Fire Fighters Charity TRUSTEES, REPORT AND FINANCIAL STATEMENTS 31 March 2022 Company Registration Number.. 4480058 Charity Registration Number.. 1093387 Scottish Charity Registration Number= SC040096 Fire Fighters Charity CONTENTS Page Legal and Administrative Informatio Trustees, Report Independent Auditor's Report 19 Consolidated Statement of Financial Activities, incorporating an Income and Expenditure Account 22 Charity Statement of Financial Aclivilies, incorporating an Income and Expenditure Account 23 Balance Sheets 24 Consolidated Cash Flow Statement 25 Charity Cash Flow Statement 26 Accounting Policies 27 Notes to the Financial Statements 32 Fire Fighters Charity Fire Fighters Charity LEGAL AND ADMINISTRATIVE INFORMATION PATRON Her Majesty the Queen HEADQUARTERS AND REGISTERED OFFICE: FIRE FIGHTERS CHARITY Belvedere, Basing View Basingsloke, Hampshire, RG214HG Tel. 01256 366566 Fax.. 01256 366599 Web". www.firefighlerscharity.org.uk TRUSTEES: John Baines, Chair Peter Davies, Chair Ilo 17 November 20211 Paul Fuller, Chair Ito 07 June 20211 Neil Gibbins, Deputy Chair Andrew Best (resigned 17 November 20221 Chris Bilby (appointed 17 November 20221 Graham Floyd Michael Graham lappoinled 17 November 20221 Ross Haggart lappoinled 17 November 20221 Robert Andrew Hickmoti Christopher Hirst (appointed 28 June 20211 Simon Routh-Jones Steve Tolan George Wood RESIDENTIAL CENTRES: Ronnie Green Wing, Marine Court, Fitzalan Road, Littlehampton, Wesl Sussex, BN17 5NF Jubilee House, Eamonl Park, Eamonl Bridge, Penrilh, Cumbria, CA10 2BN Harcombe House, Chudleigh, Devon, TQ13 ODG RETIREMENT HOMES: Marine Court Flats, Fitzalan Road, Littlehampton, Wesl Sussex, BN17 5NF Fire Fighters Charity is a company limited by guarantee. Registered in England Number 4480058 Charity Registration No 1093387 Scottish Charity Registration No SC040096 Eamonl Park Retirement Homes, Eamont Bridge, Penr(£h, Cumbria, CA10 2BN AUDITOR: James Cowper Kreston, 2 Communications Road Greenham Business Park, Greenham, Newbury, RG19 6AB STRATEGIC LEADERSHIP TEAM: Chief Executive Jill Tolfrey INVESTMENT MANAGERS: Newton Investment Management Limited, 160 Queen Victoria Street, London, EC4V 4LA Finance Director Martin Smith BANKERS: Barclays Bank PLC, 4th Floor, Apex Plaza, Forbury Road, Reading, RG1 1AX Director of Oryanisational Development & Corporate Governance Christine Goonan CUSTODIANS: Bank of New York, 1 Canada Square, London, E14 SAL Director of Beneficiary Services Sharon Bailey Director of Engagement & Fundraising Ruth Powell Company Secretary Christine Goonan Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT The Trustees are pleased to submit their Annual Report and audited financial statements for the year ended 31 March 2022. Note.. The Trustees are also the registered Directors of the charitable company. Structure and Governance Legal and Administrative Information Legal and administrative contact information is given on page 2. Legal Status Fire Fighters Charity Iknown as 'the Fire Fighters Charity") is a company limited by guarantee and a registered Charity, incorporated in England. The guarantee requires each member to contribute an amount not exceeding £1 in the event of the Charity being wound up. The Charity is governed by ils Articles of Association dated 8 November 2018. Charitable Aims, Public Benefit and Provision of Services The Trustees have carefully considered the Aims of the Charity and how it measures up lo the Public Benefit test. The Charity provides a range of services to the Fire servI￿s Community and the Trustees are satisfied that there are identifiable benefits that meet the Public Benefit Summary Guidance from the Charity Commission. The Fire Fighters Charity is a national Charity providing assislan¢e lo serving and retired members of the fire and res¢ue service community, including eligible dependants. The Charity works lo enhan qualtty of life and make a positive difference to the lives of beneficiaries. The Charity supports ils beneficiaries through digital, online, telephone, community based and residential services. Support is personalised to meet the beneficiary's unique mental health, physical health and social needs and is accessed through a confidential helpline on a self-referral basis. Once beneficiaries lor their advocates) have contacted the Charity, practitioners will take the time to understsnd their needs and explore with them what support and solutions may be appropriate to address their needs. Trustee Board defined criteria are in place for all the Charity's beneficiary services to ensure there is equity in a0￿$$ lo the provision of services and charitable funds are used where there is an identified need. The Charity s services are articulated in a Board approved service delivery document and all service delivery is underpinned by a Clinical and Social Care Governance framework ensuring continuous improvement and high standards of care are maintained. Systems and processes underpin the wider clinical and social care governance framework lo ensure quality in service provision All services, and research activity are organised around a single definition of quality.. That the Charity provides.. Support that is effective, is safe and gives as positive an experience as possible by being caring, responsive and personalised. Our services are well-led, sustainable, and equitsble, and achieved through working together and in partnership with our beneficiaries. The support provided lo beneficiaries by the Charity is free of charge for identified need. This enables access lo services for all beneficiaries, irrespective of financial circumstances. Financial support to access the mainland for residential services can be provided lo beneficiaries who reside on the UK islands. Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT Trustees receive data and research, against which the effectiveness of Servi￿ provision can be measured land lo identify where future service development may be requiredl- itallonlinerrele hone Su ort The Charity provides digital support using a variety of Apps and a secure remote consultation platform that allows confidential consullalion and the provision of physiotherapy and exercise therapy in support of primarily physic81 problems. Alongside this the Charity provides direct online and telephone counselling for those beneficiaries needing mental health support as well as purchasing quality assured mental health support from external sources, providing easier 8ccess lo support for beneficiaries in 'harder lo re8ch' groups. Residential Services The Charity has three residential cenlres which offer a range of activities and programmes of support led by a multi professional team which includes Chartered Physiotherapists, Exercise Therapists and Psychological Therapists. Residential support is available for beneficiaries following injury or illness, for those with poor mental health, and those who present with long term and degenerative conditions. 11 is also available for those who simply need the opportunity to lake 'time out,. Facilities within each Centre include a gymnasium I fitness room, leisure pool and hydrotherapy pool. Residential stays are short term and on average beneficiaries spend 4-7 days al a Cenlre, however there is some flexibility in the length of a slay depending on individual need. Residential support is underpinned by a philosophy of recovery and is tailored lo meet the needs of the individual with the multi professional team working in partnership with beneficiaries to identify solutions to meet their mental health, physical health, and social wellbeing needs. Beneficiaries may engage in different levels of activity, ranging from a residential slay that focuses on rest and relaxation to participation in a programme of structured activity. Health and wellness coaching is embedded wrthin the support provided at the Cenlres, providing beneficiaries with up-to-date, evidence based information to enable them to make informed choices around their wellbeing. Residential support may be 'front- ended, with digital support which may also be in place to support sustained change following a residential slay. Admission criteria support decision making regarding access to the most appropriate support. All support provided by the multi professional team is evidence based and adheres lo best practice. Nursing services are available at Jubilee House for beneficiaries with more complex needs who may require nursing or personal care. The Charity's nursing services are regulated by the Care Quality Commission and delivered by 8 team of Registered Nurses and Clinical Assislanls. A Nursing Services Lead (Registered Manager) oversees the delivery of this service. The Charity also offers slruclured family support programmes at Harcombe House al specific limes during the year (school holidays). These programmes support the family unit to manage challenges they are facing in life and provide families with the opportunity lo relax, enjoy quality family lime and meet other families who experience similar challenges. A range of appropriate activities is also available as part ofthese programmes, seeking to encourage greater social interaction, communication, increased confidence and improve wellbeing. Communi Based Su ort The Charity recognises that some beneficiaries may require support al home or when accessing services in their local communities. A small team of Welfare Caseworkers offer confidential, impartial advice and information on a wide range of issues that affect and impact upon everyday life. The team will carry out face to face and telephone assessments lo identify solutions to meet individual need. Home visits are carried out where required by Welfare Caseworkers or approved volunteers. Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT Needs are assessed within a structured framework and against financial criteria. Slatulory entitlements are fully considered and match funding opportunities with other organisalions explored. Solutions Can include the provision of equipment, assistance with home adaptations, or financial solutions to relieve crisis such as food poverty. Solutions provided through the Welfare Service are largely short term., long term support is only provided in exceptional circumstances and is subject to annual review. Where appropriate, beneficiaries are signposted on lo external organisations. Where appropriate heamh and wellbeing SLJPPOrt can be offered remotely. This support is personalised to meet an individual's need and may include telephone advice or consultation through video conferencing, signposting, or support lo access local community groups or health I soci81 care services. The Charity also tuns 'Living Well Groups,. These volunteer delivered groups focus on providing a longer term and sustainable way of keeping in touch post retirement. ort Provided Directl to Fire and Rescue Services Acknowledging the power of prevention and with the focus on improving the population health of our community, the Charity also provides wellness and behaviour change coaching direct to members of the UK Fire and Rescue Services IUKFRSI, through both digitsl and face lo face delivery, supporting members of the workforce lo engage in healthy behaviours to support mental, physical, and social health and wellbeing. Trustee Recruitment, Appointment and Training The Charity advertises the role of Trustee on a national basis with Trustees appointed in line with the Articles of Association, role description and person specification. There are Board approved procedures for the recruitment, selection and induction of Trustees. The process of appointment of a new Trustee includes reviewing our skills audit to determine skills gaps within the Board of Trustees which Informs the skills to be recruited, advertising the vacancy, issuing information and application docLJments, ascertaining a shortlisl of applicants by Ljsing criteria based on the role requirements and interview by a panel including either the Chair or the Deputy Chair of the Board of Trustees, one other Trustee and two Company Members. The recruitment and selection procedure are regularly reviewed lo enhance transparency and consistency, to meet legal requirements, and to ensure effective assessment of the skills required. New Trustees are given an induction progr8mme. Where a vacancy occurs outside of the annual recrurfcment process, Trustees may appoint to the vacancy until the next Annual General Meeting. Ongoing training of Trustees is determined by the Board and individual Trustee needs assessments. All Trustees give their time voluntarily and receive no financial benefits from the Charity. Any expenses reclaimed are in line with Board approved policies and are sel out in note 7 to the accounts. ststement of Trustees. Responsibilities The Trustees (who are also directors of the Fire Fighters Charity for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the Trustees lo prepare financial statements for each financial year, which give a true and fair view of the stale of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to.. select suitable acwunting policies and then apply them consislenlly observe the methods and principles in the Charities Statement of Recommended Practice ISORPI Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT make judgements and eslimales that are reasonable and prudent slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements prepare the financial statements on the going concem basis unless il is inappropriate lo presume that the charitable company will continue in business. The Trustees 8re responsible for keeping proper accounting records that disclose with reasonable accuracy al any lime the financial position of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006 and the Charities and Trustee Investment (Scollandl Act 2005 and the Charities Accounts Iscotlandl Regulations 2006 las amended). They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other itregularities. Provision of Information to the Auditor The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees has confirmed that they have taken all the steps that they ought to have taken as a Trustee lo make him or herself aware of any relevant audit information and to establish that il has been communicated to the auditor. Charity and Organisational Structure 11 was with great sadness that we reported the death of Paul Fuller, Chair of The Trustee Board, on 7th June 2021. Following this the Board of Trustees appointed Peter Davies as Chair for the period up to and including the AGM on 18th November 2021, at which point John Baines was appointed. Fire Fighters Charity is a Company limited by guarantee and is a Charity registered in England, Wales, and Scotland. We are govemed by our Articles of Association which were last reviewed in 2018. The Articles permit up to 48 Company Members to be appointed from those who have a direct association with the fire services communtty. Trustees are also Company Members and are in addition to the 48 Company Members appointed from the fire services community. Our Company Members elect our Board of TrLJStees at our AnnLJal General Meeting. Our Trustees are also the legal directors of the company. Our Trustee Board consists of l)etween 8 and 12 individuals, the majority of whom have a direct association with the fire services community. One quarter retire al each AGM and are eligible for re- election until they have served a maximum of 8 years, in all bul exceptional cases. The Board of Trustees mel 4 limes for scheduled meetings in 2021-22. In addition, lo support effective governance and our work, 4 Board sub commillees, with the remit of Beneficiary Services, Finance and Audit, Staff and Governance, and Engagement and Fundraising operated during the year within a documented framework which includes where a devolved decision can be made. A Company Member participated in all four of the Board sub commillees. The Board of Trustees has control over the Charity and ils property and funds. It directs the Charity's operations and ensures compliance with our Articles of Association. Trustees agree and regularly review plans for achieving the Charity's aims and the finances needed to support them. Trustees appoint a Chief Executive who has full authority for the implemenlalion of approved strategic plans and the daily running of the Charity. The daily operations are run with four Directors, responsible for Finance, Engagement & Fundraising, Beneficiary SerVI￿s and Organisalional Development and Corporate Governance. Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT The Charity wholly owns two subsidiary companies., Fire Fighters Trading Limited which provides trading and commercial services - and FSNBF Limited, a dormant company. The accounts of Fire Fighters Trading Limited are consolidated with the Charity within the Group financial statements. An annual pay review is conducted for all employees that considers inflation, external benchmarking data and affordability. The results of the review are considered by the Staff and Govemance Committee and a recommendation made to the Board of TrLJStees. The Chief Executive's salary is decided by the Trustee Board prior to a vacancy being advertised and thereafter awarded any increase given to all employees. In addition, the salary is reviewed annually by the Chair of the Trustee Board. A decision lo increase the Chief Executive's salary, other than an increase awarded to all employees, must be recommended by the Chair and then approved by the Staff and Govern8nce sub-committee, in order for the increase to be implemented. Any changes lo the management structure al the level reporting directly to the Chief Executive requires the consideration and approval of the Staff and Governance sub-committee. Charity Staff The Trustees pla￿ on record their grateful thanks lo all the staff of the Charity. In particular, the Trustees wish lo thank them for their devotion lo their roles that ultimately exist to assist beneficiaries, and for their understanding as the Charity responded lo the challenges of the Covid 19 pandemic. Volunteers The Charity's activities are supported by a large number of willing and enthusiastic volunteers who do so much, often behind the scenes, to help the Charity and ils beneficiaries. While there is no mechanism available to formally calculate the value of their contribution il is undoubtedly of great value to the Charity. The Charity's Trustees wish to record their gratitude and admiration for this effort, most especially their ongoing commitment and support during the Covid 19 pandemic. Strate icRe ort Activities and Performance Objectives The Charity's primary role continues to be support for those in need in the fire seNice community. This includes service personnel, former seNice personnel, works firefighters, fomier works firefighters, volunteers in a Fire and Rescue service, current and former Charity employees, personnel in Fire Services Youth Schemes and any dependanl of any of these categories Iwilh the exception of volunteers in a Fire and Rescue service). Within the Articles of Association, the Trustees are given the powers to deposit or invest the monies of the Charity not immediately required for its operations, in any manner as may be thought fil. The Trustees may also delegate the management of investments lo a financial expert. At the Fire Fighters Charity, our vision is to be known as the UK fire service community's go lo provider of mental, physical, and social health support. Recognised for our caring, professional, and proactive approaches, we will deliver proven interventions through innovative means. Blending face-to-face expertise with digital, community and workplace based servI￿s, we will help the entire fire service community lo live more healthily and seek lo deliver personalised support to thousands and reach every corner of the UK. Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT Our strategic plan for 2020-2110 2024-25 includes four portfolios of work, each of which Contain several projects that will shape and define the way we work and operate over the years to come. The objectives of these portfolios and projects are focused on these two core principles.. To expand our reach.. We should be a charity for every member of the fire services community, regardless of where they live or the circumstances in which they find themselves. The support we offer should therefore be accessible to all, so this plan sets OLJt how we will remove barriers and provide services that can include all members of our community. To deliver more health and wellbeing services to more people.. Before this plan, we supported around 5,000 people a ye8r, but we want to reach many more. Through investment in innovative new digi181 technologies,. the development of community-based ini118tives., the dissemination of health and wellbeing content and resources,. close partnership working with fire and rescue services and organisalions which complement our work,. and major campaigns to raise awareness of who we are, what we do and how we can help, we are confident that we can transform our Charity into the nationwide provider of health and wellbeing support lo the fire services community. 11 is our aspiration that the Charity becomes an integral part of the lives of our beneficiaries - that third space - home - work Charity. That through our work beneficiaries feel an emotional connection with the Charity and that we sustain a lifetime of connection and support with our beneficiaries. Infomi and Prevent Through the Inform and Prevent Portfolio and its associated projects we will inform our beneficiaries about health matters, equipping them with the skills, knowledge, and Confiden￿ lo maintain and improve their mental, physical and social health and wellbeing. By providing timely, relevant information for our beneficiaries we will help prevent the impact of many common health risks and conditions. By 2025 we will be measuring how beneficiaries have engaged with the information and resour￿$ we have provided and be able lo evidence how this has empowered them lo make positive changes in their health behaviours. see the fire and rescue services regularly using us as a provider to support and deliver positive health and wellbeing messages and activities lo engaged personnel. be a research-led organisalion with our service delivery influenced and evidenced by research rindings. Respond and RoCQVgr Through the Respond and Recover Portfolio and its associated projects we will utilise a blend of digital, community and residential services to more effectively respond to beneficiaries who reach out for support. Earlier and easier access to expert help will provide faster outcomes for beneficiaries to recover and continued support will encourage sustained health and wellbeing. By 2025 we will be delivering high quality digital, community and residential services that are timely, responsive and tailored lo meet beneficiary need. be able to evidence how our digitsl, community and residential services have improved recovery, enhanced lives and empowered beneficiaries lo make positive changes in their health behaviours. Engage and Grow Through the Engage and Grow Portfolio and its associated projects we will engage and build stronger bonds with a growing number of beneficiaries and supporters, increase awareness amongst the fire Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT services community and invest in lifelong associations. We will diversify and grow our income lo provide the additional funds ne￿$SarY to achieve our plan. By 2025 we will see increased service usage, directly attributable lo higher levels of awareness and engagement with the workforce, with those who are retired and with families in our commLJnily. know that our supporters and beneficiaries have become more engaged year on year, through evidence inclLJding an annual Supporter Engagement Survey. have inspired funders with our new model of health and wellbeing provision resulting in increasing levels of income annually, from a significantly expanded supporter base, new activity and high value, multi-year partnerships. Enhance, Enable and Empower Through the Enhance, Enable and Empower Portfolio and ils associated projects we will develop our culture, enhance OLJr processes, technology, and facilities, and further enable and empower our people to drive us forward. By 2025 we will be an inclusive, connected and engaged organisalion where positive values and behaviours are demonstrated. have the people, skills and processes lo successfully deliver our strategy. have developed our facilities lo support our strategic aspirations. have the systems and tools we need to enable collaboration, insight and dala-driven decision making. Measuring Success 2021-22 was the second year of our five-year plan and followed what was a very challenging first year, a year seriously disrLJPted by the impact of the coronavirus global pandemic, which affeeled everybody, changing how people lived and worked. Covid 19 did provide further evidence of our need to adapt, validating the aims of the plan. The need to be able to reach more of our beneficiaries and in more ways had become critical and despite these challenges the Charity and its employees adapted incredibly well and achieved great success in supporting beneficiaries. Year two looked to build on this success, with further development of new ways of working, new service, the re- establishment of residential services and re-start of full fundraising activities which had been forced to stop during the pandemic. The outcomes achieved in 2021122 are outlined below. 