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2023-12-31-accounts

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

CHARITY REGISTRATION NUMBER: 1116946

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2023

Contents Page
Trustees' annual report 1 to 5
Independent auditor's report to the trustees 6 to 9
Statement of financial activities 10
Statement of financial position 11
Statement of cash flows 12
Notes to the financial statements 13 to 25

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

TRUSTEES' ANNUAL REPORT

YEAR ENDED 31ST DECEMBER 2023

The trustees present their report and the financial statements of the charity for the year ended 31st December 2023.

Reference and administrative information

Registered charity name The Regimental Charity of The Duke of Lancaster's Regiment (King's, Lancashire And Border)

Charity registration number 1116946
Principal office Regimental Headquarters
The Regimental Charity of The Duke of Lancaster's
Regiment
Fulwood Barracks
The trustees Brig RJ Singleton (Appointed 1st December 2023)
Lt Col RJP Carman (Appointed 1st August 2023)
Lt Col R Carr (Resigned 1st August 2023)
Col A Dennis OBE
Lt Col E F Fraser
Col MJ Gorick DL
Col M Guzkowska (Resigned 1st December 2023)
Lt Col N Higgins
Col AP Kennedy
Mr K Kothia (Resigned 1st May 2023)
Brig FM Lawrence OBE (Resigned 1st December 2023)
Lt Col N A Locke
Mr ND Parsonage RD VR
Company secretary Col (Retd) CW Owen (Passed away 28th December 2023)
Auditor Whitehead & Aldrich
Chartered Accountants & statutory auditor
5 Ribblesdale Place
Preston
Lancashire
PR1 8BZ

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31ST DECEMBER 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Background

On 1st July 2006, The King's Own Royal Border Regiment, The King's Regiment and The Queen's Lancashire Regiment were amalgamated to form The Duke of Lancaster's Regiment (King's, Lancashire and Border). The Scheme of the Charity Commissioners dated 26th September 2006 sets out the terms on which charities administered by the predecessor regiments are to be administered in connection with The Duke of Lancaster's Regiment (King's, Lancashire and Border) by The Regimental Charity of the Duke of Lancaster's Regiment (King's, Lancashire and Border).

Status and Administration

The charity is a registered charity with the Charities Commission under the number 1116946. The charity is governed by a Scheme of the Charity Commissioners dated 26th September 2006 and is operated by the Administrative trustees incorporated as a body.

Trustees Recruitment and Appointment

The trustees consist of five ex-officio trustees (the Colonel of the Regiment, Honorary Colonel, and the Commanding Officers of the Regiment's three battalions) and up to 8 co-opted trustees who serve for a four-year term. Co-opted members are recommended to the trustees, usually by existing trustees, by virtue of their skills, experience, and willingness to serve against set of knowledge, skills, and experience criteria and with the desire to diversify and broaden Board composition. They are chosen by the existing trustees at a routine meeting.

Branches and organisational structure

The charity is operated through four branches:

The Regimental Charity of the Duke of Lancaster's Regiment (The Charity Branch) The Regimental Association of The Duke of Lancaster's Regiment (The Association Branch) The Benevolence Fund of The Duke of Lancaster's Regiment (The Benevolence Branch); and The Queen's Lancashire Regiment Cottage Homes Charity (The Homes Branch).

The charity's property is held on its behalf by the trustees, subject to covenants set out in a conveyance dated 26th September 2006. The trustees also meet as the Council of the Charity as defined in the said conveyance.

The trustees meet every six months in spring and autumn. The spring meeting focuses on the previous year's performance with the autumn board setting the budget for the following year.

New trustees are given: the Regimental Scheme of the Charity Commissioners dated 26th September 2006; the charity's latest reports and statement of accounts; Regimental Council Instruction (RCI) 0, detailing regimental governance and the Board's role (including its Conflict of Interest policy); RCI 2 explaining the purpose and organisation of the charity and how funds are managed; and 'The Essential Trustee'(CC3), a guidance note produced by the Charity Commission.

Key management personnel remuneration

No member of key management personnel received any remuneration in the year.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31ST DECEMBER 2023

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objects of each branch are:

The Charity Branch

To promote the efficiency of the Regiment in such charitable ways as the trustees may decide, including the maintenance and preservation of the chapels, memorials, colours and chattels of the Regiment and the former regiments.

