THE QUEEN’S ROYAL HUSSARS
(The Queen’s Own and Royal Irish) REGIMENTAL CHARITY
REPORT AND FINANCIAL STATEMENTS
31 MARCH 2023
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
CONTENTS
| Page | |
|---|---|
| Trustees and Administrative Information | 1 |
| Trustees’ Report | 2 – 4 |
| Independent Auditor’s Report | 5 – 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Notes to the financial statements | 10 – 20 |
| The following pages do not form part of the statutory financial statements: | |
| Detailed statement of financial activities | 21 – 23 |
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
TRUSTEES AND ADMINISTRATIVE INFORMATION
| Trustees | |
|---|---|
| Chairman and | |
| The Colonel of the Regiment: | Lieutenant General (Retired) Sir T A Beckett KCB CBE |
| Other Ex-Officio Trustees: | |
| The Commanding Officer | Lieutenant Colonel S Wilson |
| Chairman of the Association | Colonel (Retired) A C Cuthbert |
| Regimental Sergeant Major | WO1 (RSM) A Walker |
| Nominated Trustees: | Brigadier N Cowley OBE |
| Colonel (Retired) N Q W Beer | |
| Colonel (Retired) R W Currie CBE | |
| Colonel A J I Wilson | |
| Lieutenant Colonel C J Haines (from March 2023) | |
| Lieutenant Colonel (Retired) M Cubitt (from March 2023) | |
| Additional Trustees: | Brigadier (Retired) A N Bellamy |
| Brigadier I M Mortimer | |
| Major N Entwistle | |
| Major (Retired) D J Innes-Lumsden | |
| Lieutenant Colonel (Retired) T Hamilton | |
| Colonel A Porter | |
| Secretary | Major (Retired) J S Austin |
| Address | Home Headquarters |
| Regents Park Barracks | |
| Albany Street | |
| London NW1 4AL | |
| Bankers | Lloyds Bank |
| PO Box 1190 | |
| 67 Pall Mall | |
| London SW1Y 5NA | |
| Auditors | Saffery LLP |
| 71 Queen Victoria Street | |
| London | |
| EC4V 4BE | |
| Investment managers | Rathbone Investment Management Limited |
| Port of Liverpool Building | |
| Pier Head | |
| Liverpool L3 1NW | |
| Registered Charity Number | 1043673 |
Page 1
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023
The Trustees present their report and accounts for the year ended 31 March 2023 which have been prepared in accordance with the Charities Act 2011 and UK generally accepted accounting practice. The information on page 1 forms part of the Trustees' Report
Objects
The Charity is regulated by a Scheme of the Charity Commissioners for England and Wales dated 28 February 1994. The Charity comprises:
The Relief in Need Branch (Benevolent Fund)
Income is applied at the discretion of the Trustees in relieving individuals who are serving or former members of the Regiment or former Regiments and dependants who are in conditions of need, hardship or distress, by making grants of money or providing or paying for items, services or facilities calculated to reduce need, hardship or distress.
The Officers’ Trust Branch (Officers’ Trust Fund)
Income is applied at the discretion of the Trustees to promote the efficiency of the Regiment by increasing the efficiency of its serving officers in such ways as the Trustees from time to time think fit.
Museum Support Fund
Income is applied at the discretion of the Trustees to fund the building of a new regimental museum to house the Regimental collection. The purchase of the building was achieved from the sale of chattels, donations and loans.
Chattels Branch
In addition, the Charity owns a collection of chattels (silver, pictures, records and other items) which are kept for the benefit of future generations. Many of the assets were acquired through spoils of war or gifted. The historical cost of the assets purchased is either not known or is considered likely to be immaterial.
Regimental Charity Branch
The Charity also oversees the Regimental Charity Branch which is audited under Army Regulations under the supervision of the Commanding Officer of the Regiment, an ex-officio trustee, who in turn reports to the other Trustees. The Regimental Charity Branch is not included in these accounts.
Organisation
The overarching body responsible for efficient management of the charity are the Trustees. New trustees are invited to join by the Chairman from serving or retired members of the Regimental Association. Candidates are chosen because they are seen to have particular skills and experience which complement or reinforce those of existing trustees.
The Trustees meet twice a year when policy concerning the charity is discussed and decisions made. The Trustees confirm that they have referred to the guidance contained in the Charity Commission General Guidance on Public Benefit when reviewing the Funds’ aims and objectives and to planning future activities and setting grant making policies.
