**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 2022
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 2022
|||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 2022
**TRUSTEES** Mr A Sims Mrs S Little Wing Commander (Retd) C Wookey Colonel (Retd) S R Sharman Mr C T Scanlon (appointed 1.3.2023) **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 2022
## 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 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The 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 on operations and 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, and locations. It also provides senior military officers to sit on the MOD Christmas Box Committee and who 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 2022 Christmas Box contents were compiled with help from the military members of the MOD Christmas Box Committee and ideas suggested by serving personnel. Due to the Covid restrictions that continued to be in force, we were unable to hold face-to-face meetings with MOD Christmas Box Committee members and carried out the work by email. Normally, a planning meeting is held during late autumn the previous year and one to agree the contents early in the following year. To our great surprise, our supplier Vestey Foods UK Ltd (Special Contracts Division) representative informed the trustees in early 2022 that they were unable to provide their service henceforth. Nevertheless, at short notice, the 2022 Christmas Box contents were put together by the trustees with the assistance of Box, Tray & Giraffe Inc, a Chinese supplier used by Vestey Foods UK Ltd. The trustees contracted to purchase 8,000 2022 Christmas Boxes. As in previous years, we received some excellent feedback from a number of commanding officers and individuals commented favourably on the positive boost to morale that the boxes provided on Christmas Day and beyond. Box, Tray & Giraffe Inc's expertise added greatly to the experience of those unaccompanied far away from their families on Christmas Day.
The supplier, Box, Tray & Giraffe Inc, supplied the 2022 boxes items providing the trustees, who had little knowledge of importing goods, with great help and presented the charity with an excellent service. The quality and choice of contents offered by them, interpreting most ably the suggestions provided by previous MOD Christmas Box Committee meetings and feedback from the recipients, helped the trustees to continue their aim to improve the boxes' contents each year.
Page 2
Operation Christmas Box (Registered number: 05523632)
Report of the Trustees for the Year Ended 31 December 2022
## **ACHIEVEMENT AND PERFORMANCE**
## **Fundraising activities**
Fundraising in 2022 again proved particularly challenging and it continued to be hampered by the Covid restrictions that remained in force from the previous year. 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, our inability to hold fundraising events and the support guided to charities supporting Covid greatly hindered our fundraising. However, the trustees retained the four sponsors from the previous year, including The Royal British Legion, and myriad supporters via Just Giving. Very generous donations from The Nuffield Trust for Forces of the Crown and The Gosling Foundation greatly helped to fund this year's box.
The trustees had planned to hold an Operation Christmas Box Charity Golf Day at Ash Valley Golf Club on 9 September 2022. Sadly, the event had to be postponed in deference to the death of Her Majesty Queen Elizabeth II.
## **Social Media**
The trustees continued to use the expertise of an ex-RN sailor to act as a social media consultant on a part time basis as the Head of Social Media and Sponsorship Generator. The result of this has improved our presence on social media, and provided an impressive array of social media comments and images from the recipients of the Christmas Box around the world. It enables us to use images taken in theatre of our boxes being opened on our website. The results 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.
## **Thanks**
The trustees would like to reiterate their thanks to both the MOD and to Box, Tray & Giraffe Inc. The trustees are also most grateful to Good Logistics Group for their assistance to unload the container from Felixstowe, palletise and shrink wrap the boxes before sending the boxes for distribution to their final destinations.
## **FINANCIAL REVIEW**
## **Financial position**
During the year the charity received donations amounting to £128,170 (2021: £64,881). The direct cost of the Christmas Boxes for Christmas 2022 was £137,734 (2021: £136,000), and the cost of generating funds amounted to £16,022 (2021: £12,968).
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 £63,617 (2021: deficit of £64,807), none of which is restricted. At the year end the unrestricted reserves amounted to £165,645 (2021: £229,262).
## **Reserves and investments**
The charity operates on a year by year basis with purchase costs known in advance. The trustees are required to pay a 30% deposit when placing the order for the Christmas Boxes and the balance 45 days after receipt of the bill of lading. 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 10,000 boxes per year at £17 per box) of around £340,000. The trustees have achieved this in previous years but they are now struggling to maintain this level of income.
