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2023-09-30-accounts

Company Registration No. 02927443 Registered Charity No. 1043992

The National Memorial Arboretum Company Limited Annual Report and Financial Statements

Year ended 30 September 2023

A member of The Royal British Legion family of charities

CONTENTS

Page
Reference and Administrative Details 1
(including the strategic report) 2
Trustees Responsibility Statement 10
Independent Auditor
s Report		 11
Statement of Financial Activities (including an Income and Expenditure Account) 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Financial Statements
 18-36

The National Memorial Arboretum Company Limited Registered Company number 02927443

REFERENCE AND ADMINISTRATIVE DETAILS

TRUSTEES

Anny R Reid - Chair Rod Bedford (until 24 March 2023) Andrew Farquhar (until 29 September 2023) Kate Logan Gary Ryan Patsy Wilkinson

COMPANY SECRETARY

Luke Joannou

PRINCIPAL OFFICERS Key Management Personnel

Philippa Rawlinson Managing Director, RBL Director of Remembrance Lorna Price Head of Finance (until 27 October 2023) Flora Smyth Head of Finance (from 2 October 2023) Mark Ellis National Memorial Arboretum Lead Maria Howes Head of Marketing & Business Development Neill Martin-Hoare Head of Events Mark Alexander Head of Visitor Experience Adrian Thickett Head of Business Support Services (until 22 December 2023) Andy Ansell Head of Estates Rachel Smith Head of Participation and Learning

BANKERS

Lloyds Commercial HSBC Bank plc Public and Community Sector 49 Market Street 3[rd] Floor, Gresham Street Lichfield London Staffordshire EC2V 8EH WS13 6LB

AUDITOR Deloitte LLP 1 New Street Square London EC4A 3HQ

REGISTERED AND PRINCIPAL OFFICE

Croxall Road Alrewas Staffordshire DE13 7AR Charity Registration Number: 1043992 Company Registration Number: 02927443

1

The National Memorial Arboretum Company Limited Registered Company number 02927443

(INCLUDING THE STRATEGIC REPORT)

The Trustees, who are also Directors of the charitable company, present their annual report, which incorporates a strategic report, and audited financial statements for the year ended 30 September 2023.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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). The reference and administrative details on page 1 form part of this report.

STRATEGIC REPORT

OBJECTIVES AND ACTIVITIES

The National Memorial Arboretum Company Limited (Arboretum) is a member of the Royal British Legion family of charities, delivering nationwide events through its network of branches, members and volunteers and locally in communities across the country. The Arboretum is the United Kingdom s year-round centre for Remembrance in the heart of our country; a spiritually uplifting place which honours those who have fallen in the service of their country, recognising their service, suffering and sacrifice. The award-winning Remembrance Centre has now been open for 7 years and through its accompanying programme of activity, partially funded by the Heritage Lottery Fund, has been successful in widening the Arboretum ing them with Remembrance. In the last twelve strategic approach has further built on the many achievements to date and the refreshed vision developed in 2020:

To -round place to Remember, an inspirational world-class setting freely open to all.

This is central to the core charitable objective of championing Remembrance and promoting its observance and participation. Also, as a year-round space to celebrate lives lived and commemorate lives lost, we will ensure the baton of remembrance is passed on to future generations.

The Arboretum specific charitable objectives as set out in the Memorandum and Articles of Association are to:

The Arboretum welcomes around 300,000 visitors to site each year, including over 20,000 young people for formal and informal learning visits. Visitors can enjoy discovering over 400 memorials nestled amongst some 25,000 trees, experience riverside walks and participate in a wide variety of daily activities: guided walks, land train tours, memorial talks, exhibitions and buggy tours. Each year around 250 events take place on site, from small intimate services of Remembrance to set piece events like Armistice Day, Remembrance Sunday, and Armed Forces Day.

2

The National Memorial Arboretum Company Limited Registered Company number 02927443

2023 saw numerous challenges as result of adverse weather conditions and significant disruption caused by major roadworks in the local vicinity, and the ongoing national cost of living crisis. Whilst visitor numbers reduced in the latter part of the year there was a clear correlation between visitor numbers and the timing of bad weather and roadworks. Despite the operational challenges this has brought, the underlying key strategic priorities remain the same:

ACHIEVEMENTS AND PERFORMANCE

The year ended 30 September 2023 saw a strong start to the year with visitor numbers holding up in the first six months of the year. This success was not seen throughout the year with significant roadworks in the immediate vicinity of the Arboretum and poor weather conditions throughout the summer months impacting visitor numbers in the second half of the year. This drop in visitor numbers was exacerbated by a drop in consumer confidence due to wider economic concerns and the cost-ofliving crisis, resulting in a drop in discretionary spending. We have, however, seen strong results in our corporate functions and group bookings with these increasing during the latter part of the year.

Visitors:

Visitor numbers for the year totalled 277,792, a 10% decrease compared to 2022 (310,555). Despite these challenging market conditions there have been some notable successes:

3

The National Memorial Arboretum Company Limited Registered Company number 02927443

The Arboretum site:

Landscape:

One of the key objectives of the Arboretum is to provide a public memorial to commemorate and remember those who have lost their lives or suffered injury in service to the public. We continue to see an appetite for new memorials with notable additions in year including memorials dedicated to the Falklands Resistance and Mesothelioma (Armed Forces).

To Commemorate the Platinum Jubilee, the Arboretum took part in the Queen s Green Canopy initiative, and in 2022 was gifted the freehold to an additional 7 acres of land adjacent to the entrance to the site by the Leavesley family. This land has been developed throughout 2022/23, funded in part by our Parent Charity, but also through a single donation in memory of Her Late Majesty Queen Elizabeth II. The land now houses a tree lined avenue creating an approach route to the Arboretum which is more befitting to a national heritage site.

The Arboretum continues to explore ways in which to open up areas of the site which are currently either under-utilised or inaccessible and with its landowner Tarmac has developed plans for a new permanent car park to replace the overflow car park, at limited cost to the Arboretum. This coupled with future development of land adjacent to the site will in time improve both the visitor journey and facilitate engagement with the site and Remembrance by the local community.

Programmes:

This year programming has been developed with the ambition of ensuring that the service and sacrifice of our armed forces family is always remembered. Being freely accessible 364 days a year the Arboretum is well placed to deliver against this vision with its under pinning belief in Remembrance for All.