Trustees
The current Trustees that served during the year and to the date of this report are listed on page 1.
Page 2
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
TRUSTEES’ REPORT
FOR THE YEAR ENDED 31 MARCH 2023
Trustees responsibilities
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 & 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP (FRS102);
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in the foreseeable future.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and applicable accounting regulations. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Risk management
The Trustees have regard for the principal areas of the Charity’s operations and the major risks which may arise in these areas. In their opinion, the Charity has established resources and review systems which, under normal conditions, should allow the risks identified by them to be mitigated to an acceptable level in their day to day operations. The key risks are considered to be:
Insufficient Income to meet the Regimental Charitable Trust's Aims. The risk control measures we have in place are to review, at least twice yearly, the investment portfolio, ensure we maintain adequate reserves and encourage the payment of annual subscriptions to the Benevolent Fund and Officers' Trust Fund.
Catastrophic damage to or mis-use of the Trust's properties at Trinity Mews, Warwick. The risk control measures we have in place are to ensure we have adequate and appropriate buildings insurance and implementing statutory safety checks and landlord’s inspections of the property.
Review of activities
Benevolent Fund
Income
The fund derives 93% of its income from its portfolio of investments in British government stocks, leading UK companies and a limited number of overseas companies, general donations and the one day pay scheme.
Expenditure
Financial assistance is given in the form of grants and allowances to assist current and past members of the regiment. Grants are authorised by the trustees. Grants to individuals amounted to £18,307 (2022: £14,851) during the year and to other institutions, £7,165 (2022: £7,165). This year 28 (2022: 22) cases of benevolence were approved by the Trustees and also 10 (2022: 10) Christmas gifts to widows. Direct charitable expenditure represents 21% (2022: 36%) of incoming resources available for charitable application. Support cost at £55,633 (2022: £34,024) represents 50% (2022: 35%) of total resources expended and includes £7,791 (2022: £7,846) depreciation on No. 2 Trinity Mews.
Page 3
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023
Officers’ Trust Fund
Income
The fund derives 47% (2022: 39%) of its income from its portfolio of investments, with the remaining 53% (2022: 61%) of income being received from subscriptions from both serving members of the Regiment and retired officers of the Regiment and former Regiments, and other donations.
Expenditure
The fund provides money to offset the cost of challenging pursuits of Regimental officers. Grants are made by the Trustees each year. It also supports the safe upkeep of Officers’ Mess property - silver, pictures and library. Administration costs at £3,000 (2022: £10,000) represent 6% (2022: 19%) of total resources expended.
Restricted fund
The Fund was established with 50,000 shares in China Merchants Investment Trust received from the Sibley Trust Fund in the years 2000 and 2001 and the current assets of the fund are shown at note 8. The investments cannot be sold during the donor’s lifetime without his consent and income from the investment is to be used for specific purposes in the Officers’ Mess. The investments were sold in the year and the fund is held in cash as at 31 March 2023.
Museum Support fund
Income
The fund derives its income from investment income and donations. Donations of £10 (2022: £2,085) were received in the year.
Expenditure
Administration expenses of £45 (2022: £1,300) and depreciation of £11,543 on No.1 Trinity Mews (2022: £11,543) together represented 96% (2022: 80%) of total resources expended, the remainder being expenditure for charitable activities.
Investment policy
The investments of the Funds are managed by Rathbones Investment Management Limited. These are reviewed twice yearly with the investment manager in accordance with the charity’s investment policy statement.
Fundraising
The Trustees are aware of their responsibilities under the Charities (Protection and Social Investment) Act 2016 and have considered the implications for their fundraising activities. The Charity did not run any specific fundraising events in the year, nor does it engage professional fundraisers. The Trustees are not aware of any complaints made in respect of fundraising during the period.
Reserves
The Trustees’ policy is to maintain a level of reserves sufficient to provide a stable base for the Funds’ continuing activities while at the same time ensuring excessive funds are not accumulated. Reserves comprise the amounts held in unrestricted funds and are substantially represented by investments. The Trustees believe that the reserves are sufficient for its current purposes and these are reviewed on a regular basis.
Signed on behalf of the Trustees on 8 November 2023
Colonel RW Currie CBE Trustee
Page 4
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE QUEEN’S ROYAL HUSSARS REGINEMTAL CHARITY
Opinion
We have audited the financial statements of The Queen’s Royal Hussars Regimental Charity for the period ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.
