The directors present their annual report and financial statements for the year ended 30 June 2025.

Principal activities

The principal activity of the company is to lead and support the growth and development of football across Lancashire, ensuring that the game is inclusive, accessible, safe and of the highest quality for everyone, regardless of background or ability.

REVIEW OF BUSINESS

Context

As a County Football Association, we exist to serve football in Lancashire, both regulating the game, fairly and consistently, and developing the game so more people can enjoy it.

Development of the game, beyond its simple administration, is the area of football that we, as a County FA, are increasingly focusing on under the direction of The FA. With this at the forefront of our thinking, the 2024–25 season marked the launch of our four-year strategy, ‘Join the Journey’. At its heart are strong partnerships that allow our community to come together to raise standards across the game and support our dedicated volunteers as we build a sustainable affiliated game that is welcoming and enjoyable for everyone.

Late in the season, and in anticipation of the 2025-26 season, we launched our new membership programme, ROSE. Standing for Rewards, Opportunities and Standards for Everyone, ROSE represents a major step in our commitments to improve the game in Lancashire, provide membership opportunities to the entire football community and also offer tangible benefits to our hardworking volunteers with practical tools that can help clubs and participants thrive in the football environment.

2024-25 Season - Financial Performance

This season we have generated a small surplus of £13.4k for the financial year, having benefitted from tighter cost controls and the interest rate environment available.

Financial Overview

• Turnover including Other Operating Income and Interest £1,732.5k. The FA’s grant, discipline and commercial activities continuing to contribute the lion’s share of income, though turnover was at a reduced level compared to last year.

• Operating Expenses £1,719k. Tighter cost controls and a leaner operating workforce saw a reduction in expenses from last season.

• Surplus £13.4k.

• Cash at Hand £1,567.6k . The increase reflects tighter debtor controls along with an overall conservative, careful approach to cash management designed to support the football investment planned during the 2024-28 strategy period. The FA limits County FAs to have maximum cash reserves of 12 months’ operating costs. Taking this into account, the Lancashire FA Board’s investment profile requires the Association maintain a minimum cash balance comprising 3 months’ operating costs plus an operating buffer plus cover for known expenditure relating to planned football investment. The latter includes investment funds to support redesign of the 3G pitch facility incorporating new floodlights for enhanced community use, the ROSE membership platform providing professional administrative support, the means to raise standards in the game and tangible rewards and partner offerings for the community, as well as data and insight partnership investment that will enhance our understanding of the football ecosystem and our stakeholder needs allowing the delivery of targeted support and interventions for safe, inclusive participation.

Income

The following overview highlights the activities contributing to income, that have supported investment in football in Lancashire in the 2024-25 season:

• Football Association Grant Funding - The FA, as the National Governing Body for football, and recipient of public funding, provide each County Football Association with a grant to support their activities. For this four-year strategy, a fixed annual amount was agreed at the outset (£477.3k). In addition, during this season, Lancashire FA also stated in the accounts: £35k representing rule8e income and amortisation of previous FA grants, £47k specific participation and development project FA grants, £56k of compensation from The FA in respect of our share of the centralised coach education offering, which was taken in-house by The FA in the 2020-21 season and is directly reinvested back into this focus area for football. The annual fixed funding amount received from The FA is now calculated on a market share basis, which has resulted in £8.3k per annum reduction. No other grant funding was received by the Association from public investors.

• Commercial Activities - The County Ground provides professional and grassroot fixtures, 3G football, hospitality and events for corporate and private clients and partnership activities. Whilst performance was not as strong as previously seen, costs were more tightly controlled enabling this area of the business to provide an overall stronger financial contribution to support football activities.

• Affiliation - Affiliation income remained broadly in line with the previous season.

• Competition Activity: This includes the County Cups and their sponsorship, and was lower this season following a reduction to the number of returning sponsors.

• Education & Training - Lancashire FA runs bespoke education courses for Referees and Coaches, and this season saw increased income with high demand for Referee education.

