The trustees present their report and financial statements for the year ended 31 August 2019.
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 Memorandum and Articles of Association , the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)” (as amended for accounting periods commencing from 1 January 2016) .
The Community Trust's vision is to use the power of sport to motivate local people and communities to improve their lives thus bringing about significant economic, social, lifestyle and cultural gain.
This is achieved by:
- The advancement of education;
- The advancement of citizenship or community development;
- The advancement of public participation in sport;
- The provision of recreational facilities, or organisation of recreational activates, with the object of improving the conditions of life for the persons for whom the facilities or activates are primarily intended.
The trustees have paid due regard to guidance issued by OSCR in deciding what activities the trust should undertake.
Projects & Programmes
2018/19 saw the additional of a number of new projects, including the highly successful Club365 Holiday Hunger programme, disability football and women's walking football.
Partners
This year we have continued to develop our partnerships with our existing local and national agencies as well as securing some invaluable new partnerships to compliment them. With sport continuing to be low on the political agenda it is essential that we continue to establish and nurture partnerships with agencies to maximise the impact of the programmes.
Strong workforce
We have continued to support and develop our volunteer and seasonal workforce. Voluntary Action North Lanarkshire (VANL), North Lanarkshire Council, NHS Lanarkshire, the Scottish Professional Football League (SPFL) Trust and the Scottish Football Association (SFA) have delivered training sessions this year. We have also worked closely with partners to provide programme specific training on specific projects.
The incoming resources for the year amounted to £291,657 (201 8 - £ 230,797 ). Resources expended amounted to £293,300 (201 8 - £ 310,347 ) resulting in a net deficit of £1,643 (201 8 - deficit of £ 79,550 ). The principal income streams were from grants and youth football and community teams donations, as detailed above. The costs of providing youth football development and community teams are met by donations received.
The directors aim to have reserves in place to cover cash commitments of grant funded courses of up to 2 months given that most projects are funded by grant giving bodies after costs have been incurred by the trust.
At the year-end total reserves were £105,352 (201 8 - £ 106,995 ), of which £69,538 (201 8 - £ 95,815 ) were restricted and £35,814 (201 8 - £1 1, 180) were unrestricted.
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:
Motherwell Football Club Community Trust (Charity number: SCO42588) is a company limited by guarantee which was incorporated on 30th August 2011. The company was established under a Memorandum of Association which established the objectives and powers of the charitable company and is governed by its Articles of Association.
The board composition seeks to reflect the different stakeholders and environment in which the community trust operates. The trust therefore appoints directors based on the skills that they can bring to the organisation whilst maintaining the cross representation of the Board following nomination by the officers of the Trust or other directors.
The current Board of Directors is comprised of Individuals who have held senior executive roles in the Financial Services, Local Government, Health, Education and Football Sectors. All are able to make a significant contribution to help achieving the aims of the trust. If the trust was required to appoint new or additional directors, we would seek to identify individuals, who would compliment existing skillsets, with relevant experience in a related sector or role. The Chairman, Trust General Manager and existing directors would be responsible for identifying and interviewing suitable candidates.
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.
The major risk to which Motherwell Football Club Community Trust is exposed is failing to secure the projected voluntary income required to operate the trust.
The recent COVID -19 pandemic has had a significant impact on the Trust.
The measures taken by the government to contain and control the COVID -19 outbreak involve a high degree of social disruption which has impacted (and will continue to impact) the delivery of and demand for the activities of the Trust.
The Trust’s charitable income is expected to fall in this period as the key objectives and activities as laid out in the Trustee’s report are near impossible to deliver at this time without the availability of staff, volunteers and beneficiaries due to the measures in place.
The Trust is taking advantage of government initiatives such as grants and the job retention scheme in order to manage the situation to allow the Trust to meet its liabilities as they fall due.
The Trustees are confident that the Trust has sufficient headroom to meet the forecast cash requirements having considered any additional requirements from the downturn in activity as a result of the Covid-19 Pandemic. As such, the trustees have reasonable expectation that the trust has adequate resources to continue in operational existence.
The trustees' r eport was approved by the Board of Trustees.
The trustees, who are also the directors of Motherwell Football Club Community Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report on the financial statements of the trust for the year ended 31 August 2019, which are set out on pages 6 to 19.
The trust’s trustees, who are also the directors of Motherwell Football Club Community Trust for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention other than that disclosed below:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The matter that has come to my attention is in relation to the impact of the COVID-19 pandemic on the preparation of the Trust's financial statements on the going concern basis. I draw attention to note 1.2 to the financial statements which details the risks and uncertainties arising from the COVID-19 pandemic. Whilst the Trustee's have a reasonable expectation that the Trust will continue in operational existence for the foreseeable future and that the financial statements should be prepared on the going concern basis, the risk to the Trust as a result of the COVID-19 pandemic has resulted in a material uncertainty which may cast doubt on the Trust's ability to continue as a going concern.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Motherwell Football Club Community Trust is a private company limited by guarantee incorporated in Scotland. The registered office is Fir Park Stadium, Fir Park Street, Motherwell, ML1 2QN.
The financial statements have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)” (as amended for accounting periods commencing from 1 January 2016). The trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the trust. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the trust will continue in operational existence for the foreseeable future, however, the trustees are aware of a material uncertainty as a result of the COVID-19 pandemic which may cause doubt on the charity's ability to continue as a going concern.