We have nothing to report in this regard.
Page 5
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE QUEEN’S ROYAL HUSSARS REGINEMTAL CHARITY
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
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the charity has not kept sufficient accounting records; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees’ Responsibilities Statement set out on page 3, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
We have been appointed s auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which the charity operates.
Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.
Page 6
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE QUEEN’S ROYAL HUSSARS REGINEMTAL CHARITY
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters
The financial statements for the year ended 31 March 2022 were not audited as in the previous accounting period, the trustees took advantage of audit exemption under s145 of the Charities Act 2011. Therefore the comparative financial information presented in these financial statements has not been subject to audit. As part of our testing we have gained sufficient appropriate evidence that the opening balances do not contain any misstatements that materially affect the current period’s financial statements.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s 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 charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Saffery LLP Chartered Accountants and Statutory Auditors 71 Queen Victoria Street London EC4V 4BE
8 December 2023
Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Page 7
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Regimental Benevolent Fund |
Regimental Officers' Trust Fund |
Regimental Officers' Trust Fund |
Museum Support Fund |
2023 | 2023 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Unrestricted | Restricted | Unrestricted | Unrestricted | Restricted | Total | Total | ||||||
| £ | £ | £ | £ | £ | £ | £ | £ | ||||||
| Income from: | |||||||||||||
| Investment income | 2 | 55,009 |
20,318 | 1,662 | 3,065 | 78,392 | 1,662 | 80,054 | 68,829 | ||||
| Grants and Donations | 125,817 | 24,623 | - | 10 | 150,450 | - | 150,450 | 96,048 | |||||
| Other income | 13,754 | 6,750 | - | - | 20,504 | - | 20,504 | 25,994 | |||||
| Total income | 194,580 | 51,691 | 1,662 | 3,075 | 249,346 | 1,662 | 251,008 | 190,871 | |||||
| Expenditure on: | |||||||||||||
| Raising funds | 14,080 | 5,101 | 430 | 1,046 | 20,227 | 430 | 20,657 | 21,479 | |||||
| Charitable activities: | 96,905 | 55,512 | - | 13,324 | 165,741 | - | 165,741 | 143,626 | |||||
| Total expenditure | 110,985 | 60,613 | 430 | 14,370 | 185,968 | 430 | 186,398 | 165,105 | |||||
| Net(losses)on investments | (133,899) | (7,387) | - | (8,380) | (149,666) | - | (149,666) | 154,803 | |||||
| Net income /(expenditure) | (50,304) | (16,309) | 1,232 | (19,675) | (86,288) | 1,232 | (85,056) | 180,569 | |||||
| Transfers between funds | - | - | - | - | - | - | - | - | |||||
| Net Movement in funds | (50,304) | (16,309) | 1,232 | (19,675) | (86,288) | 1,232 | (85,056) | 180,569 | |||||
| Fund balance brought forward | 2,539,381 | 1,391,247 | 61,920 | 74,413 | 4,005,041 | 61,920 | 4,066,961 | 3,886,392 | |||||
| Fund balance carried forward | 2,489,077 | 1,374,938 | 63,152 | 54,738 | 3,918,753 | 63,152 | 3,981,905 | 4,066,961 |
The notes on pages 10 – 20 form part of these financial statements.
Page 8
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
BALANCE SHEET AT 31 MARCH 2023
| Regimental Benevolent Fund |
Regimental Officers' Trust Fund |
Museum Support Fund |
2023 | 2022 | ||||
|---|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | ||||
| Fixed assets | ||||||||
| Tangible Fixed Assets |
3 | 413,434 | - | 572,006 | 985,440 | 1,000,902 | ||
| Investments | 4 | 2,019,874 | 762,871 | 148,961 | 2,931,706 | 3,026,157 | ||
| 2,433,308 | 762,871 | 720,967 | 3,917,146 | 4,027,059 | ||||
| Current assets |
||||||||
| Debtors | 5 | 25,000 | 647,754 | - | 672,754 | 647,754 | ||
| Cashat bank | 34,469 | 30,665 | 6,125 | 71,259 | 71,402 | |||
| 59,469 | 678,419 | 6,125 | 744,013 | 719,156 | ||||
| Current liabilities |
||||||||
| Creditors | 6 | (3,700) | (3,200) | (672,354) | (679,254) | (679,254) | ||
| Net current assets |
55,769 | 675,219 | (666,229) | 64,759 | 39,902 | |||
| Net assets | 2,489,077 | 1,438,090 | 54,738 | 3,981,905 | **4,066,961 ** | |||
| Funds | ||||||||
| Unrestricted | 2,489,077 | 1,219,807 | 54,738 | 3,763,622 | 3,849,910 | |||
| Designated | 7 | - | 155,131 | - | 155,131 | 155,131 | ||
| Total unrestricted funds |
2,489,077 | 1,374,938 | 54,738 | 3,918,753 | 4,005,041 | |||
| Restricted | 8 | - | 63,152 | - | 63,152 | 61,920 | ||
| Total Funds | 2,489,077 | 1,438,090 | 54,738 | **3,981,905 ** | **4,066,961 ** |
The notes on pages 10 – 20 form part of these financial statements.
