2020 ANNUAL REPORT

NOTTINGHAMSHIRE COUNTY CRICKET CLUB 2020 ANNUAL REPORT & ACCOUNTS 48 5. ANNUAL REPORT AND STATEMENT OF ACCOUNTS ClubTreasurer, Mr P J Ellis, directed members to the accounts of the club for the year ended 30 September 2019, which were set out on pages 32 to 47 of the Annual Report, as well as his written report on pages 30 and 31. The Independent Auditors’ Report was on pages 33 and 34 and confirmed that the Auditors had stated that in their opinion the financial statements: • Gave a true and fair view of the state of the club’s affairs at 30 September 2019 and of its surplus for the year then ended; • Had been properly prepared in accordance with United Kingdom General AcceptedAccounting Practice; • Had been prepared in accordance with the requirements of the Co-operative and Community Benefits Act 2014. Mr Ellis explained the workings of the club’s financial review process from the finance team, through to the ‘Management Sub-Committee’ and ‘Finance, Audit and Risk Committee’, followed by the General Committee and ultimately the independent auditors. Mr Ellis addressed some key points of interest in the published accounts: Total income had reduced by circa £500,000 (4%) on the previous year. Commercial income had decreased by over £400,000 (9%), as in-ground advertising income of approximately that value was retained by the ICC and not retained by the club, when it had been the previous season. The absence of Test Match cricket was also significant, although it was partially mitigated by the successful hosting of matches in the ICC CricketWorld Cup. In relation to expense movements, total expenditure had increased by £320,000 (2.7%). Professional Cricket and Academy costs increased by approximately 1%, driven by significant investment in the player pathway.The 54% rise in cricket development costs had been offset by an increase in grants. Ground Facilities and Match Expenditure showed a decrease of 7.7%, down from £3.93 million in 2018 to £3.63 million in 2019, as some hosting expenses were met by the ECB in their delivery of the ICC CricketWorld Cup. Administration and Commercial Expenditure was up 7.5%. The Radcliffe Road development, at a cost of £7.5 million, had been necessary to retainTest Match status. The setup costs of Restaurant Six had been £80,000.The restaurant had made operating losses for the financial year of £97,000. The year ending 30 September 2019 produced income in excess of £12.59 million, which was the second-best level of turnover in the club’s history.The make-up of turn- over was an important factor in ensuring profitability and the surplus for the year of circa £20,000 reflected the fact that the ICC CricketWorld Cup was not as profitable as Test Match cricket. Average surpluses in four-year clusters had improved from £131,000 in the period from 2005 to 2008 to £403,000 in the period from 2016 to 2019 with a surplus forecast for 2020. A slide was used to illustrate the impact international cricket had on the club’s financial results.The two lines representing international match income and the overall surplus of deficit each year continued to mirror each other and in that respect 2019 followed the established pattern. Mr Ellis ended by summarising the key points from his report: the second highest turnover in the history of the club, the £4 million