As interest rates have improved, and markets continue to be volatile, the trustees agreed to liquidate the investment portfolio so that reserve funds were held as cash as at the year end, pending a decision on the charity's future investment strategy.
Page 3
Operation Christmas Box (Registered number: 05523632)
## Report of the Trustees
## for the Year Ended 31 December 2022
## **FUTURE PLANS**
Whilst new sponsorship this year, as in the past few years, has proved elusive, we were pleased to gain the support of the Nuffield Trust for Forces of the Crown for the 2022 Christmas Box. To ameliorate the fundraising challenges, the trustees continued to consider linking with another service charity. As last year, we were still unable to find a suitable match.
Despite the distribution of well over 250,000 Christmas Boxes since the charity's incorporation 17 years ago, the charity is still relatively unknown to most Service personnel. The Head of Social Media and Sponsorship Generation is helping to widen the charity's profile improving the awareness of our charity across different media channels.
## **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.
## **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 and stands ready to assist the charity's work in whatever capacity that he can.
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 28 September 2023 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 2022.
## **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
2 October 2023
Page 5
Operation Christmas Box
## Statement of Financial Activities
## (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2022
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
128,170
Investment income
3
4,155
**Total**
132,325
**EXPENDITURE ON**
Raising funds
4
16,105
**Charitable activities**
5
Christmas Boxes
139,771
**Total**
155,876
Net gains/(losses) on investments
(40,066)
**NET INCOME/(EXPENDITURE)**
(63,617)
**RECONCILIATION OF FUNDS**
Total funds brought forward
229,262
**TOTAL FUNDS CARRIED FORWARD**
165,645|Restricted
fund
£
-
-
-
-
-
-
-
-
-
-|2022
Total
funds
£
128,170
4,155
132,325
16,105
139,771
155,876
(40,066)
(63,617)
229,262
165,645|2021
Total
funds
£
64,881
6,548
71,429
12,968
139,535
152,503
16,267
(64,807)
294,069
229,262|
|---|---|---|---|
The notes form part of these financial statements
Page 6
Operation Christmas Box (Registered number: 05523632)
## Balance Sheet
## 31 December 2022
|Unrestricted
funds
Notes
£
**FIXED ASSETS**
Investments
9
4,838
**CURRENT ASSETS**
Debtors
10
27,711
Cash at bank
135,082
162,793
**CREDITORS**
Amounts falling due within one year
11
(1,986)
**NET CURRENT ASSETS**
160,807
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
165,645
**NET ASSETS**
165,645
**FUNDS**
12
Unrestricted funds:
General fund
Fair value reserve
**TOTAL FUNDS**|Restricted
fund
£
-
-
-
-
-
-
-
-|2022
Total
funds
£
4,838
27,711
135,082
162,793
(1,986)
160,807
165,645
165,645
165,645
-
165,645
165,645|2021
Total
funds
£
166,396
27,582
38,420
66,002
(3,136)
62,866
229,262
229,262
227,977
1,285
229,262
229,262|
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 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 2022
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 28 September 2023 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 2022
## **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, or when the service is received, 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 or service.
## **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 2022
|**2.**
**DONATIONS AND LEGACIES**
Donations
**3.**
**INVESTMENT INCOME**
Income from listed investments
Income from unlisted investments
Bank interest
**4.**
**RAISING FUNDS**
**Raising donations and legacies**
Outsourced social media and fundraising support
Website costs
Fundraising events
**Investment management costs**
Portfolio management
Aggregate amounts
**5.**
**CHARITABLE ACTIVITIES COSTS**
Direct
Costs
£
Christmas Boxes
137,734|2022
£
128,170
2022
£
3,440
605
110
4,155
2022
£
12,000
324
3,698
16,022
2022
£
83
16,105
Support
costs (see
note 6)
£
2,037||2021
£
64,881|
|---|---|---|---|
|||2021
£
4,965
1,583
-
6,548
2021
£
12,000
776
-
12,776
2021
£
192
12,968
Totals
£
139,771|2021
£
4,965
1,583
-
6,548
2021
£
12,000
776
-|
||||12,776|
||||2021
£
192
12,968|
continued...