The financial statements were approved on 8 November 2023
Page 9
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.
1.1 Basis of Accounting
The financial statements have been prepared in accordance with the second edition of the Statement of Recommended Practice: 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) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and UK Generally Accepted Accounting Practice (UK GAAP).
The Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for at least 12 months from the approval date of these financial statements. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Investment income
Investment income is credited to the income and expenditure account when receivable.
1.4 Donations
Donations together with any associated income tax recoverable, and subscriptions are recognised as income when the Charity had entitlement.
1.5
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered, and the VAT is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
1.6
Funds
Unrestricted funds – these are funds where the Trustees have discretion to use them in furtherance of the objectives of the Charity.
Designated funds – these are unrestricted funds but where the Trustees have decided to set them aside for a specific purpose.
Restricted funds – these funds are to be used for specific more restricted purposes in line with the wishes of the donor.
Page 10
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies (continued)
1.7 Fixed assets
Fixed assets are stated at cost less depreciation. Depreciation is provided in order to write off the cost of each asset evenly over its expected useful life at the following rate:-
Buildings 2% per annum of cost, excluding land which is not depreciated
The Charity owns a collection of chattels (silver, pictures, records and other items) which are kept for the benefit of future generations. Many of the assets were acquired through spoils of war or gifted. The historical cost of the assets purchased is either not known or is considered likely to be immaterial and no deprecation is charged against these.
1.8 Fixed asset investments
Fixed asset investments are stated at market value at the balance sheet date. Realised and unrealised investment gains/losses are combined and taken to the Statement of Financial Activities.
1.9 Financial assets
Financial assets are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.10 Financial liabilities
Basic financial liabilities are initially measured at transaction price.
Financial liabilities are derecognised when, and only when, the Charity’s obligations are discharged, cancelled, or they expire.
1.11 Key judgements and assumptions
In the application of the Charity’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 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.
No key judgements or assumptions have been made by the Trustees in the preparation of the financial statements in 2023 or 2022.
1.12 Exemption from preparing a cash flow statement
The Charity has taken the exemption provided in Statement of Recommended Practice: 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) allowing small charities not to prepare a cash flow statement.
