THE ROYAL NAVY & ROYAL MARINES CHARITY CONSOLIDATED ANNUAL REPORT AND ACCOUNTS 2021 CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEIIBER 2021 Re￿t of Ihe Trustees and Straleuic Rewt Chairman and CEO'5 Report Slruclure, Governance & Managgment Stral8gic Report Public Benefit Investment Report Reserves ACkno¥￿edgemgn1$ 12 37 42 Report ol the Irthpendenl Audit( Consolidated Slatomenl of FirTrancial ￿tiVitIeS Balance Stt•el- and Ch 51 Consolldaled Cash Fkw Slatemnt 52 Notes ¢0 Ihe Finanoi81 Statomonl$ 3 ## **REPORT OF THE TRUSTEES** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Honorary Officers Patron** Her Royal Highness The Princess Royal ## **Senior Vice Patron** Honorary Captain Sir Michael Hintze AM RNR ## **Vice Patrons** Mr James Pitt Honorary Captain Lance Batchelor RNR ## **President** Admiral Sir Jonathon Band GCB DL ## **Vice Presidents** General Sir Gordon Messenger KCB DSO* OBE Vice Admiral Sir Tim Laurence KCVO CB ADC(P) Sir Roger Carr Honorary Commodore The Honourable Stephen Watson RNR ## **Trustees, Members and Directors** Sir Bill Thomas Dr Brian Gilvary Chairman (outgoing) – Retired 24[th] June 2021 Chairman (incoming) – Appointed 24[th] June 2021 (Appointed as Trustee 23[rd] April 2020) Commodore Andrew Jameson OBE Royal Navy (Ret’d) Mr John Bartlett Ms Katherine Beadle Mr Rod Birkett Mr Simon Black Lieutenant Harriet Delbridge Royal Navy Mrs Kate Phipps-Wiltshire Mr James Pitt Mr Mark Robinson Brigadier Mike Tanner OBE Royal Marines Commander Michelle Westwood Royal Navy Surgeon Commander Jo Keogh Royal Navy WO1 Baz Firth MBE Royal Navy WO1 Jamie Wright Vice Chairman Appointed 26[th] April 2022 Appointed 28[th] January 2021 Appointed 28[th] July 2022 Appointed 28[th] July 2022 Appointed 28[th] July 2022 Commodore Annette Picton MBE Royal Navy (Ret’d) Mr Mark Lewthwaite Rear Admiral James Parkin CBE Royal Navy WO1 Carl Steedman Royal Navy Retired 28[th] January 2021 Resigned 27[th] January 2022 Retired 28[th] July 2022 Retired 28[th] July 2022 REPORT OF ThE TrUSTEES LEGAL AND ADMINISTRATIVE INFORMATION (¢ontlnu•d) Chlof Ex•eutJv• Offlc•r Mr Adrian Bell Company S•crtsy Mrs Samantha Ntds¢)n Company R•gl•tr*lon Nurnb•r e4)47294 (En¥wKI Wales) R•gl$tw•d Charlty Numb•rn 1117794 {Ens4and and Wale5) SC041898 {ScOl￿nd) R•gl•tsr•d Olfi guildmg 37, HMS Excdlenl. Vth* I￿an(l. Portsmouth. P02 8ER Audltor Moore Kirgslon Smith LLP. c￿￿tered A¢￿UnIantS Dovonshire House, eii Goswell Road, London. EC1M 7A0 L•gal Advlsors Chades Russell Speechtys LLP S FW Place. L47Th1on, EC4M TRD 8DP Pitmans LLP 50 Broathvay. London SW1 H OBL 8ank•rn Hc4t's Military Banking Royal 8ank of Scolland pk, 200 Fowler Aven￿, FovAer BUSI￿$$ Park. Farnborough, GU14 7JP Inv•8trn•nt IA•nag•rn Sarasin & Part￿rS LLP Juxon Fhwso, 100 Si. P￿1,$ Churchy*d, LorKlon, EC4M 8BU THE ROYAL NAVY AND ROYAL MARINES CHARtrY REPORT OF THE TRUSTEES CHAIRAIAhl aftd CEO'S REPDRT H¢lplng to allwlth tho ¢on••qu•nc•• of S•r¥lco hon￿11￿9 that 8èThlc• to th• n￿t)n Much of what we have done lo support our benefKirn in 2021 is wtlined in our impact report. Thi5 introduction. on the other hand, locusès on what we think Ihe future might IN)Id h)w we are working to f&8 8 set of nèw ¢hallenge5 a8 the worfd changes so rapKIty arou￿1 us. This lime last year. thore were tangi1Ig yimmgr$ of hope on ts horiz￿. Ygs. 2020 had bgen a vory diffKull year and we knew we weren't out of the woods yel. t￿1 the vaccination W0￿￿nMe was being rolled out wth vigour aThJ many aspects ol lrfe appwed mof6 recognisable. Roll forward lo now- July 2022- we find ourselves in a very drfferenl tAace. A brutal, unremitting, and unexpected (by many of u$} war in Europe with very likely farqeachmg Consequen￿ that have ygl to b8 understood,. inflatKJn on scale r￿[ witnes38d by anyone in thi5 sor*ty under the age of 45,. the prosp￿1 of increased economic squgeze du8 to ¥hortages of key commodities. 