REGISTERED COMPANY NUMBER: 05523632 (England and Wales) REGISTERED CHARITY NUMBER: 1112260
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 December 2020
for
Operation Christmas Box
Maximus Accountancy Services Limited 47 Kensington Road Chichester West Sussex PO19 7XS
Operation Christmas Box
Contents of the Financial Statements for the Year Ended 31 December 2020
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 4 |
| Independent Examiner's Report | 5 | ||
| Statement of Financial Activities | 6 | ||
| Balance Sheet | 7 | to | 8 |
| Notes to the Financial Statements | 9 | to | 14 |
Operation Christmas Box
Reference and Administrative Details for the Year Ended 31 December 2020
TRUSTEES Mr A Sims Mrs S Little Wing Commander (Retd) C Wookey Colonel (Retd) S R Sharman REGISTERED OFFICE The Teasel Barn Belluton Pensford Bristol BS39 4JJ REGISTERED COMPANY 05523632 (England and Wales) NUMBER REGISTERED CHARITY 1112260 NUMBER INDEPENDENT EXAMINER Maximus Accountancy Services Limited 47 Kensington Road Chichester West Sussex PO19 7XS
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Operation Christmas Box (Registered number: 05523632)
for the Year Ended 31 December 2020
Report of the Trustees
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. 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 objects for which the charity was established are to help improve the morale of the UK Armed Forces, through charitable means, by promoting the well-being and esprit de corps of all those on military service. This is achieved, primarily, by providing Christmas Boxes to all unaccompanied personnel serving overseas, who are away from their families and loved ones on Christmas Day each year.
The charity cannot operate without assistance from the Ministry of Defence (MOD) which provides estimates of numbers likely to be away. It also provides senior military officers to sit on the MOD Christmas Box Committee and they give their advice on items and the suitability of the Christmas Box contents. The MOD assists with the Christmas Box distribution using irreducible spare capacity in their supply chain in the early autumn each year.
Public benefit
The trustees confirm that when reviewing the charity's aims and objectives, and in the planning of future activities, they have consulted the guidance in the Charity Commission's Guidance on Public Benefit .
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The charity continues to deliver annually against its main task of providing a morale boosting gift box to all unaccompanied UK military personnel serving overseas on Christmas Day.
Following the name change to Operation Christmas Box at the beginning of 2019, the trustees believe that the name is becoming more well known within the Armed Forces but there is still much work to do.
The 2020 Christmas Box contents were confirmed at the MOD Christmas Box Committee meeting held during February. The trustees were delighted when the Secretary of State for Defence kindly supplied some appropriate words for the inside of the 2020 Christmas card. Due to the Covid restrictions that came into force later the following month, no more MOD Christmas Box Committee meetings were held in 2020. The charity distributed 9,700 boxes and. as in previous years, had excellent feedback from a number of commanding officers who commented favourably on the positive boost to morale that the boxes provided on Christmas Day and beyond.
Vestey Foods UK Ltd (Special Contracts Division) continued to supply the boxes, providing an excellent service. The quality and choice of contents has improved immeasurably, interpreting most ably the suggestions provided at the previous MOD Christmas Box Committee meetings. Their expertise has greatly added to the experience for those away from their families overseas on Christmas Day.
Fundraising activities
Fundraising in 2020 again proved particularly challenging, and it was hampered by the Covid restrictions that came into force on 23 March. Despite the still large numbers of Armed Forces unaccompanied personnel overseas and away from their families and friends at Christmas, the reduced media coverage of MOD operations has hindered fundraising. However, the charity retained the three sponsors from the previous year. The Royal British Legion declined to support the charity in 2020 but they have rejoined for the 2021 Christmas Box.
Social Media
Following the employment of a former Royal Navy sailor to act as a consultant, on a part time basis, as the Head of Social Media and Sponsorship Generator, we had an impressive array of social media comments and images from the recipients of the Christmas Box around the world. This confirmed that the charity delivers a meaningful and well received product on time around the world. With that expertise, we have been able to reach out to greater numbers of service personnel and the general public on a number of different digital platforms.