The Association Branch

To promote the efficiency of The Duke of Lancaster's Regiment by:

Fostering spirt de corps, amongst the serving and former members of the Regiment and its former regiments, by enabling them to keep in touch with regimental affairs and one another.

Preserving the traditions and perpetuating the deeds of the Regiment and its former regiments.

Encouraging recruitment for the Regiment.

Assist serving and former members of the Regiment and its former regiments to obtain suitable employment.

The Benevolence Branch

To provide relief to serving or former members of the Regiment or former regiments and their dependents who are in conditions of need, through financial hardship, sickness or old age.

The Homes Branch

To provide or assist in the provision of accommodation for former members of the Regiment or its former regiments and their dependents who are in need through financial hardship, sickness or old age.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general information on public benefit when reviewing the Foundation's aims and objectives and in planning future activities.

Grant making policy

The charity has established its grant making policy to achieve its objects for the public benefit. The charity's aim is to continue to support members of the Regiment (serving, veterans and their dependents) with benevolence and welfare grants, details of which are shown in the Notes to the Accounts.

A REVIEW OF OUR ACHIEVEMENTS AND PERFORMANCE

Spending on benevolence and welfare grants to individuals remains a significant area of spend at £63.1K. This was an increase of £29.1K from 2022, with supported cases rising by 19 in total (66 to 85). In late 2022 we recognised the financial impact of the cost of living crisis. With people struggling to make ends meet, the Charity introduced an Emergency Food Grant Scheme where individual members of the Regimental family could apply for Aldi food vouchers to assist where needed. During 2023, the period of audit, an amount of £1K was expended on Aldi food vouchers.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31ST DECEMBER 2023

We have continued to support the ABF (Army Benevolent Fund) and again made a grant to them of £10K.

Grants to Regiment's battalions are unchanged. These make a significant contribution to a battalion's lived experience and are a critical element in the maintenance of esprit de corps..

FINANCIAL REVIEW

Investment policy and performance

We entered 2023 in a good position but continued to face a volatile stock market where most of our investments are made. After a thorough review the board decided to continue our existing investment policy with our current advisors. The policy is to maintain the value of the fund such that we are able to generate around £110k of income to support our charitable activities.

During 2023 our investments increased from £4.027M to £4.174M. Income marginally increasing from £108.7K to £109.7k. The result was that we ended the year with net assets £151K higher than the beginning of the year, predominantly due to an increase in our investments.

Overall the Charity's financial position remains healthy, and it continues to operate within its budget.

Risk management

The trustees have and continue to assess the major risks that the Charity could potentially be exposed to, particularly in relation to operations and the financial management of the Charity. The trustees are satisfied that systems are in place to mitigate the associated risks. The Charity investment portfolio has been maintained at a medium level of risk.

Reserves policy

On 26th September 2006 the Trustees set out the Charity's reserves policy as follows:

An appropriate capital reserve is required by the Charity both as an essential source of investment income and to deal with those unpredictable exigencies and emergencies that will, from time to time confront demand-led service charities. The Trustees of the Regimental Charity will accordingly seek to increase the value of its investment portfolio, and the rate of return by at least the annual rate of United Kingdom inflation so as to maintain the real value of invested capital over the longer term.

The total unrestricted reserves held by the Charity at 31st December 2023 were £4.289M.

Grant Making

The Charity gives grants to fulfil its charitable objectives. Grants are made using the guidelines set down by the Charity Scheme and by the Regimental Board. The Charity cooperates with and supports the ABF.

Plans

In 2024, the Charity will launch LIONS Connect which is a newly developed communications app. This app will benefit the wider Regimental family, including those serving, and our veterans.

We also anticipate that the Regimental flat will continue to require maintenance.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31ST DECEMBER 2023

Death of Regimental (Company) Secretary

Although listed as the company secretary for the period Col (Retd) Christopher Owen suddenly and unexpectedly died on the 28th of December shortly before the end of the reporting period. Chris served as Regimental Secretary for over 10 years and made an immense contribution to the charity which will never be forgotten. Chris's foresight placed the Charity in a very strong and well-resourced position for the years ahead.

