Service Non Public Funds Final Accounts, Army Form N1514 Managing Trustee’s Report, Internal Audit (Rev 11/09)
Board Report and Independent Examiner’s Report (SORP 2005 compliant) Regimental Accountant Scheme
Unit Royal Military Academy Sandhurst Address Camberley, Surrey, GU15 4PQ. In respect of Sandhurst Station Nursery Fund/Charity the Charity Commission/Regulator registered 1063170 number: For the period 1 June 2021 to 31 May 2022 from
Managing Trustee(s) during the period:
From 1 Jun 2021 to 31 May 2022 Name Lt Col S Hull RLC Fund Manager(s) during the period: From 1 Jun 2021 to 31 May 2022 Name Mr C Jackman Internal Auditor(s) during the period: From 1 Jun 2021 to 31 May 2022 Name WO1(SSM) D Cochrane AGC(SPS) From to Name Associate Auditor(s) during the period: Associate Auditor Associate Auditor
Regimental Accountant(s) during the period:
From 1 Jun 2021 to 31 May 2022 Name SSgt R Gurung GSPS
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Notes to the Accounts (Paras 2 to 12 are to be completed by all funds which have a gross income of £100K or over and those funds already registered with the Charity Regulator, all other funds are to complete Paras 6 and 7 and the declarations at Para 12):
1. Principal Accounting Policies
a. Accounting Convention. The financial statements are prepared under the historical cost convention as modified by the inclusion of investments at market value and in accordance with applicable accounting standards. In preparing the financial statements the charity follows best practice as set out in the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ (SORP) 2005
(http://www.charitycommission.gov.uk/investigations/sorp/sorp05docs.asp)
b. Incoming Resources. Income is recognised in the period in which the charity is entitled to receipt, and the amount can be measured with reasonable certainty. Grants from other agencies including donations and other income from activities are in furtherance of the charity’s objects and are part of the general funds of the charity. A restricted fund is only recognised where this is an agreed and explicit condition of the grant or donor.
c. Intangible Income. Due to the close collaborative relationship and the manner in which the charity’s activities compliment those of the Army, intangible income, reflected in time and use of premises is not quantifiable or measurable and so is not recognised in the accounts.
d. Resources Expended and Basis of Allocation of Costs. Expenditure is included when incurred or exceptionally where a commitment is made which requires an accrual when payment is to be made in the subsequent accounting period. Similarly, where prepayments are made in recognition of commitments falling due in a subsequent accounting period, the appropriate credit is entered in the accounts and reversed the following year. Grants payable are included in the SOFA when approved by the Managing Trustee. Expenditure is recognised in the period in which it is incurred. The majority of costs are directly attributable to specific activities. Irrecoverable VAT is charged to the activity for which it was incurred.
e. Governance Costs. Governance costs are the costs of professional advice, holding trustee meetings or committee meetings associated with decision making, any fee for audit or independent examination and any fee incurred in the preparation, statutory filing, printing or copying of the annual report and accounts.
f. Capitalisation and Depreciation of Tangible Fixed Assets. All assets having a purchase value of more than £500 are capitalised. The cost of tangible fixed assets are written off by equal annual instalments over their expected useful lives using the following methods of depreciation:
- Furniture, fixtures and equipment Straight Line over a period of 2 – 10 years. Motor vehicles - Straight Line over a period of 2 – 10 years.
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Assets with a life of more than one year but with a purchase value of below £500 are included within the inventory but the cost is written off in the year it is incurred and is not depreciated over the useful life of the asset. Where the asset is depreciated over a period of more than 10 years, details of the item and period are to be provided following the notes on page 14.
g. Fixed Asset Investments. Fixed asset investments are included at market value at the balance sheet date. Any gain or loss on revaluation is shown in the Statement of Financial Activities (SOFA).
h. Stocks. Purchased stocks are valued at the lower cost or net realisable value making due allowance for any obsolete or slow-moving items.
i. Funds Accounting. Funds held by the charity are:
(1) General Purpose/Unrestricted /Designated Funds. These are funds that can be used in accordance with the charitable objects at the discretion of the Managing Trustee. Designated funds are unrestricted funds which have been allocated/earmarked for a particular purpose by the Managing Trustee and are to be declared in the Managing Trustees comments in accordance with Para 12 to these notes stating what they are intended to be used for and when.