The Landscapes of Life permanent interpretation exhibition remains an important component in the fulfilment of the Arboretum Remembrance and since May 2019 has been free to enter. During the year this has been supplemented by a number of indoor temporary exhibitions and an engaging outdoor programme, including exhibitions delivered in partnership with our parent charity to mark the 60[th] anniversary of the end of National Service. d Lockdown Landscapes a partnership between The National Forest Company, Westminster Abbey and Sampad, funded through the National Lottery Heritage Fund. This project brought together community groups to explore the impact that the covid-19 pandemic had on different groups within society.

In August 2023 Windrush generation has made to the UK post WW2. Following on from this successful event we have continued to explore these themes through our exhibition spaces with The Journey Continues Chapters of our Li exhibitions in October / November 2023. These exhibitions invite visitors to follow the story of the Windrush generation and also to explore their own life stories and experiences.

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The National Memorial Arboretum Company Limited Registered Company number 02927443

During the period we have continued to mark significant Remembrance events, with both our usual activity on site, and shared the services via a variety of digital and broadcast media; this has again opened up the arboretum to new audiences both nationally and internationally.

Sustainability:

The Arboretum is custodian to 150 acres of green space and is committed to acting sustainably, having a positive impact on our environment and its ecology, and being an advocate for sustainable practices. We have already undertaken work to limit our negative impact on the environment via recycling and using locally sourced products and materials where possible, but there is more we can do. 2023 saw the installation of solar panels reducing not just our carbon footprint but also the cost of electricity. Over the next five years we will continue to embed ethical and sustainable practices into our daily operations.

The Arboretum remains committed to growing its self-generated income sources to deliver against its strategic aims.

FINANCIAL REVIEW

Income for the year was £5.1m (2022 £5.1m); The Arboretum is a free to enter site; its main sources of income are voluntary donations, grant funding and profits from its trading subsidiary, NMA (Enterprises) Limited. An increase in grant funding from our parent charity to fund both the together with National Lottery Heritage funding of £0.2m offsets the gifts in kind recognised in the prior year. Increases in grant funding are offset by a reduction t a result of reduced visitor volumes and reduced consumer confidence during the cost-of-living crisis.

In addition, to the above, Grant in Aid funding from the Ministry of Defence was received for the ongoing maintenance of the Armed Forces Memorial, funds received in 2023 totalled £138,000 (2022:£95,000)

During the year, the Arboretum received a donation of £0.3m to contribute to the development of the aced as an endowment to fund future maintenance and care of this area of the site. successful, generating £140k (2022: £135k) thanks to the high volumes of pre-registrations for the event and bespoke merchandise sales.

Expenditure in the year was £4.9m (2022: £4.2m), a year-on-year increase of £0.7m. This increase is primarily seen in the cost of delivering Charitable activities, £0.2m of this increase relates to the Heritage a further £0.3m in increased staff costs, the result of an increase in headcount, annual pay awards and a cost-of-living payment made to staff in December 2022.

This resulted in a net increase in funds of £0.2m (2022 £1m).

Capital expenditure for the year was £0.5m, (2022: £0.7m), and relates to the Trees of Life Glade and the installation of solar panels.

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The National Memorial Arboretum Company Limited Registered Company number 02927443

The trading subsidiary, NMA (Enterprises) Limited was impacted by reduced visitor numbers in year and reduced consumer confidence due to the cost-of-living crisis resulting in a surplus of £66k (2022: £419k). £46k of this surplus was paid to from NMA (Enterprises) during the financial year with the balance of £18k paid in December 2023.

RESERVES POLICY AND GOING CONCERN

As the Arboretum is part of the Royal British Legion group, its policy is to not seek to hold reserves as this leads to a duplication of reserves at a group level. A rolling 12 month letter of comfort under which The Royal British Legion will continue to provide any financial support (either through the waiver of intercompany debt, the provision of further intercompany funds or equity) that may be required in order for the organisation to pay its liabilities as they fall due, has been in place for a number of years.

Total charity funds increased by £0.2m to £24.1m at the end of the year (2022: £23.9m). Total charity funds comprise unrestricted funds of £21.4m (2022: £21.6m) and restricted funds of £2.7m (2022: £2.3m) including expendable endowment funds.

Total unrestricted funds comprise designated funds of £20.0m (2022: £20.0m) and general funds of £1.3m (2022: £1.6m).

Designated funds represent the net book value of completed fixed assets relating to grounds and buildings and legacy income. As legacy income is difficult to predict and cannot be counted on to help fund day to day activities, any significant receipts are set aside to fund future development and engagement activity. The designated funds balance is broadly similar to 2022 due to legacy receipts and fixed asset additions being offset by depreciation.

Total restricted funds at the end of the year were £2.7m (2022: £2.3m). £1.9m (2022: £1.6m) relates to maintenance endowments for the maintenance and insurance for a number of specific memorials, During the year the Arboretum was successful in securing a further £0.2m (2022: £0.5m), of this balance £0.2m was received in 2023 for both new and existing memorials. The remaining balance of £0.8m includes £0.5m for the ongoing maintenance of the Armed Forces Memorial, future development of the site, and minor works relating to the Remembrance Centre and Functions Pavilion.

The continuing operation of the Arboretum is dependent on donations and grants from supporters, together with funding from The Royal British Legion to support day to day activity. Given the close operational relationship with The Royal British Legion, the letter of comfort in place, the funding supplied for the Remembrance Centre and the new Functions Pavilion, and the key role the Arboretum , the Trustees are confident that funding will be available to support the Arboretum into the future. Reflecting on this, the Trustees have therefore prepared the accounts on a going concern basis.

RISK MANAGEMENT

The Trustees are responsible for ensuring there are effective and adequate risk management and internal control systems in place to manage major risks to which the charity is exposed. The process in place regarding risk management and internal control includes the following:

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The National Memorial Arboretum Company Limited Registered Company number 02927443

The key risks and how they are managed are:

Principal risk Mitigation
Fundraising and grant income does not
meet targets.		 -
Progress against business plan is assessed.
-
Financial support available from parent charity to
meet funding gap.
Investment in new attractions does not
increase visitor numbers.		 -
Prepare sound business cases prior to embarking
on projects.
-
Increase advertising and marketing spend to
create awareness.
Visitors are deterred from visiting due to
site flooding and other extreme weather
events.		 -
The website is kept up to date detailing any
accessibility issues. The temporary exhibition
programme should help preserve visitor numbers
during periods of inclement weather and minor
localised flooding.
-
Phase
1
of
a
programme
of
drainage
improvements has been implemented to reduce
the impact of flooding.
Maintenance endowments given to cover
repairs of memorials are not sufficient to
cover costs.		 -
Funds are pooled to obtain best rates.
-
The Arboretum has a fundraising strategy with the
primary objective of achieving growth in
unrestricted income over the medium to long
term.

