**REGISTERED CHARITY NUMBER: 1104212**
## **REPORT OF THE TRUSTEES AND**
## **UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FOR**
## **FORCES CHILDREN'S TRUST**
F1 CRT Limited Flat 24 Wellingtonia Court Laine Close Brighton East Sussex BN1 6TD
**FORCES CHILDREN'S TRUST**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|3|
|**Independent Examiner's Report**||4||
|**Statement of Financial Activities**||5||
|**Balance Sheet**||6||
|**Notes to the Financial Statements**|7|to|13|
**FORCES CHILDREN'S TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The Charity is devoted to working together to help children in need whose father or mother has died, or has sustained life changing injuries, whilst a serving member of the Armed Forces and such other occupations as determined from time to time by the trustees.
The Forces Children's Trust is a small, agile charity providing support and positive experiences to children who have suffered a great loss. By participating in events like theatre trips and holidays with other children in a similar situation they can create their own way of moving forward.
## **Public benefit**
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in the planning of future activities.
## **Grantmaking**
When an application for financial assistance is made by or on behalf of an individual who falls within the Trust's remit, the Trust will only consider such an application in the context of its general principal of not awarding direct assistance by way of cash grants.
The Trust will first give consideration to the feasibility of providing such assistance in kind by funding the use of a recognised 3rd party or organisation. Where such an application is made to meet a debt acquired by or on behalf of the applicant such debt will be paid by the Trust to the creditor(s) once the Trust is assured of the validity and legality of such indebtedness.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
During 2022 we were able to continue with our annual events after the Covid Pandemic. Twenty two childrenattended the FCT Outward Bounds course in the Lake District this was a very successful event! Three militaryfamilies went on holiday to our timeshare apartments in Spain. The annual Xmas/New Year Party was cancelled due to lack of numbers the hotel needed a minimum number of covers! Due to this disappointment Amazon Vouchers were sent to all the children.
We continued to supply our help for extra-curricular lessons for those children who needed them.
Military and Police charities were contacted to ask if they may wish to work together with the FCT for the betterment of the children. Our founder has been a strong advocate of this initiative for many years and believes that charity is not a competition.
## **FINANCIAL REVIEW**
## **Financial position**
The charity incurred a small loss during the year of £1,802.
After deducting this and the unrealised losses on investments of £160,989 the reserves to be carried forward are £1,299,948.
## **Reserves policy**
The FCT has a Reserves Policy in place and in the event of the dissolution of the Trust, reserves would first be used for severance payments and administrative costs.
Page 1
**FORCES CHILDREN'S TRUST**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FUTURE PLANS**
We have secured a week in August at the Outward Bound Howtown Centre in Penrith Lake District. We still have a few places available for this event. There will be other events planned throughout the year and we hope that they are of interest to the children. We have 2 weeks available to send families for a holiday in Spain at our time share apartments. We hope to be organising another Adventure trip abroad in the not too distant future and are looking to increase the number of children that we can give opportunities to. Many of our children have now reached adulthood and we continue to support them until they finish full time education or reach the age of 25 years, particularly those who need support with their mental health and well being The FCT will be helping with a research project relating to the affects that suicide has on children.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Charity was established under a Trust Deed dated 11 May 2004 as amended by resolutions dated 11 July 2007 and 27 April 2020.
## **Recruitment and appointment of new trustees**
Trustees are appointed by the existing Trustees and are selected by personal recommendation.
## **Organisational structure**
The Trustees meet and are in contact with each other on a regular basis to discuss the affairs of the Charity.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Charity number**
1104212
## **Principal address**
65 Shawley Way Epsom KT18 5PD
## **Trustees**
D Wise Miss A L Hayes Mrs C J Parry Dr D Dymond
## **Independent Examiner**
Christopher Robert Tyler FCA DChA FCIE Institute of Chartered Accountants in England and Wales F1 CRT Limited Flat 24 Wellingtonia Court Laine Close Brighton East Sussex BN1 6TD
## **Chief Executive Officer**
D Wise
## **Bankers**
Santander UK PLC Bridle Road Bootle Merseyside L30 4GB
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Page 2
**FORCES CHILDREN'S TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued**
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on ............................................. and signed on its behalf by: 4th July 2023
## Dennis Wise
........................................................................