21122 Priorities Target Outcome Provision of a broad range of dynamic health & wellbeing content and campaigns that are being engaged with by an increasing number of beneficiaries. Actual Outcome A wide range of quality assured content is available as narrative, video and webinar on the website, and social media channels. MYFFC the Charity hea￿h and wellbeing portal is live with some 5000 people registered. Two health awareness campaigns have been delivered. Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT Becoming more Closely aligned with our Fire and Rescue Service partners to aid more proactive support al the earliest opportunrty. We are engaged with approximately 30,10 of UKFRS in the development or delivery of health and wellbeing coaching direct to some 400 members of the workforce. Working closely with NFCC HWB Board to scope Covid impad on workforce and develop integrated rehabilitation provision There is an active engagement campaign to promote available services. Delivering improved outcomes and impact from starting to wrap digital interactions around our residential provision. Beneficiaries are receiving a blended approach appropriate to need this included digitsl support prior tolinstead oflfollowing residenti81 support. Data collection underpinning reporting and insight w(£h regard outcomes is Other Progress by Porttolio Infomi and Prevent The essence of Inform and Prevent is the aclivalion of our beneficiaries to engage with health and wellbeing knowledge and understanding for the prevention of poor health. With a focus on our different audiences, workfor￿, family and retired nuanced resources and services continue to be developed. Work continues on the development and launch of a wellbeing platform within MYFFC that will deliver mental heahh online courses and other resources. The introduction of externally provided mental he811h support programmes has enabled increased access for harder lo reach groups. Work is also ongoing regarding engagement with all UKFRS in the provision of wellness coaching. An e-learning module on the understanding research has been developed and been made available to employees and the research programme, underpinned by the agreed research strategy, continues to provide evidence upon which services are designed and delivered. Respond and Recover Beneficiaries contacting the Charity for support now speak directly to an Assessment Practitioner who facilitates a Conversation about need and works with the beneficiary lo identify the most appropriate route for support. Residential services have been successfully re-introduced to the Charity's portfolio of services and, where appropriate, inlegraled with digital support pathways to meet beneficiary need. Proactive wellbeing programmes have been developed and implemented. In support of our beneficiaries the Covid Recovery Programme has been developed to support those affected by the long-term impact of Covid 19. The programme has been well received and positively evaluated. Alongside this, opportunities have been provided for a 'posl pandemic recuperative break, for beneficiaries in recognition of the impact of the pandemic on the FRS workforce. To further increase access to support an out-patients physiotherapy service has been set up from our cenlres, providing support for those within easy travel distance. Fire Fighters Charity 10 Fire Fighters Charity TRUSTEES, REPORT In support of our family audience the Child and Family Programme has been reviewed and continues to offer a well-received and very positive experien￿ for the whole family. We continue to promote our Living Well GroLJPS, encouraging our retired community to meet up and reduce the impact of social isolation. These have now retumed to face-to-face meetings following lifting of Covid restrictions. Engage and Grow We have further developed our online community functionality, and this is providing a more enhanced and personalised service support interface for beneficiaries and there is a gradual increase in the number of active community users. We are increasingly able lo derive insights on users, engagement with their health & wellbeing and this will help shape future provision. There is increased engagement al a strategic level in the UKFRS alongside attendance at national events at which the Charity is the Charity of choice. There is progress with corporate engagement and support, resulting in income or pro bono support fo¥ further developments. Opportunities for growing income are continually pursued with the development of a high net worth pipeline and legacy programme alongside this we continue to seek easier ways for donations lo be gathered through conladless, QR codes and other forms of payment. Our focus remains in the development of a lifetime association with the Charity across all aspects of supporter, donor, or service user, linking the workforce, family, and retired communities within this single space. Enhance, Enable and Empower This porffolio focusses on the infrastructLJre reqLJired for the Charity to achieve ils stated goals. The transition back lo the workplace has been completed and our desired culture, values and associated behaviours have been determined and engagement measures demonstrate 8 Posltive improvement. Our vision for organisalional inclusion has been developed, the required change identified, and inclusion activities are underw8y. The development of our IT infraslruclure is ongoing, we are embedding the new infrastructure, testing both resilience and flexibilfly. Continuous improvement projects have been embedded and there is a review of user hardware needs, a developing upgrade plan which will also include enhancing our internel and Wi-Fi capability to match our changing business need. Alongside this there is a robust employee learning, skills development, and support programme. Fire Fighters Charity Fire Fighters Charity TRUSTEES, REPORT Financial Review The consolidated accounts for the year are set out on pages 22 to 48 and should be read in conjunction with this section of the Trustees, report. A summary of the financial results and the work of the Charity are sel out below. The net movement in funds for the year amounted lo £884,374. This is represented by.. Incoming resources Resources expended Net outgoing resources 9,561,165 9 838 926 (277,7611 Gain on investment assets Actuarial gain on defined benefit pension scheme 1,119,135 884 374 Capital Expenditure The investment in capital expenditure during the year amounted lo £121,365. Incoming Resources Overall, 2021-22 was a posrfcive year for income, with total incoming resources recovery well from the challenges faced in 2020121. In total £9,561,165 of income was generated, an increase of £1,288,807 on the £8,272,358 raised in 2020-21. The impact of Covid 19 was much less in 2021-22, and as a result the income generated activities which had been most affected by the Government reslriclions, started to recover. For example, Corporate and other donations, which had fallen by £1.1 m in 2020-21, increased by £0.7m this year to £2m. Legacy income, which was also down last year, increased by £0.6m, in some part due to delays in processing the estates of those who had died during the pandemic., with income of £1.2m being £0.4m greater than the amount achieved two years prior in 2019-20. Committed giving continued to grow steadily, primarily through the recruitment of new lottery players. In total income from Regular Giving and Lottery increased to £4.1m, up from £4.Om in 2020-21. The recovery of Corporate and other donations and Legacy income helped to off-set the reduction in funding this year from the Government Coronavirus Job Retention Scheme. With activities returning to normal only £67k of grants were claimed from this scheme in 2021-22, compared with £1.1 m during 2020-21., this income is included within Grants. Recycling income, which is included in Trading income, was also negatively impacted in 2020-21, with income falling by £0.2m, as was Centre generated income due lo the centres being closed for most of the year. Both these activities recovered well during 2021-22 conlribuling to an increase in income of £0.9m and a total for the year of £1.5m While the recovery of income in 2021-22 is very positive, the most significant impact of the pandemic over the first two years of the strategic plan is a delay in achieving the targeted growth in sustainable income. Plans for the remaining three years of the plan will need lo be adjusted lo help miligale this. ReSoUr￿S Expended Total expenditure for the year was £9,838,926 compared with £8,743,323 for the year before, a £1.1 m or 12.5'1o increase, a result which is comparable to expenditure levels before Covid. The re-opening of our centres contributed to most of this increase with increased costs associated with delivering services and generating trading income. The recovery of event fundraising and the Fire Fighters Charity 12 Fire Fighters Charity TRUSTEES, REPORT investment in signing up new Lollery players were also a factor. There were also new funds spent on expanding our mental health SLJPPOrt and furthering our strategic aspirations for beneficiary services. Looking forward, expenditure is set to grow significantly in this area in 2022-23 and beyond. Investments The value of investments held at 31 March 2022 was £17,021,539. In addrf(ion, cash balances of £2,488,377 were held lo support normal cash flow requirements and planned cash outflows. Investments are made up of investment property and investment funds The investment property relates to 10 flats contained within the Marine Court complex in Littlehamplon, these were reclassified as investment property due to no longer being needed for charitable activities. These properties are commercially let outside of the Charitys beneficiary base. During the year to 31 March 2022 the properties were professionally valued al £21 Ok each, an increase of £35k each since the previous formal valuation in 2018. The total value of investment property at 31 March 2022 has increased by £350k lo £2,100,000. Investment funds achieved unrealised gains of £1,119k during the year, resu￿Ing in the total value of investments funds as of 31 March being £17,022k. The total return of the investment fund for the year was 7.9°/o compared with a benchmark of 9.3°/o, taking into account the 20121 results where returns were 32.3P/o versus a benchmark of 23.4Q/o, the fund has performed well. The investment fund is focused on total return and growth. Income received from listed investments was £401 k. The fund incurs a management charge of 0.65 /0, this equated lo approximately £97k in 2021-221£86k 2020-211. The investment policy communicated to our investment managers remained unchanged from the previous year and focused on providing revenue for current operations and enhancing capital growth and income over the longer term, thereby enabling the Charity to meet current and fulLJre objectives in accordance with the objects of the Charity. The funds are invested in a Socially Responsible Investment Fund managed by the Charity's investment managers in accordance with the Charity's ethical policy. Our Approach to Fundraising The Fire Fighters Charity sets out to fundraise in an open, honest, and respectful manner. We use multiple channels to fundraise from various audiences. When developing our fundraising campaigns, we assess the impact our fundraising could have on an individual and take actions to mitigate any neg81ive impact. When running fundraising camp8igns, we welcome feedback and use this lo help shape future fundraising campaigns. We always Ireal donor data responsibly and are compliant with all UK data protection laws. Our privacy policy is published on our website and gives details of the information we hold and how and why we process it. We are registered with the Fundraising Regulator. When fundraising, the Charity adheres lo the Code of Fundraising Practice as set by The Fundraising Regulator. For our lollery and raffles, we are also licensed by the Gambling Commission. We routinely monitor and review our fundraising activities to ensure that we comply with regulations. Our fundraising team managers regularly monitor and review performance by allending our fundraising events and talks, providing feedback lo our fundraisers. For the 2021-22 business year, when conducting telephone fundraising the majority of calls were recorded and where they were, a sample of calls for each campaign were listened to. For our external face to face lollery agency, we make welcome calls to new supporters, have regular catch ups with team leaders and their managers, as well monitoring all feedback from donors about their