Page 10
Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **6. SUPPORT COSTS**
|**SUPPORT COSTS**||
|---|---|
||Charity|
||running|
||costs|
||£|
|Christmas Boxes|2,037|
Support costs include £500 payable to the independent examiner in respect of the independent examination (2021: £500) and £900 (2021: £900) for other services.
## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.
## **Trustees' expenses**
One trustee was reimbursed a total of £112 for travel and subsistence expenses incurred whilst carrying out their duties (2021 one trustee was reimbursed a total of £53).
## **8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
64,881
Investment income
6,548
**Total**
71,429
**EXPENDITURE ON**
Raising funds
12,968
**Charitable activities**
Christmas Boxes
139,535
**Total**
152,503
Net gains on investments
16,267
**NET INCOME/(EXPENDITURE)**
(64,807)
**RECONCILIATION OF FUNDS**
Total funds brought forward
294,069
**TOTAL FUNDS CARRIED FORWARD**
229,262|Restricted
fund
£
-
-
-
-
-
-
-
-
-
-|Total
funds
£
64,881
6,548
71,429
12,968
139,535
152,503
16,267
(64,807)
294,069
229,262|
|---|---|---|
continued...
Page 11
Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **9. FIXED ASSET INVESTMENTS**
|**FIXED ASSET INVESTMENTS**||||
|---|---|---|---|
||Listed|Unlisted||
||investments|investments|Totals|
||£|£|£|
|**MARKET VALUE**||||
|At 1 January 2022|150,367|16,029|166,396|
|Additions|53,209|522|53,731|
|Disposals|(162,023)|(13,200)|(175,223)|
|Revaluations|(41,553)|1,487|(40,066)|
|At 31 December 2022|-|4,838|4,838|
|**NET BOOK VALUE**||||
|At 31 December 2022|-|4,838|4,838|
|At 31 December 2021|150,367|16,029|166,396|
|There were no investment assets outside the UK.||||
|Cost or valuation at 31 December 2022 is represented by:||||
||||Unlisted|
||||investments|
||||£|
|Valuation in 2022|||4,838|
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**
|Other debtors
**11.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Other creditors|2022
£
27,711
2022
£
586
1,400
1,986|2021
£
27,582|2021
£
27,582|
|---|---|---|---|
||||2021
£
1,736
1,400|
||||3,136|
continued...
Page 12
Operation Christmas Box
## Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **12. MOVEMENT IN FUNDS**
|Net
movement
At 1.1.22
in funds
£
£
**Unrestricted funds**
General fund
227,977
(63,617)
Fair value reserve
1,285
-
229,262
(63,617)
**TOTAL FUNDS**
229,262
(63,617)
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
**Unrestricted funds**
General fund
132,325
(155,876)
**TOTAL FUNDS**
132,325
(155,876)
**Comparatives for movement in funds**
Net
movement
At 1.1.21
in funds
£
£
**Unrestricted funds**
General fund
301,822
(64,807)
Fair value reserve
(7,753)
-
294,069
(64,807)
**TOTAL FUNDS**
294,069
(64,807)
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
**Unrestricted funds**
General fund
71,429
(152,503)
**TOTAL FUNDS**
71,429
(152,503)|Transfers
between
At
funds
31.12.22
£
£
1,285
165,645
(1,285)
-
-
165,645
-
165,645
Gains and
Movement
losses
in funds
£
£
(40,066)
(63,617)
(40,066)
(63,617)
Transfers
between
At
funds
31.12.21
£
£
(9,038)
227,977
9,038
1,285
-
229,262
-
229,262
Gains and
Movement
losses
in funds
£
£
16,267
(64,807)
16,267
(64,807)|
|---|---|
continued...
Page 13
Operation Christmas Box
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
## **13. RELATED PARTY DISCLOSURES**
As referred to in the trustees' report, the previous supplier of the Christmas Boxes withdrew from the relationship at the start of the year. Fortunately the trustees were able to source the boxes from a Chinese manufacturer used by the previous supplier. However, there was insufficient time available to set up the required arrangements for the charity to deal direct with the Chinese manufacturer, or to handle the importation of the boxes, and it was therefore agreed to accept the assistance of an experienced importer, Xpedent UK Limited, for the all-in price of £137,734. Xpedent UK Limited is owned and managed by the adult children of Allan Sims, who was a trustee throughout the year.
Page 14