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

1.5 Grants
Grant awards are accounted for as expenditure in
the Statement of comprehensive net expenditure
and, until paid, as liabilities in the Statement of
financial position, if they meet the definition of
liabilities in IAS 37 as a legal or constructive
obligation.
Grant awards which do not meet the definition of
liabilities are not included in expenditure in the
Statement of comprehensive net expenditure but
are disclosed as contingent liabilities in note 12.
These are amounts which the Board, or the
relevant delegated authority, have agreed to
consider at a future date subject to the required
conditions being met.
1.6 Non-cash grants
Non-cash grants are services procured by Sport
England from third parties for the benefit of other
organisations (i.e. the service provider is only the
deliverer and not the end recipient of the grants)
and where:
• Sport England is not the beneficiary of the
goods and/or services
• The substance of the procurement is directly
in line with Sport England’s strategic
outcomes
• The goods and/or services do not fall within
any of Sport England’s statutory planning or
administration functions.
Non-cash grants are recognised in the Statement
of comprehensive net expenditure when the
services contracted for are provided to the
beneficiary of the non-cash grant.
1.7 Other expenditure
Staff costs are recognised as an expense at the
time that the organisation is obligated to pay
them and include the cost of any recorded
untaken leave at the end of the financial year.
Costs relating to Sports development and
Operating costs are expensed in the year in which
they are incurred.
All Lottery expenditure on Staff, Sports
development and Operating costs is initially
funded by Exchequer. Sport England is required
to apportion expenditure between its Exchequer
and Lottery activities. Amounts used by Exchequer
to initially fund Lottery activities are reimbursed
throughout the year by Lottery and any
outstanding balance at the year-end is reflected
as a payable balance in the Lottery accounts with
a corresponding receivable balance in the
Exchequer accounts. The apportionment of
expenditure is calculated using metrics derived
from the organisation’s annual business planning
process, unless the costs are considered to be
entirely Exchequer or Lottery related. The
resulting cost allocations are subject to annual
review by the Executive Team. These calculations
are also subject to audit.
The current methodology calculates charges on a
full cost recovery basis in accordance with HM
Treasury’s Managing Public Money.
1.8 Trade receivables
Trade receivables are recognised at fair value, less
a provision for any specific impairment.
A provision for the impairment of trade
receivables is established when there is objective
evidence that Sport England will not be able to
collect all amounts due in accordance with the
original terms of the receivables.
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand
and deposits held at call with commercial banks.
1.10 Trade and other payables
Trade and other payables are recognised at fair
value.
1.11 Taxation
The Sport England NLDF is registered for VAT as
part of Sport England’s VAT registration, however
does not undertake any business activities for
VAT purposes. VAT is not recoverable on any of
its operational expenditure.
Corporation tax is payable on bank interest
received net of bank charges.
Investment income generated on balances held
and invested by the NLDF on Sport England’s
behalf is not taxable.
1.12 Pensions
Defined contribution scheme
Payments are recognised as an expense when
employees have rendered service entitling them
to the contributions.
The English Sports Council National Lottery Distribution Fund Accounts for the year ended 31 March 2017 102