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2020-07-31-accounts

Company number: 05454676 Charity Number: 1111106

The Royal Artillery Centre for Personal Development

Report and financial statements For the year ended 31 July 2020

The Royal Artillery Centre for Personal Development

Contents

For the year ended 31 July 2020

Reference and administrative information .................................................................................... 1 Trustees’ annual report ................................................................................................................ 3 Independent auditor’s report ...................................................................................................... 18 Consolidated statement of financial activities ............................................................................. 22 Balance sheets ........................................................................................................................... 23 Consolidated statement of cash flows ......................................................................................... 24 Notes to the financial statements ............................................................................................... 25

The Royal Artillery Centre for Personal Development

Reference and administrative information

For the year ended 31 July 2020

Company number 05454676 – incorporated in the United Kingdom
Charity number 1111106 – registered in England & Wales
Registered address Old Fire Station
Salt Lane
Salisbury
Wiltshire
SP1 1DU
Operational address Royal Artillery Barracks
Larkhill
Wiltshire
SP4 8QT
Trustees Trustees, who are also directors under company law, who served
during the year and up to the date of this report were as follows:
Major General W J F Bramble CBE
Mr O Adams
Colonel S Ellison
Brigadier C Hewitt (Appointed 4 September 2020)
Mr N A Hopkins OBE
Colonel M J Kelly (Resigned 16 November 2019)
Mr J B Knowles
Colonel A B Phillips
Colonel C Palmer (Appointed 15 November 2019)
Brigadier M Pullan (Resigned 10 July 2020)
Mrs A J Storey
Key management Claire Foxley Chief Executive
personnel Simon Upton Operations Director
Secretary Brunswick Company Secretaries Limited
Bankers Lloyds Bank
1st Floor
3 Town Quay
Southampton
SO14 2AQ

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The Royal Artillery Centre for Personal Development

Reference and administrative information

For the year ended 31 July 2020

Bankers (continued) CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
ME19 4JQ
Nationwide Building Society
Kings Park Road
Moulton Park
Northampton
NN3 6NW
Solicitors Blake Morgan
New Kings Court
Tollgate
Chandler’s Ford
Eastleigh
Hampshire
S053 3LG
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditor
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

The trustees present their report and the audited financial statements for the year ended 31 July 2020.

Reference and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and Activities

Purposes and aims

The Royal Artillery Centre for Personal Development operates as RACPD.

RACPD’s Charitable Object is:

‘To promote the efficiency of the Armed Forces of the Crown and in particular the Royal Artillery by improving the competencies, performance, morale and retention of serving military personnel, MOD Civil Servants and support to veterans through involvement in nationally recognised education, training and vocational schemes.’

RACPD’s Mission is:

‘We provide outstanding personal and professional educational support to RA soldiers, dependants and veterans whether they are in early recruit or trade training, mid-career, undergoing resettlement or developing a second career.’

The long term Vision, recently updated, is that:

‘RACPD will be the RA provider of choice. We will deliver relevant programmes of learning, aligning military skills with recognised civilian qualifications. We will increase our use of online technology to 40% to enable staff and learners to work remotely at a time/location that results in success. Income will be maximised by excellent learner and staff management whilst retaining a grade one experience and achievement. We will inspire, encourage, challenge and fully support learners and staff to achieve their best.

Through our work, we will:

The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

Principal Activities

We provide vocational education and training programmes to soldiers and officers in the Royal Artillery. This enables them to:

The trustees review the aims, objectives and activities of the Charity each year. This report looks at what the Charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the Charity has brought to those groups of people that it is set up to help. This review also helps the trustees ensure the Charity's aims, objectives and activities remain focused on its stated purposes.

The trustees 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 planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

This report will include references to Covid-19, which affected business in terms of delivery and income. Many learners were suspended from their apprenticeship programmes due to lockdown, Functional Skills delivery reduced significantly and almost 50% of staff were furloughed, however, a reasonable level of business continued. Where Covid-19 had a specific effect, it has been included in the narrative and data set out below.

Our Core Activities

Delivering Qualifications

One of the Charity’s priorities is to increase the number of soldiers who achieve nationally recognised, transferable qualifications. These qualifications improve soldiers’ promotion prospects within the Army and increase their chances of employment when they leave the Army.

The range and level of civilian qualifications we offer is broad and meets the needs of soldiers throughout their military careers. These include qualifications from Level 1 to Level 5, which are listed on the Regulated Qualification Framework (RQF), in the following areas:

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Trustees’ annual report

For the year ended 31 July 2020

The key income generating programmes that the Charity delivers are apprenticeships in Logistics, Telecommunications and Engineering (Aviation on the Ground). These are funded by the Education and Skills Funding Agency (ESFA) and through the employer Levy, both of which are administered by the Army apprenticeships team.

Delivering Educational Support, Information, Advice and Guidance

RACPD employs staff to provide apprenticeship and educational support and information, advice and guidance to soldiers and their dependants. These members of staff, known as Personal Development Advisors and Mentors (PDA/M), are embedded within the Royal Artillery regiments and they are uniquely placed to offer an accessible and flexible service to soldiers. The majority of our programmes and advice are delivered within the workplace in regiments based in UK. This removes the geographical barriers that exist for many remotely located soldiers who are unable to attend a Further Education College or travel to Larkhill to attend courses.

The Regimental Learning Centres, managed by qualified Functional Skills teachers, provide a unique and vital service to soldiers and their families. A range of courses, qualifications and Information, Advice and Guidance (IAG) are offered at flexible times to fit around soldiers’ operational commitments. During the lockdown, caused by Covid-19, many of the Learning Centres were closed if regiments were deployed or soldiers sent home. In these instances, staff were furloughed as they were unable to work from home or deliver courses to learners.

The majority of our employees are former servicemen/women, or dependants of serving soldiers, who understand the culture and challenges that soldiers (our learners) face. This understanding of our beneficiaries’ needs is vital to the success of the programmes.

Achievements and performance

The Charity's activities and beneficiaries are described below. All its charitable activities focus on soldiers and their dependants and are undertaken to further The Royal Artillery Centre for Personal Development’s charitable purposes for public benefit.