Trustees' responsibilities statement

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as the trustees are aware, there is no relevant audit information of which the charity’s auditor is unaware. Additionally, the trustees have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of all relevant audit information and to establish that the charity’s auditor is aware of that information.

Auditors

Having expressed a willingness to continue in office, a resolution for the re-appointment of Whitehead & Aldrich will be proposed at the forthcoming Annual General Meeting.

The trustees' annual report was approved on 7th August 2024 and signed on behalf of the board of trustees by:

Col A Dennis OBE Trustee

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

YEAR ENDED 31ST DECEMBER 2023

Opinion

We have audited the financial statements of The Regimental Charity of The Duke of Lancaster's Regiment (King's, Lancashire And Border) (the 'charity') for the year ended 31st December 2023 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 financial statements section of our report. We are independent of the 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 the provisions available for small entities, in the circumstances set out in note 25 to the financial statements, 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER) (continued)

YEAR ENDED 31ST DECEMBER 2023

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 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 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

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

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER) (continued)

YEAR ENDED 31ST DECEMBER 2023

Auditor's responsibilities for the audit of the financial statements

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Compliance with the UK Charities Act, compliance with the charities SORPS and employment law.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Councils website at: www.frc.org.uk/auditors responsibilities. This description forms part of our audit report.

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

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER) (continued)

YEAR ENDED 31ST DECEMBER 2023

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 charity's members, as a body, in accordance with 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 charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Jonathan Hughes-Deane (Senior Statutory Auditor)

For and on behalf of Whitehead & Aldrich Chartered Accountants & statutory auditor 5 Ribblesdale Place Preston Lancashire PR1 8BZ

7th August 2024

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31ST DECEMBER 2023

2023 2022
Unrestricted Restricted Total Total
funds funds funds funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 112,933 112,933 130,545
Charitable activities 5 68,647 68,647 55,816
Investment income 6 111,798 111,798 109,159
Grant Income 7 1,690 1,690 3,799
───────── ──── ───────── ─────────
Total income 295,068 295,068 299,319
═════════ ════ ═════════ ═════════
Expenditure
Expenditure on raising funds:
Investment management costs 8 26,076 26,076 23,748
Expenditure on charitable activities 9,10 288,461 3,400 291,861 250,379
───────── ─────── ───────── ─────────
Total expenditure 314,537 3,400 317,937 274,127
═════════ ═══════ ═════════ ═════════
Net gains/(losses) on investments 13 173,822 173,822 (574,257)
───────── ─────── ───────── ─────────
Net income/(expenditure) and net
movement in funds 154,353 (3,400) 150,953 (549,065)
═════════ ═══════ ═════════ ═════════
Reconciliation of funds
Total funds brought forward 4,135,048 205,319 4,340,367 4,889,432
──────────── ───────── ──────────── ────────────
Total funds carried forward 4,289,401
════════════
201,919
═════════
4,491,320
════════════
4,340,367
════════════

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 13 to 25 form part of these financial statements.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

STATEMENT OF FINANCIAL POSITION

31ST DECEMBER 2023

2 0 2 3 2 0 2 2
Note £ £ £ £
Fixed assets
Tangible fixed assets 17 96,372 92,177
Heritage assets 18 24,424 18,995
Investments 19 4,173,556 4,027,565
──────────── ────────────
4,294,352 4,138,737
Current assets
Stocks 47,744 36,180
Debtors 20 70,295 63,707
Cash at bank and in hand 109,253 121,826
───────── ─────────
227,292 221,713
Creditors:amounts falling
due within one year 21 30,324 20,083
───────── ─────────
Net current assets 196,968 201,630
──────────── ────────────
Total assets less
current liabilities 4,491,320 4,340,367
──────────── ────────────
Net assets 4,491,320 4,340,367
════════════ ════════════
Funds of the charity
Restricted funds 201,919 205,319
Unrestricted funds 4,289,401 4,135,048
──────────── ────────────
Total charity funds 22 4,491,320
════════════
4,340,367
════════════

These financial statements were approved by the board of trustees and authorised for issue on 7th August 2024, and are signed on behalf of the board by:

Brig R Singleton Colonel of the Regiment

The notes on pages 13 to 25 form part of these financial statements.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

