AFC_FYLDE_COMMUNITY_FOUND - Accounts

This Chairman of the Trustees Report covers the period June 2020 - May 2021, a period of time that saw the Covid-19 pandemic at its most challenging. I mention this at the outset because the AFC Fylde Community Foundation, under Director, Wesley Partington, performed at a commendably high level throughout the period in question.

With the full support of the trustees, The Foundation Director managed to adapt an entirely new range of services that were successfully defined and delivered during the most challenging restrictions (including national lockdowns). These, along with other existing deliverables were discharged - often via online options - to those that needed them the most.

Whilst the separate Directors Report (provided as a separate element of this annual submission) provides a detailed assessment and review of individual project deliverables, I, as Chairman of the Trustees, will record the appreciation of the trustees for the way in which the Foundation has not only developed its business, but also for the satisfactory resolution of several key outstanding business issues relating to financial controls, outstanding/overdue debt, financial reserves policy, overhead costs, and a wide range of business practices linked to the league Trust Capability Code of Practice (CCOP). The resolution of these issues has placed the Foundation in a reassuringly strong position to manage future business levels.

It should be recorded that the Foundation is showing a financial deficit for the period 2020/21 (the details of which are set out in the attached Directors Report), and this is due primarily to continuous Covid related challenges, together with the necessary resolution of outstanding financial payments - both to and by the Foundation. The progress during the period was very closely communicated to the trustees, and it should also be recorded (due to the aforementioned Covid limitations) that the trustees were aware of and approved the financial status and projections on a monthly basis throughout 2020/21.

In addition to the day-to-day operational management by the Foundation Director, the interaction with the trustees was significantly strengthened, with quarterly Trustee meetings held - together with subject-specific reviews with the Chairman and/or the trustees.

Although this report relates to the period 2020/21, it should also be noted that the Director’s strategic plan (initially defined in early 2021), and fully supported by the trustees, is already bearing fruit for the period 2021/22 and beyond. The trustees will, in particular, be ensuring that the stated cash reserves are achieved going forward. The levels of business (from the second half 2021) are extremely encouraging in this regard.

The trustees can confirm that they were progressively well briefed on the financial challenges of the period 2020/21, and were supportive in terms of meeting the demands presented by the pandemic. The trustees can also confirm that they are aware/supportive of the 2020/21 and the projected 2021/22 financial status/projections, together with the ability of the Foundation to reach record levels of turnover in the coming 18 months.

Despite the protracted challenges presented by the pandemic, the Foundation is already (period 2021/22) in a healthy positive financial position, with a clearly defined strategic direction, a proactive Director, a capable and committed team, and a well-briefed and supportive board of trustees.

I, as Chairman of the Trustees, can be contacted on any element of this annual statement or the Directors report.

The trustees present their annual report and financial statements for the year ended 31 May 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

The charity's objects are for the public benefit and are specifically restricted to the following:

• To promote for the benefit of the inhabitants of Lancashire and the surrounding area the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the life of said inhabitants. Without prejudice to the generality of the foregoing by the provision of the opportunity to participate in the sport of football in all ways and according to all abilities.

• Such of other exclusively charitable purposes as the trustees in their absolute discretion may determine from time to time.

There has been no change in these during the year.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

It has been a challenging and unprecedented 12-month period for AFC Fylde Community Foundation in the form of having to deal with the COVID-19 pandemic. Prior to the countrywide lockdown, the Foundation was enjoying a productive year growing in its reach and footprint across Fylde.

Given the challenges Coronavirus presented, the Foundation was able to quickly adapt services to provide essential support for the most vulnerable, whilst maintaining much of our existing provision online. The Foundation has focused largely on continuing to expand the numbers of people it delivers services to and to expand services to groups who have previously not benefited from its activities

The key projects delivered by the Foundation during 2020/21 included:

Building Better Opportunities – Changing Futures

The Changing Futures project is funded by the European Social Fund and The National Lottery Community Fund to help tackle the poverty and social exclusion faced by the most disadvantaged people in England.

The project is specifically designed to meet the needs of any individual between the ages of 16 – 49 years who would like to work but are unable to do so without additional skills or support. Working alongside partners Jobcentre Plus and other referral agencies the Foundation offers participants a one to one service that is designed to break down barriers holding participants back from re-entering the workplace or accessing education or training.

Building Better Opportunities – Age of Opportunity

The Age of Opportunity project is funded by the European Social Fund and The National Lottery Community Fund to help tackle the poverty and social exclusion faced by the most disadvantaged people in England.

The project is specifically designed to meet the needs of any individual over the age of 50 who would like to work but are unable to do so without additional skills or support. Working alongside partners Jobcentre Plus and other referral agencies the Foundation offers participants a one to one service that is designed to break down barriers holding participants back from re-entering the workplace or accessing education or training.

School based activities

The Foundation works in partnership with local primary schools to deliver specialist sport provision. Specialist staff deliver the PE curriculum to children in all age groups ensuring the provision is in line with Ofsted requirements. Staff also provide fun and enjoyable lunch time sessions for children to engage in whilst they are on their lunch break.

The Foundation also delivers extra-curricular sessions after school that consist of a range of fun and enjoyable sports. Sessions allow children to take part in a variety of activities in addition to those provided in the school curriculum, which has great benefits to physical and mental health.

Throughout the year the Foundation worked with 16 primary schools.

Early Years Activities

Working alongside local nurseries/early years settings the Foundation delivers a range of sports sessions for children aged between 2- 4 years to improve their physical literacy. All sessions are designed in line with the Early Years Foundation Stage (EYFS) Framework enabling the children to learn and develop in a fun environment whilst preparing them for school. The Foundation worked with 27 nurseries/early years settings through the year.