(2) Endowment Funds. Endowment funds are those investments and other gifts accepted by the unit, the capital sum or property being held in perpetuity and the income only being available for charitable use.
(3) Restricted Funds. These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is to be included in the notes to the accounts.
j. Heritage Assets. In the course of the unit’s history, the charity may have acquired gifts, memorabilia, regalia, silverware, antiques and other historical artefacts in the course of distinguished military service in service of the Crown. The value of these pieces is in large part derived from their close association with Regimental history which precludes the use of conventional valuation techniques being applied. Whilst the objects of the charity do not specifically include preservation and conservation, the pieces represent an essential element of celebrating the unit’s history and foster esprit-de-corps. Consequently the Managing Trustee considers the charity to hold heritage assets both for functional use and as an element of national history on behalf of the nation. Heritage assets acquired prior to 1 Apr 06 are therefore not capitalised on the balance sheet but a description of those assets is disclosed as part of the notes to the accounts. Heritage assets acquired after 1 Apr 06 where the purchase price is known and which exceed £500.00 are included in the balance sheet at acquisition value but are not depreciated.
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k. Other Costs. Other costs are those costs not incurred in the undertaking of charitable activity in furtherance of the objects of the charity, i.e. the provision of facilities, recreational programmes or activities in furtherance of military efficiency. They are also costs incurred in the making of grants and donations, in the costs of generating funds, i.e. the costs incurred in trading or fundraising undertaken by the charity, or in governance costs.
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2. Grants Made. (if total grants are over 5% of the charity’s total expenditure).
The charity made the following grants/donations:
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Grants to institutions
Name of institutions Purpose Total number of Total amount
grants given of grants paid
Nil
Total grants
to institutions
Grants to individuals
Purpose Total number of Total amount
grants given of grants paid
Nil
Total
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3. Related Party Transactions & Remuneration and Expenses
Whilst the charity has a close working relationship with the Army, there are no transactions with the Army which require disclosure under SORP 2005. The only transactions made by the charity in favour of the unit are wholly attributable to the charitable activities of furthering military efficiency. The Managing Trustee is an officer or equivalent and fulfils the role as trustee in accordance with the applicable laws and regulations. No expenses have been paid to the trustee. In the event that expenses have been paid to the trustee these are disclosed under the Managing Trustee’s comments.
4. Analysis of Capital Property
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Capital Motor Total
Property Vehicles
Balance b/f £293.78 0.00 £293.78
Purchases 0.00 0.00 0.00
Sales & 0.00 0.00 0.00
W/Os
Depreciatio £293.78 0.00 £293.78
n
Balance c/f £0 0.00 £0
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5. Total Value of Investments by Category
Value (£)
Carrying value (market value) at beginning of year Add additions to investments at cost (investments purchased) Less disposals at carrying value (investments sold) Add/(deduct) net gain/(loss) on revaluation (gain/loss at end of accounting period/audit) Carrying value (market value) at end of year Nil
Breakdown of Market Values at
Year End GPF/ Restricte Endowme Total Income Unrestricte d nt value during d year Value (£) Value (£) Value (£) Value Value (£) (£) Investment properties Investments listed on a recognised stock exchange Investments held in unit trusts or other collective investment schemes Investments in subsidiary or connected undertakings and companies Securities not listed on a recognised Stock Exchange Cash held as part of the investment portfolio Other investments Total Nil Nil Nil Nil Nil
6. List of Debtors
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Debtor Date of Debt Amount
Supervisors Float Mar 2021 £400
Total £400
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- There are no amounts falling due after more than one year (delete as appropriate).