STATEMENT OF CASH FLOWS

YEAR ENDED 31ST DECEMBER 2023

2 0 2 3 2 0 2 2
£ £
Cash flows from operating activities
Net income/(expenditure) 150,953 (549,065)
Adjustments for:
Depreciation of tangible fixed assets 1,694 1,271
Net gains/(losses) on investments (173,823) 574,257
Dividends, interest and rents from investments (109,676) (108,691)
Other interest receivable and similar income (2,122) (468)
Accrued expenses/(income) 9,591 (6,651)
Changes in:
Stocks (11,564) 10,357
Trade and other debtors (6,588) (5,972)
Trade and other creditors 650 702
───────── ─────────
Cash generated from operations (140,885) (84,260)
───────── ────────
Net cash used in operating activities (140,885) (84,260)
═════════ ════════
Cash flows from investing activities
Dividends, interest and rents from investments 109,676 108,691
Purchase of tangible assets (6,218) (874)
Purchase of heritage assets (5,100)
Purchases of other investments (2,697,852) (854,576)
Proceeds from sale of other investments 2,618,770 827,327
Movement in listed investments 106,914 (23,610)
Interest income 2,122 468
──────────── ─────────
Net cash from investing activities 128,312 57,426
════════════ ═════════
Net decrease in cash and cash equivalents (12,573) (26,834)
Cash and cash equivalents at beginning of year 121,826 148,660
───────── ─────────
Cash and cash equivalents at end of year 109,253 121,826
═════════ ═════════

The notes on pages 13 to 25 form part of these financial statements.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2023

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Regimental Headquarters, The Regimental Charity of The Duke of Lancaster's, Regiment, Fulwood Barracks.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

The Charity constitutes a public benefit entity as defined by FRS 102.

Going concern

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

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The judgements and estimations that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

3. Accounting policies (continued)

Fund structure

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or trust deed.

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in the furtherance of charitable objects. Unrestricted funds included designated funds where the trustees, at their discretion have created a fund for a specific purpose.

Further details of each fund are disclosed in note 22.

Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations and Grant Income are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation or any grant income is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends and other investment income is recognised once dividends and investment income has been declared and notification has been received of the dividend and investment income date. This is normally upon notification by our investment advisor of the dividend yield of the investment policies.

Incoming resources from charitable activities comprises of income from subscriptions, events and rents receivable and is accounted for on becoming receivable.

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Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

3. Accounting policies (continued)

Expenditure recognition

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 settlement will be required and the amount of the obligation can be measure reliably.

All expenditure is accounted for on an accruals basis. All expenses including raising funds and charitable activities costs are allocated or apportioned to the applicable expenditure headings. The apportioned costs are based on fixed percentages.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification givens the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

Costs of raising funds

The costs of generating funds consist of investment management costs and certain legal fees.

Charitable activities

Costs of charitable activities include grants made, governance costs and an apportionment of support costs as shown in notes 9 to 12.

Tangible assets

All fixed assets are initially recorded at cost with the exception of the investment property which is included in the balance sheet at valuation.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Investment Property - No depreciation charge
Furniture and Equipment - 25% on reducing balance

Investment property is included in the balance sheet at its open market value. Depreciation has not been provided for as the leasehold is more than 20 years.

- 15 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

3. Accounting policies (continued)

Heritage assets and depreciation

Heritage assets are tangible fixed assets held by the charity which have historical and artistic significance. They are valued at their cost or valuation on acquisition. An assessment is made of the useful economic life and likely residual value of the assets in order to consider whether the assets should be depreciated. Where any potential depreciation charge is considered to be immaterial to the accounts, then an annual impairment review is carried out in accordance with the requirements of paragraph 259 of the Charities SORP. A depreciation rate of 10% had been applied historically on a reducing balance basis; however no depreciation is currently being charged, as it is considered that any further depreciation charge would be immaterial to the accounts.

The heritage assets currently held have been collected since formation of the Regiment in 1680. Assets are currently on display in a number of locations: the Regimental Headquarters; on loan to our battalions; regimental museums; or other units and intuitions. The remainder of the collection is held in secure storage. The Charity has maintained a register of all heritage assets albeit in paper form. The register identifies assets by a unique serial number and is currently being transferred to an electronic state. With the closure of locations storage space has reduced. Therefore, a prudent review of holdings has taken place. Items that cannot be displayed within the Regiment or its museums, and of no heritage significance have been disposed of.