Performance Statistics

Registrations

Up until 31 July 2020, every soldier joining the Royal Artillery (RA) was offered the opportunity to gain an apprenticeship in Driving Goods Vehicles (DGV). From 1 August 2020, this changed, in line with apprenticeship reform and a transition from frameworks to standards and they were offered an opportunity to start on the Express Delivery standard apprenticeship. This offer, of a first apprenticeship, is important to the recruiting effort and ensures that young soldiers, who may

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Trustees’ annual report

For the year ended 31 July 2020

not have had a positive school experience, have the opportunity to achieve a Level 2 (GCSE equivalent) qualification.

Registrations have been affected this year by a number of factors. In late March 2020 we went into the national lockdown and the Army were either deployed to support the NHS or testing, or soldiers were told to remain at home. This resulted in 260 additional suspensions and a drop in Initial Trade Training (ITT) attendance and inductions. Overall apprenticeship registrations have reduced by 4%, due to Covid-1,9 but also as a result of the continuation of two years where the inflow of RA soldiers has been less than normal. This is due to the difficulty the Army has experienced in recruiting over the past two years and whilst the RA has high retention, allocations have remained lower than other cap badges. This reduction in the number of recruits entering the initial training pipeline also accounts for the 11% decrease in logistics registrations[1] . The ITT school delivered more telecommunications elements on the course last year and this resulted in a 40% increase in level 2 inductions. Once regiments also increase their own course delivery, we expect telecommunications registrations at level 3 to start to escalate[2] . Aviation Operations registrations have decreased once again. We believe this is due to the move to a standard which requires end point assessment and that has put off some soldiers from participating in this elective apprenticeship, even at level 2. The lack of uptake overall has been further aggravated by a continued delay in the Army’s Watchkeeper course delivery. Horse care registrations have decreased by 27% as the new Equine Groom standard was not available for delivery until 1 August 2020. The next induction opportunity will be in March 2021.

Functional Skills (FS) registrations have reduced by 28% due to the decrease in overall apprenticeship registrations, the increase in the number of proxy qualifications now eligible as exemptions and the reduction in new learners into the training pipeline during lockdown. The downward trend in apprenticeship registrations should reverse through AY 2020/21 as the RA recruiting/allocation is increased but should then plateau in 2022/23. A new progression apprenticeship at level 3 (Transporting Freight by Road) was introduced in June 2019 which has supported those soldiers who are in the ‘strike trade’ of the RA (those who work with/on guns); registrations reached 61. However, this qualification will no longer be offered as a framework in line with apprenticeship reform and there is not yet any suitable alternative standard. Other changes which may come to fruition in the next academic year as a result of the change to apprenticeship standards include a new level 3 telecommunications apprenticeship (Digital Support Technician) and logistics pathway.

Learning and Development course registrations reduced this year by 28%. Changes within the Royal School of Artillery (RSA) mean that RACPD is no longer being called upon to deliver the level 3 and level 4 teacher education courses. This has significantly reduced registrations for these courses and, whilst we continue to market the courses, we anticipant lower numbers to continue

1 The level 2 Driving Goods Vehicle apprenticeship accounts for over half of all logistics registrations.

2 The level 2 Telecommunications apprenticeship framework has not been replaced. After 1 August 2020 there will not be any more registrations on this programme.

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Trustees’ annual report

For the year ended 31 July 2020

going forwards. The level 2 and level 3 supporting teaching courses are however proving to be popular (mainly with dependants) and registrations for these increased in AY 2019/20.

There has been a decrease in IT (ITQ) registrations (51%) due to the change of staff and movement of regiments through AY 2019/20 and also an increase in support to the FS part of the apprenticeship programme. The level 2 Information, Advice or Guidance (IAG) course, which is underpinned by college funding, accounts for over 90% of registrations on other courses. We have also maintained our partnerships with other training providers and for a small fee we refer learners to them; the most popular of these courses continue to be Door Supervisor and the Institution of Occupational Safety and Health (IOSH) qualification.

PROGRAMME 2019
-
2020		 2018
-
2019		 2017
-
2018		 2016
-
2017		 2015
-
2016		 2014
-
2015
Aviation Operations on the
Ground		 7 14 3 32 44 53
Telecommunications 301 178 229 245 294 368
Logistics (Includes Forklift
truck and driver CPC(10)		 380 427 536 756 777 654
Horse care 19 26 3 13 7 11
Leadership& Management 373 275 380 326 343 366
Learning Centres Literacy &
Numeracy		 5 15 19 6 N/A N/A
Assessor & Verifier Awards 15 17 21 24 28 36
Learningand Development 42 58 106 20 76 104
ICT 54 111 98 182 194 217
Key/Functional Skills 354 490 655 788 893 1383
Other courses [1] 39 126 181 44 N/A N/A
Referrals to other training
providers		 80 104 N/A N/A N/A N/A
TOTALS 1669 1841 2231 2436 2656 3192

[1] Courses include Business Admin, Project Management, IAG and First Aid at Work.

Achievement rates[3]

Achievement rates for qualifications are a key performance indicator (KPI) since they demonstrate both the quality of delivery and the support for soldiers. RACPD monitors quality of delivery closely and on a quarterly basis through performance management reviews. Improvements in

3 Achievement. Once the learning has been completed the qualification is classed as ‘achieved.’ There are two categories of achievement: Overall achievement - the total number of learners that have finished through completion of all the learning activities; Timely achievement – the number of learners that are achieved on or before their planned end date or no more than 90 days after it.

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

programme planning and overall quality assurance remain an integral part of the Self-Assessment Report and Quality Improvement Plan. Additionally, the PDA/M role remains critical to support the soldiers, regiments and apprenticeship programme managers in delivering qualifications and providing advice and guidance to learners.

