2024-05-31-accounts

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 01 June 2023 to 31 March 2024 from

Managing Trustee(s) during the period:

From	01 Jun 2023	to	06 Aug 2023	Name	Lt Col S Dodge RLC
From	07 Aug 2023	to	31 Mar 2024	Name	Lt Col D O’Connor RGR

Fund Manager(s) during the period:

From 1 Jun 2023 to 31 Mar 2024 Name Mr C Jackman

Internal Auditor(s) during the period:

From	01 Jun 2023	to	19 Jul 2023	Name	WO1(SSM) D Cochrane AGC(SPS)
From	19 Jul 2023	to	31 Mar 2024	Name	WO1 R Slater AGC (SPS)

Associate Auditor(s) during the period:

Associate Auditor	Associate Auditor	N/A	N/A	N/A	N/A	N/A
Regimental Accountant(s) during the period:
From	01 Jun 2023		to	31 Mar 2024	Name	SSgt E Lewis AGC (SPS)

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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.

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.

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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.

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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1. Grants Made. (if total grants are over 5% of the charity’s total expenditure).

The charity made the following grants/donations:

Grants to institutions

Grants to institutions
Name of institutions	Purpose	Total number of grants given	Total amount of grants paid
Nil
Total grants to institutions
Grants to individuals
Purpose		Total number of grants given	Total amount of grants paid
Nil
Total

Grants to individuals

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

	Capital Property	Motor Vehicles	Total
Balance b/f
Purchases
Sales & W/Os
Depreciation
Balance c/f			Nil

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1. Total Value of Investments by Category

	Value (£)
Carrying value (market value) at beginning of year
Add additions to investments at cost (investments purchased)	£15,457.601
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	£15,457.60

Breakdown of Market Values at

Year End	GPF/ Unrestricted	Restricted	Endowm ent	Total value	Income during 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	£15,457.60			£15,457.60
Total	£15,457.60	Nil	Nil	£15,457.60	Nil

6. List of Debtors

Debtor	Date of Debt	Amount
Louise Duckworth (Pett Cash)	Feb 24	£400
Total		£400

• There are no amounts falling due after more than one year (delete as appropriate).

7. List of Creditors

Creditor	Date of Credit	Amount
Friends of Chapel	Oct 23	£303.29
Total		£303.29

1 Investments were incorrectly accounted for the the Central Bank and was added to the Fund during the FY. This addition does not represent new purchases. Investments were initially purchased circa 2011.

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• There are no amounts falling due after more than one year (delete as appropriate).

8. Paid Employees

Paid Employees
	2023/24	2022/23
	£96,668.87	£110,291.65
	£6,335.10	£22,132.72
	£4,760.16	£4,771.96
	£	£137,196.33

Give the number of employees who were engaged in each of the following activities:

			2023/24	2022/23
	Costs of generating funds		8	12
	Charitable activities		0	0
	Other		0	0
		Total	8	12

No individual employee received a salary of over £60000.00

9. Governance Costs

9. Governance Costs
	2023/24	2022/23
Audit or independent examination fee	0.00	0.00

10. Restricted/Endowment Funds – 31 March 2023

Give details of the movements of the individual funds summarised in the restricted and endowment column of the Statements of Financial Activities (SOFA).

Fund Name	Fund Bal B/F	Incoming Resources for period	Outgoing Resources for period	Transfers	Gains and Losses	Fund Bal C/F
Nursery Improvements	£770	£0	£5	£0	£5	£765
Decorating	£250	£0	£0	£0	£0	£250

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A brief explanation as to the nature and purpose of the charity’s Restricted Funds is to be provided.

Name of Restricted Fund	Purpose of fund
Nursery Improvements	To maintain the physical and artificial image of the Nursery that is not covered through the MOD.
Decorating	To maintain the physical and artificial image of the Nursery that is not covered through the MOD.

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.

No funds (unrestricted, designated, restricted or endowment) are in deficit at the balance sheet date.

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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:

Financial Forecast

Headline Projected Income	Headline Projected Expenditure
Fees (Council and parental): £166,091	Salaries and associated costs: £148,779
Fundraising: £3000	Incidentals and consumables: £6,000
Total: £169,091	Total: £154,779

Challenges and Risks:

• A drop in the number of children attending the setting.