Investments

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. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Fixed asset investments are held primarily to produce an investment return for the charity

Stock

Stock is valued at the lower of cost and net realisable value.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

- 16 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

3. Accounting policies (continued)

Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

4. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Donations
Donations 112,933 112,933 130,545 130,545
═════════ ═════════ ═════════ ═════════
5. Charitable activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Association events, subscriptions
and journals 6,476 6,476 7,088 7,088
Shop Sales 60,471 60,471 47,828 47,828
Rent receivable 1,700 1,700 900 900
──────── ──────── ──────── ────────
68,647 68,647 55,816 55,816
════════ ════════ ════════ ════════

6. Investment income

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Income from listed investments 109,676 109,676 108,691 108,691
Bank/Building Society Interest 2,122 2,122 468 468
───────── ───────── ───────── ─────────
111,798
═════════
111,798
═════════
109,159
═════════
109,159
═════════

7. Grant income

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Grant income 1,690 1,690 3,799 3,799
═══════ ═══════ ═══════ ═══════

- 17 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

8. Investment management costs

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Investment Management fees 26,076 26,076 23,748 23,748
════════ ════════ ════════ ════════

9. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Other charitable activities 159,907 159,907
Grant payable 128,554 3,400 131,954
───────── ─────── ─────────
288,461 3,400 291,861
═════════ ═══════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Other charitable activities 155,571 155,571
Grant payable 93,808 1,000 94,808
───────── ─────── ─────────
249,379 1,000 250,379
═════════ ═══════ ═════════

10. Expenditure on charitable activities by activity type

Activities Grant
undertaken funding of Total funds Total fund
directly activities 2023 2022
£ £ £ £
Other charitable activities 159,907 159,907 155,571
Grant payable 131,954 131,954 94,808
───────── ───────── ───────── ─────────
159,907 131,954 291,861 250,379
═════════ ═════════ ═════════ ═════════

- 18 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

11. Analysis of other charitable activities - by branch

Charity Association
Benevolence

Benevolence
Homes Homes Total
Total
Branch Branch
Branch
Branch 2023 2022
£ £ £ £ £ £
Staff costs 2,311 185
5,672
235 8,403
11,439
Premises 4,232 4,232
871
Governance costs
4,332
Regimental
website 389 31 956 40 1,416
2,805
Association
journal 15,256 15,256
13,148
Association and
general events 10,756 10,756
13,923
Shop costs 53,573 53,573
56,801
Depreciation 466 37
1,144
47 1,694
1,271
Benevolence and
funeral 825 825
2,208
Recruitment 21,424 21,424
10,968
Regimental
memorial 600 600
600
Audit 3,201 256
7,857
326 11,640
10,860
Postage, printing
and admin 14,727 552
14,228
581 30,088
26,345
────────
────────

────────
─────── ─────────
─────────
42,518 81,246
30,682
5,461 159,907
155,571
════════
════════

════════
═══════ ═════════
═════════
12. Analysis of grants
2 0 2 3 2 0 2 2
£ £
Grants to institutions
The Lancashire Infantry Museum Fund 8,000 7,550
Grant 1 LANCS 20,000 20,000
Grant 3 RANGER 20,000 20,000
Grant 4 LANCS 7,250 7,250
One off Grant 1 LANCS 5,000 2,080
Miscellaneous Minor Grants 8,580 3,970
──────── ────────
68,830 60,850
Grants to individuals
Benevolence and Welfare 63,124 33,958
───────── ────────
Total grants 131,954 94,808
═════════ ════════
13. Net gains/(losses) on investments
Unrestricted
Total Funds

Unrestricted
Total Funds
Funds 2023 Funds 2022
£ £ £ £
Gains/(losses) on listed investments 173,822 173,822 (574,257) (574,257)
═════════ ═════════ ═════════ ═════════

- 19 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

14. Net income/(expenditure)

Net income/(expenditure) is stated after charging/(crediting):

2 0 2 3 2 0 2 2
£ £
Depreciation of tangible fixed assets 1,694
═══════
1,271
═══════

15. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2 0 2 3 2 0 2 2
£ £
Wages and salaries 8,403
═══════
11,439
════════

The staff costs figure does not include remuneration for members of staff employed by the Ministry of Defence as representatives of the RHQ and as part of their role are involved in the day to day management of the Charity.