We continue to have some of the highest achievement rates, not only within the Army, but also nationally[4] , in all our programmes. This year, the overall achievement rate for our apprenticeship programme was 88% and the timely achievement was 80%. Although this was a timely decrease from last year, these results are still outstanding in comparison to Army and National averages and given the local and global environment. The overall achievement rate for the Telecommunications programme was 93% and the Logistics programmes was 86%. Aviation apprentices are already on standards for which there is currently no KPI and agreed method of measurement. Five apprentices have reached the gateway, completed their studies, and await End Point Assessment (EPA) which is contracted by the employer.

Achievement rates for Functional Skills have reduced to 74% (from an average of 84%) due to the increasing difficulty of the assessments and government requirements to test progression candidates even if we do not consider they have a chance of passing.

RACPD takes equality, diversity and inclusion (ED&I) very seriously and works hard to promote positive working practices to ensure that no discrimination is experienced by staff or learners in any of our locations. For AY 2019/20, data provided by the Army HQ performance management team shows that for RACPD there were no differences in performance between white Caucasian learners and ethnic minority learners. Female learners showed slightly higher achievement rates compared to their male counterparts which is entirely consistent with national data.

The analysis and use of data continue to be very good. Maintaining success rates and other KPIs over a sustained period demonstrates our effective data and management information systems (MIS). MIS reports identify action areas that are highlighted at quarterly performance reviews. The focus in the last year has been to maintain overall and timely achievement rates as well as possible. This has been a challenge given the increased tempo of the Army and therefore the difficulty of tracking, locating and supporting learners.

The average achievement rate for all other RACPD programmes and courses was 82%.

Achievements and Wider Benefits

It is important to recognise that we do not measure the success of our delivery by achievement statistics alone; the impact of these achievements on individuals’ lives is equally important. The effort and commitment soldiers put in to gain qualifications and thereby enhance their life chances is acknowledged through the Personal Development Awards programme every year. Learners are

4 National achievement rates (2017/18): Overall - 67%.

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

nominated by their regiment and overall winners announced at an awards ceremony which has been cancelled this year, due to Covid-19 restrictions. Normally, prizes which include certificates and cash awards (totalling over £8,000) are presented.

The matrix standard became a mandatory requirement for FE delivery for RACPD in 2014. The assessment is completed over three years with an initial visit and two follow up interim assessments. This year we were due for a full inspection which was carried out remotely at the end of July. We achieved full accreditation although due to Covid-19 insufficient learners were available for interview and so they will be asked to contribute next year. The apprenticeship programmes are accredited by Awarding Organisations and their quality assurance checks include Standard Verifier visits. A number of these took place throughout the year, in person and latterly, virtually, and all were complimentary on the standard of delivery, the outcomes for learners and the quality of the administration.

The employment of PDA/Ms remains a significant investment for the Charity. Their role continues to develop and whilst regimental support to soldiers’ education and personal development is still important, their focus has increasingly moved to the apprenticeship programme. The tangible benefit of that realignment of tasks is evident in the number of soldiers achieving their apprenticeships and the ability to maintain timely success rates despite the challenges faced.

Many of the regiments are in fairly remote locations, with limited access to Further Education Colleges. Every Learning Centre’s primary focus is delivery of Functional Skills for apprenticeships however, they also deliver the supplementary and elective IT qualification (known as ITQ). ITQ overall achievement rates remain high; there have been over 38 tests taken at level 2 with a 95% pass rate. At level 3, there have been limited numbers with only 8 learners testing with a pass rate of 75%. The British Computing Society (BCS) recognised that the centre’s performance and quality has been maintained at the highest level (awarded Green status at audit).

Over the year, and despite Covid-19, the Charity continued to provide wider support and services which help to improve the life chances of individuals and the efficiency of the Royal Artillery, including:

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

Beneficiaries of our services

In total, during the academic year 2019-20, RACPD registered 1669 learners onto educational programmes, compared to 1841 last year. The overall pass rate across all programmes is 71%. Those who did not achieve either withdrew themselves voluntarily, were posted away from the role that required the training or they left the Army; however, some will have returned for a second attempt. Whenever possible RACPD staff encourage learners to complete their qualifications before disengaging from a programme but this is not always possible. Learners completing formal qualifications make up the majority of the beneficiaries but there is still a significant number who request advice and guidance without being formally registered on a course with RACPD. While they may later enrol on a course, it is just as likely that the PDA/M, Learning Centre Manager (LCM) or another member of staff will signpost them to an alternative training provider if that is the right pathway for the learner.

Performance is measured in a variety of ways. The Royal Artillery sets Key Performance Indicators for the apprenticeship programme based on the number of learners starting a programme, completing a programme and the time within which completion is achieved. Quality of delivery is also measured and an audit programme, run by the Army, takes place biennially. Programme managers set specific targets for their teams based on knowledge of courses taking place either in the RSA or externally in the regiments and these are reported internally to the Operations Director. Impact is measured in a similar fashion, through the number of soldiers engaging with education and when available through destination data if a soldier leaves the Army and is successfully employed as a direct result of having engaged with RACPD.

Financial review

The overall deficit of £43,360, is much lower than planned and this is due to a significant reduction in staff and income support from the Coronavirus Job Retention Scheme when staff were furloughed during lockdown (£101,622).

The Charity receives most of its earned income for apprenticeship delivery, which is funded in part by the ESFA, with the majority now being paid by the employer (Army) through the employer levy. The Charity is heavily dependent upon this income to support the many other programmes and services that RACPD offers the Royal Artillery.

Army apprenticeship funding in this period was 78% of the Charity’s overall income of £1,663,231. The total apprenticeship funding received was £1,297,625 which is £67,759 less than last year.

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

This reduction is due to the decreased number of recruits coming through ITT and the effect of Covid-19 on new starts, suspensions and achievements. A small amount of trading income was generated through Sheldrake Training Ltd.

Expenditure was tightly controlled and decreased from £2,235,858 last year to £1,649,517; a reduction of £586,341. The salary bill represents 77% of overall spending which is slightly higher than last year (73%) and has reduced by a total of £352,735 as a result of a redundancy programme in the first quarter of the year and robust expenditure control throughout the year.