The company is not unduly exposed to price, credit, liquidity or foreign exchange risk. comprehensive package of insurance against foreseeable risks including public and product liability. The charity is covered by insurance from loss arising from neglect or default of its Trustees, and to indemnify the Trustees against the consequences of neglect or default on their part.

FUTURE DEVELOPMENTS

Next year, the Arboretum will:

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The National Memorial Arboretum Company Limited Registered Company number 02927443

PUBLIC BENEFIT STATEMENT

In considering the operation, achievements, performance and finances of the charitable company the Trustees have given due regard to the public benefit guidance published by the Charity Commission.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Arboretum was incorporated in 1994 as a Private charitable company limited by guarantee not having a share capital and registered in 1995 as a charity with the main governing principles being contained in Memorandum and Articles of Association. The Arboretum has been part of The Royal British Legion (the RBL) family of charities since 2003. The RBL is the sole member of the company and controls the appointment of all Trustees.

The Board of Trustees consists of four Trustees appointed by the RBL with one Trustee appointed as chairman. Two of the Trustees are also on the Trustee board of the RBL, one Trustee is a member of the executive management team of the RBL with line management responsibility for the Arboretum, and the remaining one member is an independent Trustee with significant military and visitor attraction experience respectively. Meetings of the Board of Trustees take place quarterly. In accordance with its Articles of Association a term of any Trustee cannot exceed three years, but a Trustee is eligible for reappointment for a further two terms and can be removed from office by the RBL at any time. Trustees are recruited through a variety of means, including open advertising. Training for all Trustees is provided through The Royal British Legion.

Responsibility for the day-to-day operations of the Arboretum has been delegated by the Managing Director to the National Memorial Arboretum Site Lead, who is supported by a management team, administrative support staff and a team of volunteers. The Managing Director has established an executive management structure for the Arboretum to undertake operational activities with a clearly defined management and reporting structure. The management team meets weekly to discuss operational issues and new initiatives and take any action as required.

The Arboretum has a trading subsidiary, NMA (Enterprises) Limited, which carries out the trading activities of the charity, principally the operation of restaurant and café facilities, concessions and business functions.

The Managing Director is supported by the following boards and committees:

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The National Memorial Arboretum Company Limited Registered Company number 02927443

Key management personnel remuneration policy

The key management personnel remuneration policy has been harmonised with that of the parent charity. Roles are initially evaluated at the group job evaluation committee, which uses the Hay System, and salaries are benchmarked with similar roles in the local area in order to attract the appropriate calibre of candidate. The company then operates an annual appraisal scheme at which performance is assessed against set objectives. The annual pay award is set by the parent charity.

Equal opportunities

The company is an equal opportunities employer and is committed to a policy of employment based on aptitude and ability without discrimination of any kind.

Volunteers

The Trustees recognise the hard work contributed by staff, volunteers and the NMA friends who in many ways keep the site going. Active volunteers gave around 45,000 hours (2022: 40,000 hours) of invaluable help during the year. Volunteer activities include the provision of educational support for facilitated learning visits, guiding visitors around the site, and grounds maintenance which equates approximately to an additional 30 full time staff. The contribution is recognised by all who visit the site and many visitors write to express thanks for the way volunteers help with their visit and comment on the pride the volunteers take in all they do.

Fundraising

As a location-based charity the Arboretum does not have a national network of fundraisers or agents acting on its behalf. The majority of fundraising is derived directly from on-site activities and donation boxes. In addition, up to 2 direct mail campaigns may be undertaken per annum to registered supporters and applications are made to grant funders for specific initiatives to further charitable objectives. To date we have not received any complaints regarding fundraising activity. We endeavour to ensure our fundraising activity is not overly obtrusive or put anyone under undue pressure to donate.

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Dwjsign EnvelopÈ ID". 19AEDFCC-294A.433E-837&A8DE38859D6D The Natlonal Memorlal Arboretum Company Llmlted Registered Company number 02927443 TRUSTEES, REPORT Icontinuedl TRUSTEES, RESPONSIBILITY STATEMENT The Trustees Iwho are also Directors of The National Memorial Arboretum Company Limited for the purposes of company lawl are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel including FR5 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland Company law requires the Trustees to prepare financial statements for each financial year which give a trLJe and fair view of the state of affair5 of the charitable company and of the incoming resources and application of resources, including the income and expenditure. of the charitable company for that period. In preparing these financial statements, the Trustees are required to: select 5Ultable accounting policies and then apply them consistentlyi observe the methods and principles in the Charities SORP,. make judgements and estimates that are reasonable and prudent- state whether applicable UK Accounting Standards have been followed,. and prepare the financial statements on the going concern basis unless it Is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any titne the financial posltion of the charitable company and enable them to ensure that the financial 5tatement5 cornply with the Companie5 Act 2006. They are a150 responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware.. there is no relevant audit information of which the charitable companvs auditor is unaware- and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that Information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's webslte. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This confirmation is Eiven and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. This report, incorporating the Director's report and including the Strategic Report, was approved bv the Board of Trustees on 22 March 2024 and signed on its behalf bv: 3DF472tA98EAIC7 Anny R Reid Chair of Trustees Date.. 22 March 2024 io

National Memorial Arboretum Company Limited Registered Company number 02927443

Limited

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of The National Memorial Arboretum Company Limited (the

We have audited the financial statements which comprise:

The financial reporting framework that has been applied in their preparation is applicable law and Reporting Standard applicable in the UK and Republic of Ir Accounting Practice).

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in

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

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 charitable ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

Independent auditor s report (continued)

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the t report, other than the information contained within the annual report. 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.

Responsibilities of Trustees

Trustees (who are also the directors of the charitable company for the purpose of company law) 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 charitable concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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.

12

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

Independent auditor s report (continued)

A further description of our responsibilities for the audit of the financial statements is located on the www.frc.org.uk/auditorsresponsibilities report.