7. List of Creditors
Creditor Date of Credit Amount
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Mar 22
£180,000
Nursery Improvements
Total £180,000
- There are no amounts falling due after more than one year (delete as appropriate).
8. Paid Employees
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2021/22 2020/21
Gross wages paid £105,517.97 £113,268.13
Employer’s National Insurance paid £17,949.60 £11,690.95
Pension Contributions paid £4,758.63 £3,653.94
Total staff costs £128,226.20 £128,613.02
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Give the number of employees who were engaged in each of the following activities:
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2021/22 2020/21
Costs of generating funds 12 12
Charitable activities 0 0
Other 0 0
Total 12 12
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No individual employee received a salary of over £60000.00
| 9. Governance Costs |
9. Governance Costs |
9. Governance Costs |
|---|---|---|
| 2020/21 | 2019/20 | |
| Audit or independent examination fee | 0.00 | 0.00 |
- Restricted/Endowment Funds – 31 May 2021
Give details of the movements of the individual funds summarised in the restricted and endowment column of the Statements of Financial Activities (SOFA).
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Fund Name Incoming Outgoing Transfers Gains Fund Bal C/F
Fund Bal B/F Resources Resources and
for period for period Losses
Nil
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A brief explanation as to the nature and purpose of the charity’s Restricted Funds is to be provided.
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Name of Purpose of fund
Restricted Fund
Nil
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11. Heritage Assets.
Heritage assets that are owned by the charity but purchased/acquired prior to 1 Apr 06 are not included in the charity’s capital property value (see note 1.j). A list/description of these assets is below:
Nil
12. Declarations
All of the charity’s commitments are provided for in the accounts.
No guarantees have been given to third parties.
The charity has not received any loans that are outstanding at the year-end and secured on assets.
The charity has not granted any loans to institutions or companies connected with the charity.
The charity did not make any ex-gratia payments during the year.
Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions imposed.
The financial activities, assets and liabilities of all the charity’s branches or sections have been included.
The trustees have not changed the year end date or the length of the charity’s financial year.
The charity has no designated funds (if there are designated funds the reason for designation and when each designated fund is intended to be used by is to be stated in the Managing Trustee report).
All the charity’s operations are continuing operations and there were no operations discontinued or acquired during the year.
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No funds (unrestricted, designated, restricted or endowment) are in deficit at the balance sheet date.
The charity has no intangible assets.
There were no inter-fund loans outstanding at the balance sheet date.
None of the charity’s functional fixed assets have been re-valued during the year and the charity does not have a policy of revaluation of these assets.
The charity has no subsidiary companies.
The charity has no material fixed assets which have not been capitalised and included in the balance sheet.
No internal transfers have occurred out of restricted/endowment funds. In the event that a transfer has taken place, full details of the reason for the transfer are disclosed in the Managing Trustee’s comments.
All investments held are investment assets in the UK unless otherwise stated.
Note: Where any of the declarations are not correct they are to be crossed out and details provided in the Managing Trustees comments.
Additional comments:
Signature Electronic
Name
Mr C Jackman
Date:
Fund Manager (Regimental Accountant Scheme) /
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Account Holder (Audit Board Scheme) 10
Managing Trustee’s Annual Report and Comments:
Unit Royal Military Academy Sandhurst
Address Camberley, Surrey, GU15 4PQ.
Charity name and Charity Commission/Regulator registered number
Sandhurst Station Nursery - 1063170
........................................................................................................................................ ..................
Description of the charity’s trusts
This should include:
a. Details, including date if known of the charity’s governing document (e.g. trust deed, will, constitution etc); and
b. A brief explanation of the charity’s objects.
Where applicable, you may choose to give details of any specific investment powers of the charity.
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Governing
Document (e.g. Sandhurst Station Nursery Group Constitution adopted on 8
Trust Deed, May 2019.