Future financial planning is predicated on maintaining the current apprenticeship programme income and being supported by additional educational activities and courses. The apprenticeship contract was won in May 2018 and will run for four years (from 1 August 2018 until 31 July 2022). There have been and will continue to be significant changes to apprenticeships and funding in those intervening years. Apprenticeship Reform has resulted in most learners being funded by the Employer Levy, with only a very small number being ESFA funded. Our forecasting shows that a move to standards across all programmes, and an increase in Army recruiting and RA allocations should result in increased income from 2020/21 onwards.

Investment powers and policy

Investment powers are governed by the memorandum and articles of association and permit the Charity’s funds to be invested in any way the trustees wish. The Board keeps its investment strategy under constant review, in accordance with the Charity Commission’s guidelines for best practice. The key features are:

Based on this framework the trustees have agreed the following principles:

The trustees, having considered the liquidity requirements of operating RACPD and the Reserves Policy, have generally adopted a policy of keeping available funds in short term easy access accounts until the economic conditions are more certain. However, an alternative medium term investment was approved on the grounds that the sum agreed should be invested for a minimum of 4 years and should be easily accessible. £1,300,000 was invested in a CAF Defence Capital Growth Fund in 2016. Due to Covid-19, capital loss on that investment for this year was £42,044

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

bringing the investment total over the past three years to £1,467,143. Interest from other investments (bank interest) reduced slightly and was £1,606 compared to £4,239 last year. Specific performance objectives were not set for investments this year, outside of the budgetary expectations. Trustees invested a further £500K in a different investment fund[5] (Quilter Cheviot) in May of FY 18-19. Capital loss on that investment for this year was £15,031 bringing the investment total to £518,882. Performance targets for both investments will be set and monitored at quarterly Finance Committee meetings and reported to the Board on the same timeframe.

Principal risks and uncertainties

The significant risks to which the Charity is exposed fall into two categories – those macro risks which are largely outside its control and those micro risks which are, at least to some extent, within its operational control. The main external macro risks are derived from the potential for changes in government and Army apprenticeship policy and funding, including the lower RA recruiting/allocation figures, and the consequent changes in income; Covid-19 second wave must also now be added to the macro risks. The micro-risks include increasing requirement for Functional Skills in a Covid-restricted environment, and implementation of new standards.

All risks are reviewed regularly by the SMT and wherever possible risks are mitigated or managed within routine business. A risk register is maintained for scrutiny by the Board of Trustees every six months, albeit the senior management team review it more regularly. There is little by way of mitigation for the macro risks until the full implications of apprenticeship reform become clearer, the Army migrates all their apprenticeship delivery to apprenticeship standards and RA recruiting returns to ‘normal’ levels. Covid-19 protection regulations are adhered to and regular briefings given to staff. Micro risks are mitigated against through normal routine procedures such as monitoring and regular audits.

The Charity’s principal financial instrument, other than investments, is cash and bank deposits. The credit risk associated with cash is limited as the counterparties have reasonable credit ratings. The Charity has maintained a positive cash position throughout the year and the exposure to liquidity risk is considered to be minimal.

Fundraising Practice

RACPD does not engage in public fundraising and does not use professional fundraisers or commercial participators. RACPD nevertheless observes the relevant fundraising regulations and codes. During the year RACPD received no complaints relating to its fundraising practice.

5 A selection process was put in place and 4 fund managers were interviewed by the Finance Committee. Quilter Cheviot was then invited to manage the investment.

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

Reserves Policy and Going Concern

The trustees' Reserves Policy takes into account the following factors:

The trustees have assessed the level of reserves needed to meet specific requirements and have agreed a plan to drive current reserves down to the target level. They endorsed the strategic plan that recognises that in the financial years 2016/17 up to 2019/20 the Charity would have to adjust to lower soldier numbers, re-configuration and rebasing of regiments. During this time, the trustees agreed to use reserves to fund charitable activity and to take care of the interests of the beneficiaries. Trustees have designated a strategic fund £2M, of which £100K will be held in a facility designated fund to relocate the Charity to a suitable long term location if required. These (unrestricted) Designated funds have been allocated to cover 50% of the cost of the Personal Development Advisors/Mentors and the Learning Centre Managers from FY 15/16 for four years. The intention was to return to a balanced budget in 2019/20 when Army 2020 will be complete and Apprenticeship Reform will be firmly in place. However, the poor recruiting/allocation figures were not factored into this planning and given that the deficit still remains, trustees have agreed to run the Charity at a deficit for an additional year. It is expected that the break-even point could be at the end of FY 2020/21 if RA recruiting increases. Current (unrestricted) General funds total £964,559.

There are no material uncertainties regarding the Charity’s ability to continue as a going concern.

Plans for the Future

The Government’s decision to reduce the size of the Army had an impact on the Charity’s operations and that was further exacerbated by the reduction in recruiting/allocation to the Royal Artillery. In order to mitigate the loss of funding due to reduced numbers coming through initial training, the Charity continues to develop new programmes and standards at levels 2 and 3 and is

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

registered to carry out end point assessment through its trading subsidiary, Sheldrake Training Limited (currently registered for aviation, horse care and express delivery). The Board of Trustees remains committed to delivering its existing three-year strategic plan and to enhance delivery of a wider range of opportunities to Service personnel and their families. Work continues to further develop the Virtual Learning Environment so that it can be utilised more for Functional Skills and other courses, as well as teacher education. Sheldrake Training Limited, is slowly building up its reputation, range of delivery and consequent turnover. It will take time to deliver an independent funding stream and until that happens, cash reserves are being retained. This decision is reflected in the Charity’s reserves policy.

Structure, Governance and Management

The Charity is governed by up to ten trustees, who are also the members. This is an appropriately sized forum to ensure a good range of relevant expertise and to enable timely decision-making. The trustees hold three Board meetings each year which is sufficient to review operational business as well as an AGM which reviews performance over the whole year. In addition, in a normal year they meet in May for development and appraisal, and to discuss strategy in an unrestricted forum. The number of meetings, their format and timings provide sufficient opportunity to review and update the strategy and to oversee and assure performance on a quarterly basis. The trustees delegate operational control, including full management of staff, to the Chief Executive (Claire Foxley) who is directly supported by the director of operations (Simon Upton). They are supported by two Heads of department (MIS and Teaching & Learning) and together they constitute the Senior Management Team.