Extent to which the audit was considered capable of detecting irregularities, including fraud 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the environment and and compliance with laws and regulations. We also enquired of management and the trustees about their own identification and assessment of the risks of irregularities, including those that are specific to the charitable

We obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above, our procedures to respond to the risks identified included the following:

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The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS

Year ended 30 September 2023

I

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the charitable Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable

assume responsibility to anyone other than the charitable company and the charitable members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola Wright, ACA (Senior Statutory Auditor) for and on behalf of Deloitte LLP

Newcastle upon Tyne, United Kingdom

13 May 2024

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The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) Year ended 30 September 2023

Note
INCOME AND
ENDOWMENTS
FROM:
Donations and
Legacies
3
Charitable
Activities
4
Other Trading
Activities
Investments:
Net income from
Trading
subsidiary
5
Bank interest
6
TOTAL INCOME
EXPENDITURE
ON:
Raising Funds
7
Charitable
Activities
8
TOTAL
EXPENDITURE
Net income for
the year
Transfer between
Funds
20
NET MOVEMENT
IN FUNDS
RECONCILIATION
OF FUNDS
Total funds
brought forward
Net movement in
funds for the year
Total funds
carried forward		 Unrestricted
Funds
2,869
695
41
250
6
3,861
787
3,614
4,401
(540)
305
(235)
21,595
(235)
21,360		 Restricted
Funds
811
10
-
-
6
827
-
441
441
386
(305)
81
712
81
793		 Endowment
Funds
317
-
-
-
66
383
-
79
79
304
-
304
1,621
304
1,925		 Total
Funds
2023
3,997
705
41
250
78
5,071
787
4,134
4,921
150
-
150
23,928
150
24,078		 Total
Funds
2022(1)
3,740
701
90
618
2
5,151
664
3,523
4,191
960
-
960
22,968
960
23,928

There were no other recognised gains or losses other than those listed above and the net income for the year. All income and expenditure derive from continuing activities.

(1) See note 19 for 2022 detailed Statement of Financial Activities

15

Daujsign Envelope ID". 19AEDFCC-294A433E437&A8DE38859D6D The National Memorial Arboretum Company Llmlted Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023 BALANCE SHE As at 30 September 2023 2023 £ooIYs 2022 £ooIYs Note FIXED ASSETS Tangible fixed asset5 Heritage assets Fixed asset investments Total Flxed Assets 14 15 16 20,025 403 20.020 348 20,428 20,368 CURRENT ASSETS Debtor5 cash ai bank and in hand Total Current Asset5 17 794 3,30b 4,100 831 3,419 4,250 Creditors amounts falling due 18a within one year NET CURRENT ASSETS 14501 16751 3.650 3.575 TOTAL ASSETS LESS CURRENT L181LITIES 24,078 23,944 Creditors falling due in more than 18b one year 1151 TOTAL NET ASSETS 24,078 23,928 FUNDS General fund3 Designated Funds Restricted Funds Expendable Endowment Funds 20 20 20 20 I,G32 19.963 712 1,621 20,015 793 1,925 Total Funds 24,078 23,928 The notes on pages 18 to 36 form part of these financial statements. These financial statements of The National Memorial Arboretum Company Limited were approved by the Board of Trustees and authorised for issue on 22 March 2024. They were signed on its behalf by: D¢¢u$*l•d br. 3DF4721Ag8EA4C7.. Anny R Reid Chair ot Trustees 16

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

CASH-FLOW STATEMENT

Year ended 30 September 2023

Note
Net cash provided by operating
activities
26
Cash flows used in investing
activities:
Interest receivable
Purchase/gifts of property, plant and
equipment
Purchase of heritage assets
Net cash used in investing activities
Cashflows used in financing
activities:
Interest element of finance lease
payments
Repayment of finance leases
Net cash used in finance activities
Net (decrease) /increase in cash
and cash equivalents
Cash and cash equivalents at the
beginning of the year
Cash and cash equivalents at the
end of the year		 Total Funds
2023
420
78
(534)
(55)
(511)
(1)
(21)
(22)
(113)
3,419
3,306		 Total Funds
2022
1,290
2
(707)
-
(705)
(2)
(21)
(23)
562
2,857
3,419

There are no cash equivalents, therefore cash and cash equivalents comprise cash at bank and in hand.

17

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS

Year ended 30 September 2023

1) ACCOUNTING POLICIES

Company and Charitable Status

The National Memorial Arboretum Company Limited, a public benefit entity, is incorporated in England and Wales as a private company limited by guarantee not having any share capital. There are currently five Trustees who are also members of the company. Each member has undertaken to contribute to the assets in the event of a winding up a sum not exceeding £10. The charity is a registered with the Charity Commission for England and Wales. The registered office is given on page 1.

Basis of Accounting

The financial statements are prepared under the historical cost convention in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102) effective 1 January 2019 (SORP 2019); and the Companies Act 2006.

The principal accounting policies are set out below:

Basis of Preparation

Under Section 401 of the Companies Act the company is exempt from preparing consolidated accounts. The results presented therefore represent the accounts of the charitable company; The National Memorial Arboretum Company Limited. The results of the National Memorial Arboretum group including NMA (Enterprises) Limited are included in the accounts of the ultimate parent charity The Royal British Legion which are publicly available.

Going Concern

The accounts have been prepared on a going concern basis as set out on page 6 of the Trustees Report. Performance during 2023 has been impacted by the cost-of-living concerns, which will continue to be an influencer of performance during 2024, consequently the appropriateness of the going concern assumption basis has been reassessed, the Trustees have considered the Charit and support available from the parent charity. Given the close operational relationship with The Royal British Legion, the letter of comfort in place, the funding supplied for the Remembrance Centre and the new Functions Pavilion, and the Trustees are confident in the ongoing support of the Legion in funding the Arboretum.

Income

Income is recognised when the charity has entitlement to funds, performance conditions attached to the income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Donations including amounts received for fixed assets are recognised immediately on receipt. The only exception to this is where there are predetermined conditions to be met, in these instances income is recognised once the required conditions have been met in full.

Grant income is recognised on written confirmation of the grant once any inherent performance related conditions of the grant have been met in full.

Legacy receipts are recognised when it is probable it will be received. This is deemed when:

18

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS

Year ended 30 September 2023

1) ACCOUNTING POLICIES

Income (continued)

Interest receivable relates to interest on bank deposits and current accounts, under the terms of FRS102 this does not require adjustment using the effective interest rate method laid down by the standard, as the rate receivable is deemed to reflect the effective interest rate applicable.

Donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have paid to obtain services or facilities for equivalent economic benefit on the open market. A corresponding amount is then recognised in expenditure in the period of receipt.

Income from charitable activities is recognised on an accruals basis.

In accordance with the Charities SORP (FRS 102) due to the extremely wide variety of skills provided to the Arboretum by its volunteers, it is not possible to quantify the value, consequently no income is recognised in respect of general volunteer time received - information on volunteer contributions is disclosed in the Trustees Report on page 9.

Expenditure

Expenditure is recognised on an accruals basis once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

Raising funds includes costs incurred in generating fundraising income, advertising, and direct mail.

Charitable activities includes direct costs of operating the charity (including staff costs) and maintaining the grounds and memorials along with the costs of commemorative events held in furtherance of the charitable objectives.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, premises costs and governance costs. These costs are allocated between the cost of raising funds and expenditure on charitable activities. The bases of cost allocation are set out in note 9.

Fund Accounting

The charitable company holds the following funds:

Restricted funds represent grants, donations, legacies and appeal monies received which are allocated in accordance with the instructions for specific purposes and are expendable only in accordance with the donor s wishes.

19

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS

Year ended 30 September 2023

Designated funds represent funds set aside for the net book value of completed fixed assets relating to grounds, buildings and supporting infrastructure.

Fund Accounting (continued)

General funds are expendable at the discretion of the Trustees in the furtherance of the objects of the charitable company.

Maintenance endowments are expended in line with the terms of their respective donation agreements.

Taxation

The charitable company is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (Chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

trading subsidiary are subject to corporation tax; however, all profits are paid to the charitable company by way of gift aid.

Tangible Fixed Assets and Depreciation

i)Tangible Assets:

Tangible Assets are included at acquisition cost less depreciation. The capitalisation threshold is £20,000. Land held on long-term lease and landscaping costs to bring the grounds into use are not depreciated. Generally, depreciation is provided on other tangible fixed assets at rates calculated on a straight-line basis over their expected useful lives, the only exception to this is grounds equipment purchased during the 2020 financial year which is depreciated over the term of the Hire purchase/finance lease of 4 years.

Long leasehold and ground
improvements		 Long leasehold land and initial landscaping - not depreciated
Ground improvements and drainage - 6.67%
Roadways andpaths - 8.33%
Heritage Assets Not depreciated
Visitor facilities and fixtures Building and fixtures 2%
Solar Panels 5%
Grounds Equipment under Finance lease 25%
Cateringequipment 20%
Office equipment Office equipment 20%

Depreciation is not provided until an asset is brought into use. Depreciation is then charged over the asset s economic life based on the percentages above as appropriate. Depreciation is not charged in the year of disposal but is included in the profit/loss on disposal calculation.

Capital projects with a life of more than 1 year are managed via a capital work in progress account. Projects are transferred to fixed assets and depreciated over their economic life once they come into use.

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset s fair value less any costs of sale and its value in use.

20

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS

Year ended 30 September 2023

Tangible Fixed Assets and Depreciation (continued)

Where appropriate gifted land or other property is valued by a RICS qualified surveyor at the market rate prevailing at the point the asset is transferred to the Arboretum.

ii) Heritage Assets

The charitable company has capitalised trees held on site for Remembrance value within the financial statements. The trees are managed as part of the Arboretum ensuring that they are accessible to the public in line with the objectives of the charitable company.

Trees are included at cost as the Trustees deem a valuation policy to be inappropriate. The trees are deemed to have indeterminable lives as they are preserved through ongoing maintenance of the Arboretum and the Trustees do not therefore consider it appropriate to charge depreciation. However, a review for impairment is carried out on an ongoing basis and in the case of any damage, for example as a result of a severe storm or disease, the value of the trees will be adjusted and the impairment recognised in the Statement of Financial Activities.

The Armed Forces Memorial (AFM) is included as a Heritage Asset. Given the significant repairs required to the AFM on acquisition from the Armed Forces Memorial Trust in 2015, and the cost of ascertaining a definitive value through a surveyor s valuation significantly outweighing any benefit gained due to the unique nature of the asset, the AFM is included in the accounts at the nominal value of £1.

iii) Memorials

Under the current policy issued in 2010 new memorials are built by the commissioning organisation/association who retain ownership. Memorial holders are requested to either pay an annual maintenance charge for the upkeep of the grounds surrounding their memorial or make the event their organisation should cease to exist in the future. These are regarded as expendable endowments and the capital can be used to fund ongoing maintenance costs. All funds received for annual maintenance are included in the tree plaques, benches and paviors income category under income from charitable activities. Lump sum maintenance endowments are recognised under voluntary income and any subsequent expenditure is shown in the cost of charitable activities (endowment).

Prior to the introduction of the policy in 2011, any donations received for memorial construction were credited to income from charitable activities and any unspent balance transferred to endowment funds. These remaining balances will be used to cover maintenance on the specific memorials in the future.

Employee Benefits

The charitable company operates a defined contribution pension scheme. The amount charged to the Statement of Financial Activities in respect of pension contributions and other retirement benefits is the contributions payable in the year. The difference between this and contributions actually paid is shown as either accruals or prepayments in the balance sheet. All costs relate to unrestricted activities.

21

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

Financial Instruments

The charity only has financial assets and liabilities that qualify as basic financial instruments. Basic financial instruments are initially valued at transaction value and subsequently measured at their settlement value as follows:

Financial Instruments (continued)

Trade and other debtors are recognised at the settlement amount after any discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will result in the transfer of funds to a third party and the amount to settle the obligation can be measured reliably. Creditors and provisions are recognised at their settlement value after allowing for trade discounts due.

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, if the revision affects only the period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there are any further critical judgements or sources of estimation uncertainty requiring disclosure.

22

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

3) ANALYSIS OF INCOME FROM DONATIONS AND LEGACIES

Donations
Gifts in kind*
Legacies
General grants (see 3a
below)
Total		 Unrestricted
Restricted
Endowments
2023
408
212
317
937
-
-
-
-
154
-
-
154
2,308
598
-
2,906
2,870
810
317
3,997		 2022
995
193
108
2,444
3,740

*There are no gifts in kind in the 2023 financial year. 2022 gifts relate to Land, Mobility scooters and grounds equipment.

3a) General grants comprise the following:

eneral grants comprise the following:
Grant in Aid
Armed Forces Memorial
The Royal British Legion
Remembrance
The Royal British Legion
Queens Green Canopy
National Forest
Memorial woodland
National Lottery Heritage Fund
Memorial Grant Scheme
Lichfield District Council
Changing places
Other Grants
Total		 2023
138
2,300
200
-
222
6
32
8
2,906		 2022
95
1,950
350
36
-
5
-
8
2,444

4) ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES

This note provides an analysis of activities specifically undertaken to generate income for the charity. It includes performance related grants for Armed Forces Day and other commemorative activity, primary purpose trading in the form of tree plaque, inscribed paviors, annual maintenance of plots and memorials and the recharge of overhead expenses to the Arboretum trading subsidiary, NMA (Enterprises) Limited.

