3 minute read
The Treasurer’s Report
Andrew Power, Treasurer
As in previous years, a simplified Statement of Financial Activities is set alongside. As with all businesses, our financial performance has been impacted by the pandemic. This has affected most areas of the income statement, most notably expenditures were lower than planned.
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- Grants were considerably below plan as Covid caused the delays of the initiation of the Investing in
Professionals (IiP) programme, the rebuild of RTO and any plans clubs had around facilities development. - Tournaments were cancelled - Some T&RA staff were furloughed
At the same time, T&RA income held up well - Membership grew slightly from 3601 to 3679, showing players continued support of the games despite the ability to play being severely restricted. Subscriptions however were slightly down. - Donations and gifts rose to £103.9k from £82k.
We are extremely grateful for these generous contributions from members of the T&RA - Dividends and interest rose to £55.7k from £48.8k, despite many large corporations cutting dividend rates at the beginning of the pandemic
As a result, the T&RA net income turned into a profit of £76.4k in 2020/21 from a loss of £22k in 2019/20. To elaborate on key categories of the income statement: - Regular expenditure: as in the previous year, expenditure was higher than income, leading to a small deficit of £15.8k. While memberships subscriptions were slightly down, staff costs were lower due to the furlough programme. Communications and IT costs were higher as we continued to expand our marketing activities and invest in our IT capabilities - Sponsorships and Tournaments showed minimal income and expenditure due to lack of tournaments, apart from a few amateur tournaments - Development: A surplus of £32.7k was recorded in 2020/21 compared to a £80.6k deficit the previous year. In 2020/21 £33.8k in grants were authorised, compared to £123.8k the previous year. This included £4.5k for court development, £22.3k for professional training and recruitment, and £5.4k to encourage participation in the two games. As described above, development was the area most impacted by Covid
and we are looking forward to implementing the development plans originally scheduled for 2020/21 - Investments: Interest and dividends of £56.3k were higher than last year, a welcome trend given initially corporations had announced significant dividend cuts due to Covid. Compared to the previous year’s weak investment performance (a loss of £95.4k) our investment portfolios incurred capital gains of £303.3k (realised and unrealised), reflecting the somewhat surprising strong rebound in stock markets in the second half of 2020 and into 2021.
Over the coming year we are projecting a positive net income, but smaller than 2020/21. We should be able to implement fully our plans for continued investment in development, especially £50k in investment in professionals training and recruitment via the Investment in Professionals programme (IiP), the completion of the redevelopment and enhancement of RTO2 at a cost of £42k and the launch of a rebranding of the T&RA website and supporting materials.
The T&RA maintains a strong balance sheet with assets of £2804.7k as of 30 June 2021, compared to £2425.5k the previous year. We have £1989.1k in unrestricted funds, £551.7k in restricted funds, and £266.9k in Endowment funds. Within the balance sheet we are carrying an asset of £11.5k for work to date on RTO2. RTO2 will be fully capitalised on the balance sheet once completed and amortised over 5 years. The T&RA is temporarily holding reserves of £16.6k from contributions by UK residents for the new Washington Tennis court.
Simplified Statement of Financial Activities
£000s
Year End 30-Jun-21
Year End 30-Jun-20
Charitable Donations ( including gift aid) 103.8 82.0
Charitable Activities
Membership subscriptions (including gift aid) Advertising in Annual Report Other Income 152.5 164.8
3.8 3.7 2.8 7.4 Amateur Tournaments (net) -2.3 -0.7 Sales of ball cloth, Rackets balls, etc. (net) 2.7 3.9 Grants (including TRACS) -33.8 -123.8 Staff & Related Costs -138.6 -140.6 Communications & IT -43.4 -23.5 Other adminstrative costs -15.8 -26.6 Allocation to Trading Activities 0.0 11.8
Net charitable activities -72.1 -123.6
Trading Activities
Sponsorship Non-Charitable Donations Professional tournaments (net) Allocation of support costs
Net trading activities
0.0 21.0 0.0 33.0 0.0 -51.0 0.0 -15.6