• Difficulty recruiting new members of staff in the summer when three current members of staff are due to leave.

• Unable to recruit new charity trustees.

• Extended hours not proving a success and needing to review at the offer for 25/26.

Opportunities:

• An improved financial outlook for fundraising.

Widening of opening hours creating a better offer, thus ensuring steadier numbers as the setting will appeal to more families.

Signature E-Signed Name Mr C Jackman

Fund Manager (Regimental Accountant Scheme)

Date: 20 Sep 24

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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.

Governing Document (e.g. Trust Deed, Constitution)	Sandhurst Station Nursery Group Constitution adopted on 8 May 2019.
Objects of the Charity	Enhance the development and education of children primarily 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.

Explain briefly how trustees are elected or appointed and details of any induction and trustee training attended.

Trustee selection method	The Commanding Officer Sandhurst Support Unit is the Managing Trustee by appointment. Charity Trustees are committee members appointed in accordance with the constitution.
Trustee induction and training	The Managing Trustee completes the Commanding Officer 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.

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.

Summary of main activities in relation to the Charity’s objects	The principle Charitable Purpose of Sandhurst Station Nursery is the advancement of education for service children and children of Civil Servants based at the Royal Military Academy Sandhurst. The nursery achieves this by providing supervised play and educational facilities following the Early Years Foundation Stage (EYFS) framework in an

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OFSTED registered setting. The Nursery caters for two main cohorts of children: pre-school (3-5 years of age); and toddler (12 months to 3 years). The nursery provides morning and afternoon sessions, and a supervised lunch club. The nursery operating hours are currently 0800- 1600, and this is due to change later in the year to extend provision even further. 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. In determining these activities, the trustees had paid due regard to the guidance issued by the Charity Commission on Public Benefit.

Summary of main achievements of the Charity during the year

Between 1 June 23 and 31 March 24, 1 Jun 17 and 31 May 18, SSN delivered an educational programme in accordance with the early learning goals to a total of 15 toddlers and 23 children of pre-school age. Particular attention has been paid to delivering a multi-cultural programme. Signs and information leaflets are provided in written Nepalese as well as English. Many 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.

Provide a brief review of the financial position of the charity. This should include the principal types of income.

Financial Review The charity has remained solvent throughout the year, has undertaken its activities as expected, and has been able to meet all of its financial obligations.

The Managing Trustee should give in their report a description of the following policies:

• 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.

• 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.

Financial reserves policy	The Managing Trustee has directed that the Charity should build a cash reserve of between £15K and £20K.
Investments selection policy and performance of those investments.	N/A

Provide the name of all trustees/the Managing Trustee(s) during the report year.

Managing Trustee’s Lt Col D O’Connor (Managing Trustee)

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name/trustees’ names	Mrs Lucy Hawkner (Chair of Trustees) Mrs Lynn Tilbury (Trustee) Mrs Sue Polley (Trustee) Major Ram Rai (Trustee) Mrs Pauline Andrews (Trustee)
Serious Incidents	Nil
Public Benefit Statement	This fund provides public benefit by providing supervised play and educational facilities to children from a variety of diverse 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).

Additional comments (include any declarations which were not correct (Pg 12/13)):

The Nursey provides an essential service to RMAS families. Any loss of Nursery services will be severely felt across RMAS; i.e., it is of upmost importance that the Nursery remains open.

The Fund Manager who is the Station Staff Officer, has been doing some sterling work to keep this Nursery afloat. Recent communications with RC have identified potential opportunities to franchise out this Nursery to a private contractor.

In the interim, I would love to see some creative means of raising funds and a greater contribution form the Comdts Fund. The Financial Forecast produced by the FM shows projected income exceeding expense; if all goes to plan the there should be a £14K+ surplus the next FY.

The goal is to handover the running of the Nursery to a private contractor. Planning is still in its infancy stage; i.e., it is too early to comment further on this matter.

Add CO’s personal statement here.