Page 11
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
2 Investment income
| 2023 | Benevolent Fund | Unrestricted Officers Trust Fund |
Museum Support Fund |
Total Unrestricted Funds | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| From investments listed in the UK | 43,544 11,465 |
16,313 4,005 |
2,241 62,098 824 16,294 |
||
| From investments not listed in the UK | |||||
| 55,009 | 20,318 | 3,065 | 78,392 | ||
| 2023 | Restricted Officers Trust Fund |
Total Restricted Funds | |||
| £ | £ | ||||
| From investments listed in the UK | - | - | |||
| From investments not listed in the UK | 1,662 | 1,662 | |||
| 1,662 | 1,662 | ||||
| 2022 | Benevolent Fund | Unrestricted Officers Trust Fund |
Museum Support Fund |
Total Unrestricted Funds | |
| £ | £ | £ | £ | ||
| From investments listed in the UK | 37,255 | 13,054 |
1,751 | 52,060 | |
| From investments not listed in the UK | 10,492 | 3,253 |
824 | 14,569 | |
| 47,747 | 16,307 | 2,575 | 66,629 | ||
| 2022 | Restricted Officers Trust Fund |
Total Restricted Funds | |||
| £ | £ | ||||
| From investments listed | in the UK | 907 | 907 | ||
| From investments not listed in the UK | 1,294 | 1,294 | |||
| 2,201 | 2,201 |
Page 12
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
3 Tangible Fixed Assets
| Regimental Benevolent Fund |
Museum, Land and Buildings |
Total | ||
|---|---|---|---|---|
| Cost | £ | £ | £ | |
| As at 1 April 2022 | 432,829 | 641,264 | 1,074,093 |
|
| Additions | 3,872 | - | 3,872 | |
| Disposals | - | - | - | |
| As at 31 March 2023 | 436,701 | 641,264 | 1,077,965 | |
| Depreciation | ||||
| As at 1 April 2022 | 15,476 | 57,715 | 73,191 |
|
| Charge for theyear | 7,791 | 11,543 |
19,334 | |
| Eliminated on disposals | - | - | - | |
| As at 31 March 2023 | 23,267 | 69,258 | 92,525 | |
| Net book value | ||||
| As at 31 March 2023 | 413,434 | 572,006 | 985,440 | |
| As at 31 March 2022 | 417,353 | 583,549 | 1,000,902 |
The museum property is leased for 30 years to The Trustees of the Queen’s Royal Hussars Collection Trust. In the event of a decision to sell the building the proceeds of this, less the loans to be repaid (£21,400 – see note 6) to the loan note holders, are to be transferred back to the Officers’ Trust Fund in accordance with the Resolutions made by Trustees at their meeting in March 2017.
Page 13
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
4 Investments
| Benevolent Fund Unrestricted |
Officers Trust Fund | Officers Trust Fund | Unrestricted Museum Support Fund |
2023 | ||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | **Total ** | ||||
| £ | £ | £ | £ | £ | ||
| Market value 1 April 2022 | 2,086,845 | 724,669 |
59,348 |
155,295 |
3,026,157 |
|
| Additions/net movements in capital cash | 172,847 | 141,350 | - | 9,382 | 323,579 | |
| Disposals | (105,918) | (95,761) | (59,348) | (7,336) | (268,363) | |
| Net realised/unrealised investmentgain | (133,900) | (7,387) | - | (8,380) | (149,667) | |
| Market value 31 March 2023 | 2,019,874 | 762,871 | - | 148,961 | 2,931,706 | |
| Historical cost at 31 March 2023 | 1,548,498 | 624,974 | - | 132,600 | 2,306,073 | |
| Fixed asset investments comprise: | £ | £ | £ | £ | £ | |
| Listed investments in the UK | 1,399,942 | 626,835 | - | 132,446 | 2,159,223 | |
| Listed investments outside the UK | 536,423 | 82,630 |
- |
12,254 |
631,307 |
|
| Cash | 83,509 | 53,406 | - | 4,261 | 141,176 | |
| 2,019,874 | 762,871 | - | 148,961 | 2,931,706 |
Page 14
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
5 Debtors
| Benevolent Fund | Benevolent Fund | Officers' Trust Fund | Officers' Trust Fund | Museum Support Fund | Museum Support Fund | ||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||
| £ | £ | £ | £ | £ | £ | ||
| Other debtors | 25,000 | - | - |
- | - |
- | |
| Prepayment | - | - | - |
- | - |
- | |
| Inter-fund loan | - | - | 647,754 |
647,754 | - |
- | |
| 25,000 | - | 647,754 |
647,754 | - | - |
6 Creditors
| Benevolent Fund | Benevolent Fund | Officers' Trust Fund | Officers' Trust Fund | Museum Support Fund | Museum Support Fund | ||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||
| £ | £ | £ | £ | £ | £ | ||
| Independent examiner / Auditors’ fees |
3,200 | 3,200 | 3,200 |
3,200 | 3,200 |
3,200 | |
| Loans | - | - | - |
- | 21,400 |
21,400 | |
| Other creditors | 500 | 500 | - |
- | 647,754 |
647,754 | |
| 3,700 | 3,700 | 3,200 |
3,200 | 672,354 | 672,354 |
Page 15
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
7 Designated funds
Designated funds within the Regimental Officers’ Trust Fund comprise:
Byford - the amounts received in connection with the Byford Trust which have been designated by the Trustees for the purpose of encouraging adventurous training and outward-bound activity or any other educational purpose that the Commanding Officer deems to be appropriate.
