sport-england-2016-17-annual-report-and-accounts

Notes to the accounts
1 Statement of accounting policies
These accounts have been prepared in accordance
with the National Lottery etc. Act 1993 (as amended),
the Lottery Accounts Direction issued thereunder by
the Secretary of State for Culture, Media and Sport
with the consent of HM Treasury in December 2014
and the 2016-17 Government Financial Reporting
Manual (FReM) issued by HM Treasury. A copy of the
Lottery Accounts Direction can be obtained from Sport
England at 21 Bloomsbury Street, London, WC1B 3HF.
The accounting policies contained in the FReM apply
the requirements of the Companies Act 2006, and
International Financial Reporting Standards (IFRS) as
adopted by the European Union, and as adapted or
interpreted for the public sector.
Where the FReM permits a choice of accounting
policy, the accounting policy which is judged to be the
most appropriate and which gives a true and fair view
has been selected.
The particular policies adopted by the Sport England
National Lottery Distribution Fund (NLDF) as set out
and described below have been applied consistently
to all periods presented in the accounts.
1.1 Accounting convention
The accounts have been prepared on a going concern
basis under the historical cost convention and only
reflects the activities associated with the Sport England
NLDF.
Without limiting the information given, the accounts
of the Sport England NLDF meet the requirements of
the Companies Act 2006, the Accounting Standards
issued or adopted by the International Accounting
Standards Board, the HM Treasury guidance on the
accounts of Non-Departmental Public Bodies as set
out in the FReM, and the National Lottery etc. Act
1993 (as amended) in so far as those requirements are
appropriate to the Sport England NLDF.
In compliance with Section 35 of the National Lottery
etc. Act 1993 (as amended), the accounts cover the
year to 31 March 2017. Comparative figures are shown
for the year ended 31 March 2016.
A separate set of accounts has been prepared for
Sport England activities funded from Grant-in-Aid, in
accordance with the instructions issued by the
Secretary of State for Culture, Media and Sport.
1.2 Going concern
Sport England continues to adopt the going concern
concept in the preparation of the Sport England NLDF
accounts.
Grant commitments for future years (note 11)
have been entered into after consideration of the
cash requirements of grant recipients (these can
extend over a number of years) and after taking
account of income projections provided by the
Department for Culture, Media and Sport (DCMS).
In taking this view of future income the Board
assumes as a matter of public policy the
continued operation of the Lottery.
There is expected to be no change to the
continued provision of services by Sport England.
Future financial provision has been made for
Sport England’s Lottery distribution activities
through section 23 of the National Lottery etc.
Act 1993.
1.3 National Lottery Distribution Fund
Funds with the NLDF are held through a
combination of investments in government gilts
and call notice deposits. The NLDF funds are
classified by the NLDF as available for sale assets
and are valued at market value. Gains or losses
associated with the gilts held are accordingly
accounted for in the NLDF accounts.
Sport England’s share of proceeds is recognised
on a receivable basis.
1.4 Income recognition
The recovery of grants is recognised as income
on an accruals basis.
The conditions associated with grants permit the
recovery and repayment of grants from the grant
recipient. A recovery of an element or the entire
grant paid can arise when the recipient of the
grant fails to comply with the terms and
conditions of the grant, or actual expenditure
incurred by the recipient falls below the value of
the grant that has been paid.
Government grants, including Lottery funding, in
respect of capital and revenue expenditure are
credited to the Statement of comprehensive net
expenditure in the year in which the entitlement
to the monies arise in accordance with the
application of IAS 20 recommended by the FReM.
The English Sports Council National Lottery Distribution Fund Accounts for the year ended 31 March 2017 101