experience. In respect of complying with the Code of Fundraising Practice, we have had no adjudications and have had no Signifi￿nt failures. We record and investigate all fundraising complaints received and use this information to inform our fundraising strategy. For the financial year 21-22 we received 28 complaints related to our fundraising activity compared to 21 the previous year.11 should be noted that allhoLJgh this is a rise on the previous Fire Fighters Charity 13 Fire Fighters Charity TRUSTEES, REPORT year the number of fundraising activities and interactions was significantly higher in 2021-22 compared to the pandemic year 2020-21. We ensure that our fundraisers follow the Fundraising R￿LjIa10r'S policy on vulnerable people. We listen lo our donors and lake on board their feedback and change our behaviour accordingly. For example, we do not use telephone fundraising after 8pm as our supporters told LJS that they did not want lo be called after this lime. We also work in line with the best practice guidance from Institute of Fundraising, documented in their Guide 'Trealing donors fairly fundraising with people in vulnerable circumstances" When working with an external agency we ensure th81 they have a vulnerable person policy in place and do not work with agencies that do not have this. For our lottery and raffles, we 81so have a Social Responsibility Policy which is published on our website. All fundraisers (internal and extemall have 8 training session to understand this policy before they promote our lottery, and they have regular refresher sessions. Wilhoul the generous support of donors, the Charity could not provide the mental, physical, and social support lo thousands of beneficiaries every year. We will therefore always sel out lo fundraise in an open, honest, and respectful manner. Fire Fighters Trading Limited Following a difficult 2020121, where the negative impact of the global coronavirus pandemic (Covid 191 had resulted in a 48 /0 fall in profits, by conlrasl 2021122, which had been targeted lo still fall short of the £822k profit achieved in 2019120, exceeded all expectations by breaking the £1 m profit barrier, enabling a proposed donation lo the Fire Fighters Charity of £1,029k. Recycling activities began the year on a redU￿d pri￿ per lonne, reflecting the negative impact of Covid on the recyding Industry. However, during the yearthe pri￿ was able to return lo pr&covid levels. Despite achieving a lower average price per tonne across the year, the volume of recycling donations grew considerably and so despite not earning the full pri￿ for much of the year, total income was £799k. £155k higher than the pre-covid income achieved in 2019120. Unlike in 2020121, changes to the Covid related Government restrictions and guidance allowed the centres to be opèn for much of the year. This increased the opportunity lo generate income again from these resources. In lolal £501 k of income was achieved, mostly from rental income. This amount of income was comparable lo the levels achieved pre-covid. Merchandise activities were dosed in the first quarter of 2020121 bul had been open as normal since then. Progress has bèen made this year to both increase sales and profitability. Income for the year increased to £206k from £138k, when adjusting for the number of months trading in each business year, this would equate lo a 120/0 growth in income. Achieving a profil of more than £1 m is a very satisfying result, achieved from continued growth in recycling coupled wf(h other income generating activities returning to pre-covid levels. Looking forward, all three of these activities have the potential lo grow further and 22123 is targeted with increasing prorrt by a further 140/0. Reserves Policy The reserves policy aims lo ensure that where setbacks occur, the Charity holds sufficient reserves lo ensure the conlinuily of servi￿$ to beneficiaries. It also, where opportunities exist, allows the board lo identify and allocate additional reserves lo support rts strategic direction. 11 does this in the following way.. The tangible fixed assets, which are used lo achieve the goals of the charity, plus the investment properties that are held for income generation purposes, are designated lo recognise that these fLJnds are not freely or easily available for any other purpose. Fire Fighters Charity 14 Fire Fighters Charity TRUSTEES, REPORT To enable the Charity lo maintain services to beneficiaries the board have identified that an amount equivalent to between 9 and 12 months of normal operating expenditure will be held as free reserves to protect against any Ljnforeseen loss of income or increase in costs, this reserves also ensure that Trustees can allocate additional appropriate funds when needed lo support urgent beneficiary need. Alongside this, the board will continually review the total amount of available reserves and wherever possible look to provide additional designated funds lo further support the implementation of current and future strategic plans. When needed, il will also take appropriate and timely action lo manage any risks 8SSOCl8ted with 8ny shortf811 in funds compared with the minimum targeted level of free reserves. To support the ambitious aims of the strategic plan the board have designated £4.6m to the strategic fund, this allows the management team to confidently progress with plans to deliver the outcomes targeted over the next three years. With the sc8le of both the breadth of support provided and the number of benefici8ries supported increasing, annual expenditure is projected to increase loo. Al present the level of free reserves is equivalent to 12 months planned expenditure for 22123, which is in line with the higher end of the free reserves target sel by the policy. With annual expenditure largeled lo rise in the coming years il is important that an amount equivalent lo the higher level is held now, this enables expenditure levels lo increase while remaining within the boundaries sel by this policy. Projected income and expenditure for the final year of the current plan indicate that further strategic plan funds are likely lo be needed beyond the time frame of this plan to support planned increased running costs, this is because il is expected that the required growth in sustainable annual income will tske longer lo achieve. Al 31 March 2022 the reserves tolalled £34,697,301. This is represented by.. Restricted Funds Designated Funds General Funds 236,517 £ 20,540,754 £ 13,920,031 £ 34,697,302 As al 31 March 2022 the Charfcy has a defined benefit pension scheme surplus of £487,000. These funds are allocated lo general funds. Risk Management There is a Board approved Operating PrO￿dUre for Risk Management. Processes are in place lo enable Trustees to examine major strategic and operational risks. Risk Management is part of the working lives of staff and volunteers and is an integral part of performan￿ management. Risk assessment has been introduced as part of many policies and procedures. Strategic risk registers are reviewed by the Finance and Audit Committee al each meeting and the full board annually. The Trustees confirm that the major risks that they have identified lo which the Charity is exposed have been reviewed, and systems and procedures have been established lo manage those risks. The current strategic risks identified include the challenge to secure new funds from fire service, public and corporate donors lo deliver our strategic plan, whether our engagement with our beneficiary population will be sufficient andlor effective enough, that we fail lo provide easily accessible support for all our beneficiary population, that our ¢enlres do not fully utilise the resources provided and that we do not achieve sufficient credibility to be the lead provider of health and wellbeing support for our beneficiary population. Safeguarding We will not tolerate the abuse of adults in any of its forms and we are commilled to safeguarding adults with care and support needs and ensuring that all our services are delivered within a safe and effective framework. Fire Fighters Charity 15 Fire Fighters Charity TRUSTEES, REPORT We respect the rights of all service users lo live their chosen life with privacy, dignity, independence, choice and fulfilmenl. Responsibility for working prevenlalively, safeguarding and protecting service users, privacy, dignity and respect does not lie with one individual or groLJP but with all our employees at every level. Safeguarding and respect are not additional elements of our service I care provision, but integral lo the delivery of high-quality and safe and effective services. We are committed to working collaboratively and in partnership with other agencies to ensure service users access their human right to live a life that is free from harm, neglect and exploitation. Environmental Statement We lake our impact on the environment seriously and along with some recent specific activities we have a number of solar panels in each of our three centres which have generated approximately $60,000 Kwh since inslallalion in November 2014. We work closely with our suppliers in relation lo their environmental impact on the production and transport of products. When considering new procurement, environmental slalus and accreditation are considered, for existing suppliers we work with them lo help reduce carbon footprint costs associated with Iransportalion through effective purchasing. We also work with our suppliers lo identify potential changes in the products we purchase which will help to reduce chemicals that we use. We have developed close links with the Environment Agency al both Harcombe House in Devon and Jubilee House in Cumbria. Both properties have either a river running through the land or bordering it. Al Jubilee House our teams worked closely with the Environmental Agency following flooding in 2016. The property now has a high specification flood defence system and further work continues with the Environment Agency on their proposals for the weir on the River Eamonl which borders our property. introduce more natural solutions. Our 300-acre sile at Harcombe House in Devon uses re-claimed rainwater for much of the maintenance required to keep the grounds in a well-kept slate. In addition, petrol vehicles used around the grounds have been changed for electric powered buggies. The site also works closely with the RSPCA to monitor and care for the wildlife in the grounds, ensuring that they have suitable surroundings to thrive. We have also developed links with the Forestry Commission, whose land borders ours, to ensure the acres of wo(Idland that covers both properties are well maintained and safe and promote the growth of wildflowers across both areas. We offer our employees flexible working arrangements where possible, and meetings are held via video conferencing where appropriate,. one benefit of both is the reduction of travel. All our sites recycle, and we encourage our guests to consider recycling by providing collection facilities for different waste products. 82.20/0 of our waste generated al our centres last year was diverted from landfill and recycled. The first stage of the Environmental Management System IEMS} has been implemented, measuring the impact the charity has on the environment through a critical impact register. During this year we were able lo make a reduction in this impact score of 9.7Q/o. We have implemented a very SUC￿8sful clothing recycling scheme across the UK, helping to reduce the amount of material that goes lo landfill while at the same lo generating valuable income for the Charity. Since 2009 the campaign has recycled over 30,000 tonnes of clothing, generating over £5M of income for the Charity. From October 2021, loo,￿ of our electricity was provided from renewable sources in through green energy purchasing. Our centres produce our own electricity via our solar panels which is utilised and also sold to the national grid. Our natural gas used by the charity is now also carbon neutral as we continue to source this via a carbon offset supplier and accredited Unrf(ed Nations CERS (Carbon Emission Reductions) scheme Fire Fighters Charity 16 Fire Fighters Charity TRUSTEES, REPORT which aims to help reduce and prevent carbon dioxide emissions through projects in developing countries under its Clean Development Mechanism. In the coming year we intend to expand the environmental impact register to measure our impact across the wider charity activities that lake place outside of our properties. We also are investigating longer term Environmental impact opportunities such as centre based renewable energy options, alternative heal SOLJrces for properties and the inslallalion electric vehicle charging points al our centres to enable both employees and beneficiaries have the option to reduce their individual impact on the Environment when travelling to and from our properties. We are investing in Environmental training and during the next year members of our Estates and Facilities team will undertake the NEBOSH Environmental Management Certificate qualification. We will also be rolling out"Environmental Awareness. lo the organisation Going Concern Covid 19 resulted in the Charity's rehabilitation centres and head office being closed for most of the 2020121. It also caused the cancellation of fundraising events and aclivilies. 