The recent C OVID -19 pandemic has had a significant impact on the Trust.
The measures taken by the government to contain and control the COVID -19 outbreak involve a high degree of social disruption which has impacted (and will continue to impact) the delivery of and demand for the activities of the Trust. The length and severity of the pandemic and how long government measures will remain in place are currently unclear.
The Trust’s charitable income is expected to fall in this period as the key objectives and activities as laid out in the Trustee’s report are near impossible to deliver at this time without the availability of staff, volunteers and beneficiaries due to the measures in place.
The Trust has reviewed its current and future financial position and is taking advantage of government initiatives such as grants and the job retention scheme in order to manage the situation to allow the Trust to meet its liabilities as they fall due.
The Trustees are confident that the Trust has sufficient headroom to meet the forecast cash requirements having considered any additional requirements from the downturn in activity as a result of the COVID -19 p andemic. As such, the Trustees consider it appropriate to the continue to prepare the financial statements on the going concern basis.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
G rants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met . Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable . A grant received before the recognition criteria are satisfied is recognised as a liability.
Resources expended are included in the Statement of Financial Activates on an accruals basis, inclusive of VAT. They include:
Costs of raising funds comprises those costs incurred by the Trust in making grant applications to Trusts and foundations, attending networking events, corresponding and meeting with company representatives etc. Costs include salaries, expenses and administration of these fundraising activates. The costs are allocated based on an estimate of the proportion of time that the personnel spend on generating voluntary income.
Charitable expenditure comprises those costs incurred by the Trust in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. These costs are allocated based on an estimate of the proportion of time that personnel spend on charitable activities.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Trust and include fees and costs linked to the strategic management of the Trust.
Support costs are those costs which are necessary to deliver an activity but do not themselves produce the output of the charitable activity. It includes the central office functions such as management, finance, information technology and administration. Where possible support costs are allocated between restricted and general funds and account headings on a direct use basis. Where this allocation method is not possible support costs are allocated on a time apportioned basis.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. The Trust capitalises tangible fixed assets with a cost greater than £1,000.
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 net income/(expenditure) for the year.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.
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 trust 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.
In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Income transactions must be accounted for and presented in accordance with their substance. The trust considers the substance of all income received including conditions attached, the contractual terms or any restrictions placed on the use of income. In certain cases this requires the exercise of the judgement in order to determine the appropriate recognition and presentation of income.
The trust's costs are allocated to raising funds and charitable activities based on an estimate of the proportion of time that the personnel spend on such activities. This requires the exercise of the judgement in order to determine the appropriate recognition and presentation of expenditure.
Funded sports and educational programmes
Grants
Material charitable activities throughout the year are detailed above and are included in the totals.
Astroturf rental
Community team sponsorship
Other trading income
Fundraising costs
Fundraising costs
Wages and salaries
Finance costs
Fundraising costs
Wages and salaries
Finance costs
Rent & rates
Other charitable expenditure
Support costs
The average monthly number of employees during the year was:
The employees of the Trust are paid by Motherwell Football Club and all their costs are recharged to the Trust each month.
There are no employees who receive total employee benefits of more than £60,000.
Other pension costs represents the charge to the Statement of Financial Activities from defined contribution schemes.
Material restricted funds include the following:
Scottish Football Partnership / Environmental Key Fund / Waste Recycling Environmental Limited
These funding bodies provided grant to finance the upgrading of the Community Trust Astroturf pitch.
Future Jobs Fund / SCVO
This funding was received to subsidise the creation of 6 month employment contracts for 18-24 year olds who were receiving job seekers allowance, to provide them with skills and experience which would aid them in gaining future employment.
Robertson Trust
This funding was received as an award towards the costs of the salary of the Steel Game Project Officer.
Scotch Whisky Action Fund
This funding was received to support the delivery of an alcohol-awareness programme which was delivered in schools across the local area.
Club 365
Club 365 is a holiday hunger project managed by North Lanarkshire Council, providing free hot meals and physical activity when schools are off. The Trust tenders for the contract through Public Procurement Scotland.
John Walker Project
The John Walker project focused on delivering lifeskills and employability to disengaged school pupils.
Unrestricted funds
Restricted funds
Unrestricted funds
Restricted funds
Disclosure with regards to the recent COVID-19 pandemic can be seen in note 1.2 to the financial statements .
The remuneration of key management personnel is as follows.
The key management of the Trust comprise the board of directors and the Trust general manager.
The Motherwell Football & Athletic Club Limited
The Trust operates from the premises of Motherwell Football Club and the Club also provides administrative support services for the Trust. Up until January 2019, the Club charged the Trust for the use of premises and support services. From February 2019 onwards, the Club has agreed that it will no longer charge the Trust for these services. The total amount of charges in the year was £24,581 (201 8 - £ 44,247 ). The employees of the Trust are also paid by the Football Club with all charges being cross charged to the Trust each month.
At the year end the Trust owed an amount of £86,487 (201 8 - £ 166,139 ) to the Football Club. This amount is interest free and due on demand.
The Well Society
The Trust received a non-restricted donation from the Well Society during the year amounting to £5,000. The Well Society is the ultimate controlling party of Motherwell Football Club.
The Trust is under the control of the board of directors.