D Wise - Trustee
Page 3
**INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FORCES CHILDREN'S TRUST**
## **Independent examiner's report to the trustees of Forces Children's Trust**
I report to the charity trustees on my examination of the accounts of Forces Children's Trust (the Trust) for the year ended 31 December 2022.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Christopher Robert Tyler FCA DChA FCIE Institute of Chartered Accountants in England and Wales F1 CRT Limited Flat 24 Wellingtonia Court Laine Close Brighton East Sussex BN1 6TD Date: ............................................. 4th July 2023
Page 4
**FORCES CHILDREN'S TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
Sales of Merchandise
Investment income
3
Other income
5
**Total**
**EXPENDITURE ON**
Raising funds
6
**Charitable activities**
7
Beneficiary expenses
Support costs
**Total**
Net gains/(losses) on investments
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|2022
Unrestricted
funds
£
23,757
486
46,306
4,107
74,656
693
74,385
1,380
76,458
(159,187)
(160,989)
1,460,937
1,299,948|2021
Total
funds
£
19,467
33
44,825
4,333|
|---|---|---|
|||68,658|
|||414
65,416
1,650|
|||67,480|
|||97,383|
|||98,561
1,362,376|
|||1,460,937|
The notes form part of these financial statements
Page 5
**FORCES CHILDREN'S TRUST**
## **BALANCE SHEET 31 DECEMBER 2022**
|Notes
**FIXED ASSETS**
Tangible assets
12
Investments
13
**CURRENT ASSETS**
Stocks
14
Debtors
15
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
17
Unrestricted funds
**TOTAL FUNDS**|2022
Unrestricted
funds
£
865
1,168,045
1,168,910
6,866
1,697
123,949
132,512
(1,474)
131,038
1,299,948
1,299,948
1,299,948
1,299,948|2021
Total
funds
£
103
1,327,232
1,327,335
6,380
2,675
126,020
135,075
(1,473)
133,602
1,460,937
1,460,937
1,460,937
1,460,937|
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 4th July 2023
## Dennis Wise
............................................. D Wise - Trustee
The notes form part of these financial statements
Page 6
**FORCES CHILDREN'S TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019)', Financial Reporting Standard FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The trustees/directors consider that there are no material uncertainties about the company's ability to continue as a going concern.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
continued...
Page 7
**FORCES CHILDREN'S TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022**
|**2.**
**DONATIONS AND LEGACIES**
Donations
**3.**
**INVESTMENT INCOME**
Unit trust income
Deposit account interest
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Sales of merchandise
Sales of Merchandise
**5.**
**OTHER INCOME**
Online filing incentive
**6.**
**RAISING FUNDS**
**Raising donations and legacies**
Web donation charges
Advertising & promotion
**7.**
**CHARITABLE ACTIVITIES COSTS**
Beneficiary expenses
Support costs|2022
2021
£
£
23,757
19,467
2022
2021
£
£
46,225
44,815
81
10
46,306
44,825
2022
2021
£
£
486
33
2022
2021
£
£
4,107
4,333
2022
2021
£
£
216
216
477
198
693
414
Direct
Costs (see
note 8)
£
74,385
1,380
75,765|2021
£
19,467|
|---|---|---|
|||2021
£
44,815
10|
|||44,825|
|||75,765|
continued...
Page 8
**FORCES CHILDREN'S TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022**
## **8. DIRECT COSTS OF CHARITABLE ACTIVITIES**
|Events for beneficiaries
Staff costs
Office expenses
Premises expenses
Insurance
Professional fees
Depreciation
Independent examination|2022
£
14,246
56,545
1,268
834
954
250
288
1,380
75,765|2021
£
3,340
59,570
586
494
936
456
34
1,650|
|---|---|---|
|||67,066|
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
The Chief Executive, D Wise, received a salary of £46,000 (2021:£46,000) and £5,096 (2021: £8,372) to his wife, Mrs T Wise, during the year as permitted by the Trust Deed. No remuneration was paid to any other Trustee.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.