The Board postponed the March meeting due to lockdown but it then took place virtually in June. The strategy meeting was postponed from May until October and ran successfully as a mixed face to face and virtual meeting.

The Board nominates individual trustees to hold responsibility for key regulatory matters: Health & Safety; Safeguarding; Data Protection; Equality & Diversity and Security. The Board has three committees: Audit; Finance and Remuneration. The Chair of each committee holds Board responsibility for those specific matters.

The Board decides the Charity’s three-year strategy, which is reviewed each year in May (held in October this year due to Covid-19). Additionally, in Q3, Trustees endorse the Chief Executive’s annual Business Plan, which sets out the forthcoming income and expenditure budgets for the next academic year. The Board has endorsed a scheme of delegation in which the trustees delegate limited spending authority to the Chief Executive, while retaining authority to spend single amounts not exceeding £60,000. The trustees also retain authority to appoint (executive) directors.

The organisation is a charitable company limited by guarantee, incorporated on 17 May 2005 and registered as a charity on 31 August 2005 with articles amended on 24 February 2014. The company was established under a memorandum of association, which established the Objects and

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

powers of the charitable company and is governed under its articles of association. All trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in the notes to the accounts.

Appointment of Trustees

The memorandum provides for ten trustees, up to five of whom are serving in the Royal Artillery (RA). The serving RA trustees are directly linked to their military roles, which is on the basis that those roles command or train the Charity’s beneficiaries. These ‘military’ trustees are only appointed as trustees for the duration of their specific military role, normally two years. One third of the trustees resign each year, on the occasion of the AGM. They may be re-appointed for up to three terms in office.

A skills scan is conducted periodically to identify the skills gap among trustees so that new trustees may be recruited to provide the missing skills and experience. Such trustees are found either through recruitment via charity trustee organisations, or local networking. The Board conducts a biannual analysis of their effectiveness and this was last conducted in May 2019 using the Cobseo Governance Tool. This gave an overall green rating with some consideration for improvement in the areas of trustee responsibilities, capabilities and board effectiveness. These were acted upon. Another self-assessment was undertaken on 7 October 2020 but results had not been analysed at time of writing this report.

Trustee Induction and Training

All trustees attend an induction briefing lasting up to three hours before their first Board meeting. The briefing, which is preceded by receipt of a comprehensive information pack, is led by the Chief Executive, who with the Operations Director, briefs the new trustee on the organisational structure, three-year strategic plan, current business plan, operations and forthcoming initiatives. This is followed by a governance briefing by the Board Secretary on the trustee’s responsibilities as a company director and trustee. The briefing includes details of when and how the Board meetings are held. New trustees are apprised of their specific Board responsibilities viz committee membership (Audit / Finance / Remuneration) and /or Board lead on regulatory matters such as Health & Safety, Safeguarding, Data Protection, Security, or Equality & Diversity. During this induction, and at subsequent events, the trustees meet key RACPD staff.

Subsequently, but preferably within three months of induction, the trustee will attend a formal, professional charity governance training course delivered by Civil Society.

Related Parties and Relationships with other Organisations

RACPD is a member of Cobseo (The Confederation of Service Charities). RACPD has a whollyowned trading subsidiary, Sheldrake Training Limited, which was incorporated on 17 March 2016.

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The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

Remuneration Policy for Key Management Personnel

The Remuneration Committee endorses the pay policy and takes advice from the Chief Executive on any cost of living increases in salary. These are then recommended to the Board for endorsement, once the Finance Committee has agreed affordability. Changes in salary are normally effective from the start of the Financial Year on 1 August and salaries are benchmarked against the Charity, Further Education and public sectors.

Statement of Responsibilities of the Trustees

The trustees (who are also directors of The Royal Artillery Centre for Personal Development for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

16

The Royal Artillery Centre for Personal Development

Trustees’ annual report

For the year ended 31 July 2020

Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 31 July 2020 was 8 (2019: 8). The trustees are members of the Charity but this entitles them only to voting rights. The trustees have no beneficial interest in the Charity.

The trustees’ annual report has been approved by the trustees on 10 December 2020 and signed on their behalf by

Maj Gen W J F Bramble CBE Chairman

17

Independent auditor’s report

To the members of

The Royal Artillery Centre for Personal Development

Opinion

We have audited the financial statements of The Royal Artillery Centre for Personal Development (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 July 2020 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. 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 Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

18

Independent auditor’s report

To the members of

The Royal Artillery Centre for Personal Development

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report other than the group financial statements and our auditor’s report thereon. Our opinion on the group financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the group financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group 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 group financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 require us to report to you if, in our opinion:

19

Independent auditor’s report

To the members of

The Royal Artillery Centre for Personal Development

Responsibilities of trustees

As explained more fully in the statement of responsibilities of the trustees set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

20

Independent auditor’s report

To the members of

The Royal Artillery Centre for Personal Development

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state 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 permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Elliott (Senior statutory auditor) 10 December 2020

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

21

The Royal Artillery Centre for Personal Development

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 July 2020

Note
Income from:
Bad Debt
Other
Investment management fees
2
9
3
Reconciliation of funds:
Charitable activities
Army Apprenticeships
Educational Training
Trading activities
Investments
Total income
Expenditure on:
Net (losses) / gains on investments
Net income / (expenditure) for the year
and net movement in funds
Net income/(expenditure) before net
gains on investments
Total expenditure
Charitable activities
Educational Training
Army Apprenticeships
Trading activities
Total funds carried forward
Total funds brought forward		 Unrestricted
General
£
1,297,625
184,251
34,630
-
101,622
45,103		 Unrestricted
Designated
£
-
-
-
-
-
-		 2020
Total
£
1,297,625
184,251
34,630
-
101,622
45,103		 Unrestricted
General
£
1,365,384
252,072
29,480
5,933
-
4,239		 Unrestricted
Designated
2019
Total
£
£
-
1,365,384
-
252,072
-
29,480
-
5,933
-
-
-
4,239
-
1,657,108
336,960
2,084,512
14,040
130,697
-
20,649
351,000
2,235,858
(351,000)
(578,750)
-
70,503
(351,000)
(508,247)
2,351,000
3,516,166
2,000,000
3,007,919
1,663,231 - 1,663,231 1,657,108
5,666
1,543,465
97,927
2,459		 -
-
-
-		 5,666
1,543,465
97,927
2,459		 1,747,552
116,657
20,649
1,649,517 - 1,649,517 1,884,858
13,715
(57,075)		 -
-		 13,715
(57,075)		 (227,750)
70,503
(43,360)
1,007,919		 -
2,000,000		 (43,360)
3,007,919		 (157,247)
1,165,166
964,559 2,000,000 2,964,559 1,007,919

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements.