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Operation Christmas Box (Registered number: 05523632)
Report of the Trustees for the Year Ended 31 December 2020
ACHIEVEMENT AND PERFORMANCE
Thanks
The trustees would like to reiterate their thanks to both the Ministry of Defence and Vestey Foods UK Ltd.
FINANCIAL REVIEW
Financial position
During the year the charity received donations amounting to £27,065 (2019: £46,096). The direct cost of Christmas boxes for Christmas 2020 was £154,400 (2019: £166,907), and the cost of generating funds amounted to £10,854 (2019: £1,005).
The overall deficit for the year, after taking into account other income, realised and unrealised gains and losses on investments, and the minimal support and governance costs, amounted to £174,230 (2019: deficit of £90,290), none of which is restricted. At the year end the unrestricted reserves amounted to £294,069 (2019: £463,891) and the restricted reserves amounted to nil (2019: £4,408).
Vexatious litigation
During May 2019, Eversheds Sutherland Legal Services, the charity's solicitors, received a letter from Mr and Mrs Briggs. Following the trustees' discussion, they instructed Eversheds Sutherland Legal Services to send an acknowledgement which was sent by email in June 2019. To date, nothing more has been heard from them since then.
Reserves and investments
The charity operates on a year by year basis with purchase costs known in advance. The trustees are required to pay for the Christmas Boxes in advance of order (i.e. 9 months before delivery). They have always considered that they should have reserves to cover the average cost of two years of boxes at a realistic level (i.e 15,000 boxes per year at £16 per box) of around £480,000. The trustees have achieved this in previous years but they are now struggling to maintain this level of income.
As the interest offered by banks continues to be almost non-existent, the trustees agreed to maintain the charity's current investment strategy which has so far proved successful.
FUTURE PLANS
Whilst new sponsorship this year, as last, has proved elusive, the charity's Patron offered assistance by using his many contacts within the defence industry to sponsor the costs of the 2020 Boxes. To ameliorate fund raising, the trustees revisited linking up with another service charity. However, we were unable to find a suitable match.
Despite the distribution of well over 250,000 Christmas Boxes since the charity's incorporation 16 years ago, the charity is still relatively unknown to many service personnel. The Head of Social Media and Sponsorship Generation is helping to widen the charity's profile.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The charity was incorporated on 1 August 2005 and registered as a charity on 24 November 2005. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. None of the trustees has any beneficial interest in the charity. In the event of the charity being wound up the members are required to contribute an amount not exceeding £1.
The charity was originally known as UK4U-Thanks and changed its name to Operation Christmas Box with effect from 28 February 2018 as this is deemed more representative of the charity's raison d'etre.
Recruitment and appointment of new trustees
The day to day management of the affairs of the charity is undertaken by the trustees.
The trustees were approached to act as trustees due to their connection with the military. Given the nature of the charity's activities no formal induction or training is considered to be required. The trustees are aware of their responsibilities and take advice from the Charity Commission and professional advisers as the need arises.
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Operation Christmas Box (Registered number: 05523632)
Report of the Trustees for the Year Ended 31 December 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT Our Patron
James Gray, MP for North Wiltshire since 1997, accepted the trustees' invitation to become Patron of Operation Christmas Box in 2017. James is very sympathetic to HM Forces having had a short military career (1977-84) in the Honourable Artillery Company (HAC).
He is very enthusiastic about the work that the charity does. He has already shown a hands-on approach by arranging and hosting a dinner in the Houses of Parliament to which he invited potential future sponsors.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 23 September 2021 and signed on its behalf by:
Wing Commander (Retd) C Wookey - Trustee
Page 4
Independent Examiner's Report to the Trustees of Operation Christmas Box
Independent examiner's report to the trustees of Operation Christmas Box ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Hilary Julian BA FCA DChA Maximus Accountancy Services Limited 47 Kensington Road Chichester West Sussex PO19 7XS
23 September 2021
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Operation Christmas Box
Statement of Financial Activities
(Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2020
| Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 27,065 Investment income 3 6,123 Total 33,188 EXPENDITURE ON Raising funds 4 10,854 Charitable activities 5 Christmas Boxes 157,116 Total 167,970 Net gains/(losses) on investments (39,448) NET INCOME/(EXPENDITURE) (174,230) Transfers between funds 12 4,408 Net movement in funds (169,822) RECONCILIATION OF FUNDS Total funds brought forward 463,891 TOTAL FUNDS CARRIED FORWARD 294,069 |
Restricted fund £ - - - - - - - - (4,408) (4,408) 4,408 - |
2020 Total funds £ 27,065 6,123 33,188 10,854 157,116 167,970 (39,448) (174,230) - (174,230) 468,299 294,069 |
2019 Total funds £ 46,096 17,354 63,450 1,005 170,135 171,140 17,400 (90,290) - (90,290) 558,589 468,299 |
|---|---|---|---|
The notes form part of these financial statements
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Operation Christmas Box (Registered number: 05523632)
Balance Sheet
31 December 2020
| Unrestricted funds Notes £ FIXED ASSETS Investments 9 144,223 CURRENT ASSETS Debtors 10 43,707 Cash at bank 107,767 151,474 CREDITORS Amounts falling due within one year 11 (1,628) NET CURRENT ASSETS 149,846 TOTAL ASSETS LESS CURRENT LIABILITIES 294,069 NET ASSETS 294,069 FUNDS 12 Unrestricted funds: General fund Fair value reserve Restricted funds TOTAL FUNDS |
Restricted fund £ - - - - - - - - |
2020 Total funds £ 144,223 43,707 107,767 151,474 (1,628) 149,846 294,069 294,069 301,822 (7,753) 294,069 - 294,069 |
2019 Total funds £ 279,496 35,800 154,908 190,708 (1,905) 188,803 468,299 468,299 453,390 10,501 463,891 4,408 468,299 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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Operation Christmas Box (Registered number: 05523632)
Balance Sheet - continued 31 December 2020
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 23 September 2021 and were signed on its behalf by:
Wing Commander (Retd) C Wookey - Trustee
The notes form part of these financial statements
Page 8
Operation Christmas Box
Notes to the Financial Statements for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 '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, with the exception of investments which are included at their fair value, in accordance with the SORP.
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.
Income from sponsorship of the Christmas boxes is recognised in the period to which it relates.
Donations are recognised when received. Donations in the form of gifts in kind are recognised as income when distributed with an equivalent amount being included as expenditure. Gifts in kind are valued at an estimate of the market value the charity would have to pay for an equivalent item.
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.
Charitable expenditure relates to the cost of the Christmas boxes and related support costs. Support costs includes expenditure on management and administration of the charity including trustees' expenses and the independent examiner's fees.
The cost of raising funds includes expenditure on social media, fundraising activities and investment management costs.
Taxation
The charity is exempt from corporation tax on its charitable activities.
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.
Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently they are measured at fair value with changes recognised in net gains/(losses) in the SoFA if the shares are publicly traded or the fair value can otherwise be measured reliably.
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised as expenditure.
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Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
2. DONATIONS AND LEGACIES
| 2. | DONATIONS AND LEGACIES | |||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| Donations | 27,065 | 46,096 | ||
| Donations for 2019 include £8,099 in respect of donated Christmas Box contents. | ||||
| 3. | INVESTMENT INCOME | |||
| 2020 | 2019 | |||
| £ | £ | |||
| Income from listed investments | 3,316 | 10,103 | ||
| Income from unlisted investments | 2,584 | 6,292 | ||
| Bank interest | 223 | 959 | ||
| 6,123 | 17,354 | |||
| 4. | RAISING FUNDS | |||
| Raising donations and legacies | ||||
| 2020 | 2019 | |||
| £ | £ | |||
| Outsourced social media and fundraising support | 10,000 | - | ||
| Website costs | 472 | 228 | ||
| 10,472 | 228 | |||
| Investment management costs | ||||
| 2020 | 2019 | |||
| £ | £ | |||
| Portfolio management | 382 | 777 | ||
| Aggregate amounts | 10,854 | 1,005 | ||
| 5. | CHARITABLE ACTIVITIES COSTS | |||
| Support | ||||
| Direct | costs (see | |||
| Costs | note 6) | Totals | ||
| £ | £ | £ | ||
| Christmas Boxes | 154,400 | 2,716 | 157,116 |
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Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
6. SUPPORT COSTS
| SUPPORT COSTS | |
|---|---|
| Charity | |
| running | |
| costs | |
| £ | |
| Christmas Boxes | 2,716 |
Support costs include £500 payable to the independent examiner in respect of the independent examination (2019: £500) and £900 (2019: £900) for other services.
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
One trustee was reimbursed a total of £198 for travel and subsistence expenses incurred whilst carrying out their duties (2019 one trustee was reimbursed a total of £180).
8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 46,096 Investment income 17,354 Total 63,450 EXPENDITURE ON Raising funds 1,005 Charitable activities Christmas Boxes 170,135 Total 171,140 Net gains on investments 17,400 NET INCOME/(EXPENDITURE) (90,290) RECONCILIATION OF FUNDS Total funds brought forward 554,181 TOTAL FUNDS CARRIED FORWARD 463,891 |
Restricted fund £ - - - - - - - - 4,408 4,408 |
Total funds £ 46,096 17,354 63,450 1,005 170,135 171,140 17,400 (90,290) 558,589 468,299 |
|---|---|---|
continued...
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Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
9. FIXED ASSET INVESTMENTS
| Listed Unlisted investments investments £ £ MARKET VALUE At 1 January 2020 207,619 71,877 Additions 238,044 2,455 Disposals (292,624) (43,700) Revaluations (36,335) (3,113) At 31 December 2020 116,704 27,519 NET BOOK VALUE At 31 December 2020 116,704 27,519 At 31 December 2019 207,619 71,877 |
Totals £ 279,496 240,499 (336,324) (39,448) 144,223 144,223 279,496 |
|---|---|
There were no investment assets outside the UK.
Listed investments are valued at their published value at the balance sheet date. Unlisted investments are valued at the recoverable amount of the loan portfolio at the balance sheet date.
10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Other debtors 11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors 12. MOVEMENT IN FUNDS Net movement At 1.1.20 in funds £ £ Unrestricted funds General fund 453,390 (174,230) Fair value reserve 10,501 - 463,891 (174,230) Restricted funds Armed Forces Covenant (LIBOR) Fund 4,408 - TOTAL FUNDS 468,299 (174,230) |
2020 £ 12,680 31,027 43,707 2020 £ 1,628 Transfers between funds £ 22,662 (18,254) 4,408 (4,408) - |
2019 £ - 35,800 35,800 2019 £ 1,905 At 31.12.20 £ 301,822 (7,753) 294,069 - 294,069 |
|---|---|---|
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Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
12. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Fair value reserve Restricted funds Armed Forces Covenant (LIBOR) Fund TOTAL FUNDS |
Incoming resources £ 33,188 33,188 At 1.1.19 £ 626,885 (72,704) 554,181 4,408 558,589 |
Resources expended £ (167,970) (167,970) Net movement in funds £ (90,290) - (90,290) - (90,290) |
Gains and Movement losses in funds £ £ (39,448) (174,230) (39,448) (174,230) Transfers between At funds 31.12.19 £ £ (83,205) 453,390 83,205 10,501 - 463,891 - 4,408 - 468,299 |
|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 63,450 63,450 |
Resources expended £ (171,140) (171,140) |
Gains and Movement losses in funds £ £ 17,400 (90,290) 17,400 (90,290) |
|---|---|---|---|
The restricted fund above consisted of the unexpended portion of a grant from the Armed Forces Covenant (LIBOR) Fund. The purpose of the grant application was to fund the cost of a part-time fundraiser for a period of three years. The balance of the fund was transferred to unrestricted funds during the year to offset the cost of outsourced fundraising support during the year.
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Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
13. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2020.
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