Performance related grants:
-
Armed Forces Day
Car park
Learning services
NMA (Enterprises) overhead recharge
Tree plaques/benches/ annual maintenance
Insurance claims
Total		 2023
10
289
40
278
85
3
705		 2022
10
304
40
267
65
15
701

23

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

5) NET INCOME FROM TRADING SUBSIDIARY

The charitable company has a trading subsidiary, NMA (Enterprises) Limited, which is a private company registered in England and Wales, of which the registered office is given on page 1. A summary of the trading results is shown below. Audited financial statements will be filed with the Registrar of Companies. NMA (Enterprises) Limited primarily carries out the operation of a retail shop, restaurant and functions.

Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit before taxation
Other Income
Profit before taxation
Taxation
Profit and total Comprehensive income for the year
Retained earnings brought forward:
Payment to parent charity under the gift aid scheme
Retained surplus for the year
Retained surplus carried forward
Assets
Liabilities
Net assets		 2023
2,926
(2,374)
552
(489)
63
1
64
-
64
204
(250)
18
18
688
(670)
18		 2022
3,019
(2,137)
882
(490)
392
27
419
-
419
403
(618)
204
204
1,176
(972)
204

6) ANALYSIS OF INCOME FROM INVESTMENTS

Gifted from NMA (Enterprises)
Bank interest
Total		 2023
250
78
328		 2022
s
618
2
620

7) ANALYSIS OF EXPENDITURE ON RAISING FUNDS

Raising donations, grants
and legacies
Advertising, marketing
and direct mail
Total		 Direct
Costs
17
604
621		 Support
Costs
31
135
166		 Total
2023
48
739
787		 Direct
Costs
2022
60
493
553		 Support
Costs
2022
28
83
111		 Total
2022
88
576
664

24

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

8) ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Commemorative
events
Grounds and
memorial upkeep
Visitor operations
NMA (Enterprises)
overhead recharge
Total		 Direct
costs
439
512
1,112
-
2,063		 Support
costs
117
249
1,427
278
2,071		 Total
2023
556
761
2,539
278
4,134		 Direct
Costs
2022
311
434
952
-
1,697		 Support
Costs
2022
112
222
1,229
267
1,830		 Total
2022
423
656
2,181
267
3,527

9) ANALYSIS OF SUPPORT COSTS

Governance
Central
Management
Administration
Premises
Depreciation
Legal and
Professional
Total		 Raising
funds
Commemorative
events
Grounds
and
Memorials
Visitor
operations
Recharge to
NMA
(Enterprises)
Total
2023
Basis of
allocation
12
9
19
71
-
111Headcount
34
24
51
190
123
422Headcount
30
21
45
172
2
270Headcount
87
61
131
497
107
883Headcount
-
-
-
483
46
529Usage
3
2
3
14
-
22Headcount
166
117
249
1,427
278
2,237

2022 COMPARATIVE ANALYSIS OF SUPPORT COSTS

Governance
Central
Management
Administration
Premises
Depreciation
Legal and
Professional
Total		 Raising
funds
Commemorative
events
Grounds and
Memorials
Visitor
operations
Recharge to
NMA
(Enterprises)
Total
2022
Basis of
allocation
11
11
21
70
-
113
Headcount
21
21
41
147
132
362
Headcount
16
16
32
112
2
178
Headcount
61
62
124
434
90
771
Headcount
-
-
-
450
43
493
Usage
2
2
4
16
-
24
Headcount
111
112
222
1,229
267
1,941

25

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

10) NET INCOME FOR THE YEAR

ET INCOME FOR THE YEAR
2023 2022
Income is after charging:
Depreciation of owned assets 529 493
Auditor
s remuneration:
dit of the 28 26
financial statements

11) ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL

The average monthly number of employees was:

he average monthly number of employees was:
Raising funds
Charitable operations
Support
Total
heir aggregate remuneration comprised:
Wages and salaries
Social security costs
Pension costs
Total		 2023
5
42
10
57
2023
1,380
119
139
1,638		 2022
4
41
7
52
2022
1,156
100
118
1,374

Their aggregate remuneration comprised:

During the year no severance payments were made (2022: nil).

The number of employees whose emoluments excluding pension contributions but including benefits in kind were in excess of £60,000 was:

£60,000-£70,000
Total		 2023
1
1		 2022
1
1

The key management personnel of the charity are listed on page 1. The total remuneration (including pension contribution ational Insurance Contributions) of the key management personnel of the charity for the year totalled £450,000 (2022: £305,000). 47,000 (2022: £31,000).

Trustees Remuneration

No Trustees received remuneration during the current or prior year and no expenses were paid to any Trustees during 2023 for expenses (2022: nil).

26

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

12) TAXATION

The activities of the charitable company are exempt from corporation tax. The activities of the charitable compan s wholly owned trading subsidiary are subject to corporation tax; however, all profits are paid to the charitable company by way of gift aid therefore no tax liability will arise.

13) IRRECOVERABLE VAT

The charitable company was unable to recover £205,000 VAT for the 2023 financial year (2022: £147,000). This has been allocated back to the individual expenditure categories to which it relates.

14) TANGIBLE FIXED ASSETS

Cost:
at 1 October 2022
Additions
Disposals
Transfers
at 30 September 2023
Accumulated
Depreciation:
at 1 October 2022
Charge for the year
Disposals
at 30 September 2023
Net Book Value:
at 30 September 2023
at 30 September 2022		 Long
Leasehold and
Ground
Improvements
Visitor
Facilities and
Fixtures
Office
Equipment
Assets Under
Construction
£000's
Totals
2,381
21,885
25
336
24,627
-
213
-
321
534
-
(12)
-
-
(12)
139
89
-
(228)
-
2,520
22,175
25
429
25,149
1,370
3,212
25
-
4,607
42
487
-
-
529
-
(12)
-
-
(12)
1,412
3,687
25
-
5,124
1,108
18,488
-
429
20,025
1,011
18,673
-
336
20,020

In 1994 the Arboretum site of 152 acres was gifted by Tarmac Plc on a 999-year lease at a peppercorn rent. Included in the cost of the long leasehold land is land with an ascribed value of £120,000 (2020: £120,000) and landscaping costs to bring the grounds into use at £827,000 (2021: £827,000) which is not depreciated. Further land was gifted to the Arboretum in 2022 with an ascribed value of £178,000. Costs associated with the development of this land will be recognised at cost value as and when works are undertaken.