22

The Royal Artillery Centre for Personal Development

Company no. 05454676

Balance sheet

As at 31 July 2020

Note
Fixed assets:
8
9
Current assets:
12
Liabilities:
13
15
16
Total unrestricted funds
General funds
Total charity funds
Investments
Cash at bank and in hand
Tangible assets
Creditors: amounts falling due within one year
Net current assets
Total net assets
Unrestricted income funds:
Designated funds
The funds of the charity:
Debtors		 2020
2019
£
£
79,346
133,552
1,986,024
2,005,268
2,065,370
2,138,820
271,060
293,747
721,408
851,723
992,468
1,145,470
(93,279)
(276,371)
899,189
869,099
2,964,559
3,007,919
2,000,000
2,000,000
964,559
1,007,919
2,964,559
3,007,919
2,964,559
3,007,919
The group		 2020
2019
£
£
79,346
133,552
1,986,024
2,005,268
2,065,370
2,138,820
271,060
293,747
721,408
851,723
992,468
1,145,470
(93,279)
(276,371)
899,189
869,099
2,964,559
3,007,919
2,000,000
2,000,000
964,559
1,007,919
2,964,559
3,007,919
2,964,559
3,007,919
The group		 2020
2019
£
£
79,346
133,552
1,986,025
2,005,269
2,065,371
2,138,821
274,820
302,546
679,460
830,338
954,280
1,132,884
(87,262)
(263,786)
867,017
869,098
2,932,388
3,007,919
2,000,000
2,000,000
932,388
1,007,919
2,932,388
3,007,919
2,932,388
3,007,919
The charity		 2020
2019
£
£
79,346
133,552
1,986,025
2,005,269
2,065,371
2,138,821
274,820
302,546
679,460
830,338
954,280
1,132,884
(87,262)
(263,786)
867,017
869,098
2,932,388
3,007,919
2,000,000
2,000,000
932,388
1,007,919
2,932,388
3,007,919
2,932,388
3,007,919
The charity
2,065,370
271,060
721,408		 2,138,820
293,747
851,723		 2,065,371
274,820
679,460		 2,138,821
302,546
830,338
992,468
(93,279)		 1,145,470
(276,371)		 954,280
(87,262)		 1,132,884
(263,786)
899,189 869,099 867,017 869,098
2,964,559 3,007,919 2,932,388 3,007,919
2,000,000
964,559		 2,000,000
1,007,919		 2,000,000
932,388		 2,000,000
1,007,919
2,964,559 3,007,919 2,932,388 3,007,919
2,964,559 3,007,919 2,932,388 3,007,919

Approved by the trustees on 10 December 2020 and signed on their behalf by

Major General W J F Bramble CBE Trustee

23

The Royal Artillery Centre for Personal Development

Consolidated statement of cash flows

For the year ended 31 July 2020

Reconciliation of net income / (expenditure) to net cash flow from operating activities

Note
£
£
(122,886)
45,103
(14,702)
Proceeds from the sale of investments
230,465
(341,514)
Cash movement in investments
73,218
(7,430)
(130,316)
851,723
721,407
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2020
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Losses / (Gains) on investments
Dividends, interest and rent from investments
Decrease / (Increase) in debtors
Increase / (Decrease) in creditors
Net cash (used in)/provided by operating activities
Cash flows from operating activities
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of fixed assets
Purchase of investments
Loss on disposal of fixed assets		 Note
£
£
(122,886)
45,103
(14,702)
Proceeds from the sale of investments
230,465
(341,514)
Cash movement in investments
73,218
(7,430)
(130,316)
851,723
721,407
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2020
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Losses / (Gains) on investments
Dividends, interest and rent from investments
Decrease / (Increase) in debtors
Increase / (Decrease) in creditors
Net cash (used in)/provided by operating activities
Cash flows from operating activities
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of fixed assets
Purchase of investments
Loss on disposal of fixed assets		 Note
£
£
(122,886)
45,103
(14,702)
Proceeds from the sale of investments
230,465
(341,514)
Cash movement in investments
73,218
(7,430)
(130,316)
851,723
721,407
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2020
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Losses / (Gains) on investments
Dividends, interest and rent from investments
Decrease / (Increase) in debtors
Increase / (Decrease) in creditors
Net cash (used in)/provided by operating activities
Cash flows from operating activities
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of fixed assets
Purchase of investments
Loss on disposal of fixed assets		 2020
£
(43,360)
49,708
19,200
57,075
(45,103)
22,687
(183,092)		 2019
£
(508,247)
80,099
-
(70,503)
(4,239)
67,547
92,425
(122,886) (342,918)
(130,316)
851,723
721,407

24

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

1 Accounting policies

a) Statutory information

The Royal Artillery Centre for Personal Development is a charitable company limited by guarantee and is incorporated in the United Kingdom.

