna Judy Murray Foundation Linton Lane Centre Downs Syndrome Scotland Stable Life Perth District YMCA Options for Life Dundee and Angus ADHD Strathmore Centre for the Youth Development Whiteinch Centre Rosemount Lifelong centre The Outward Bound Trust Sunrise Partnership Toonspeak Young Peoples Theatre Royal Lyceum Theatre CLIC Sargent cancer Care for Children GK Experience North Kelvin Sports Grant For the Right Reasons Project Ability Castlemilk Youth Complex Input Living Solutions (Scotland) Skills Exchange Venture trust Granton Youth Centre Checkin Works The Wise Group School of Hard Knocks Total grants |
2019 £ 25,000 10,000 1,000 3,600 17,765 13,500 9,889 20,000 10,000 10,000 5,000 925 7,200 10,000 10,000 10,000 10,000 10,000 5,000 5,000 2,000 10,000 10,000 2,675 10,000 5,000 10,000 10,000 9,872 10,000 3,064 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 366,490 |
|---|---|
Page 19
Chance to Succeed
SCIO : SC046179
Notes to the Financial Statements
For the year ended 31 December 2020
13 Events subsequent to the balance sheet date
The Scottish Children’s Lottery and the associated SCIOs, including Chance to Succeed, were sold by STV Group PLC to MBC Lotteries Limited in August 2021 following approval by the Gambling Commission. The acquirer is responsible for the provision of lottery management services to the SCIOs from this date.