2021122 was less affected with a gradual return towards pre-covid levels of activity. While the pandemic impacted the Charity's ability lo support beneficiaries, the financial impact on the two years was modest, this was due to a reduction in running costs and government support for wages through the job retention scheme. The Charity was able to make progress with implementing the new strategic plan, with the development of new digital solutions helping lo mitigate some of the challenges of the pandemic. These planned strategic investments also contributed to the losses made in both years. The Charity's ability lo progress with the strategic aims during these challenging limes was due lo the strength of reserves held which enabled the Trustees to designate reserves to mitigate the impact of a reduction in income as well as reserves lo support the objectives of the &year strategic plan. As al the 31 March 2022 less than £0.8m of reserves had been used lo support losses during this period. This has allowed the board to allocate additional funds lo support years 3 to 5 of the plan. In addition to these designated funds the reserves policy requirement lo hold between nine and twelve months of expenditure has also been met. The ability lo continLJe to fund strategic plans during a global crisis while operating within the framework of the reserves policy demonslrales the Charity s ability to continue as a going concern. Future Plans 2022-23 will be the third year of our ambitious 5-year Strategic Plan and despite the external challenges faced in the first two years, we look forward to building on our success in the year ahead holding to the vision that our beneficiaries will see us that 'third space, be that virtual or physical a place of community and connection that enables them to mobilize around their health and wellbeing. In line with the plan, we will further enhance our support lo the workfor￿, our families, and the retired community, increasing the number of individuals that we help lo 8,000. We will do this through the implementation of several projects within each of the four portfolios outlined in this report, collectively enabling us work towards achieve our aims by 2025. With a drive for activation of people lo engage with prevention, and a philosophy of recovery underpinning our critical response work our key outcomes for the next ￿e1ve months include.. Driving forward our wellness coaching and learning opportunities Expanding our reach to more beneficiaries and making access to support easier Increasing our critical response provision, particularly in response to mental health Developing our volunteering opportunities Fire Fighters Charity 17 Fire Fighters Charity TRUSTEES, REPORT Auditors A resolution to reappoint James Cowper Kreston, Chartered Accountants as auditor will be put lo the Members al the annual general meeting. On behalf of the Trustees John Baines Chair of the Board 27 July 2022 Company Registration Number.. 4480058 Charity Registration Number.. 1093387 Scottish Charity Registration Number.. SC040096 Fire Fighters Charity 18 Fire Fighters Charity INDEPENDENT AUDITOR'S REPORT Independent Auditor's Report to the Trustees and Members of Fire Fighters Charity We have audited the financial statements of The Fire Fighters Charity Ithe'parenl charitable company'l and its subsidiaries (the 'group'l for the year ended 31 March 2022 set out on pages 22 to 48. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial stalemenls.. give a true and fair view of the slate of the group's and of the parent charitable company s affairs as at 31 March 2022 and of the group's and parent charitable company's incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scollandl Act 2005 and regulation 8 of the Charities Accounts {Scotlandl Regulations 2006 las amended). Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 OLJr report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent charitable company's ability lo continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Other infomiation The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's Report Ihereon. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assuran conclusion Ihereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstalemenl of the other information. If based on the work we have performed, Fire Fighters Charity 19 Fire Fighters Charity INDEPENDENT AUDITOR'S REPORT 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. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, Report including the Strategic Report for the financi81 year for which the financial statements are prepared is consistent with the financial stalemenls. the Trustees, Report and the Strategic Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the group and parent charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 and the Charities Accounts Iscollandl Regulations 2006 {as amended) require us lo report to you if, in our opinion.. the information given in the Trustees, report is inconsistent in any material respect with the rinancial slalements., or sufficient accounting records have not been kept., or the parent charitable company's financial statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary lo 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 group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related lo going concem and using the going concern basis of accounting unless the Trustees either intend lo liquidate the group or the parent charitable company or lo cease operations, or have no realistic alternative bul to do so. Audltorfs responslbllltles for the audlt of the flnanclal statements We have been appointed as auditor under section 4411 Ilcl of the Charities and Trustee Investment (Scollandl Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue an Audilorfs Report that includes our opinion. Reasonable assurance is a high level of assuran￿, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misslalements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo detect material misstalemenls in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irr￿ular1tieS, including fraLJd is detailed below.. Fire Fighters Charity 20 Fire Fighters Charity INDEPENDENT AUDITOR'S REPORT Enquiry of management, those charged with governance and the entity's solicitors {or inhouse legal leaml around actual and potential litigation and claims., Enquiry of entity staff in lax and compliance functions to identify any instances of non- compliance with laws and regulations., Reviewing minutes of meetings of those charged with governance. Reviewing financial slalement disclosures and testing lo supporting documentation to assess compliance with applicable laws and regulations. Performing audit work over the risk of management override of controls, including lesling of joumal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revieing 8CCOUnting estimates for bias. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at." www.frc.org.uklauditorsresponsibilities. This description forms part of our Auditor's Report. Because of the inherent limitations of an audit, there is a risk that we will not delect all irregularities, including those leading to a material misslalement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial slatemenls, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. Use of our report This report is made solely lo the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and lo the charitable company's Trustees, as a body, in accordance with Regulation 10 of the Charrties Accounts Iscotlandl Regulations 2006 las amendedl- Our audit work has been undertaken so that we might stale to the charitable company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibility lo anyone other than the charitable company and ils members, as a body, for our audit work, for this report, or for the opinions we have formed. P, Alexander Peal Bsc (Honsl FCA DChA (Senior Stslulory Auditor) for and on behalf of James Cowper Kreston Chartered Accounlanls and Slatulory Auditor 2 Communications Road Greenham Business Park Greenham Newbury Berkshire RG19 6AB Date.. 17 October 2022 Fire Fighters Charity 21 Fire Fighters Charity CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES, INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT Year ended 31 March 2022 Com an istration Number.. 4480058 Note Unreslricled Restricted Funds Funds Total to 31 March 2022 Total to 31 March 2021 INCOME FROM: Donations 8nd legacies Other trading 8Ctivities Investments Charitable activities Other income 5,585,310 3,201,254 404,060 130,854 5,441 234,246 5,819,556 3,201,254 404,060 130,854 5,441 5,571,525 2,204,161 359,590 137,082 TOTAL INCOME 9,326,919 234,246 9,561,165 8,272,358 EXPENDITURE ON: Raising funds 3,416,403 5,902 3,422,305 2,614,999 Charitable activities- Physical Health Mental Health Social Health and Wellbeing other expenditure 3,520,862 2,118,407 604,760 91,348 51,244 30,000 3,612,210 2,169,651 634,760 3,444,632 1,852.056 702.450 129,186 516 Total expenditure on charitable activities 6,244,029 172,592 6,416,621 6,128,234 TOTAL EXPENDITURE 9,660,432 178,494 9,838,926 8,743,323 Nel lexpenditurellincome before investment gains and losses 1333,5131 55,752 1277,761) 1470,9651 Nel gainslllossesl on investments 1,119,135 1,119,135 3,253,502 NET INCOMEIIEXPENDITURE) 785,622 55,752 841,374 2,782,537 Transfers between funds OTHER RECOGNISED GAINS & LOSSES.. Actuarial gainslllosses) on defined benefit pension scheme 43,000 43,000 110,000 NET MOVEMENT IN FUNDS 828.622 55.752 884.374 2.892.537 RECONCILIATION OF FUNDS Total funds brought forward 33,632,163 180,765 33,812,928 30,920,391 TOTAL FUNDS CARRIED FORWARD 34.460.785 236.517 34,697.302 33.812.928 All activities are continuing. The Statement of Financial Activities includes all gains and losses recognised in the year. The comparative figures for restricted funds are shown in the notes to the accounts. Fire Fighters Charity 22 Fire Fighters Charity CHARITY STATEMENT OF FINANCIAL ACTIVITIES, INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT Year ended 31 March 2022 Com an istration Number.. 4480058 Note Unreslricled Funds Reslricled Funds Total to 31 March 2022 Total to 31 March 2021 INCOME FROM: Donations 8nd legacies Other trading 8Ctivities Investments Charitable activities Other income 5,585,310 1,703,987 1,120,485 130,855 5,441 234,246 5,819,556 1,703,987 1,120,485 130,855 5,441 5,571,525 1,557,283 684,013 137,082 TOTAL INCOME 8,546,078 234,246 8,780,324 7,949,903 EXPENDITURE ON: Raising funds 2,947,245 5,902 2,953,147 2,393,541 Charitable activities- Physical Health Mental Health Social Health and Wellbeing other expenditure 3,520,862 2,118.407 604,760 91,348 51,244 30,000 3,612,210 2,169,651 634,760 3,444,632 1,852,056 702,450 129,186 516 Total expenditure on charitable activities 6,244,029 172,592 6,416,621 6,128,324 TOTAL EXPENDITURE 9,191,274 178,494 9,369,768 8,521,865 Nel lexpenditurellincome before investment gains and losses 1645,1961 55,752 1589,4441 1571,9621 Nel gainslllossesl on investments 1,119,135 1,119,135 3,253,502 NET IEXPENDITUREIIINCOME 473,939 55,752 529,691 2,681,540 Transfers between funds OTHER RECOGNISED GAINS & LOSSES.. Actuarial gainslllossesl on defined benefit pension scheme 43,000 43,000 110,000 NET MOVEMENT IN FUNDS 516,939 55,752 572,691 2,791.540 RECONCILIATION OF FUNDS Total funds brought forward 33,402,954 180,765 33,583,719 30,792,179 TOTAL FUNDS CARRIED FORWARD 33.919.893 236,517 34,156.410 33,583.719 All activities are continuing. The Statement of Financial Activities includes all gains and losses recognised in the year. The comparative figures for restricted funds are shown in the notes lo the accounts. Fire Fighters Charity 23 Fire Fighters Charity BALANCE SHEETS As at 31 March 2022 Com an istration Number." 