The registered office addresss is Old Fire Station, Salt Lane, Salisbury, Wiltshire, SP1 1DU. The principal place of business is Royal Artillery Barracks, Larkhill, Wiltshire, SP4 8QT.

b) Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary Sheldrake Training Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented as a summary of the result for the year is disclosed in the notes to the accounts.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

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

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

25

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

f) Interest receivable

g) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

26

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

1 Accounting policies (continued)

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual

value over its expected useful life. The useful lives are as follows:

Portacabin 4 years
Computers 3 years
Fixtures & Fittings 5 years
Motor Vehicles 4 years
Online Learning Portal 3 years

l) Listed investments and common investment funds

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

Investments in subsidiaries

Investments in the subsidiary are at cost.

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

Cash at bank and cash 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.

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to 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.

p) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

q) Pensions

The charity operates a defined contribution scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activity.

27

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

2a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 4)
Registration fees
External trainers
Other direct course fees
PD Grants
Marketing & PD Promotion
Other
Motor Expenses
Insurance
Depreciation
Professional Fees
Trustees' meetings and expenses
Travel and Subsistence
Resources
IT Support
Development Projects
Redundancy
Support costs
Governance costs
Total expenditure 2020		 Army
Apprenticeship
£
984,376
75,466
13,822
4,731
6,124
6,742
12,675
10,184
11,534
10,019
9,971
-
10,231
20,550
52,683
41,231
30,374		 Educational
Training
£
61,524
4,717
864
296
383
421
792
637
721
626
1,188
210
639
1,284
3,293
2,577
1,898		 Trading
activities
£
-
(539)
1,727
-
-
-
72
-
-
-
1,175
-
24
-
-
-		 Governance
costs
£
12,305
943
173
59
77
84
158
127
144
125
14,946
3,399
128
257
659
515
380		 Support
costs
2020
Total
£
£
172,266
1,230,471
13,207
93,794
2,419
19,004
828
5,914
1,072
7,655
1,180
8,427
2,218
15,916
1,782
12,730
2,019
14,418
1,753
12,524
3,327
30,607
587
4,196
1,790
12,813
3,596
25,687
9,220
65,854
7,215
51,539
5,315
37,967
229,795
1,649,517
(229,795)
-
-
-
-
1,649,517
1,300,713
216,007
32,411		 82,070
13,788
2,069		 2,459
-
-		 34,480
-
(34,480)
1,549,131 97,927 2,459 -

28

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

2b Analysis of expenditure (prior year)

Charitable activities

Staff costs (Note 4)
Registration fees
External trainers
Other direct course fees
PD Grants
Marketing & PD Promotion
Other
Motor Expenses
Insurance
Depreciation
Professional Fees
Trustees' meetings and expenses
Travel and Subsistence
Resources
IT Support
Development Projects
Redundancy
Support costs
Governance costs
Total expenditure 2019		 Army
Apprenticeship
£
1,295,881
101,862
30,688
11,993
40,204
20,114
30,294
13,418
13,378
12,637
-
2,671
19,064
21,896
33,676
62,223
45,464		 Army
Apprenticeship
Providers (AAP)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Educational
Training
£
80,993
6,366
1,918
750
2,513
1,257
1,893
839
836
790
-
167
1,191
1,369
2,105
3,888
2,841		 Trading
activities
£
1,320
5,586
10,879
121
-
79
-
-
313
-
1,643
-
18
690
-
-
-		 Governance
costs
£
16,199
1,273
384
150
503
251
379
168
167
158
17,956
33
238
274
421
778
568		 Support
costs
2019
Total
£
£
226,779
1,621,172
17,826
132,913
5,370
49,239
2,099
15,113
7,036
50,256
3,520
25,221
5,302
37,868
2,348
16,773
2,341
17,035
2,212
15,797
2,923
22,522
467
3,338
3,336
23,847
3,832
28,061
5,893
42,095
10,889
77,778
7,957
56,830
310,130
2,235,858
(310,130)
-
-
-
-
2,235,858
1,755,463
291,522
37,527		 -
-
-		 109,716
18,608
2,373		 20,649
-
-		 39,900
-
(39,900)
2,084,512 - 130,697 20,649 -

29

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

3 Net income / (expenditure) for the year

This is stated after charging:

This is stated after charging:
2020 2019
£ £
Depreciation 49,708 80,099
Auditor's remuneration (excluding VAT):
Audit 9,900 9,700
Other services - 850

Staff costs were as follows:

Redundancy and termination costs
Social security costs
Salaries and wages
Employer’s contribution to defined contribution pension schemes		 2020
2019
£
£
1,088,029
1,383,605
37,967
56,830
99,127
127,813
43,313
52,924
1,268,437
1,621,172

The following number of employees received employee benefits in excess of £60,000 (excluding employer national insurance and employer pension contributions) during the year between:

£70,000 - £79,999

2020 2019
No. No.
1 1

The total employee benefits (including employer national insurance and employer pension contributions) of the key management personnel were £156,853 (2019: £152,394 ).

The Charity trustees were not paid or received any other benefits from employment with the Charity in the year (2019: £nil). No Charity trustee received payment for professional or other services supplied to the Charity (2019: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £771 (2019: £702) incurred by 4 (2019: 5) members relating to attendance at meetings of the trustees.

5 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Training Courses
Army Apprenticeships
Support		 2020
2019
No.
No.
38
42
3
3
4
7
45
52

6 Related party transactions

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties. (2019: £nil).

30

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

7 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Sheldrake Training Limited distributes available profits under gift aid to the parent charity. There was no charge to corporation tax in the year.

8 Tangible fixed assets

Tangible fixed assets
Group and charity
Cost
Depreciation
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
At the start of the year
Adjustment in year
At the end of the year
Net book value		 Online
Learning
Portal
£
192,907
11,683
102,712		 Portacabin
£
79,236
-
-		 Fixtures and
fittings
£
20,550
-
-		 Computers
£
281,932
3,019
(121,912)		 Motor
vehicles
£
46,730
-
-		 Total
£
621,355
14,702
(19,200)
307,302 79,236 20,550 163,039 46,730 616,857
192,907
37,183		 79,236
-		 20,373
177		 154,421
6,484		 40,866
5,864		 487,803
49,708
230,090 79,236 20,550 160,905 46,730 537,511
77,212 - - 2,134 - 79,346
- - 177 127,511 5,864 133,552

All of the above assets are used for charitable purposes.