8upply chain con5tncl*Jns and international rivalries ol truly frightening proportign$. Mosl Immefiialely, Ihts nation's defence and Its Armed Fty¢es w occupy a fw more signrflcanl place in the govornmenl's priorities and ￿annIng and will very probaw con1m￿e to do so for a very long time. This will be without consequence for those ¥rt￿ se￿e and their families who wll likely tMtne5s even wealer stralns and stresses. This charity iy already very actlve in the 5uppKM of Royal Navy, Royal m￿ne9, and Royal Fleet Auxiliary personnel. and their families, and will make even gfealer efforts lo do il w lo hdp amelNyale some ol the more dffficull challenges Serv￿8 lo the nation enlails. Naval personnel ¥e liable lo far gfealer k)en'od$ of separation than those serving elsewhere In delerKe. Separation is alrèady dI￿￿Ul1.. sewalim amhI51 times of hevJhtened tension. at home and abroad. is all the more difficult particularly as thè mt*J6rn and instant ablily to CXJmrnunicate wlh our loved ones which we all lakè for granledls ur*Jerstand8tdy Ihe first casudty ol naval Opwat￿n8 in of heightened Itnslon. We are commilled lo provkling support to hdp slrongthen f¥milies and we work wlh a ne￿Ork of prov¥Jers I￿ll$01 Relate. Home Start, Kiry's Foundalion, Khls. Naval Fam1￿ FoderatvJn. Ag9os, and olhefs to prov￿9 support Servi not just in bo8e port arèas but m￿8 broadly across tho Uniied Kingd¢Jm. To this end. wa arè working closely with Nawy Command to Klenlify whwe famili88 live acknowledging that loday many families do ￿1 INe dost lo base port areas. We are 8180 working hard lo ensure that I￿se have lo leave the swice unexpectodly and abrnjptly, Earty Seryice Leavers, are given adequ81o support and Slablity lo allow them lo make a fresh arKI positive start in civdian Ilfe. Wilhoul Such help, il 1$ our fimi b8li8f that many of these POOF4e can fThJ posl-$grvKg1rfg oveThvhelming. 8ul our support ￿ not just fcrtU8ed on the 8aNi•Yd. We are aculety aware that many worklntrag8 and retired vet8rans 11 also find lrfe a gyeal deal harder a￿1 yobabty more dern￿1n9 than the last iwo years and we pledgè oui Support hele as well. Much of the wvrk we do for veterans is with and thwgh fvll range of eslablishod naval charities. We are actively supportiThJ the Royal Naval Assocrat￿. the ROY￿ Marwts ASS￿at￿n and Ihe Associat*Jns within the Subrnarine Family to grow Iheir Mom￿r$￿1p lo reinlcrte nelworks of belriending aTrJ support- so vilal lo combarting the loneliness and isolation that plague too many lives. We are offering that same support lo any other naval associations in pursuit of the same goals. Equally, and partty with Greenwlch Hoswtal. conliwe lo provkJe atyvor supplement fvnding lo some of the Naval Benevolent charities Royal Naval Benevo￿nI Trust. Naval Chldren's Charity. RMA - The Royal Marines Charity. Royal Navy Officers, Charity. Specral Boat se￿￿e Ass(￿lat￿)n - to enable them lo underiake Ihe vital work Ihal our benefKiari¢$ need so M￿h. And we continue lo workwth car8 organ￿tionS lo help promolo independence and protect the dignity of sorne of our older beneficiaries. Bul thi8 is not Il* full exlenl of our work. We also offer m￿- and bad[-Off￿ services (finarte, HR, etcl, as a charitable )<1, lo several other naval charities lo reap the economies of $C￿e that allows them lo focus Ihew funds on those who matter. Attoge￿r Ihis is over £8M of Charita￿e funding arKI ￿1N11y. Some of Ihis comes from income and donations as well as grants received frorn other OTgani8alions. Bul we continue lo draw duwn on our reserves to meet present needs as the Board strives lo balance the needs of Iixlay's benef￿￿leS vrith those that we wll need lo support in the lulure. **��** ## **���������������������������������������� �����������������������** ������������������������������������������������������������������������������������������������������������������������ ���������������������������������������������������������������������������������������������������������������������� ����������������������������������������������������������������� ������������������������������������������������ ���������������������������������������������������������������������������������������������������������������������� �������������������� ���������������� ��������� THE ROYAL NAVY AND ROYAL PAARINES CHARITY REPORT OF ThE TRUSTEES Structure. Gowmal￿ ond Manag￿￿11 Cont•xt The Royal Nawy and Royal Marines Charity IRNRMC) is a charitable c*mp8ny, limiled by 9uaranlee, In￿rpOrated on 10 January 2007 