SWINDON TOWN COMMUNITY MUTUAL LTD

FINANCIAL STATEMENTS FOR THE PERIOD 1st AUGUST 2005 TO 31ST AUGUST 2006

SOCIETY INFORMATION

• P Wardell
• A Jones
• A Ratcliffe
• A Hounsell
• P Davis

• P Wardell

REPORT OF THE BOARD OF TRUSTEES

The trustees present their report with the financial statements for the period

The principal activities in the period under review were to:

• Strengthen the bonds between the Club and the community which it serves and to represent the interests of the community in the running of the club.
• Benefit present and future members of the community served by the Club by promoting, encouraging and furthering the game of football as a recreational facility, sporting activity and focus for community involvement.
• Provide and maintain facilities for the enjoyment of professional football.
• Promote coaching schemes to develop the football skills of young people and to widen interest in football regardless of the sex or ethnic origin of those involved.
• To further the development of the game of football nationally and internationally and the upholding of its rules.
• To encourage and promote the principle of supporter representation on the board of the club and ultimately to be the vehicle for democratic elections to the board of the Club.

• A Norris - resigned July 2006
• P Wardell
• A Jones
• A Ratcliffe
• A Hounsell
• P Davis
• A McCluskie - resigned July 2006
• T Gilmour - resigned July 2006
• C Norris - resigned May 2006

The interests of the trustees holding office on 31 July 2005 in the issued share capital were as follows:

The Friendly and Industrial and Provident Society law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the society and of the surplus or deficit of the society for that period. In preparing those financial statements, the trustees are required to

• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the society will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the society and to enable them to ensure that the financial statements comply with the Friendly and Industrial and Provident Societies Act 1968. They are also responsible for safeguarding the assets of the society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The auditors, Osbornes Accountants Limited, will be proposed for re-appointment in accordance with Section 5(1) of the Friently and Industrial and Provident Societies Act 1968.s385 of the Companies Act 1985.

CHAIRMAN’S REPORT AND REVIEW OF THE PERIOD

It proved to be an interesting yet ultimately a disappointing season both on and off the pitch for the club. The Trust maintained it’s very active role working hard to promote the idea of redeveloping the County Ground. The first stage of this was to conduct a survey amongst supporters coming to Swindon to see how much revenue is generated by having a professional football club in the Town.

Early in the season saw the departure of Swindon Town Manager Andy King and the appointment of Iffy Onoura. The Red Army was one of the first beneficiaries with Iffy contributing to the fund. The fund in February 2006 was used to bring in Chris McPhee. The Trust also organised and promoted and auction which raised over £2000 for the Red Army Fund.

In November 2005 the clubs plans for the redevelopment of the ground collapsed as the Borough Council seemed to be unconvinced that they were tenable. This brought about the stating that they may have to look outside of the Borough for a suitable site. This brought an immediate angry reaction from the Trust and the rest of the fan base, and along with the Supporters Club and the Loud & Proud group the Trust co-launched the ‘Keep Town in Swindon’ campaign.

The group not only produced a strategy to fight any proposed move but also started to produce a proposal to allow the redevelopment of the County Ground that would allow the Club and the Council to work together and would be acceptable to the local residents. A large amount of time was spent in the consultation of the various interested parties. As part of the strategy the Trust ran a post card petition calling for the club and the council to work together to redevelop the County Ground. By February 2006 over 1000 post cards had been delivered to the Council.

In April 2006 the Club announced Bill Power’s appointment to the board and his significant investment in the club. The Trust welcomed the former QPR Chairman appointment and hoped it would significantly help in securing a future for the club.

At the end of the season the Club were relegated to the bottom tier of the football league, this heralded the departure of Iffy Onoura and the arrival of Dennis Wise.

Through the work consulting with the Council and the local residents groups the Trust’s stature grew incalculably within the Town and amongst the fan base. So as this period came to a conclusion the Trust has played an important and active part in trying to secure a future for the football club within the Borough of Swindon.

TrustSTFC is a non-profit organisation that relies on the hard work of a set of volunteers without whom it could not possibly function. I would like to express my thanks to all those who have contributed both their time and expertise to the Trust. I would also like to thank all those who have supported the Trust in all its endeavours this season.

Paul Davis
TrustSTFC Chairman

REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF SWINDON TOWN COMMUNITY MUTUAL LIMITED

We have audited the financial statements of Swindon Town Community Mutual Limited for the period ended 31 August 2006 on pages six to ten.

This report is made solely to the society’s members, as a body, in accordance with Section 9 of the Friendly and Industrial and Provident Societies Act 1968. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the society and the society’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trusteess and auditors

The trustees responsibilities for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out on page two.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Friendly and Industrial and Provident Societies Act 1968. We also report to you whether in our opinion the information given in the Report of the Directors is consistent with the financial statements.

In addition, we report to you if, in our opinion, the society has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and other transactions is not disclosed.

We read the Report of the Trustees and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In our opinion:

• the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice of the societys affairs as at 31 August 2006 and of its income for the period then ended;
• the financial statements have been properly prepared in accordance with the Friendly and Industrial and Provident Societies Act 1968.

Osbornes Accountants Limited
20 Market Place
Kingston-Upon-Thames
Surrey
KT1 1JP

INCOME AND EXPENDITURE ACCOUNT

BALANCE SHEET

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

The financial statements have been prepared under the historical cost convention.

Income represents the donations, subscriptions and other fundraising events during the period appropriate.

Lifetime memberships are taken to income and expenditure account over a period of twenty five years.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

2. NET INCOME

3. TAXATION

4. TANGIBLE FIXED ASSETS

5. FIXED ASSETS INVESTMENTS

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

8. SHARE CAPITAL

Allotted issued, and fully paid

The shares of the Trust have the nominal value of £1 each and may not be transferred or withdrawn. No member may hold more than one share individually or jointly.

If a member ceases to be a member, the share registered in the name of that member is cancelled and the amount subscribed for the share becomes the property of the Trust. Shares do not carry any right to interest, dividend or bonus.

The members have the rights and powers available to them under the law relating to Industrial and Provident Societies and are to decide in particular the issues specifically reserved to them by the Trust’s Rules.

9. RETAINED SURPLUS

TRADING PROFIT AND LOSS ACCOUNT

Swindon Town Community Mutual Limited, trading as TrustSTFC, an Industrial and Provident Society registered with the Registrar of Friendly Societies under the Industrial and Provident Societies Acts 1965-78. All references to the ‘Trust’ or TrustSTFC on this site are to the Swindon Town Community Mutual Limited that holds funds, under its rules, for the benefit of the community and not in trust for its members.