Silver - monies raised from the sale of Silver designated by the Trustees to cover the costs of cleaning and maintaining the silver in the Officers’ Mess.
| 2023 | At 1 April 2022 | Income/Designation | Expenditure/Utilisation | Transfers | At 31 March 2023 | |
|---|---|---|---|---|---|---|
| £ | £ | £ | £ | |||
| Byford | 39,365 | - |
- |
- | 39,365 | |
| Silver Maintenance Fund | 115,766 | - | - |
- | 115,766 | |
| 155,131 | - |
- |
- | 155,131 | ||
| 2022 | At 1 April 2021 | Income/Designation | Expenditure/Utilisation | Transfers | At 31 March 2022 | |
| £ | £ | £ | £ | |||
| Byford | 39,365 | - |
- |
- | 39,365 | |
| Silver Maintenance Fund | 115,766 | - | - |
- | 115,766 | |
| 155,131 | - | - |
- | 155,131 |
Page 16
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023
8 Restricted fund
The restricted fund is The Sibley Fund, which was established in 2000 and 2001. The fund is to be used for purchase of playing cards, backgammon boards and other specific types of expenditure. The restricted funds within the Regimental Officers’ Trust Fund comprise the following investments:
| 2023 | 2022 | |||
|---|---|---|---|---|
| £ | £ | |||
| Investmentportfolio | - | 59,348 | ||
| Net current assets/(liabilities) | 63,152 | 2,572 | ||
| 63,152 | 61,920 |
Movements on the restricted fund are shown below.
| 2023 | At 1 April 2022 | Income/Designation | Expenditure/Utilisation | Gains/(Losses) | Transfers | At 31 March 2023 | |
|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | £ | ||
| Sibley fund |
61,920 | 1,662 | (430) | - | - | 63,152 | |
| 61,920 | 1,662 | (430) | - | - | 63,152 | ||
| 2022 | At 1 April 2021 | Income/Designation | Expenditure/Utilisation | Gains/(Losses) | Transfers | At 31 March 2022 | |
| £ | £ | £ | £ | £ | £ | ||
| Sibley fund |
54,787 | 2,201 | (509) | 5,441 |
- | 61,920 | |
| 54,787 | 2,201 | (509) | 5,441 | - | 61,920 |
Page 17
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023
9 Trustees remuneration and expenses
The Trustees did not receive any remuneration during the year (2022: £nil). Trustees were reimbursed for expenses of £750 in the year (2022: £750).
10 Net Assets by Fund
| 2023 Unrestricted funds | 2023 Unrestricted funds | Benevolent Fund | Unrestricted Officers' Trust Fund |
Museum Support Fund |
Total Unrestricted Funds |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Tangible Fixed Assets | 413,434 | - | 572,006 | 985,440 | |
| Investments | 2,019,874 | 762,871 | 148,961 | 2,931,706 | |
| Net Current Assets/(Liabilities) | 55,769 | 612,067 | (666,229) | 1,607 | |
| 2,489,077 | 1,374,938 | 54,738 | 3,918,753 | ||
| 2023 Total funds | Total Unrestricted Funds |
Restricted Officers Trust Fund |
2023 Total Funds |
||
| £ | £ | £ | |||
| Tangible Fixed Assets | 985,440 | - | 985,440 | ||
| Investments | 2,931,706 | - | 2,931,706 | ||
| Net Current Assets/(Liabilities) | 1,607 | 63,152 | 64,759 | ||
| 3,918,753 | 63,152 | 3,981,905 |
Page 18
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023
11 Net Assets by Fund (continued)
| 2022 Unrestricted funds | 2022 Unrestricted funds | Benevolent Fund | Unrestricted Officers' Trust Fund |
Museum Support Fund |
Total Unrestricted Funds |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Tangible Fixed Assets | 417,353 | - | 583,549 | 1,000,902 | |
| Investments | 2,086,845 | 724,669 | 155,295 | 2,996,809 | |
| Net Current Assets/(Liabilities) | 35,183 | 666,578 | (664,431) | 37,330 | |
| 2,539,381 | 1,391,247 | 74,413 | 4,005,041 | ||