The average head count of employees during the year was 1 (2022: 1).

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

16. Related party transactions and trustees' expenses and remuneration

The trustees all give their time and expertise without any form of remuneration or other benefit in cash or kind (2022: £nil).

No Trustees received any remuneration during the year. During the year ended 31st December 2023, payments totalling £1,597 (2022: £3,281) were made to 4 trustees in reimbursement of expenses for attendance at Charity and Regimental events.

17. Tangible fixed assets

Tangible fixed assets
Investment Fixtures and
property equipment Total
£ £ £
Cost or valuation
At 1st January 2023 88,000 24,461 112,461
Additions 6,218 6,218
Disposals (2,020) (2,020)
Transfers (13,710) (13,710)
──────── ──────── ─────────
At 31st December 2023 88,000 14,949 102,949
════════ ════════ ═════════
Depreciation
At 1st January 2023 20,284 20,284
Charge for the year 1,694 1,694
Disposals (2,020) (2,020)
Transfers (13,381) (13,381)
──────── ──────── ─────────
At 31st December 2023 6,577 6,577
════════ ════════ ═════════

- 20 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

17. Tangible fixed assets (continued)

Investment Fixtures and
property equipment Total
£ £ £
Carrying amount
At 31st December 2023 88,000 8,372 96,372
════════ ════════ ═════════
At 31st December 2022 88,000 4,177 92,177
════════ ════════ ═════════

The investment property, which was donated to the charity and is owned by the charity and its predecessors, has a £nil cost. The property was valued by E.Surv Chartered Surveyors on 17th March 2014 for the year ended 31st December 2013. The trustees are not aware of any material changes since the last valuation. This property is let to a beneficiary of the charity. Noting the ambiguous nature of the legal title, the Trustees have resolved to endorse the presently recorded valuation and to revisit the issue when title is more clearly ascertained.

18. Heritage assets

Heritage Assets consist of paintings owned by the charity which had previously been described as ‘Long Life Assets’.

Heritage
asset
£
Cost or valuation
At 1st January 2023 22,524
Additions 5,100
Transfers 329
────────
At 31st December 2023 27,953
════════
Accumulated depreciation
At 1st January 2023 and 31st December 2023 (3,529)
════════
Carrying amount
At 31st December 2023 24,424
════════
At 31st December 2022 18,995
════════

Depreciation had been applied historically at a rate of 10% but given that the amount was immaterial, this ceased in 2013.

Summary of transactions

Summary of transactions
2023 2022 2021 2020 2019
£ £ £ £ £
Included in the statement of
financial position
Purchases 5,100 3,500
Total additions 5,100 3,500

Heritage assets not recognised on the statement of financial position

The Charity also holds various heritage assets that have not been recognised in the statement of financial position. These assets consist of paintings, silver and medals which have been donated to the Charity since formation. The value of these assets is unquantifiable given their nature.

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

19. Investments

Investments
Cash or cash Listed
equivalents investments Total
£ £ £
Cost or valuation
At 1st January 2023 134,984 3,892,581 4,027,565
Additions 2,697,852 2,697,852
Disposals (2,618,770) (2,618,770)
Fair value movements 173,823 173,823
Other movements (106,914) (106,914)
───────── ──────────── ────────────
At 31st December 2023 28,070 4,145,486 4,173,556
═════════ ════════════ ════════════
Carrying amount
At 31st December 2023 28,070 4,145,486 4,173,556
═════════ ════════════ ════════════
At 31st December 2022 134,984 3,892,581 4,027,565
═════════ ════════════ ════════════
All investments shown above are held at valuation.

Financial assets held at fair value

Of these Investments £2,311,642 (2022: £1,643,251) are listed outside the UK.