Holiday Soccer Camps/Activity Clubs

The Foundation delivers multi-activity camps during all school holidays for children and young people aged 6 – 14 years. The camps are provided at an affordable rate and are available for all to attend.

Football Development Centres

Delivered in the evening, the football development centres are designed to improve the football skills for all children and young people aged between 2 – 14 years. The sessions are delivered in line with AFC Fylde Academy programme and provide a pathway into the Academy for talented individuals.

Armed Forces Project

In partnership with the Veterans’ Foundation and BAE Systems, the Foundation are proud to support any ex-service personnel who are struggling to adapt to civilian life once they leave the forces. The Foundation offers a bespoke mentoring service that supports individuals with a range of challenges they may be facing ultimately assisting them to adjust and settle into the community in which they reside.

Matchday activities

The Foundation facilitates a range of activities on a matchday to help fans engage with the football club. The School of the Week initiative invites local schools to the stadium on a matchday and the Team of the Week initiative invites local grassroots football teams.

Fylde Loneliness Prevention Programme

In response to the increased numbers of older people across Fylde experiencing social isolation and loneliness, the Foundation delivers a one to one support programme to help them reintegrate back into their community. The programme is funded by The National Lottery Fund and National League Trust.

Divert

The Foundation works in partnership with Lancashire Constabulary to deliver an intervention based programme aimed at reducing re-offending. It is delivered within police custody suites and aims to divert young adults aged 18 - 25 years away from crime. Working as part of the Violence Reduction Unit (VRU) Specialist custody intervention coaches (CIC) from community clubs engage young adults during their detention in police custody.

Impact of Covid-19

On Friday March 20th 2020, AFC Fylde Community Foundation suspended all of its activities as a result of COVID-19 and the enforced lockdown across the country.

Although the Foundation placed a number of staff on furlough, the Trustees were determined that the charity should contribute to the response of the national crisis and continue its vital work. As a result, Foundation staff delivered hampers and hot meals to households, created an online offer and called people at risk of social isolation.

PLANS FOR FUTURE PERIODS

The Foundation aims to continue to deliver all of the above programmes and try to increase the number of participants in each case.

The Foundation will continue to look for new funding opportunities to deliver a diverse range of projects, within the local community, under the brand of AFC Fylde Foundation in order to make a positive difference to the lives of local people.

The Foundation are particularly aiming to do more work with vulnerable young people, older people, people with a disability and the Armed Forces Community.

Despite a significant reduction in income and therefore services delivered, the Foundation continued to serve the people of Fylde, reinforcing our reputation as a critical support to the borough – especially in such challenging times.

AFC Fylde Community Foundation board of Trustees are committed to ensuring a sustainable and diverse range of income streams.

In 2020/2021 the Foundation's income was £360,243 against an expenditure of £413,977 which resulted in a deficit of £53,734.

This deficit was largely due to the COVID-19 pandemic and the loss of income across the whole of the financial year.

Based on the figures to 31st May 2021, the Foundation’s reserves amount to £51,404 which does not yet meet the target of a minimum of six months operating costs, however the Trustees are committed to working towards this.

Reserves Policy

The Trustees have considered the Charity's policy in respect of reserves. The Trustees have set a target of retaining at least six months of total expenditure (excluding depreciation) in reserves to provide financial security to the Charity in the event of unforeseen reductions in available funding which may arise from time to time. Based on the figures to 31st May 2021, this amounts to approximately £211,293 (2020: £283,301). The balance held at the end of the year of £51,404(2020: £105,138) does not yet meet this target, however, the Trustees are committed to continue to work towards this.

The deficit for the year of £53,734 (2020: £26,366 deficit) was transferred to reserves and added to the brought forward surplus of £105,138 (2020: £131,504) The total funds carried forward of £51,404 (2020: £105,138) will be used in future years to meet the objectives of the charity, whilst having due consideration to meeting the stated reserves target above at the discretion of the Trustees.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The charity is a company limited by guarantee.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

New trustees are recruited and appointed by the existing trustees as required. They are selected for their respective knowledge, abilities and interests in the objects of the Foundation. Due to the nature of the work undertaken by the Foundation it is relevant and appropriate to appoint trustees from a range of backgrounds.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

There shall be a minimum of 3 trustees but there shall be no maximum number. The trustees must hold at least 2 meetings per year at which the quorum is at least 2 or one third of the trustees in office, whichever is greater.

New trustees will be introduced to the aims and objectives of the charity by existing trustees and will be guided in the rights and duties of a trustee by reference to such training material and information is available from, in particular, The Charity Commission.

The trustees' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of AFC Fylde Community Foundation (the charity) for the year ended 31 May 2021.

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of 2, which is one of the listed bodies.

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

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 May 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

AFC Fylde Community Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Fylde Sports and Education Centre, Coronation Way, Wesham, Preston, England, PR4 3JZ, Lancashire.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the 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.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Charitable Income

Charitable Income

Community Coaching

Sports Camps

Grants & Funding

Miscellaneous income

Charitable Expenditure

Charitable Expenditure

Bad Debt

Insurance

Telephone

Postage and Stationery

Advertising

Sundries

Motor Expenses

Travel & Entertainment

Bikeability Training

Kit & Equipment

Facility Hire

Accountancy and legal fees

There were no trustees' remuneration or other benefits for the year ended 31 May 2021 nor for the year ended 31 May 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 May 2021 nor the year ended 31 May 2020.

The average monthly number of employees during the year was:

There were no disclosable related party transactions during the year (2020 - none).

The charity had no debt during the year.