| 2022 Total funds | Total Unrestricted Funds |
Restricted Officers Trust Fund |
2022 Total Funds |
||
| £ | £ | £ | |||
| Tangible Fixed Assets | 1,002,588 | - | 1,002,588 |
||
| Investments | 2,996,809 | 59,348 |
3,026,157 |
||
| Net Current Assets/(Liabilities) | 37,330 | 2,572 |
39,902 |
||
| 4,005,041 | 61,920 | 4,066,961 |
Page 19
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023
12 Comparative Statement of Financial Activities
| Regimental Benevolent Fund |
Regimental Officers' Trust Fund |
Regimental Officers' Trust Fund |
Museum Support Fund |
2022 | 2022 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Unrestricted | Restricted | Unrestricted | Unrestricted | Restricted | Total | ||||||
| £ | £ | £ | £ | £ | £ | £ | ||||||
| Income from: | ||||||||||||
| Investment income | 47,747 | 16,307 | 2,201 | 2,574 | 66,628 | 2,201 | 68,829 | |||||
| Grants and Donations | 65,559 | 28,404 | - | 2,085 | 96,048 | - | 96,048 | |||||
| Other income | 15,594 | 10,400 | - | - | 25,994 | - | 25,994 | |||||
| Total income | 128,900 | 55,111 | 2,201 | 4,659 | 188,670 | 2,201 | 190,871 | |||||
| Expenditure on: | ||||||||||||
| Raising funds | 14,607 | 5,290 | 417 | 1,165 | 21,062 | 417 | 21,479 | |||||
| Charitable activities: | 82,660 | 46,159 | 92 | 14,715 | 143,534 | 92 | 143,626 | |||||
| Total expenditure | 97,267 | 51,449 | 509 | 15,880 | 164,596 | 509 | 165,105 | |||||
| Netgains/(losses)on investments | 124,596 | 23,691 | 5,441 | 1,075 | 149,362 | 5,441 | 154,803 | |||||
| Net income /(expenditure) | 156,229 | 27,353 | 7,133 | (10,146) | 173,436 | 7,133 | 180,569 | |||||
| Transfers between funds | - | - | - | - | - | - | - | |||||
| Net Movement in funds | 156,229 | 27,353 | 7,133 | (10,146) | 173,436 | 7,133 | 180,569 | |||||
| Fund balance brought forward | 2,383,152 | 1,363,894 | 54,787 | 84,559 | 3,831,605 | 54,787 | 3,886,392 | |||||
| Fund balance carried forward | 2,539,381 | 1,391,247 | 61,920 | 74,413 | 4,005,041 | 61,920 | 4,066,961 |
Page 20
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Regimental Benevolent Fund |
Regimental Officers' Trust Fund |
Regimental Officers' Trust Fund |
Museum Support Fund |
2023 | 2023 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Unrestricted | Restricted | Unrestricted | Unrestricted | Restricted | Total | Total | ||||||
| £ | £ | £ | £ | £ | £ | £ | £ | ||||||
| Income from: | |||||||||||||
| Investment | 2 | 55,009 |
20,318 | 1,662 | 3,065 | 78,392 | 1,662 | 80,054 | 68,829 | ||||
| Subscriptions | 44,396 | 19,658 | - | - | 64,054 | - | 64,054 | 57,495 | |||||
| Other donations andgift aid | 81,422 | 4,965 | - | 10 | 86,397 | - | 86,397 | 13,761 | |||||
| Rental income | 11,808 | - | - | - | 11,808 | - | 11,808 | 15,563 | |||||
| Legacies | - | - | - | - | - | - | - | 24,792 | |||||
| Other income | 1,945 | 6,750 | - | - | 8,695 | - | 8,695 | 10,431 | |||||
| Total income | 194,580 | 51,691 | 1,662 | 3,075 | 249,346 | 1,662 | 251,008 | 190,871 | |||||
| Expenditure on: | |||||||||||||
| Investmentmanagementfee | 14,080 | 5,101 | 430 | 1,046 | 20,227 | 430 | 20,657 | 21,479 | |||||
| Charitable activities: | |||||||||||||
| Benevolencegrants | 18,307 | 3,000 | - | - | 21,307 | - | 21,307 | 17,851 | |||||
| Byfordgrant | - | - | - | - | - | - | - | 600 | |||||
| Sibley grant | - | - | - | - | - | - | - | 92 | |||||
| 4H Batu Gaja | 165 | - | - | - | 165 | - | 165 | 165 | |||||
| Associationgrant | 7,000 | 2,000 | - | - | 9000 | - | 9,000 | 9,000 | |||||