## **10. STAFF COSTS**
Staff costs during the year were as follows:
||2022|2021|
|---|---|---|
||£|£|
|Gross Salaries|51,096|54,372|
|Social Security Costs|5,450|5,198|
No employee received remuneration in excess of £60,000 (2021:None).
These costs were in respect of 1 full time and 1 part time person.
The charity considers its key management personnel to be the trustees. Details of the benefits paid to them are disclosed in note 9.
## **11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Sales of Merchandise
Investment income
Other income
**Total**|Unrestricted
funds
£
19,467
33
44,825
4,333|
|---|---|
||68,658|
## **EXPENDITURE ON**
continued...
Page 9
**FORCES CHILDREN'S TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022**
|**11.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
Raising funds
**Charitable activities**
Beneficiary expenses
Support costs
**Total**
Net gains on investments
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**
**12.**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 January 2022
Additions
At 31 December 2022
**DEPRECIATION**
At 1 January 2022
Charge for year
At 31 December 2022
**NET BOOK VALUE**
At 31 December 2022
At 31 December 2021|Unrestricted
funds
£
414
65,416
1,650|
|---|---|
||67,480|
||97,383|
||98,561
1,362,376|
||1,460,937|
||Fixtures
and
fittings
£
2,797
1,050
3,847
2,694
288
2,982
865
103|
continued...
Page 10
**FORCES CHILDREN'S TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022**
## **13. FIXED ASSET INVESTMENTS**
The Charity has the following investments :
## **Unquoted**
The Charity owns the entire called up share capital of £1 in FCT Trading Limited, a company incorporated in England and Wales.
FCT Trading Limited was dormant throughout the year under review and has no assets.
## **Quoted**
The Charity acquired 1,045,281.78 units in Schroders 'The Charity Multi-Asset Fund A Distribution' during 2015 and a further 150,027.62 units during 2018, and 244,337.508 units in BlackRock 'Armed Forces Common Investment Fund Income' in 2017.
The movement during the year was as follows :
|Balance brought forward
Additions
Revaluation
Balance carried forward
**14.**
**STOCKS**
Stocks
**15.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
**16.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors|2022|2022|2021|2021|
|---|---|---|---|---|
||£||£||
||1,327,232||1,229,849||
||-||-||
||(159,187
)||97,383||
||
1,168,045||1,327,232||
|||2022
£
6,866
2022
£
1,697
2022
£
1,474||2021
£
6,380
2021
£
2,675
2021
£
1,473|
continued...
Page 11
**FORCES CHILDREN'S TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022**
## **17. MOVEMENT IN FUNDS**
|At 1.1.22
£
**Unrestricted funds**
General fund
1,324,166
Designated Fund - Educational Fund
136,771
1,460,937
**TOTAL FUNDS**
1,460,937
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
**Unrestricted funds**
General fund
74,656
(75,025)
Designated Fund - Educational Fund
-
(1,433)
74,656
(76,458)
**TOTAL FUNDS**
74,656
(76,458)
**Comparatives for movement in funds**
At 1.1.21
£
**Unrestricted funds**
General fund
1,223,823
Designated Fund - Educational Fund
138,553
1,362,376
**TOTAL FUNDS**
1,362,376
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
**Unrestricted funds**
General fund
68,658
(65,698)
Designated Fund - Educational Fund
-
(1,782)
68,658
(67,480)
**TOTAL FUNDS**
68,658
(67,480)||Net
movement
in funds
£
(159,556)
(1,433)
(160,989)
(160,989)
Gains and
losses
£
(159,187)
-
(159,187)
(159,187)
Net
movement
in funds
£
100,343
(1,782)
98,561
98,561
Gains and
losses
£
97,383
-
97,383
97,383|At
31.12.22
£
1,164,610
135,338
1,299,948
1,299,948
Movement
in funds
£
(159,556)
(1,433)
(160,989)
(160,989)
At
31.12.21
£
1,324,166
136,771
1,460,937
1,460,937
Movement
in funds
£
100,343
(1,782)
98,561
98,561|
|---|---|---|---|
|||||
|||||
|||||
|||||
|||||
|||||
continued...
Page 12
**FORCES CHILDREN'S TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022**
## **18. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2022.
Page 13