• Discipline - Discipline levels remained broadly level with the previous season, bucking previous year on year increases. This indicates that efforts to improve behaviours are having an impact, and we will continue with the strategic priority to improve standards in the game throughout the remainder of the strategy period.

• Interest - The current interest rate environment allowed Lancashire FA to benefit from interest income during the season to support our activities.

Expenditure - Football activity in Lancashire

Our Annual Report shares Lancashire FA’s activity and impact on local football in the 2024-25 season. Our key expenditure this season has supported:

• Championing Football & Connecting Communities – We showcased Lancashire football through our Lancashire Television show and digital channels, inspiring more people to play, volunteer, and support the game.

• Inclusion – By working with the EDI Football Advisory Board and newly formed South Asian Task Force, we made football more welcoming, helping underrepresented communities feel seen, heard, and encouraged to take part. Our EDI FAB Chair observes our Board bringing the inclusion perspective to the highest level of decision-making at Lancashire FA.

• Safeguarding – We strengthened trust in the game by introducing ‘Whole Company Safeguarding Weekends’ and visiting 64 clubs. We ran 22 Adult in Junior Football Workshops, and achieving 99.5% DBS compliance, all giving parents, players, volunteers, referees and coaches confidence that football is a safe place to belong.

• Football Development – We supported 648 clubs, 37 leagues, 6,054 teams, and over 82,000 players creating more opportunities to play. Our Social Inclusion League opened doors for those from low-income backgrounds, Pan-Disability football gave young players a pathway to thrive, and Walking Football kept older players active and connected.

• Women & Girls – We grew Wildcats, Squad centres, and leagues so that 12,415 women and girls could enjoy football on their own terms – whether starting out, playing casually, or competing more seriously.

• Facilities Development & Investment – By securing £2.2m in investment and improving over 400 pitches, we gave players better surfaces to enjoy the game and made life easier for the volunteers who maintain them.

• Westmorland FA Collaboration – Our shared approach to facility development supported more communities to gain access to improved places to play.

• 3G Facility – Over 40 clubs, leagues, and community groups used our pitch for matches, camps, and social football, giving people regular access to a high-quality playing surface.

• Professional Grass Pitch – By hosting 30 professional fixtures and 21 County Cup finals, we gave players the chance to perform on a top-class surface and created memorable matchday experiences for supporters.

• Discipline & Appeals – Our fair and efficient process gave clubs, players, and volunteers clarity and confidence that the game is managed with integrity.

• Coach Development – We equipped over 190 coaches with the skills to deliver better sessions, directly improving the experience for players across Lancashire.

• Referee Development & Mentoring – We supported 414 new referees and mentored officials each month, helping them build confidence and progress, which in turn ensured better-officiated games for participants.

• Data & Insights – We partnered with Lancaster University to help us better understand who plays football and what they need, so we can create more opportunities for everyone.

• Community Engagement – We set up six regional Development Forums to give people a direct voice in shaping local football, making sure decisions reflect their needs and priorities.

• ROSE Membership Programme – We launched ROSE to reward clubs, leagues, volunteers and our players and fans, saving them time on admin and providing discounts that keep football more affordable.

Financial Practices

The Finance, Audit, Risk and Investment Committee regularly meet to ensure the adequacy of the Association's financial reporting and internal controls. During the season the Committee have, amongst other matters, scrutinised monthly and quarterly management accounts with a particular focus on the Association’s debtor position and adequacy of reserves, reviewed the Board Assurance Programme and provided assurance to the Board on the financial competency within the organisation. Additionally, they have checked and challenges the annual budget proposal and audited accounts, noted changes to the Pension Scheme, had oversight and approval of the Scheme of Delegation, considered and approved all project investments in football prior to Board approval, and regularly considered the major risks to the Association, reporting on their activities in full to the Lancashire FA Board.

Risk Control

The Association retains a robust risk control system, enabling the Board, Executive and all staff to view the magnitude and likelihood of risks, and the steps taken to mitigate and control their likelihood and impact. On a quarterly basis, risks are monitored at either Committee or Board level, who consider both internal organisational risks as well as external risks in the football environment.