27

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

15) HERITAGE ASSETS

Basis of capitalisation
Carrying amount at 1 October 2022
Additions
Carrying amount at 30 September 2023		 Total
348
55
403
2023 2022 2021 2020 2019
Purchases:
Trees 55 - - - -
Total Additions 55 - - - -

Trees are an inherent part of the Arboretum and have been designated Heritage Assets and are not depreciated as described in note 1. These trees are included at cost as the majority have been selected for their symbolic meaning rather than from an arboreal collection perspective. The trees were originally planted as saplings and are now quite mature specimens. In the Trustees opinion no provision for impairment is required at this time. 2023 is the first year there have been any significant new mature trees planted in the last 5 years.

The Armed Forces Memorial is included in the accounts at a deemed cost of £1. This reflects the dilapidated state in which the memorial was transferred to the Arboretum in 2015. The cost of ascertaining a value for the memorial through a surveyor s valuation significantly outweighs any benefit that will be derived by the organisation. Ongoing repairs and maintenance costs to the memorial were expensed in the year.

16) FIXED ASSET INVESTMENTS

The Trustees of the charitable company own the entire issued share capital of two ordinary shares of £1 each at a cost of £2 of NMA (Enterprises) Limited. During the year, NMA (Enterprises) Limited gift aided £250,000 profit to the Arboretum (2022: £618,000) and at the end of the year had aggregate reserves of £18,000 (2022: £204,000).

28

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

17) DEBTORS

Amounts falling due within one year:
Trade Debtors
Amounts owed by subsidiary undertaking
Prepayments and accrued income
Total		 2023
73
377
344
794		 2022
40
696
95
831

Amounts owed by the subsidiary undertaking are non-interest bearing and payable on demand.

18) CREDITORS

a) Amounts falling due within one year:
Trade creditors
Amounts owed to parent undertaking
HMRC- PAYE and NI
VAT creditor
Hire Purchase/Finance lease
Accruals and deferred income
Total
b) Amounts falling due in more than one year:
Hire Purchase/Finance Lease (due between 1-5 years)
Total		 2023
138
2
47
59
15
189
450
2023
-
-		 2022
171
12
42
92
21
337
675
2022
15
15

Amounts owed to the parent undertaking are non-interest bearing and repayable on demand.

The hire purchase/finance lease loans are secured against the assets to which they relate i.e. Grounds equipment purchases disclosed under fixed assets.

29

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

19) COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Note
INCOME AND
ENDOWMENTS
FROM:
Donations and
Legacies
3
Charitable
Activities
4
Other Trading
Activities
Investments:
Gift aid from
NMA
(Enterprises)
5
Bank interest
6
TOTAL INCOME
EXPENDITURE
ON:
Raising Funds
7
Charitable
Activities
8
TOTAL
EXPENDITURE
Net income for
the year
Transfer between
Funds
20
NET MOVEMENT
IN FUNDS
RECONCILIATION
OF FUNDS
Total funds
brought forward
Net movement in
funds for the year
Total funds
carried forward		 Unrestricted
Funds
2,706
691
90
618
-
4,105
664
3,302
3,966
139
326
465
21,130
465
21,595		 Restricted
Funds
544
10
-
-
-
554
-
161
161
393
(326)
67
645
67
712		 Endowment
Funds
490
-
-
-
2
492
-
64
64
428
-
428
1,193
428
1,621		 Total
Funds
2022
3,740
701
90
618
2
5,151
664
3,527
4,191
960
-
960
22,968
960
23,928		 Total
Funds
2021
3,253
617
41
90
1
4,002
462
3,199
3,661
341
-
341
22,627
341
22,968

30

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

20) MOVEMENTS ON FUNDS

----- Start of picture text -----
At 1 Income Expenditure Transfers At 30
October September
2022 2023
Unrestricted Funds:
General Fund 1,632 3,721 (3,872) (136) 1,345
Designated Funds
Fixed assets 19,684 - (529) 441 19,596
Development and Engagement 279 140 - - 419
Designated Funds Total 19,963 140 (529) 441 20,015
Total Unrestricted Funds 21,595 3,861 (4,401) 305 21,360
Expendable endowments:
NMA Memorials & Buildings 577 183 (28) - 732
Basra Wall 28 1 (1) - 28
Army Apprentices 37 1 - - 38
Durham Light Infantry 15 1 (1) - 15
British Korean Veterans 28 1 (2) - 27
Polish Ex-Combatants 46 2 (3) - 45
Royal Ulster Constabulary 28 1 (2) - 27
Bastion Memorial 46 2 (1) - 47
Royal Engineers 82 3 (1) - 84
Police Service Northern Ireland 28 1 (2) - 27
Victims of overseas terrorism 41 1 (1) - 41
97 3 (7) - 93
maintenance
Royal Electrical & Mechanical 30 1 (2) - 29
Engineers
Devon & Dorset Regiment 18 1 (2) - 17
Queens Lancashire Regiment 25 1 (1) - 25
Guards Parachute Association 24 1 (1) - 24
The Blues and Royals 24 1 (1) - 24
Wrens 36 2 (2) - 36
Royal Military Police 20 1 (2) - 19
Scouts 27 1 (1) - 27
National Mining Memorial 26 1 (1) - 26
RBL Remembrance Glade 23 1 (1) - 23
Royal Army Medical Corp 54 2 (3) - 53
Post Office 57 2 (3) - 56
Army Air Corp 39 1 (2) - 38
Desert Rats 20 1 (1) - 20
Royal Artillery 31 1 (1) - 31
Submariners 85 3 (4) - 84
41 Club 29 1 (2) - 28
Household Division - 21 - - 21
RLC - 37 - - 37
- 103 - - 103
Total Expendable endowments 1,621 383 (79) - 1,925
----- End of picture text -----

31

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

20) Movements in Funds (cont.)

Restricted Funds
AFM
Remembrance Centre
Functions Pavilion
Memorial Woodland/Queens
Green Canopy
NHLF
Other Funds received and fully
utilised in year
Total Restricted Funds
Total Charity Funds		 At 1
October
2022
Income
Expenditure
Transfers
at 30
September
2023
488
152
(156)
-
484
130
-
-
-
130
34
-
-
-
34
60
400
-
(315)
145
-
222
(232)
10
-
-
53
(53)
-
-
712
827
(441)
(305)
793
23,928
5,071
(4,921)
-
24,078

Separate funds are held for the following purposes:

Note: Expenditure of restricted funds for items which are subsequently capitalised will result in a transfer from restricted to unrestricted funds as the items capitalised are subsequently used for general purposes.