4480058 Note Group 2022 Charity 2022 Group 2021 Charity 2021 FIXED ASSETS Tangible assets Investments Investments in group companies 10 13,840,754 17,021,539 13,840,754 17,021,539 14,288,108 15,902,404 14,288,108 15,902,404 12 30,862,293 30,862,297 30,190,512 30,190,516 CURRENT ASSETS Stocks Debtors Cash al bank and in hand 54,172 1,529,942 2,488,377 7,070 1,373,732 2,037,495 64,603 1,211,282 2,348,074 4,766 1,098,222 2,241,114 14 21 4,072,491 3,418,297 3,623,959 3,344,102 CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 15 1724,4821 1611,1841 1444,5431 1393,8991 NET CURRENT ASSETS 3,348,009 2,807,113 3,179,416 2,950,203 TOTAL ASSETS LESS CURRENT LIABILITIES 34,210,302 33,669,410 33,369,928 33,140,719 Defined Benefit Pension scheme 487,000 487,000 443,000 443,000 NET ASSETS 34,697,302 34,156,410 33,812,928 33,583,719 FINANCED BY: Reslricled funds Designated funds General funds 16 236,517 16 20,540,754 16 13,920,031 236,517 20,540,754 13,379,139 180,765 32,352,125 1,280,038 180,765 32,160,097 1,242,857 34,697,302 34,156,410 33,812,928 33,583,719 Approved and authorised for issue by the Charity Trustees on 27 July 2022 and signed on their behalf by:_ John Baines- Chair Fire Fighters Charity 24 Fire Fighters Charity CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March 2022 Note 2022 2021 NET CASH INFLOW PROVIDED BY OPERATING ACTIVITIES 20 1147,833} 41,703 CASH FLOWS FROM INVESTING ACTIVITIES Dividends, interest, and rents from investments Purchase of property, plant and equipment Proceeds from sale of equipment Disposal of property, plant, vehicles and equipment Proceeds from sale of investments 404,060 359,590 10 1121,365} 1193,5621 5,441 2,850 NET CASH GENERATED BY I (USED BY) INVESTING ACTIVITIES 288,136 168,878 CHANGE IN CASH ANO CASH EQUIVALENTS IN THE REPORTING PERIOD 140,303 210,581 Cash equivalents al the beginning of the reporting period 2,348,074 2,137,493 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 21 2,488,377 2,348,074 Fire Fighters Charity 25 Fire Fighters Charity CHARITY CASH FLOW STATEMENT Year ended 31 March 2022 Note 2022 2021 NET CASH IOUTFLOWI I PROVIDED BY OPERATING ACTIVITIES 20 11,208,180} 1271,3231 CASH FLOWS FROM INVESTING ACTIVITIES Dividends, interest and rents from investments Purchase of property, plant and equipment Gift Aid payment from subsidiary Proceeds from sale of equipment Disposal of property, vehicles, plant and equipment Proceeds from sale of Investments 403,500 359,145 10 1121,365} 1193,5621 716,985 324,868 5,441 2,850 NET CASH GENERATED BY INVESTING ACTIVITIES 1,004,561 493,301 CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD 1203,619} 221,978 Cash equivalents al the beginning of the reporting period 2,241,114 2,019,136 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 21 2,037,495 2,241,114 Fire Fighters Charity 26 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 PRINCIPAL ACCOUNTING POLICIES The Statements of Financial Activities and Balance Sheets have been prepared in accordance with applicable accounting standards under the hislorical cost convention, ex￿pt for investments, which are slated al market value. The Statements of Financial Activities and Balance Sheets reflect the requirements of the Statement of Recommended Practice 'Accounting and Reporting by Charities, ISORPI, issued in 2019 Iwhich is applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS10211 and the Companies Act 2006. The Fire Fighters Charity constitutes a public benefit entity as defined by FRS 102. DONATIONS Donations and gifts are recognised in the Statements of Financial Activities and Balance Sheets as soon as there is entitlement, probability of receipt and an ability lo measure the value. LEGACIES Income from1￿aC1es is recognised when the legacy has been received or when the Charity has been notified of entitlement of the legacy prior to the year end and il is probable that the legacy will be received, defined when.. there has been grant of probate, the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy., and any conditions allached to the legacy either are within the control of the Charity or have been met. LOThERY INCOME Lottery income is recognised based on the number of tickets included in each monthly draw. Any tickets purchased for future draws are deferred until that draw lakes place. CENTRES, INCOME This represents ancillary income generated at the Charity's rehabilitation and recuperation cenlres and is recognised on receipt. GRANTS RECEIVABLE Grants are recognised on nolificalion when there is enlillemenl, likelihood of receipt is probable, and the amount can be measured. GOVERNMENT GRANTS Government grants, including Covid 19 related grants, are credited to the Statement of financial activities as the related expenditure is incurred. DEFERRED INCOMING RESOURCES Income received in advance is included in deferred income. Fire Fighters Charity 27 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 GIFTS IN KIND Incoming resources in the form of gifts in kind are inclLJded in the Statements of Financial Activities when they are seen as having a value in excess of £1,000. Assets given for use by the Charity are recognised as incoming resources and within the relevant fixed asset category of the Balance Sheet when received. An amount equal lo the donation's income recognised on gifts in kind and goods or services received free of charge is included within the most relevant category of expenditure to which the donation relates. INVESTMENT INCOME Dividends are recognised in the Statements of Financial Activities and Balance Sheets when they are receivable. Bank interest is included in the Statements of Financial Activities and Balance Sheets when receivable. TRADING INCOME Trading income is recognised as services or goods provided or despatched. EXPENDITURE The value of purchase invoices not paid until after the year-end bul relating to the year has been included in the Statements of Financial Activities and Balance Sheets. Liabilities are recognised as soon as there is a legal or constructive liability committing the Charity to pay out resources. Charitable expenditure is allocated against the core beneficiary need areas supported by the Charity. IRRECOVERABLE VAT Irrecoverable VAT is not separately analysed and is charged lo the Statements of Financial Activities and Balan￿ Sheets when the expenditure lo which it relates is incurred and is allocated as part of the expenditure to which il relates. GRANTS Grants are paid and expensed as they are authorised, and the recipient is notified of the grant award and a legal or conslruclive obligation is created. FUNDRAISING COSTS Expenditure, inclusive of any irrecoverable VAT, is accounted for on an accruals basis as liabilities are incurred. Where appropriate, costs are deferred so as to permit recognition in the same accounting period as related income. INVESTMENTS AND INVESTMENT GAINS AND LOSSES Stocks and shares quoted on the London Stock Exchange are included in the Balance Sheets al their market value as al the yearend date. Investment management fees are charged as part of a managed fund and deducted before income is distributed. The fund incurs a management charge of 0.650/0, this equated lo £97k in 2021-22 1£86k 2020-211. Fire Fighters Charity 28 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 BASIS OF CONSOLIDATION The group accounts consolidate the accounts of the charitable company and tts subsidiary companies. Intra-group balances and transactions are eliminated on consolidation. The results of the subsidiary companies are consolidated on a line-by-line basis. CAPITALISATION ANO DEPRECIATION OF TANGIBLE FIXED ASSETS Expenditure on tangible fixed assets is capitalised if the cost of the asset, or a group of related assets, is £5,000 or more. The cost of tangible fixed assets is their purchase cost together with any incidental expenses of acquisition. Tangible fixed assets are staled al cost nel of depreciation. All tangible fixed assets, other than freehold land and assets in progress are depreciated using the slraighl-line method over their estimated useful lives as follows.. Freehold and long-leasehold propety 30-50 years Building improvements 5-25 years Furniture and equipment 3-10 years Plant and machinery 5-7 years Motor vehicles 4-7 years Assets in the course of construction are not depreciated until brought into operational use. Any assets that are impaired in value are written down lo their recoverable amount. STOCKS Stocks are slated at the lower of cost and net realisable value. Net realisable value of stocks for re-sale is derived from the eslimaled selling prices of the stock less direct selling costs. Consumable stocks are valued al cost, unless it is anticipated that the stocks will not be used in the foreseeable future. In the latter case, the stocks are not valued. DEBTORS Trade and other debtors are recognised al the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due. CASH AT BANK AND IN HAND Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. CREDITORS AND PROVISIONS Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds lo a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Fire Fighters Charity 29 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 FINANCIAL INSTRUMENTS The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. LEASES Amounts due under operating leases are charged lo the Statements of Financial Activities and Balance Sheets on a straighl-line basis over the term of the lease. Equipment purchased under finance leases is capilalised as if purchased oulrighl with depreciation charged to the Slalemenls of Financial Activities, interest is charged equally over the length of the lease. APPORTIONMENT OF EXPENDITURE ExpendilLJre is apportioned Ljnder the gLJidance of Financial Reporting Standard 102 and analysed between costs of generating funds, charitable aclivilies, and governance costs: The method of 8PPOrtionmenl is as follows.. Costs attributable solely lo one activity are allocated lo that activf(y Costs that contribute directly lo the oulpul of more than one activity are apportioned on a reasonable, justifiable, and consistent basis, Support and governance costs are apportioned based on the following criteria.. General Management Time allocated Marketing & Communications Time allocated Customer Services Total number of employees Finance Total number of transactions Databases Time allocated Total number of IT supported employees Total number of employees Time allocated Total number of employees HR Volunteer Management Legal & Governance FUNDS Restricted funds are those funds re￿iVed which have been donated based on of the Charity using those funds for a specific purpose as outlined by the donor. Descriptions of the restrictions placed on those donations are provided in note 16 to the accounts. Designated funds are created out of unreslricled funds for specific purposes. Funds are released on the purposes have been fulfilled or when the Trustees are of the opinion that circumstances no longer warrant the designation of fLJnds. The value and purpose of each designated fLJnd can be found in note 16 to the accounts. General funds are the accumulated unrestricted funds of the Charity, which have not been designated for a specific purpose. There is a specrfic minimum amount the Trustees require to be held as general funds., this is outlined in the reserves policy on page 15. Fire Fighters Charity 30 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 RETIREMENT BENEFITS For defined benefit schemes the amount charged lo resources expended in respect of pension costs and other post-retiremenl benefits is the estimated regular cost of providing the benefits accrued in the year, adjusted to reflect variations from that cost. The interest cost and expected return on assets are included within resources expended. Actuarial gains and losses arising from new valuations and from updating valuations to the Balance Sheet dale are recognised in the Slalements of Financial Activities and Balance Sheets as actuarial gains and losses on defined benefit pension scheme. Defined benefit schemes are funded, with the assets held separately from the group in separate trustee administered funds. Full actuarial valuations, by a professionally qualified actuary, are obtained al least every 3 years, and updated to reflect current conditions at each Balan￿ Sheet date. The pension scheme assets are measured al fair value. The pension scheme liabilities are measured using the proje¢ted unil method and discounted al the current rale of return on a high-quality corporate bond of equivalent term and currency. A pension scheme asset is recognised on the Balance Sheets only lo the extent that the surplus may be recovered by redU￿d future contributions or to the extent that the Trustees have agreed a refund from the scheme al the Balance Sheet date. A pension scheme liability is recognised to the extent that the group has a legal or constructive obligation lo settle the liability. For defined contribution schemes the amount charged to Statements of Financial Activities in respect of pension costs and other post-reliremenl benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prep8yments in the Balance Sheets. LIQUID RESOURCES Liquid reSoUr￿S are represented by monies held by the Charity's investment managers for investment purposes. These funds are held as cash deposits. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of the financial statements requires management lo make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet dale and the amounts reported for revenues and expenses during the year. However, the nature of eslimalion means that actual outcomes could differ from those estimates. The following judgements lapart from those involving eslimatesl have had the most significant effect on amounts recognised in the financial statements. Tangible fixed assets (see note 10) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments Consider issues such as the remaining life of the asset and projected disposal values. GOING CONCERN As outlined in the Trustees, report the Trustees consider that despite the economic impact of Covid 19, the strength of reserves held will enable the Charity lo sustain losses in the next 12 months while still progressing with new strategic plans. The trustees are therefore of the opinion that there are no material uncertainties about the Charity's ability to continue as a going concern. Fire Fighters Charity 31 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 DONATIONS AND LEGACIES Total Funds 2022 Total Funds 2021 GROUP AND CHARITY Unreslricled Restricted Funds Funds Regular giving donations Corporate and other donations Gifts in kind Legacies receivable Grants 2,449,485 2.449,485 2,418,052 1,910,982 61,553 1,972,535 1,254,277 19,736 19,736 12,846 1,176,457 10,000 1,186,457 567,732 28,650 162,693 191,343 1,318,618 5,585,310 234,246 5,819,556 5,571,525 In 2021, the income from donations and legacies was £5,571.525 of which £4,277,784 was unrestricted and £1,293,741 was restricted. W(thin the reslricled grants figure of £162,693 there is £66,615 received from the UK government's Coronavirus Job Retention Scheme12021.. £1,128,077). Income includes aggregated unconditional donations from 7 trustees {2021= 4 trustees) lotalling £53712021.. £281 }. We are grateful lo volunteers who assist the Charity in a variety of roles including co-ordinating fundraising aclivilies, raising awareness of our services and supporting beneficiaries through the provision of welfare visits and living well groups. The aggregate lime given by all volunteers in 2019-20 was in excess of 100,000 hours. Unfortunately, due to Covid 19, our volunteers have not been able lo undertake activities in 2021-22 to the exlenl of previous years. Where il has been possible, our volunteers have continued to support our fundraising activities and we are working towards welcoming back all our volunteers, who provide a significant contribution lo the Suc￿sS of our organisalion, as our activities return to that of the pre pandemic level. In accordance with FRS 102 and the Charities SORP {FRS 1021, the economic contribution of these volunteers is not recognised in the accounts. OTHER TRADING ACTIVITIES Group 2022 Charity 2022 Group 2021 Charity 2021 Lollery Centres income Trading income 1,679,577 1,679,577 1,539,248 1,539,248 24,410 24,410 18,035 18,035 1,497,267 646,878 3,201,254 1,703,987 2,204,161 1,557,283 £29,266 of lollery income has been deferred as it relates lo draws that have not yet taken place. £34,299 was released to income in the current year from amounts deferred in 2021. In 2022 and 2021 all the income from other trading activities was unreslricled. Fire Fighters Charity 32 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARIES The wholly owned trading subsidiary, Fire Fighters Trading Limited, a company incorporated in England & Wales (company number 38166251, undertakes selling products branded with the Fire Fighters Charity logo and non-charilable trading activities held at the Charity's rehabilitation and recuperation centres. The non-charitable net income of the subsidiary is as follows.. 2022 2021 Trading turnover Cost of sales 1,497,267 646,878 1271.3411 1110,174) Gross profit 1,225,926 536,704 Administrative expenses Other operating income 1216,1951 1112,1281 18,378 843 Operating profit 1,028,109 425,419 Other interest receivable 560 446 Profit before and after taxation 1,028,699 425,865 As at 31 March 2022, the company's nel assets comprised current assets of £668,731 12021.. £289,718) and current liabilities of £127,83612021.' £60,507). The profil is gifted to the Charity. The financial information for this company has been extracted from the company's financial statements for the year ended 31 March 2022. The audit report on these financial statements was unqualified. INCOME FROM INVESTMENTS Group 2022 Charity 2022 Group 2021 Charity 2021 Income from listed investments Interest Gift Aid payment from subsidiary 400,704 3,356 400,704 2,796 716,985 355,619 3,971 355,619 3,526 324,868 404,060 1,120,485 359,590 684,013 In 2021 all the income from investments was unrestricted. Fire Fighters Charity 33 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 ANALYSIS OF EXPENDITURE ON RAISING FUNDS AND CHARITABLE ACTIVITIES GROUP 01￿ct Costs Support Costs Total 2022 Direct Costs Support Costs Total 2021 COSTS OF RAISING FUNDS Raising funds Fundraising trading costs Investrnent rnanagement eosts 1,050,152 1,425,438 97,337 592,780 1,642,932 256,598 1,682,036 97,337 843,518 897,873 86,398 551,761 1,395,279 235,449 1,113,322 86.398 2,572,927 849,378 3,422.305 1,827,789 787,210 2,614.999 COSTS OF CHARITABLE ACTIVITIES Physical Health Mental He81th Social Health and Wellbeing Other expenditure 2,679,608 1,602.346 463.635 932,602 3,612.210 2,540,785 567,305 2,169,651 1,363,024 171.125 634.760 486,501 129,186 903,847 3,444,632 489,032 1,852,056 215,949 702,450 129,186 4,745,589 1,671.032 6,416,621 4,519.496 1,608.828 6,128,324 Total Resources Expended 7,318,516 2,520.410 9,838,926 6,347.285 2,396.038 8,743,323 CHARITY Direct Costs Support Costs Total 2022 Direct Costs Support Costs Total 2021 COSTS OF RAISING FUNDS Costs of generating voluntary income Fundraising trading costs Inve5trnent Management Charges 1,050.152 956.280 97.337 592,781 1,642.933 256,597 1,212,877 97,337 843,518 676,415 86,398 551,761 1,395,279 235,449 911,864 86,398 2,103,769 849,378 2,953.147 1,606,331 787,210 2,393.541 COSTS OF CHARITABLE ACTIVITIES Physical Health Mental Health Social Health and Wellbeing Other expenditure 2,679,608 1,602,346 463,635 932,602 3,612,210 2,540,785 567,305 2,169,651 1,363,024 171,125 634.760 486,501 129,186 903,847 3,444,632 489,032 1,852,OS6 215,949 702,450 129,186 4,745,589 1,671,032 6,416.621 4,519,496 1,608,828 6,128,324 Total Resources Expended 6,849,358 2,520.410 9,369,768 6,125.827 2,396.038 8,521,865 Included with the costs above are.. 2022 2021 Depreciation Operating leases- land and buildings Operating leases- other Auditor's remuneration (Charrty only." £18,06012021". £17,20011 Governance costs 568.719 263.308 5,053 21,315 35,782 623,553 145,486 11,790 20,300 31,532 Fire Fighters Charity Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 ANALYSIS OF EXPENDITURE ON RAISING FUNDS AND CHARITABLE ACTIVITIES Icontinuedl ANALYSIS OF SUPPORT COSTS GROUP AND CHARITY 2022 2021 Staff costs Office costs Depreciation VAT irrecoverable Volunteer costs Travel costs Other costs 1,440.045 441.826 59,211 116,130 1,065 22,934 439,199 1.348,073 405,781 133,285 123,175 449 1,500 383,775 2,520,410 2,396,038 Support costs, including governance costs, are allocated between activities on the basis set out on page 30. In 2021, the expendilLJre on charitable activities was £6,128,234 of which £4,917,228 was unrestricted and £1,211,096 was restricted. In 2021, the expendilLJre on raising funds was £2,614,999, of which £2,555,443 was unrestricted and £59,556 was restricted. SOCIAL HEALTH AND WELLBEING 2022 2021 GROUP AND CHARITY One-off solutions Islander travel Wreaths Other direct costs 96,611 210 336 366,478 102,675 180 657 382,989 463,635 171,125 486,501 215,949 Adminislralion costs 634,760 702,450 All grant payments are made to individuals and no grant funding from third parties has been received in relation lo them. STAFF COSTS. TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL GROUP AND CHARITY 2022 2021 Wages and salaries Social security costs Pension costs 4,365,118 390,238 399,843 4,243,105 358,754 341,902 5,155,199 4,943,761 Fire Fighters Charity 35 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL (continued) The nLJmber of employees whose emoluments amounted to over £60,000 in the year was as follows.. 2022 Number 2021 Number £70,001 - £80,000 £90,001- £100,000 £110,001 £120,000 During the year, pension contributions of £38,97812021'. £32,256) were paid in respect of the above employees to defined contribution pension schemes. The key management personnel of the Group comprise those of the Charity and the key management personnel of ils wholly owned subsidiary the Fire Fighters Trading Limited. The key management personnel of the trading company comprise its Directors and of the Charity, Comprise the Trustees and the Strategic Leadership Team as detailed on page 2. The total employee benefits of the key management personnel of the Group and the Charity were £493,193 {2021.. £441,196). The Trustees were not paid or received any other benefits from employment with the Charity or ils subsidiary in the year12021.. Nill. Travel, accommodation, and subsistence expenses lolalling £91912021.. Nil) were reimbursed lo 6 Trustees12021.. Nill. There were no redundancy payments made in the year12021.' £2,862 10 1 employee). No ex gralia payments were paid during the year12021'. Nill. The average number of staff employed during the year was 18212021.. 1901. Numbers employed, calculated on a full-lime equivalent basis, analysed by function were.. 2022 Number 2021 Number Charitable activities.. Physical Health Mental Health Social Health & Wellbeing Costs of generating funds Support 29 23 66 23 10 20 21 16 22 97 140 Fire Fighters Charity 36 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 PENSION COSTS 2022 £'ooo 2021 £'ooo AMOUNTS RECOGNISED IN THE BALANCE SHEETS Fair value of employer assets Present valLJe of funded liabilities 1,765 11,2781 1,815 {1,3721 487 443 RECONCILIATION OF DEFINED BENEFIT OBLIGATION Opening defined benefit obligation Current service cost Interest cost Contributions by members Changes in assumptions Estimated benefits paid 1,372 14 27 1,147 26 {841 {531 242 {541 Closing defined benefit obligation 1,278 1,372 RECONCILIATION OF FAIR VALUE OF EMPLOYER ASSETS Opening fair value of employer assets Interest income Contributions by members Contributions by the employer Return on assets excl. amounts included in net interest Benefits paid 1,815 36 1,476 33 {411 {531 352 1541 Closing fair value of employer assets 1,765 1,815 Fire Fighters Charity 37 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 PENSION COSTS Icontinuedl THE MAJOR CATEGORIES OF PLAN ASSETS AS A PERCENTAGE OF TOTAL PLAN ASSETS Equities Bonds Property Cash 2022 2021 50V/o 34,/0 560/0 31,/0 70 Total 2022 2021 PRINCIPAL ACTUARIAL ASSUMPTIONS Pension increase rate Salary increase rale Discount rale 2.85°/g As at the date of the most recent valuation, the duration of the Employer's funded liabilities is 18 years. MORTALITY Life expectancy is based on the Fund's Vitacurves with improvements in line with the CMI 2021 model, with a O'/0 weighting of 2021 data, standard smoothing ISk71, initial adjustment of 0.25'/0 and a long-lerm rate of improvement of 1.5°/o p.a. Based on these assumptions, the average future like expectancies at age 65 are summarised below.. Males Females Current pensioners Future pensioners. 21.9 years 22.8 years 24.2 years 25.9 years Figures assume members aged 45 as al the last formal valuation date. COMMUTATION An allowance is included for future retirements lo elect to take 50'/o of the maximum additional lax-free cash up to HMRC limits for pre-April 2008 service and 75 /0 of the maximum tax-free cash for post-April 2008 servi￿. The Charity operates a defined contribution scheme for which the charge in the yearwas £400k 12021.. £346kl. £40k was unpaid al the year-end12021.