| Officer’s Messgrant | - | 4,394 | - | - | 4,934 | - | 4,934 | - | |||||
| MSFgrant | 8,400 | 1,600 | 10,000 | - | 10,000 | 10,000 | |||||||
| Repairs and Maintenance | - | - | - | - | - | - | - | 2,377 | |||||
| Regimental memorial | - | - | - | - | - | - | - | 5,000 | |||||
| ABF donations | 6,000 | - | - | - | 6,000 | - | 6,000 | 6,000 |
This page does not form part of the statutory financial
Page 21
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Regimental Benevolent Fund |
Regimental Officers' Trust Fund |
Museum Support Fund |
2023 | 2023 | 2023 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Unrestricted | Restricted | Unrestricted | Unrestricted | Restricted | Total | Total | ||||||
| £ | £ | £ | £ | £ | £ | £ | £ | ||||||
| Miscgrants/donations | - | - | - | - | - | - | - | 4,000 | |||||
| Grants to OT Activities | - | 18,627 | - | - | 18,627 | - | 18,627 | 15,000 | |||||
| Centre mess subs | - | 600 | - | - | 600 | - | 600 | 600 | |||||
| Insurance | - | - | - | 1,196 | 1,196 | - | 1,196 | 7,226 | |||||
| Silver restoration | - | 12,680 | - | - | 12,680 | - | 12,680 | 4,292 | |||||
| Regimental handbook | - | 807 | - | - | 807 | - | 807 | - | |||||
| Christmas/birthday gifts | 1,400 | - | - | - | 1,400 | - | 1,400 | 1,500 | |||||
| Trustee expenses | - | 750 | - | - | 750 | - | 750 | 750 | |||||
| Sundryexpenses | - | 2,906 | - | - | 2,906 | - | 2,906 | 2,266 | |||||
| 41,272 | 47,364 | - | 1,196 | 89,832 | - | 89,832 | 86,759 | ||||||
| Support costs: | |||||||||||||
| Wreaths and flowers | 1,046 | - | - | - | 1,046 | - | 1,046 | 511 | |||||
| Obituaries andjournals | 4,805 | - | - | - | 4,805 | - | 4,805 | 4,273 | |||||
| Administration/office costs | 7,750 | 3,000 | - | 45 | 10,795 | - | 10,795 | 14,189 | |||||
| Indemnityinsurance | 249 | - | - | - | 249 | - | 249 | 239 | |||||
| Governance | 7,742 | 5,148 | - | - | 12,890 | - | 7,742 | 18,300 | |||||
| Legal fees | - | - | - | 540 | 540 | - | 540 | - | |||||
| Depreciation | 7,791 | - | - | 11,543 | 19,334 | - | 19,334 | 19,355 | |||||
| Technologyinvestment | 26,250 | - | - | - | 26,250 | - | 26,250 | - | |||||
| 55,633 | 8,148 | - | 12,128 | 75,910 | - | 75,910 | 56,867 |
This page does not form part of the statutory financial statements
Page 22
THE QUEEN’S ROYAL HUSSARS REGIMENTAL CHARITY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Regimental Benevolent Fund |
Regimental Officers' Trust Fund |
Museum Support Fund |
2023 | 2023 | 2023 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Unrestricted | Restricted | Unrestricted | Unrestricted | Restricted | Total | Total | ||||||
| £ | £ | £ | £ | £ | £ | £ | £ | ||||||
| Total expenditure | 110,985 | 60,613 | 430 | 14,370 | 185,968 | 430 | 186,398 | 165,105 | |||||
| Net (losses)/gains on investments | (133,899) | (7,387) | - | (8,380) | (149,666) | - | (149,666) | 154,803 | |||||
| Net (expenditure)/income | (50,304) | (16,309) | 1,232 | (19,675) | (86,288) | 1,232 | (85,056) | 180,569 | |||||
| Transfers between funds | - | - | - | - | - | - | - | - | |||||
| Net movement in funds | (50,304) | (16,309) | 1,232 | (19,675) | (86,288) | 1,232 | (85,056) | 180,569 | |||||
| Fund balances brought forward | 2,539,381 | 1,391,247 | 61,920 | 74,413 | 4,005,041 | 61,920 | 4,066,961 | 3,886,392 | |||||
| Fund balances carried forward | 2,489,077 | 1,374,938 | 63,152 | 54,738 | 3,918,753 | 63,512 | 3,981,905 | 4,066,961 |
This page does not form part of the statutory financial statements
Page 23