Constitution)
Objects of the Enhance the development and education of children primarily
Charity under statutory school age by encouraging parents to
understand and provide for the needs of their children
through community groups; by offering appropriate play,
education and care facilities to such children; and
encouraging the study of the needs of such children.
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Explain briefly how trustees are elected or appointed and details of any induction and trustee training attended.
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Trustee selection The Commanding Officer Sandhurst Support Unit is the
method Managing Trustee by appointment, she appoints the Chair
and Treasurer. Other Charity Trustees are committee
members appointed in accordance with the constitution.
Trustee induction The Managing Trustee completes the Commanding Officer
and training Designates Course. There is no formal training for other
Charity Trustees but they are all invited to read key guidance
for trustees available from the Charity Commission.
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Explain about what the charity is trying to do and how it is going about it. You are only required to provide a brief summary of the main activities and achievements of the charity during the year in relation to its objects.
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Summary of main The principle Charitable Purpose of Sandhurst Station Nursery
activities in is the advancement of education. The nursery achieves this
relation to the by providing supervised play and educational facilities
Charity’s objects following the Early Years Foundation Stage (EYFS) framework
in an OFSTED registered setting. The Nursery caters for two
main cohorts of children: pre-school (3-5 years of age); and
toddler (14 months to 3 years). The nursery provides
morning and afternoon sessions, and a supervised lunch club.
A considerable proportion of the children are from a Nepalese
background and the nursery fosters a diverse and multi-
cultural approach to its activities, seeking to ensure the
children have a positive and healthy approach to diversity
issues. Children from RMAS (military, civil servant and
contractor families) are welcomes, as are children from the
local community, including those with special educational
needs, on a first come, first served basis.
In determining these activities, the trustees had paid due
regard to the guidance issued by the Charity Commission on
Public Benefit.
Summary of main Particular attention has been paid to delivering a multi-
achievements of cultural programme. Signs and information leaflets are
the Charity provided in written Nepalese as well as English. Many
during the year activities are undertaken to explore and enhance the
understanding of the different cultures including dressing in
costume, visits to the temple and church, food tasting and
dancing. All major Nepalese and Christian festivals are
observed. The nursery also has dual language library books.
Members of staff have undertaken appropriate training with
one individual completing a Level 2 NVQ, with a further
member of staff commencing her Level 2. We have also had
individuals obtaining a level 3 and 4 NVQ.
Volunteers redecorated the public rooms of the nursery, new
blinds have been donated and installed at small cost, and a
new wooden security fence has been installed at the rear of
the nursery at no cost
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Provide a brief review of the financial position of the charity. This should include the principal types of income.
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Financial Review The charity remains in a healthy financial position. Debtors
and creditors are cleared on a regular basis with none
exceeding 3 months throughout the audit period. The main
source of income is the 15 and 30 hour funded places from
Bracknell Forest Council. In addition, parents pay fees for
unfunded children or those who exceed the unfunded hours
per week. Fees have recently been raised and a voluntary
consumable charge implemented to ensure the children
receive a better level of service in a challenging financial
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environment. The Nursery has been fortunate enough to secure grants to replace furniture, to purchase a new laptop, and to renovate the front play area.
The Managing Trustee should give in their report a description of the following policies:
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a. For the selection of investments for the charity. b. For determining the level of income reserves held, stating and explaining the level of reserves held.
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c. Where grants are made by the charity, the selection of individuals and institutions who are to receive grants out of the assets of the charity.
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Financial reserves The Managing Trustee has directed that the Charity should
policy build a cash reserve of between £15K and £20K.
Investments N/A
selection policy
and performance
of those
investments.
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Provide the name of all trustees/the Managing Trustee(s) during the report year.