Board Recruitment

To broaden our Board understanding of key areas of the game, early in the season we welcomed two local sporting professionals to our Board: Rachel Brown-Finnis and Steve Daley. Their appointments bring expertise and lived experience from the Women’s Game and the Pan-Disability Game respectively, with their insights enriching our work.

Directors Remuneration

The Non-Executive Director roles at Lancashire FA are voluntary and Directors do not receive remuneration for these positions.

Auditors

The Auditors, Sedulo, were appointed to produce the Audited Accounts for the 2024-25 season, at the November 2024 AGM, this being their fourth year as the Association’s Auditors.

The audit was completed with no significant issues raised by the Auditors for consideration and the Finance, Audit, Risk and Investment Committee confirms that Lancashire FA remains a going concern.

The Future

The 2025–26 season marks the second year of our four-year strategy ‘Join the Journey’, and our continued collaborative approach to support our community.

This season will see the launch our new Standards Framework as part of the ROSE+ club and league membership offer. Through this, every club and league in our ecosystem will have the opportunity to become a full legal member of Lancashire FA and strengthen their voice within the football community.

As part of ROSE, our volunteers benefit from administration tools and discounts and offers, national and local, designed to make day-to-day activities easier and more rewarding. We will continue to evolve our membership programme, listening to our community, responding to their needs, and working together to find solutions that help them meet the challenges of football, the burden of administration and the rising cost of participation.

This coming season will also see Lancashire FA deepen its commitment to innovation, inclusion, and collaboration as we continue delivering the ambitions set out in our 2024–28 strategy, which meet the FA’s national priorities, as well as our specific unique priorities for football in Lancashire. Building on the foundations laid in the 2024-25 season, we will focus on expanding playing opportunities for underrepresented groups, driving improvements in grassroots facilities, and embedding our new governance and standards framework to ensure football across Lancashire remains safe, welcoming, and well-run. We will work hand in hand with our community, partners, and volunteers to co-produce local solutions, leveraging data and insight to inform decisions and target resources to have the greatest impact. Our goal is clear: to create a thriving, sustainable football ecosystem that supports physical activity, enhances wellbeing, and inspires everyone in Lancashire to join the journey and help us grow the beautiful game together.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting 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 company will continue in business.

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The notes on pages 7 to 12 form part of these financial statements.

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

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

Lancashire Football Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The County Ground, Thurston Road, Leyland, Preston, Lancashire, PR25 2LF.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. 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.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Members affiliation fees, competition entry fees and discipline income are recognised in line with the football season report.

Grant income is recognised in the period to which it relates and in which the money is expended. Coach education income is recognised in the period the course is delivered.

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 credited or charged to surplus or deficit.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and 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 company 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 company's balance sheet when the company 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 liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 business 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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Grants are classified as either as relating to revenue or relating to assets.

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.

In the application of the company’s accounting policies, the directors 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.

The average monthly number of persons (including directors) employed by the company during the year was:

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its surplus for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

In May 2023, the neighbouring Leyland Pentecostal Church notified Lancashire FA that the retaining wall situated on the boundary with the County Ground is leaning towards their land. Investigations into ownership and responsibility have not established any definitive obligation, as the property deeds for both contain no reference to ownership or responsibility for the wall. A preliminary estimate for remedial works is in the region of £70,000–£80,000. Discussions with the Church regarding potential contributing causes are in process, with no conclusions reached that could support apportionment of costs, as at the date of approval of these financial statements.

Lancashire FA is also in discussion with the Football Foundation regarding grant funding support as part of the proposed redevelopment of the 3G facility at the County Ground. Should this proceed, rebuilding the retaining wall could be incorporated within the wider project scope. However, no formal grant approval has been received to date.

As there is currently no present obligation on Lancashire FA, and any potential outflow of resources is not considered probable, no provision has been recognised. The matter is therefore disclosed as a contingent liability under Section 21 of FRS 102.

The director's consider there to be no controlling party.