The trustees who are also directors of the charity for purposes of the Companies Act 2006, present their report with the financial statement of the charity for the year ended 30 June 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the 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 objectives are to promote community participation in healthy recreation by the provision of facilities and inclusive environment for all ages and genders for the playing of rugby union football and also to promote any purpose that is charitable according to the laws of England and Wales.
Activities
Senior Rugby - Coaching and training of five senior teams of rugby players and the playing of matches in various leagues, both local and national.
Youth Rugby - Coaching and training of several age related teams of rugby players from the ages of 13 to 18 and the playing of matches in various leagues and cups, both local and national.
Mini Rugby - Coaching and training of several age related teams of rugby players from the ages of 6 to 12 and the playing of mini rugby in local matches and tournaments.
Public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commissioner’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities.
The trustees are satisfied that the charity continue to meet the required public benefit test through its objectives and activities.
The Trustees believe that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
Dorking Rugby Football Club is a thriving charitable sports club located on the Big Field in Brockham. It plays a big role in community recreation, health and social opportunities for the Dorking area. Founded in 1921, the club shares and promotes the core values of the RFU which are Teamwork, Respect, Enjoyment, Discipline and Sportsmanship and in 2009 we became the first rugby club in the country to be awarded registered charity status.
During the 2023/24 season the club had an active playing membership of 727 men, women, boys and girls. The total membership was 1,540 ranging from 6 year old minis to non playing family members and long retired senior players. Our emphasis on women’s and girl’s rugby has helped this section grow to 125 playing members with the women’s playing membership increasing to 45. The club runs a 'mass participation programme', encouraging children/young people to get involved in rugby from an early age. This requires the support of over 130 volunteer coaches and age group personnel to encourage participation. The Dorking minis festival took place again in April 2024 and attracted teams from Surrey, Sussex and Kent.
The senior men’s team competes in the National 2 East league, the fourth tier of English rugby, and finished 3rd in the league. The senior women’s team entered the English league structure in the 2023/24 season and won the NC3 South East (West) league at the first attempt and were promoted to NC2 South East (South) league. The Colts won the National Under 18s Cup with the final being played at Sixways Stadium in Worcester.
The club’s facilities, training and management contributed, along with the players commitment, towards the success of the men’s, women’s, colts, youth and minis teams.
The club’s management is made up of a Board of Trustees who ensure that the values and responsibilities of the club are adhered to, whilst a day to day operating Board deliver the Rugby programme and manage everything from the health of the players to the condition of the pavilion and the pitches.
Principal funding sources
During the year under review the club has principally been funded by membership subscriptions, donations, sponsorship from individuals and businesses within the local community in which it operates and RFU and member loans.
Investment policy and objectives
The board of trustees have the power to invest the club's assets in any way they see fit. The club's funds are currently kept on deposit to be readily available at short notice. The interest earned is thus governed by the general interest rates available. The trustees do not wish to invest the club's funds in any other markets at this time.
Reserve policy
It is the desired policy of the trustees and board to create sufficient reserves to enable the future development and enhancement of the club and its facilities. The club currently maintains three distinct funds:
The John Douglas Youth Development Fund which raises funds from members to support projects or initiatives primarily benefiting the youth sections with the aim of enabling players to achieve a higher level of performance and enjoyment.
The Community Rugby Fund, which is generously assisted by the Wates Family Enterprise Trust, provides funding for the outreach programme of sending coaches into local primary and secondary schools. Also, this fund supports those members who are suffering financial hardship by providing access to our training and playing facilities.
The Facilities Development Fund raises funds which are invested in the club’s infrastructure and ensures small projects can be commenced without the need to seek additional fund raising. During 2023/24 the fund raised £9,108 and invested £4,062 in the club’s infrastructure, including acoustic improvements to the Wates Community Room.
The club also maintains free reserves which are sufficient to cover members deposits for tours and other events.
The club has a wholly owned trading subsidiary (DRFC Trading Limited) which manages the clubhouse operations, where available profits are remitted to the club by charitable donations. The results of the trading subsidiary are disclosed within notes to the financial statements.
Governing document
The charity is a company limited by guarantee, governed by its Memorandum and Articles of Association.
Recruitment and appointment of new trustees Existing trustees invite potential new trustees to join having regard to the relevance of their experience to the work of the charity and the management need of the charity.
Organisational structure The day to day management of the club has been delegated to the operational board who meet on a monthly basis. The operational board are overseen by the board of trustees who meet a least three times per year.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' report was approved by the Board of Trustees.
I report to the trustees (who are also directors for the purpose of company law) on my examination of the financial statements of Dorking Rugby Football Club Limited (the charity) for the year ended 30 June 2024 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.
This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.