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Managing Lt Col S Hull (Managing Trustee)
Trustee’s Mr C Jackman (Chair of Trustees)
name/trustees’ Mrs P Andrews (Trustee)
names Ms E Earp (Trustee)
Mrs S Polley (Trustee)
Mrs L Tilbury (Trustee)
Serious Incidents Nil
Public Benefit
This fund provides public benefit by providing supervised play
Statement
and educational facilities to children from a variety of ethnic
backgrounds following the EYFS framework in an OFSTED
registered setting, thereby contributing to the Advancement
of Education.
(I confirm that I have paid due regard to the Charity
Commission of England and Wales’s guidance on public
benefit when deciding what activities the charity should
undertake).
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Additional comments (include any declarations which were not correct (Pg 12/13)):
Signature
Name Lt Col S Hull RLC Appointment CO SSU
Date:
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Internal Auditor’s/Audit Board Report
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I have examined the books of account and records from which the final accounts were prepared and have obtained all the information and explanations that were necessary for the purpose of my internal audit.
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There is evidence that an Audit Board was convened for the end of year audit in accordance with SFRs Para 0510 and QRs 1975.
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Subject to the observations given below I am satisfied that proper books of account have been kept and that the final accounts give a true and fair view of the results of transactions over the period and of the state of the Fund’s affairs as at the date of the balance sheet. Subject also to my observations I am satisfied that cash and bank balances and stocks on hand have been properly checked at prescribed intervals and that adequate insurance exists.
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I have stamped and signed the original books of account and the original records I have checked. All vouchers relating to this account period have been cancelled.
Observations :
SOFA
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The Fund generated £144,457.80. The Fund is registered with the Charities Commission.
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The Balance BF and Balance CF reconcile.
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The SOFA and the I&E consolidated report reconcile.
Balance Sheet
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Bank balance – the current bank balance reconciles with the central bank balance.
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Capital Property – The fund has Capital Property total £0. Depreciation has been applied a total £293.78. The Capital Property agrees the balance.
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The insurance policy does not specify cover for property. There is evidence the FM has
reviewed the policy in this year. The FM is strongly encouraged to reconsider the capital property holdings and adjust the insurance policy as needed.
- The funds debtors total £500 which is 3.76% of the fund’s total bank balance. This is not
excessive for the fund. There are no aged debtors.
12. The fund has no creditors.
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There are no Restricted Funds.
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GPF Surplus – The balance is £3,459.49. The figure reflects that the fund has a higher income over expenditure.
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- Insurance – The Fund has paid £306.28 for insurance.
Signature
Name WO1(SSM) D Cochrane AGC(SPS) Appointment Internal Auditor
Date:
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Comd/SO2 SPS – Independent Examiner’s Report on the Accounts, and Comments
Respective Responsibilities of Trustees and Examiner
The Charity’s Trustees are responsible for the preparation of the accounts. The Charity’s Trustees consider that an audit is not required for this year (under section 43(2) of the Charities Act 1993 (the Act) and that an independent examination is needed.
It is my responsibility to:
-
a. Examine the accounts (under section 43(3)(a) of the Act).
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b. Follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 43(7)(b) of the Act).
c. State whether particular matters have come to my attention.
Basis of Independent Examiner’s Statement
My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the accounts.
Independent Examiner’s Statement
In connection with my examination, no matter has come to my attention (other than that disclosed overleaf*):
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a. Which gives me reasonable cause to believe that in any material respect the requirements:
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(1) To keep accounting records in accordance with section 41 of the 1993 Act:
(2) To prepare accounts which accord with the accounting records and comply with the accounting requirements of the Act:
have not been met.
b. To which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
- Delete as applicable.
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Comd/SO2 SPS – Independent Examiner’s Report on the Accounts, and Comments
Disclosure Section (Only to be completed if the examiner needs to highlight material problems/discrepancies)
Give here brief details of any items that the examiner wishes to disclose
Comd/SO2 SPS Comments
Independent Examiner’s Signature
Name
Appointment SO2 SPS 18
Date: