**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
Page 1
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.
Page 2
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.
Page 3
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:
1. 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
3. 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
4. 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
Page 5
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
Page 6
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
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (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
continued...
Page 7
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.
continued...
Page 9
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|
continued...
Page 10
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...
Page 11
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|
|---|---|---|
continued...
Page 12
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.
continued...
Page 13
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.
Page 14