9 Listed investments

Listed investments
Fair value at the start of the year
Additions at cost
Disposal proceeds
Change in cash held
Net gain on change in fair value
Fair value at the end of the year
Investments comprise:
UK Common investment funds
Listed investments
Cash
Investment in subsidiary company		 2020
£
2,005,268
341,514
(230,465)
(73,218)
(57,075)
The		 2019
£
1,437,320
530,088
(32,643)
-
70,503
group		 2020
2019
£
£
2,005,269
1,437,321
341,514
530,088
(230,465)
(32,643)
(73,218)
-
(57,075)
70,503
1,986,025
2,005,269
2020
2019
£
£
1,466,506
1,480,306
510,061
442,287
9,457
82,675
1
1
1,986,025
2,005,269
The charity
The charity
1,986,024 2,005,268 1,986,025 2,005,269
2020
£
1,466,506
510,061
9,457
-
The		 2019
£
1,480,306
442,287
82,675
-
group
1,986,024 2,005,268

31

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

10 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of Sheldrake Training Limited, a company registered in England (Company Number 10070090). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distributed under Gift Aid to the charitable company. The trustee Stephen Ellison together with the Chief Executive are also directors of the subsidiary. A summary of the results of the subsidiary is shown below:

Retained earnings
Brought forward
Profit for the year
Distribution to parent under gift aid
Carried forward
Liabilities
Funds
Turnover
Cost of sales
Gross profit
Administrative expenses
The aggregate of the assets, liabilities and funds was:
Assets
Operating profit and profit on ordinary activities		 2020
£
34,630
(1,212)		 2019
£
29,480
(17,985)
33,418
(1,247)		 11,495
(2,664)
32,171 8,831
-
32,171
-		 -
8,831
(8,831)
32,171 -
43,881
(11,709)		 12,586
(12,585)
32,172 1

Included within administrative expenses above is a management charge of £nil (2019: £500) from the parent entity.

11 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

12
Trade debtors
Amounts due from trading subsidiary
Prepayments
Accrued income
Debtors
Gross income
Result for the year		 2020
£
74,285
-
46,973
149,803
The		 2019
£
121,783
-
43,774
128,190
group		 2020
£
1,628,601
(75,531)		 2019
£
1,636,458
(508,247)
271,060 293,747

32

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income		 2020
£
24,742
23,927
15,494
27,566
1,550
The		 2019
£
143,888
44,611
4,639
82,714
519
group		 2020
2019
£
£
20,274
131,303
23,927
44,611
15,496
4,639
27,566
82,714
-
519
87,262
263,786
The charity
93,279 276,371

14 Pension scheme

The group operates a defined contribution scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge of £43,313 (2019: £52,924) represents contributions payable by the group into the fund. At the year end there were contributions outstanding of £16,314 (2019: £10,997).

15a Analysis of group net assets between funds (current year)

At 1 August
2019
£
1,900,000
100,000
Total designated funds
2,000,000
General funds
1,007,919
3,007,919
3,007,919
Total funds
Investments
Net current assets
Net assets at the end of the year
Tangible fixed assets
Analysis of group net assets between funds (prior year)
Tangible fixed assets
Investments
Net current assets
Movements in funds (current year)
Total unrestricted funds
Strategic Funds
Facilities Funds
Unrestricted funds:
Designated funds:
Net assets at the end of the year		 At 1 August
2019
£
1,900,000
100,000
Total designated funds
2,000,000
General funds
1,007,919
3,007,919
3,007,919
Total funds
Investments
Net current assets
Net assets at the end of the year
Tangible fixed assets
Analysis of group net assets between funds (prior year)
Tangible fixed assets
Investments
Net current assets
Movements in funds (current year)
Total unrestricted funds
Strategic Funds
Facilities Funds
Unrestricted funds:
Designated funds:
Net assets at the end of the year		 Income &
gains
£
-
-		 Unrestricted
General
£
79,346
-
885,213		 Unrestricted
Designated
£
-
1,986,024
13,976		 Total
funds
£
79,346
1,986,024
899,189
964,559 2,000,000 2,964,559
Unrestricted
General
£
133,552
5,268
869,099		 Unrestricted
Designated
£
-
2,000,000
-		 Total
funds
£
133,552
2,005,268
869,099
1,007,919 2,000,000 3,007,919
Expenditure &
losses
£
-
-		 Transfers
£
-
-		 At 31 July
2020
£
1,900,000
100,000
2,000,000 - - - 2,000,000
1,007,919 1,663,231 (1,706,591) - 964,559
3,007,919 1,663,231 (1,706,591) - 2,964,559
3,007,919 1,663,231 (1,706,591) - 2,964,559

15b Analysis of group net assets between funds (prior year)

16a Movements in funds (current year)

33

The Royal Artillery Centre for Personal Development

Notes to the financial statements

For the year ended 31 July 2020

16b Movements in funds (prior year)

Total designated funds
General funds
Strategic Funds
Facilities Funds
Unrestricted funds:
Designated funds:
Total funds
Total unrestricted funds
Strategic Funds - PDA/LC		 At 1 August
2018
£
1,900,000
351,000
100,000		 Income &
gains
£
-
-
-		 Expenditure &
losses
£
-
(351,000)
-		 Transfers
At 1 August
2019
£
£
-
1,900,000
-
-
-
100,000
-
2,000,000
-
1,007,919
-
3,007,919
-
3,007,919
2,351,000 - (351,000)
1,165,166 1,727,611 (1,884,858)
3,516,166 1,727,611 (2,235,858)
3,516,166 1,727,611 (2,235,858)

Purposes of designated funds

The Strategic fund was kept at £1,900,000 to meet the level of reserves that the trustees agreed were required for contingency.

Strategic funds - PDA/LC, has been allocated a fund of £1,400,000 over 5 years to fund 50% of the PDA (Personal Development Advisors)/LC (Learning Centres) expenditure as agreed by the trustees and the remainder was used in the year.

The Facilities Funds represents monies set aside to relocate the charity to a suitable long term location.

17 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

34