20. Debtors

2 0 2 3 2 0 2 2
£ £
Trade debtors 1,173 565
Prepayments and accrued income 37,860 33,716
Other debtors 31,262 29,426
──────── ────────
70,295 63,707
════════ ════════
Creditors: amounts falling due within one year
2 0 2 3 2 0 2 2
£ £
Accruals and deferred income 18,104 8,513
Other creditors 12,220 11,570
──────── ────────
30,324 20,083
════════ ════════

21. Creditors: amounts falling due within one year

- 22 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

22. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At 31st
1st January Gains and December
2023 Income Expenditure losses 2023
£ £ £ £ £
General funds 3,927,248 268,099 (310,750) 173,822 4,058,419
Leasehold property 88,000 88,000
NW festival of
remembrance 990 990
Silver heritage 118,211 25,279 (2,093) 141,397
Kings Cup 599 1,690 (1,694) 595
──────────── ───────── ───────── ───────── ────────────
4,135,048 295,068 (314,537) 173,822 4,289,401
════════════ ═════════ ═════════ ═════════ ════════════
At At 31st
1st January Gains and December
2022 Income Expenditure losses 2022
£ £ £ £ £
General funds 4,510,781 261,074 (270,350) (574,257) 3,927,248
Leasehold property 88,000 88,000
NW festival of
remembrance 990 990
Silver heritage 83,342 37,646 (2,777) 118,211
Kings Cup 599 599
──────────── ───────── ───────── ───────── ────────────
4,683,113
════════════
299,319
═════════
(273,127)
═════════
(574,257)
═════════
4,135,048
════════════

Unrestricted funds are available at the discretion of the trustees for any future activities consistent with the aims and objectives of the Charity.

Leasehold property – Designated funds represent the value of Leasehold Property owned by the Charity and its predecessors.

NW festival of remembrance – Designated funds for putting on a remembrance event in Preston in 2018.

Silver heritage - Designated funds representing amounts received from sale of silver to be used to help fund the purchase and making of silver commemorative pieces.

King's Cup - Designated funds for event entry fees paid and the event costs plus engraving of the trophy.

- 23 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

22. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
At At 31st
1st January Gains and December
2023 Income Expenditure losses 2023
£ £ £ £ £
George Walmsley
Blundell Indenture 135,603 135,603
Museum of Manchester
Firearm 11,055 11,055
Manchester Cathedral
Chapel 44,969 44,969
Pat Ross Fund 13,692 (3,400) 10,292
───────── ──── ─────── ──── ─────────
205,319 (3,400) 201,919
═════════ ════ ═══════ ════ ═════════
At At 31st
1st January Gains and December
2022 Income Expenditure losses 2022
£ £ £ £ £
George Walmsley
Blundell Indenture 135,603 135,603
Museum of Manchester
Firearm 11,055 11,055
Manchester Cathedral
Chapel 44,969 44,969
Pat Ross Fund 14,692 (1,000) 13,692
───────── ──── ─────── ──── ─────────
206,319 (1,000) 205,319
═════════ ════ ═══════ ════ ═════════

George Walmsley Blundell Indenture – Funding that can only be used to assist welfare cases in the West Lancashire District.

Museum of Manchester Firearm – Funding held on behalf of the Museum of Manchester.

The Manchester Regimental Chapel - Funding held to be used exclusively for The Regimental Chapel in the Manchester Cathedral.

Pat Ross Fund - A sinking fund to be consumed for the purpose of adventurous training activities.

- 24 -

Docusign Envelope ID: 5D97B0FA-BDAB-464B-AE58-8F0AF36201EF

THE REGIMENTAL CHARITY OF THE DUKE OF LANCASTER'S REGIMENT (KING'S, LANCASHIRE AND BORDER)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2023

23. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Tangible fixed assets 120,796 120,796
Investments 4,037,953 135,603 4,173,556
Current assets 160,976 66,316 227,292
Creditors less than 1 year (30,324) (30,324)
──────────── ───────── ────────────
Net assets 4,289,401 201,919 4,491,320
════════════ ═════════ ════════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Tangible fixed assets 111,172 111,172
Investments 3,891,962 135,603 4,027,565
Current assets 151,997 69,716 221,713
Creditors less than 1 year (20,083) (20,083)
──────────── ───────── ────────────
Net assets 4,135,048 205,319 4,340,367
════════════ ═════════ ════════════
24. Analysis of changes in net debt
At 1 At 31
January
Cash December
2023
flows 2023
£ £ £
Cash at bank and in hand 121,826
═════════
(12,573)
════════

109,253
═════════

25. APB ethical standards

In common with many other charities of our size we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

- 25 -