- £31 kl. TAXATION There was no taxation charge for the period. Taxable profits are dependent on the extent to which subsidiary company profits are distributed lo the Charf£y by way of Grft Aid. Fire Fighters Charity 38 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 10 FIXED ASSETS Assets in Freehold the course of property construction Fixtures, fittings & equipment Motor vehicles GROUP AND CHARITY COST At 1 April 2021 Additions Transfers Disposals Reclassification to investments Total 16,237,179 54,910 4,625,563 66,455 57,720 20,920,462 121,365 135,8061 135,8061 At 31 March 2022 16,292,089 4,692,018 21,914 21,006,021 DEPRECIATION Al 1 April 2021 Charge Disposals Reclassification to investments 3,497,747 316,081 3,085,521 249,981 49,086 2,657 135,8061 6,632,354 568,719 135,8061 At 31 March 2022 3,813,828 3,335,502 15,937 7,165,267 NET BOOK VALUE At 31 March 2022 12,478,261 1,356,516 5,977 13,840,754 At 31 March 2021 12,739,432 1,540,042 8,634 14,288,108 The nel book value at 31 March 2022 represents fixed assets used for= Assets in Freehold the course of property construction Fixtures, fittings & equipment Motor vehicles Total DIRECT CHARITABLE ACTIVITIES Physical & Mental Health Social Health & Wellbeing 11,474,833 987,094 1,240,580 23,293 5,977 12,721,390 1,010,387 12,461,927 1,263,873 5,977 13,731.777 FUNDRAISING AND SUPPORT ACTIVITIES Head office & other assets 16,334 92,643 108,977 12,478,261 1,356,516 5,977 13,840,754 Fire Fighters Charity 39 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 10 FIXED ASSETS Iwntinuedl The net book value al 31 March 2021 represents fixed assets used for.. Assets in Freehold the course of property conslrucb.on Fixtures, fittings & equipment Motor vehicles Total DIRECT CHARITABLE ACTIVITIES Physical & Mental Health Social Hea￿h & Wellbeing 11,723,716 998,929 1,359,420 28,752 8,634 13,091,770 1,027,681 12,722,645 1,388,172 8,634 14,119,451 FUNDRAISING AND SUPPORT ACTIVITIES Head office & other assets 16,787 151,870 168,657 12,739,432 1,540,042 8,634 14,288,108 11 FIXED ASSET INVESTMENTS GROUP AND CHARITY 2022 2021 Market value al 1 April 2021 Reclassification from fixed assets 15,902,404 12,565,229 83,673 15,902,404 12,648,902 Disposal proceeds Unrealised {lossllg8in on revaluation at 31 March 2022 1,119,135 3,253,502 Market value al 31 March 2022 17,021,539 15,902,404 Historical cost as at 31 March 2022 9,360,283 9,360,283 All investments are listed on recognised exchanges and no individual investment exceeds 50/0 of the total fund. ANALYSIS OF INVESTMENTS Unit trusts Investment Property 14,921,539 2,100,000 14,152,404 1,750,000 Market value at 31 March 2022 17,021,539 15,902,404 Fire Fighters Charity 40 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 12 INVESTMENTS IN GROUP COMPANIES The Charity holds shares in Iwo wholly owned subsidiary Companies incorporated in England at a cost of £2 each. A summary of their activities and financial position is as follows.. Turnover and other operating income Net profil before lax Net assets Fire Fighters Trading Limited (Sells Fire Fighters Charity branded goods and other similar merchandise as well as non- charitable trading activities held at the Charity's rehabilitation and recuperation centres.) 1,515,645 1,028,669 540,895 FSNBF Limited IDormant} 13 STOCKS Group 2022 Charity 2022 Group 2021 Chari(y 2021 Goods for resale Consumables 47,102 7,070 59,837 4,766 7,070 4,766 54,172 7,070 64,603 4,766 14 DEBTORS Group 2022 Charity 2022 Group 2021 Charity 2021 Trade debtors Other debtors Prepayments & accrued income Amounts owed by subsidiary undertakings 136,286 49,549 1,344,107 506 49,519 1,323,707 117,447 1 S,961 1,077,874 425 1 S,931 1,071,974 9,892 1,529,942 1,373,732 1,211,282 1,098,222 Fire Fighters Charity 41 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 CREDITORS- amounts falling due within one year Group 2022 Charity 2022 Group 2021 Charity 2021 Trade creditors Other taxation & social securtty Other creditors Accruals and deferred income AmoLJnls owed to subsidiary 285,451 171,932 97,597 169,502 276,116 109,811 97,567 113,122 14,568 131,318 125,865 92,970 94,390 129,552 96,908 92,837 74,602 724,482 611,184 444,543 393,899 16 STATEMENT OF FUNDS- Year ended 31 March 2022 Balance Incoming b1￿￿. resources Outgoing reSoUr￿S Balance clfwd. GROUP Transfers Restricted Funds Charitable activities 180,765 234,246 1178,494} 236,517 Unrestricted Funds- Designated Funds Fixed asset fund Investment Property Reserves Policy des'n Strategic Plan des'n Total Deslgnated Funds 14,288,108 {447,3541 2,100,000 114,534,982) 1,070,965 111,811,371) 13,840,754 2,100,000 14,534,982 3,529,035 32,352,125 4,600,000 20,540,754 General Funds Free reserves Pension fund surpluslldeficitl 837,038 9,326,919 443,000 18,542,297) 11,811,371 44,000 13,433,031 487,000 Total General Funds 1,280,038 9,326,919 18,498,297} 11,811,371 13,920,031 Total Funds 33,812,928 9,561,165 18,676,791 } 34,697,302 Fire Fighters Charity 42 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 Balance Incoming blfwd. resources Outgoing reSoUr￿S Balance ¢lfwd. CHARITY Transfers Restricted Funds Charitable activities 180,765 234,246 1178,494} 236,517 Unrestricted Funds: Designated Funds Fixed asset fund Investment Property Reserves Policy des'n Strategic plan des'n Total Designated Funds 14,288,108 {447,3541 2,100,000 114,443,951) 1,171,962 111,619,343) 13,840,754 2,100,000 14,443,951 3,428,038 32,160,097 4,600,000 20,540,754 General Funds Free reserves Pension fund surpluslldeficitl 799,857 8,546,078 18,073,139} 11,619,343 443,000 44,000 12,892,139 487,000 Total General Funds 1,242,857 8,546,078 18,029,139) 11,619,343 13,379,139 Total Funds 33,583,719 8,780,324 18,207,633} 34,156,410 The tangible fixed assets, which are used lo achieve the goals of the charity, plus the investment properties that are held for income generation purposes, are designated lo recognise that these funds are not freely or easily available for any other purpose. To enable the Charity lo maintain servi￿$ lo beneficiaries the board have identified that an amount equivalent to between 9 and 12 months of normal operating expenditure will be held as free reserves to protect against any unforeseen loss of income or increase in costs, this reserves also ensure that Trustees can allocate additional appropriate funds when needed to support urgent beneficiary need. To support the ambitious aims of the strategic plan the board have designated £4.6m to the strategic fund, this allows the management team to confidently progress with plans to deliver the outcomes targeted over the next three years. Fire Fighters Charity 43 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 16 STATEMENT OF FUNDS- Year ended 31 March 2021 Outgoing resources gains and losses Incoming resources Balance fwd. GROUP Balance blfwd. Transfers Restricted Funds Charitable activities (al 275,676 1,293,741 11,270,652) 1118,0001 180,765 Unrestricted Funds- Designated Funds Fixed asset fund Ibl Reserves policy des'n {c} Strategic plan des'n lel Total Designated Funds 14,933,808 12,565,229 2,000,000 29,499,037 1645,700} 14,288,108 1,969,753 14,534,982 1,529,035 3,529,035 2,853,088 32,352,125 General Funds Free reserves Pension fund surpluslldeficitl 816,678 6,978,617 14,223,169) {2,735,0881 837,038 329,000 114,000 443,000 Total General Funds 1,145,678 6,978,617 14,109,169) (2,735,088) 8,272,358 15,379,821) 1,280,038 Total Funds 30,920,391 33,812,928 Ba18nce blfwd. Incoming resources Outgoing resources Balance fwd. CHARITY Transfers Restricted Funds Charitable activities lal 275,676 1,293,741 11,270,652) 1118,0001 180,765 Unrestricted Funds: Designated Funds Fixed asset fund Ibl Reserves policy des'n {c} Strategic plan des'n lel Total Designated Funds 14,933,808 12,565,229 2,000,000 29,499,037 1645,700) 14,288,108 1,878,722 14,443,951 1,428,038 3,428,038 2,661,060 32,160,097 General Funds Free reserves Pension fund surpluslldeficitl 688,466 6,656,162 14,001,711) (2,543,060) 799,857 329,000 114,000 443,000 Total General Funds 1,017,466 6,656,162 13,887,711) 12,543,060) 1,242,857 Total Funds 30,792,179 7,949,903 15,158,363) 33,583,719 Fire Fighters Charity Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 STATEMENT OF FUNDS Icontinuedl lal This fund represents other gifts and grants that are to be spent in line with the wishes of the donors, the restrictions on which may include supporting beneficiaries from a defined geographical area or the purchase of equipment. The amounts expensed on capital items are transferred to the fixed asset fund. The intention is lo spend these funds within the next 12 months. Ibl Fixed asset fund represents the net book value of fixed assets. Transfers represent fixed asset activity in other funds held. {cl The Reserves Policy designated fund reflects the Board's requirement lo hold in reserve the minimum of either 12 months, expenditure or the value of investments held lo support the income target for the year ahead. Idl The property designated fund was fully utilised in 2019-20. lel The Board has designated a further £2m in 2020-21 to support expected future losses linked lo the Strategic Plan. The operating loss for the year has been sel against this fund. 17 ANALYSIS OF NET ASSETS BY FUND - As at 31 March 2022 Reslricled Funds Designated Funds General Funds 2022 Totsl GROUP Tangible Fixed Assets Fixed Asset Investments Nel Current Assets Long term assets {includes pension asset} 13,840,754 17,021,539 236,517 110,321,539) 13,433,031 13,840,754 17,021,539 3,348,009 487,000 487,000 Net Assets 236,517 20,540,754 13,920,031 34,697,302 Restricted Designated Funds Funds General Funds 2022 Total CHARITY Tangible Fixed Assets Fixed Asset Investments Net Current Assets Long term assets (includes pension asset) 13,840,754 17,021,539 236,517110,321,5391 12,892,135 13,840,754 17,021,543 2,807,113 487,000 487,000 Net Assets 236,517 20,540,754 13,379,139 34,156,410 Fire Fighters Charity 45 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 17 ANALYSIS OF NET ASSETS BY FUND- As at 31 March 2021 Restricted Designated Funds Funds General Funds 2021 Total GROUP Tangible Fixed Assets Fixed Asset Investments Nel Current Assets Long temi liabilities lincludes pension liabiltyl 14,288,108 15,902,404 2,161,613 14,288,108 15,902,404 3,179,416 180,765 837,038 443,000 443,000 Net Assets 180,765 32,352,125 1,280,038 33,812,928 Reslricled Designated Funds Funds General Funds 2021 Totsl CHARITY Tangible Fixed Assets Fixed Asset Investments Net Current Assets Long term liabilities (includes pension liabiltyl 14,288,108 15,902,404 1,969,585 14,288,108 15,902,408 2,950,203 180,765 799,853 443,000 443,000 Net Assets 180,765 32,160,097 1,242,857 33,583,719 18 DEFERRED INCOME Asa11 April 2021 Asa131 March 2022 Released Deferred in in the Year the Year Hotel Ledger Lottery 12,376 34,299 112,3761 {34,2991 52,525 52,525 29,266 29,266 Total 46,675 {46,675) 81,791 81,791 The previous year deferred income was released in 2021-22. Hotel Ledger deferred income relates lo rental accommodation paid for in advan￿, which will be released when the rental occurs. Lollery deferred income relates lo payments made in advance of future lollery draws, which will be released when those draws occur. Fire Fighters Charity 46 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 19 COMMITMENTS- GROUP AND CHARITY Asal 31 March 2022 Asal 31 March 2021 OPERATING LEASES- LAND AND BUILDINGS At 31 March 2022 the Group was committed to total payments in respect of operating leases which expire.. After more than five years Between two and five years Within 12 months 112,846 150,462 42,790 102,696 OPERATING LEASES- OTHER Between two and five years Within 12 months 5,053 6,737 5,053 20 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM OPERATING ACTIVITIES Group 2022 Charity 2022 Group 2021 Charity 2021 Net income Ilexpenditurel Lossesl(gainsl on investments Dividends from investments Interest received Gift Aid payment from subsidiary Movement in defined benefit pension 841,374 529,691 2,782,537 2,681,540 {1,119,1351 11,119,135) 13,253,502} 13,253,502) 1400,7041 {400,7041 1355,619} 1355,6191 13,3561 12,7961 13,971 } 13,5261 (716,9851 1324,8681 11,0001 14,0001 11,0001 14,000} 1682,8211 11,710,929) 1834,555} 11,259,975) Depreciation Decreasellincrease} in stocks Decreasellincrease} in debtors (Decreasellincrease in creditors Los￿{profit) on the sale of fixed assets 568,719 10,431 1318,660) 279,939 15,4411 568,719 12,3041 {275,5101 217,285 15,4411 623,553 15,977 151,177 {43,635) 129,186 623,553 2,845 247,440 114,3721 129,186 NET CASH INFLOWIIOUTFLOWI FROM OPERATING ACTIVITIES 1147,8331 11,208,180) 41,703 1271,3231 Fire Fighters Charity 47 Fire Fighters Charity NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 21 ANALYSIS OF CHANGES IN NET CASH 1 April 2021 31 March 2022 GROUP Cash flows Cash al bank and in hand 2,348,074 140,303 2,488,377 2,348,074 140,303 2,488,377 1 April 2021 31 March 2022 CHARITY Cash flows Cash al bank and in hand 2,241,114 1203,6191 2,037,495 2,241,114 1203,6191 2,037,495 22 CAPITAL COMMITMENTS At 31 March 2022 the Charity had capi(al commitments lotalling £16,813. The amount outstanding al 31 March 2021 was £14,169. 23 RELATED PARTY TRANSACTIONS The Charity has taken advantage of the exemption in Financial Reporting Standard 102 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared. Donations lolalling £537 have been received from 7 Iruslees12021'. £281- 4 Irusleesl. Fire Fighters Charity 48