As the trustees of charitable company 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 charitable company are not required to be audited under Part 16 of the Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’) and 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.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
I have completed my examination. I have identified matters of concern that give me reasonable cause to believe that the financial statements prepared for the charity are not fully compliant with the accounting requirements of section 396 of the 2006 Act and have not been prepared fully in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.
The charity's depreciation policy in respect of leasehold land and buildings is to not depreciate either the buildings nor the land. This is not in accordance with the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
In accordance with the above provisions depreciation should be charged on the leasehold buildings over the term of the lease. The term of the lease is 50 years and has 38 years remaining at the balance sheet date. If depreciation had been charged on the leasehold buildings this would result in an additional charge in the year to the SoFA of £38,500 and a reduction in unrestricted reserves and tangible fixed assets of £354,500 at the balance sheet date.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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 financial statements 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).
Charitable activities
Rugby membership
Investments
Cost of raising funds
Cost of charitable activities
Rugby membership
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Dorking Rugby Football Club Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The Pavilion, The Big Field Kiln Lane, Brockham, Betchworth, Surrey, RH3 7LZ.
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their account in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
The financial statements have been prepared under the historical cost convention.
The financial statements present information about the charity as an individual undertaking and not as a group.
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 are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors 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.
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.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Where grant income is subject to performance related conditions, the income is recognised to the extent that performance has been achieved.
Membership income is recognised on a straight line basis over the duration of the membership. Sponsorship and similar commercial income is recognised over the duration of the respective contracts.
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 benefit 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.
Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in net income/(expenditure) for the year.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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 are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity 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, loans from fellow group companies 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 payments 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 charity’s contractual obligations expire or are discharged or cancelled.
The charity is exempt from corporation tax on its charitable activities.
Concessionary loan
The charity has taken advantage of section 34 of FRS 102 to recognise the loan received from the Rugby Football Foundation, and loans from several members as concessionary loans. As such the charity initially recognised and measured the loans at the amount received with carrying amount adjusted in subsequent years to reflect repayments and any accrued interest.
Charitable activities
Rugby membership
Rugby membership
Subscriptions
Cost of raising funds
Programme costs
Sponsorship expenses
300 club prizes
Club social events
Gym costs
Cost of charitable activities
Rugby membership
Rugby membership
Support costs have been apportioned to activities based on the estimated time spent on each activity.
The trustees (or any persons connected with them) did not receive any remuneration during the year or the prior year and were not reimbursed for any expenses during the year year or the prior year.
During the year the charity received total donations of £11,470 (2023: £668, 4 trustees) from 4 trustees.
During the year, the wife of one of the trustees was paid £Nil (2023: £16,671) for the provision of accountancy services.
The average monthly number of employees during the year was as follows:
The above employees are employed by the charity's wholly owned subsidiary, DRFC Trading Limited. Any time spent working for the charity by these employees is charged to the charity by the subsidiary.
Details of the charity's subsidiaries at 30 June 2024 are as follows:
Other loans represent the current portion of an interest free loan repayable over a 15 year period from the Rugby Football Foundation, which has been treated as concessionary loan and is carried at cost. The loan is secured over the leasehold buildings owned by the charity.
Other loans represent two types pf loan:
An interest free loan repayable over a 15 year period from the Rugby Football Foundation, totalling £19,984 (2023: £24,985), which has been treated as concessionary loan and is carried at cost. The loan is secured over the leasehold buildings owned by the charity;
RFU asset improvement loan of £104,000 (2023: £102,000), is over 12 years with a payment holiday for the first 4 years. Interest accrues from day 1 and is payable with the first repayment instalment.
The John Douglas Youth Development Fund has been created to support projects or initiatives primarily benefitting the youth sections, enabling DRFC players to achieve a higher level of performance and enjoyment and to provide a vehicle for many of our passionate supporters to put that bit extra back into the club and the game they love.
The Community Development Fund has arisen due to donations which have been specifically gifted in order that the Rugby Club may engage with youngsters in the local community.
The Facilities Development Fund has been created to raise funds in order to build a physiotherapy/rehabilition suite at the clubhouse.
The company has taken advantage of the exemptions available to it under FRS102 Section 33 not to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transactions is wholly owned by such a member.
Mr E C S Ivens, Mr P R Instone and Mr J M Aarvold, trustees of the charity, are also trustees of Brockham Big Field Community Sports Limited. During the year Dorking Rugby Football Club was charged a tenant's contribution of £3,256 (2023: £3,498) net of VAT. As at 30 June 2024 a balance of £3,742 (2023: £4,198) was due to Brockham Big Field Community Sports Limited.
The liability of the company is limited by guarantee, in the event of dissolution each member will be required to contribute £1.