Signature

X LtCol DP O'Connor Commanding Officer

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Name Lt Col D O’Connor RGR

Appointment CO TSU

Date: 02 Oct 24 Internal Auditor’s/Audit Board Report

1. 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.

2. There is evidence that an Audit Board was convened for the end of year audit in accordance with SFRs Para 0510 and QRs 1975.

3. 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.

4. 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.

Comments/observations :

SOFA

1. The Fund generated £122,736.11 in charitable income and is registered with the Charities Commission.

2. The Balance BF and Balance CF does not reconcile. This will be rectified during the new FY.

3. The SOFA and the I&E consolidated report reconcile.

Balance Sheet

1. Bank balance – the current bank balance reconciles with the central bank balance.

2. 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.

3. The funds debtors total is £400. There are no aged debtors. The balance represents a petty cash float.

4. Creditors sits at £303.29. This is money owed to the Chapel that was incorrectly paid to the Nursery.

5. The purpose of the 2 x RFs are generic activities that should be settled through the GPF; i.e., the 2 x RFs should be closed immediately. If the FM wishes to ring fence funds for improvements and decorating, they may do so as deisganted funds where flexibility exist to move excess funds back into GPF at year end.

6. GPF Surplus – The balance is £28,281.00.

7. Insurance – The Fund paid £1,309.74 for insurance.

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1. Financial review. The RMAS Nursery charity’s liquidity has been a reason for concern this FY. Its main source of income comes from from Bracknell Forest Council and Nursery Fees. The Nursery’s expenses as depicted in its statement of financial affairs date 28 Mar 24 sits at £118,363.17, compared to its charitable income of £122,735.11, a mere £4,371.94 as excess of income over expenditure. This is not sufficient for a Financial reserve which should be more in the region of £20,000.00.

2. Though its total funds at year end, exceeds the total funds brought forward, it must be noted that the FY was shortened, i.e. projected expenses prior to receipt of its next grant from Bracknel council is yet to be met. Additionally, the investments were added to the accounts without the bank account being reduced. Once the investment are sold (which are likely to be sold at a lower price than its current PAXTON value of circa £15K) the funds liquidity will drop to around £12K and not te £29K that is being shown on its balance sheet.

3. Investment. Attached to the AF N1514 is a report by Station Admin Officer on RMAS’ Pool of Investments. There is historic error in accounting for investments whereby the bank account used to pay for investments was never truly reduced. The bank balance today is not correct as it reflects investments, even though investments are shown separately on the account. The sale of Nursery investments circa £15K will not increase the Fund’s bank balance for reasons mentioned.

4. Liquidity. The FM’s Financial Forecasts shows that income is due to exceed exependiture during the 2024/25 FY. A key consideration is to ensure that the timing of the incoming funds match the planned expenditure dates. In the event that funds are due to be received after planned expenditure, the FM should warn the accountant well in advance to delay payments where applicable. This will avoid the negative bank balance experienced in August 2023.

5. Service Fund Status. The Fund does not fulfil the requirements of a Service Fund in accordance to Service Funds Regulations 2022.

Recommendations

1. Closure of Fund. The Fund must close as a Service Fund and operate as a separate Charity in its own right. It should be managed by an internal audit board and not part of the Regtl accountant scheme.

2. Closure of RFs. In the event that the Fund continues under the Regtl Accounts Scheme, it RFs must be closed because their activities are for general prupose and not restricted.

Summary

This has been a turbulent year for the fund from an activities and financial standpoint. Overall, the nursery provides a priceless service to RMAS families and should continue, however, it should be managed by external providers. The FM is in commucation with RC to source a contractor to manage the Nursery. The FM does his role as one of many hats and should be applauded for his efforts in maintaining this challenging enterprise. Similar applause is due to the Regtl Acct who juggles a large workload and had to adjust to new ways of working that stretched her knowledge and capabilities.

Signature Electronically Signed

Name WO1 R Slater AGC(SPS)

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Date: 11 Apr 24

Appointment Internal Auditor

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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).

• 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*):

• a. Which gives me reasonable cause to believe that in any material respect the requirements:

• (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

Date:

Name Maj SP Adcock AGC (SPS) Appointment SO2 SPS

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