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2023-03-31-accounts

Charity registration number 1032157

The London Scottish Regimental Trust

Annual Report and Unaudited Financial Statements

For the year ended 31 March 2023

The London Scottish Regimental Trust

Contents

Page
Trustees' report 1 - 4
Statement of Trustees' responsibilities 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 16

The London Scottish Regimental Trust

Legal and Administrative Information

Trustees Major B.D. Welsh (Chair)
Mr S.M. Bachelor (Appointed 16 February 2023)
Lieutenant Colonel D.L. Carter
Mr M.J. Felstead
Mr J.F. Hudson
Mr S.M. Kempster
Mr S.D. Lovelock
Mr A.J.B. Miller
Mr A. Nathan (Appointed 13 April 2023)
Mr M.V. Ormiston
Mr A.A. Rawlins
Lieutenant Colonel N. Storey
Charity number 1032157
Principal address London Scottish House
95 Horseferry Road
London
SW1P 2DX
Independent examiner Gilberts Chartered Accountants
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
Bankers Royal Bank of Scotland
Holt's Farnborough Branch
Lawrie House
Victoria Road
Farnborough
GU14 7NR
National Westminster Bank PLC
Westminster Branch
PO Box 3038
57 Victoria Street
London
SW1H 0HN

The London Scottish Regimental Trust

Trustees' Report

For the year ended 31 March 2023

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

Status

The Trust is registered with the Charity Commission for England and Wales, charity number 1032157.

The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the financial statements and comply with the Trust's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.

The objectives of the charity as set out in the governing documents are:

  1. In or towards promoting the military efficiency of the Existing Unit or any related New Unit of Units from time to time formed and of Designated Persons in such ways as the Administrative Trustees from time to time see fit.

  2. In making grants to any museum or library of the London Scottish.

  3. In relieving either generally or individually any person or person who is or are serving or has served in the Existing Unit or who are Designated Person or Persons or who is or are former members of any of the Former Units or who was or were Designated or Attached Person or persons and the dependants of such person or person and who are in conditions of need, hardship or distress of such person or persons the Administrative Trustees may pay for such items, services or facilities for such person or persons or any persons who are serving or have served in Her Majesty's Armed Forces.

  4. In relieving in like manner any person or persons who has at any time been employed by the Charity or employed as an Adult Instructor or instructor of any London Scottish Cadet Unit and who is or are in conditions of need, hardship or distress.

In furtherance of the objects but not otherwise the Trustees may exercise inter alia the following powers:

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives for the year. The Trustees believe that by assisting with the training and efficiency of the Reserve Army and thereby the defence of the realm they are generating public benefit.

Structure, governance and management

The Charity was formed by the merging of several smaller regimental trusts under a Scheme approved by the Charity Commission Scheme dated 16th July 1973 as varied or affected by an order of the Commissioners dated 9th July 1975 and by an administrative scheme approved by the Charity Commission on the 9th August 1993 as amended under Section 280 of the Charities Act 2011 dated 28th October 2021 which are the governing documents of the Charity.

The London Scottish Regimental Trust

Trustees' Report (Continued)

For the year ended 31 March 2023

The Trustees who served during the year and up to the date of signature of the financial statements were:

Major B.D. Welsh (Chair) Mr S.M. Bachelor (Appointed 16 February 2023) Lieutenant Colonel D.L. Carter Major M.P. Durrant VR (Resigned 13 April 2023) Mr M.J. Felstead Mr J.F. Hudson Mr S.M. Kempster Mr S.D. Lovelock Mr A.J.B. Miller Air Vice Marshal R.T.I. Munro CBE TD VR DL (Tenure expired 30 April 2023) Mr A. Nathan (Appointed 13 April 2023) Mr M.V. Ormiston Mr A.A. Rawlins Lieutenant Colonel N. Storey Lieutenant Colonel G.M.H. Strickland (Resigned 15 December 2022)

The governing documents provide that there shall be 3 ex officio Trustees:

·

and up to 11 co-opted Trustees who are required to be:

At the date of signing the financial statements the post of Regimental Colonel was vacant and the Office Commanding the serving unit had not been registered as a trustee.

The Trustees have the power to co-opt additional Trustees if a vacancy arises.

The London Scottish Regimental Trust

Trustees' Report (Continued)

For the year ended 31 March 2023

Achievements and performance

Historically the Trust managed the affairs of the regiment and was provided with funds for this purpose by other Regimental charities who worked together as a team to ensure the efficient operation for the Regimental structure.

The lease of the premises ran out in March 2018 and the London Scottish Headquarters Trust Trustees were unable to agree terms with the Reserve Forces and Cadets Association to renew the lease. This resulted in the relocation of the serving unit, "A" (London Scottish) Company the London Regiment, to other military accommodation with the consequent loss of income and contribution to the running costs of the premises.

The Headquarters Trustees embarked on an ambitious scheme to convert the premises into a Hub for Scots people in London. The plan would have involved quite extensive alterations to the building and relied heavily on raising substantial sums of capital either by loan or philanthropy. Feasibility studies and plans were commissioned as well as a fundraising initiative and advice from various consultants.

Other regimental funds were used to finance the plan.

At the same time, a trading company London Scottish Volunteer Enterprises Limited (LSVE) was created in the joint ownership of the Trust and The London Scottish Headquarters Trust (LSHQT) to exploit the premises from events and other commercial activities.

The timing was not propitious and it became apparent that fundraising had failed and the trading company did not succeed in raising funds sufficient to cover the overheads of the premises. In fact, the company has suffered significant losses and has since been liquidated.

Future of the Trust

The future of the Trust is in some doubt.

Following the liquidation of London Scottish Volunteer Enterprises Ltd, a new company London SH Ltd has been formed to manage the Headquarters' building. The company is jointly owned by London Scottish Headquarters Trust and London Scottish Regimental Trust.

In cooperation with the Trustees of all the Regimental Trusts, the Trustees are examining all possibilities including the sale or redevelopment of the premises by London Scottish Headquarters Trust and realisation of assets by London Scottish Regimental Trust. The Trustees draw some comfort from the Heritage Assets held by the Trust but not currently shown in the balance sheet. These were valued at £1,063,740 in February 2020.

The London Scottish Regimental Trust

Trustees' Report (Continued)

For the year ended 31 March 2023

Financial review

Unrestricted income for the year amounted to £153,063 (2022 £56,651). This consisted partially of grants from other regimental charities.

Unrestricted Income 2023 2022
£ £
London Scottish Headquarters Trust 12,500 36,305
London Scottish 1990 Charity - -
London Scottish 1995 Charity - -
London Scottish Regiment OgilbyTrust 2,000 -
Other income 120,563 17,986
Total income 153,063 56,651

The results show that there was an overall surplus in the year of £20,864 (2022 £96) and investment losses of £213 (2022 gains of £237).

The balance on the fund as at 31st March 2023 is £31,982 (2022 £11,118).

The Trustees' report was approved by the Board of Trustees.

Trustee

15 December 2023

The London Scottish Regimental Trust

Statement of Trustees' Responsibilities

For the year ended 31 March 2023

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 Trust and of the incoming resources and application of resources of the Trust for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The London Scottish Regimental Trust

Independent Examiner's Report

To the Trustees of The London Scottish Regimental Trust

I report to the Trustees on my examination of the financial statements of The London Scottish Regimental Trust (the Trust) for the year ended 31 March 2023.

Responsibilities and basis of report

As the Trustees of the Trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Trust’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I draw attention to the wording contained in the Trustees' Report and the going concern accounting policy at Note 2.2 which explain that a material uncertainty exists that may cast doubt on the Trust's ability to continue as a going concern.

I confirm that there are no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Gilberts Chartered Accountants

Pendragon House 65 London Road St Albans Hertfordshire AL1 1LJ

Dated: 15 December 2023

The London Scottish Regimental Trust

Statement of Financial Activities Including Income and Expenditure Account

For the year ended 31 March 2023

Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income and endowments from:
Donations and legacies 3 36,806 38,665
Charitable activities 4 115,841 17,570
Investments 5 416 166
Other income 6 - 250
Total income 153,063 56,651
Expenditure on:
Charitable activities 7 131,986 56,792
Net gains on investments 12 (213) 237
Net movement in funds 20,864 96
Fund balances at 1 April 2022 11,118 11,022
Fund balances at 31 March 2023 31,982 11,118

The statement of financial activities includes all gains and losses recognised in the year.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 9 to 16 form part of these financial statements.

The London Scottish Regimental Trust

Balance Sheet

As at 31 March 2023

2023
Notes
£
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
12,000
Debtors
16
30
Cash at bank and in hand
59,825
71,855
Creditors: amounts falling due within one
year
17
(43,153)
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2022
£
£
1
3,279
3,280
20,000
6,603
38,025
64,628
(57,003)
28,702
31,982
31,982
31,982		 £
1
3,492
3,493
7,625
11,118
11,118
11,118

The notes on pages 9 to 16 form part of these financial statements.

The financial statements were approved by the Trustees on 15 December 2023

Trustee

The London Scottish Regimental Trust

Balance Sheet (Continued)

As at 31 March 2023

1 Critical accounting estimates and judgements

In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

2 Accounting policies

Charity information

The London Scottish Regimental Trust is an unincorporated charitable trust registered with the Charity Commission in England and Wales, number 1032157. Its principal office is London Scottish House, 95 Horseferry Road, London, SW19 2DX.

2.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Trust is a Public Benefit Entity as defined by FRS 102.

The Trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

2.2 Going concern

The Trustees have assessed whether there are material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees have made this assessment in respect of a period of at least one year from the date of the approval of the Accounts.

As a result of the ending of income from the lease of the property and the failure of the trading company to generate significant income, the income of the Trust has substantially reduced. However, as described in the Trustees' Report, the trustees are continuing to explore ways of generating sufficient funds to enable it to continue in operation. The accounts are accordingly prepared on a Going Concern basis. However, because of the financial situation of the Charity, the Trustees consider that there is a material uncertainty regarding going concern.

2.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Trust.

The London Scottish Regimental Trust

Notes to the Financial Statements

For the year ended 31 March 2023

2 Accounting policies

(Continued)

2.4 Income

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

2.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property Not depreciated Fixtures and fittings 25% straight line Computers 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

2.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

2.8 Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

The London Scottish Regimental Trust

Notes to the Financial Statements (Continued)

For the year ended 31 March 2023

2 Accounting policies

(Continued)

2.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

2.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.11 Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.

The London Scottish Regimental Trust

Notes to the Financial Statements (Continued)

For the year ended 31 March 2023

2 Accounting policies

(Continued)

2.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 34,806 502
Grants received 2,000 38,163
36,806 38,665

4 Charitable activities

Sale of assets not held on balance sheet
Other income		 Sundry
income
2023
£
95,450
20,391
115,841		 Sundry
income
2022
£
-
17,570
17,570

5 Investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Income from listed investments 185 166
Interest receivable 231 -
416 166

The London Scottish Regimental Trust

Notes to the Financial Statements (Continued)

For the year ended 31 March 2023

6 Other income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Net gain on disposal of tangible fixed assets - 250

7 Expenditure on charitable activities

Grant Making
Charitable
Activities
2023
2023
£
£
Direct costs
Activities undertaken directly
-
33,319
Support costs
-
46,167
-
79,486
Grant funding of activities (see note 8)
52,500
-
52,500
79,486
Analysis by fund
Unrestricted funds
52,500
79,486
Grants payable
Grants to institutions:
London Scottish Headquarters Trust		 Total
Charitable
Activities
2023
2022
£
£
33,319
17,348
46,167
39,444
79,486
56,792
52,500
-
131,986
56,792
131,986
56,792
Grant Making
2023
£
52,500

8 Grants payable

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.

The London Scottish Regimental Trust

Notes to the Financial Statements (Continued)

For the year ended 31 March 2023

10 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
1 1

There were no employees whose annual remuneration was more than £60,000.

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

12 Net gains on investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Revaluation of investments (213) 237
Tangible fixed assets
Freehold Fixtures and Computers Total
property fittings
£ £ £ £
Cost
At 1 April 2022 1 16,932 5,527 22,460
At 31 March 2023 1 16,932 5,527 22,460
Depreciation and impairment
At 1 April 2022 - 16,932 5,527 22,459
At 31 March 2023 - 16,932 5,527 22,459
Carrying amount
At 31 March 2023 1 - - 1
At 31 March 2022 1 - - 1

13 Tangible fixed assets

The London Scottish Regimental Trust

Notes to the Financial Statements (Continued)

For the year ended 31 March 2023

14 Fixed asset investments

Listed
investments
Unlisted
investments
£
£
Cost or valuation
At 1 April 2022
3,491
1
Valuation changes
(213)
-
At 31 March 2023
3,278
1
Carrying amount
At 31 March 2023
3,278
1
At 31 March 2022
3,491
1
15
Stocks
2023
£
Finished goods and goods for resale
12,000
16
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
-
Amounts owed by related regimental trusts and organisations
30
30
17
Creditors: amounts falling due within one year
2023
£
Loans from related regimental trusts
10,000
Trade creditors
2,509
Amounts owed to related regimental trusts
13,594
Other creditors
2,500
Accruals and deferred income
14,550
43,153		 Total
£
3,492
(213)
3,279
3,279
3,492
2022
£
20,000
2022
£
865
5,738
6,603
2022
£
10,000
2,447
16,612
17,000
10,944
57,003

The London Scottish Regimental Trust

For the year ended 31 March 2023

Notes to the Financial Statements (Continued)

18 Related party transactions

The Charity received grants for £12,500 (2022: £36,305) from The London Scottish Headquarters Trust, a Charity with common trustees, during the year. The charity owed £13,594 to the London Scottish Headquarters Trust at the balance sheet date (2022: it was owed £5,978 by the London Scottish Headquarters Trust).

The Charity received a grant of £2,000 (2022: £nil) from The London Scottish Regiment Ogilby Trust during the year.

The Charity incurred management fees in respect of staff salaries of £nil (2022: £16,611) to London Scottish Volunteer Enterprises Limited, a company which it owned jointly with London Scottish Headquarters Trust. The Charity was owed £273,329 by this company at the prior year end and a full provision had been made against this balance. The Company was liquidated during the year and consequently this balance, together with the provision, has been written off.

The Charity received a loan of £10,000 from The London Scottish 1990 Fund, a related trust, during 2021. This remains outstanding the the current year end.