32

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

21) COMPARATIVE MOVEMENT ON FUNDS

Unrestricted Funds:
General Fund
Designated Funds
Fixed assets
Development and Engagement
Designated Funds Total
Total Unrestricted Funds
Expendable endowments:
NMA Memorials & Buildings
Basra Wall
Army Apprentices
Durham Light Infantry
British Korean Veterans
Polish Ex-Combatants
Royal Ulster Constabulary
Bastion Memorial
Royal Engineers
Police Service Northern Ireland
Victims of overseas terrorism
maintenance
Royal Electrical & Mechanical
Engineers
Devon & Dorset Regiment
Queens Lancashire Regiment
Guards Parachute Association
The Blues and Royals
Wrens
Royal Military Police
Scouts
National Mining Memorial
RBL Remembrance Glade
Royal Army Medical Corp
Post Office
Army Air Corp
Desert Rats
Royal Artillery
Submariners
41 Club
Total Expendable endowments		 At 1
October
2021
Income
Expenditure
Transfers
At 30
September
2022
1,153
3,997
(3,473)
(45)
1,632
19,806
-
(493)
371
19,684
171
108
-
-
279
19,977
108
(493)
371
19,963
21,130
4,105
(3,961)
326
21,595
428
169
(20)
-
577
28
-
-
-
28
38
-
(1)
-
37
16
-
(1)
-
15
30
-
(2)
-
28
49
-
(3)
-
46
29
-
(1)
-
28
47
-
(1)
-
46
83
-
(1)
-
82
30
-
(2)
-
28
43
-
(2)
-
41
104
-
(7)
-
97
32
-
(2)
-
30
20
-
(2)
-
18
26
-
(1)
-
25
25
-
(1)
-
24
25
-
(1)
-
24
38
-
(2)
-
36
21
-
(1)
-
20
29
-
(2)
-
27
28
-
(2)
-
26
24
-
(1)
-
23
-
57
(3)
-
54
-
60
(3)
-
57
-
41
(2)
-
39
-
20
-
-
20
-
31
-
-
31
-
85
-
-
85
-
29
-
-
29
1,193
492
(64)
-
1,621

33

The National Memorial Arboretum Company Limited Registered Company number 02927443 NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

21) Movements on Funds (cont.)

Restricted Funds
AFM
Remembrance Centre
Functions Pavilion
Memorial Woodland
Other Funds received and fully
utilised in year
Total Restricted Funds
Total Charity Funds		 At 1
October
2021
Income
Expenditure
Transfers
At 30
September
2022
481
101
(94)
-
488
130
-
-
-
130
34
-
-
-
34
-
386
-
(326)
60
-
67
(67)
-
-
645
554
(161)
(322)
712
22,968
5,151
(4,191)
-
23,928

22) ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Fixed assets
Current assets
Current liabilities
Total		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2023
832
19,596
-
-
20,428
963
419
793
1,925
4,100
(457)
-
-
-
(457)
1,338
20,015
793
1,925
24,071

23) COMPARATIVE ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Fixed assets
Current assets
Current Liabilities
Liabilities > than 1
year
Total		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2022
684
19,684
-
-
20,368
1,638
279
712
1,621
4,250
(675)
-
-
-
(675)
(15)
-
-
-
(15)
1,632
19,963
712
1,621
23,928

34

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

24) EMPLOYEE RETIREMENT BENEFITS

Defined contribution scheme

The charitable company operates a defined contribution scheme for all qualifying employees. The in the year was £139,000 (2022: £118,000). Outstanding amounts to be paid into the scheme at the year-end were zero (2022: zero).

25) RELATED PARTY TRANSACTIONS

The charitable company received payment of £278,000 (2022: £267,000) from NMA (Enterprises) to cover the cost of operational overheads incurred on its behalf.

Payments totalling £250,000 were received from NMA (Enterprises) under gift aid during the year, £204,000 relating to 2022 surplus and a payment on account of £46,000 relating to the to 2023 surplus (2022: £618k)

The company received a general remembrance grant of £2,300,000 (2022: £1,950,000) from its parent charity the Royal British Legion and a further £200,000 towards strategic developments (2022: £350,000).

No Trustee received payment for professional services or other services provided to the charity during the year (2022: £nil).

There were no donations received from Trustees during the year (2022: £nil).

There were no other related party transactions (2022: £nil).

35

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

26) CASH FLOW STATEMENT

a. Reconciliation of net income to cash generated by operations.

Net income/ for the year
Adjustments for:
Interest receivable
Interest Payable
Depreciation charges
Operating cash flow before movement in working capital
Decrease /(increase) in debtors
(Decrease)/increase in creditors
Cash generated by operating activities
Analysis of Cash and cash equivalents:
Instant access working capital
Notice deposits
Other cash balances
Total cash and cash equivalents		 2023
150
(78)
1
529
602
37
(219)
420
2023
196
266
2,844
3,306		 2022
960
(2)
2
493
1,453
(435)
272
1,290
2022
524
761
2,134
3,419

b. Analysis of Cash and cash equivalents:

c. Analysis of change in net debt:

Cash
Finance Leases
Total		 At 1 October
2022
Cash-flows
New Finance
Leases
At 30 September
2023
3,419
(113)
-
3,306
(36)
21
-
(15)
3,383
(92)
-
3,291

27) ULTIMATE PARENT UNDERTAKING

The Royal British Legion (Registered Charity number 219279) immediate and ultimate parent undertaking and ultimate controlling party. The parent undertaking of the smallest and largest group which includes the company for which the group accounts are prepared by The Royal British Legion. The consolidated financial statements of The Royal British registered office at Haig House, 199 Borough High Street London SE1 1AA. The accounts of the Arboretum , NMA (Enterprises) Limited (Company number 04259701) can be obtained from Companies House.

36

The National Memorial Arboretum Company Limited Registered Company number 02927443

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 September 2023

28) POST BALANCE SHEET EVENT

On 20[th] December 2023 £18,000 was received from NMA (Enterprises) under gift aid, being the remaining surplus relating to the 2023 financial year. (2022: the remaining surplus of £204,000 from the 2022 financial year was paid 23[rd] December 2022).

37