NOTES TO THE FINANCIAL STATEMENTS continued
| 26. Rugby Football Foundation | ||||
|---|---|---|---|---|
| The financial results, position and cash flows of the Rugby Football Foundation, which are included in the consolidated numbers, are provided below on the grounds that its funds may only be applied within its charitable objects and therefore are material by nature. The Rugby Football Foundation’s charitable objects are for the benefit of the public: to promote community participation in healthy recreation, provide and assist in providing facilities for sport, recreation and leisure time and to advance the education of children and young people. | ||||
| Statement of financial activities | 2007 |
2006 |
||
| £m |
£m |
|||
| Donations received | 16.9 |
10.6 |
||
| Direct costs | (16.2) |
(10.0) |
||
| Business and administration | (0.1) |
(0.1) |
||
| Grants to clubs | (0.5) |
(0.4) |
||
| Operating result | 0.1 |
0.1 |
||
| Net interest receivable | 0.2 |
– |
||
| Surplus for the year | 0.3 |
0.1 |
||
| Balance sheet | 2007 |
2006 |
||
| £m |
£m |
|||
| Loans due from clubs | 4.9 |
4.0 |
||
| Cash in hand and at bank | 5.9 |
1.9 |
||
| Loan due to group undertakings | (7.2) |
(4.5) |
||
| Deferred income | (2.0) |
– |
||
| Creditors falling due within one year | – |
(0.1) |
||
1.6 |
1.3 |
|||
| Represented by: unrestricted funds | 1.1 |
1.1 |
||
| restricted funds | 0.5 |
0.2 |
||
| 27. Accounting treatment of the sale of hospitality rights (Parent only) | ||||
In 2000 the RFU entered into a contract with its subsidiary Twickenham Experience Limited (TEL) to sell certain hospitality rights at the Twickenham stadium to TEL for £39,359,000. Under the terms of the original contractual arrangement, at the end of the contract term in the event the RFU did not renew the contract with TEL, the RFU was required to repurchase these hospitality rights for £39,359,000. During the year ended 30 June 2007, management has renegotiated this contractual arrangement and the clause requiring the repurchase of the rights in the event of non-renewal has been removed. In relation to the 2006 comparative period, the Management Board did not believe that the liability arising from the obligation to repurchase the hospitality rights should be recognised in the financial statements of the Parent as the intention was and always had been that the contract with TEL would be renewed. This treatment, which is relevant to the comparative figures only, represented a departure, for the purposes of showing a true and fair view, from the requirements of paragraph 12b, Part II Accounting principles and rules to the Companies Act 1985 concerning theaccounting of liabilities. |
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