and regislere(S wlth the Ch￿ty C0mmtssv￿ on 2 Fetjuary 2007. The RNRMC was regislered wlth the Office of Ihe Scottish Charity Reswlalor on 17 November 2010. The RNRMC Group stnjcture was ¢yeated lo pYov*Je a strong voice for nava charity through d05e lies and working relationships. Ever slrongeT links S￿ being l(*ged with the famty of naval chanlies and v8ter*)s' assoclalbons, log8lher ¥￿th cross-sectof worklng wlh those (*aribes SUPFth'rrfJ soldws arnl ay personnel. Gov•man The RNRMC is controlled soldy by its Members. who are also ils Trust88s and mak8 up the Boar¢J of Trusl88s. The Charity is governed by Ils Memorandum arKt Artides of Ass(xK4lion, initially dated 6 December 2006 Ilhe Articles of As50ciallon havin9 been revise(l and *Jople(I by Special ResdulK)n on 3(P January 2020} and is subjocl lo the requiremenls and the prolocth)n of bolh charty a￿1 company Iww. 8oard of TNst••• The Tw$t¢e$. whom ar8 al voiunteors. represenl a IAerKI of cornpeler￿e aTrJ experierKe and include those with ¢xperience of military servKe along Wth those wilh diverse eivdhin backgrounds. Tlw ar8 $olecl6d through a formal inlerwth process and appoinlad fty an inrt￿ lemi of threo yews. In accordance wlth good practice they woukl normally seThe a maxlmum of three terms. On 241h JUM 2021 after servir¥J his lull 6 year¥ a¥ Chawman. Slr Bill Th(Mnas stood dc>vm as chair of thg RNRMC Board. ho was succ88ded by Or 8Tian Glvary. 8o•rd and C¢Mimltt•• M••tlng• The Board delegat83 cerlain p0￿rS in connecl&Jn wlh the Charity's management and ￿mInIStration, as Sel out below. This delegation is contrdlod by requ¥ing the comrnittees lo report back al Ihe nexi Board rneeling. Al comrnilleès provbje meetlr¥J Mir￿leS whth are kept as part ol tho slalutw record8. The Board meets al least three limes a year. The RNRMC has erKouraged cther communlcolion with Group charilies by t*lng up Ils oplKin lo nominate a trustee lo the Bo¥ds of Tr Royal Navy Office￿. Charity {RNOCI, Royal Marines A$S￿latIOn- The Royal Marines Charity IRMA-TRMCI aThJ the Naval ￿￿ice Sports Charity INSSCI. Group Entltl•s From the 111 April 2019 there are now nine uninc(YFKnled charl￿, Ilyee charIta￿e companies. and one ch*ty ￿th Royal Charter inlegraled within the Group str￿lUre. Thwe are three trading subsidi¥le$. The Royal Nw•o1 B•nw¢)lent So¢l•ty for Ofll¢•rn. known •• Th¢ Roy41 Navy Offl¢eY•' Ch•rlty {RNOCI retains its own truslges, who a￿ reSponsi￿e lor the admI￿strat￿ of Ihe charity and the managernenl of Ihtir own lund$. The RNRMC 1$ enbded to appoint a Iruslee arKI as the corporate rn8mbgr it aL80 has a legal power of velo in general meetings. The RNRMC is rewesenled by Commander Michelle We5hYood Royal Navy WFW) look over from retired Cornwnodore Anr*tte Fklon In January 2021. The relatior￿h￿ betsveen the charities, although 'wm's length.. i8 a rjose one. Th• Naval S•rvic• Sports Charlty INSSCI is a charitatAe company, gwemed by a Board of Trustees. Th8 RNRMC Bowd has overall contrd, as SO￿ mgmbw. since they may res¢Yve by ordlnary rg$0lution to amend the mlnimurn aThJ maximum numbws ￿ Irustees. to appoinl or remove Irusleos and to chang8 the Momorandum aThJ Articles of Associatkjn. The RNRMC is repwenled on Ihe NSSC board by Mr RodBirkett. Royal Marfnes Assoclatlon - Th• Royal PAwln•s Charity {RMA-TRMCI is a ch￿table company, govemed by a Board of Trustees. The RNRMC Board. its authority as the sde member, rnay resolve by c*din8ry resOlut￿n lo amend the minimurn and maximum numbers of trustees and has the rvJht to appoint or remove Iru5tees and lo charrfJe the MernorawKlum and Artides of Association after prK)r (xJnsullalK)n with the RMA-TRMC Board. The RNRMC is re[X¢￿[8d by Mr Robirwi. THE ROYAL NAVY AND ROYAL MARINES CHARrrY REPORT OF THE TRUSTEES RNRMC Ent•rpris•s Lifflll•d i8 the tradirrfj subs￿l￿Y forthe GfOUP. wlych is used lo Cfflduct apwowiate parts of the Group's merchandising and Roy31 MW1￿ Band trading a¢tiviligs. The Company was established by way of share captsl from the RNRMC, 1$ the scle shareholder. The directors of tho company are Injslee, Mr hAark L8vAhwarte {Chairmanl. the RNRMC Chief Execulive. Mr Adrian Bell. and Mr Jonathan Ball. the Ch￿1 Execulive ofthe Royal Manr*s ASSOC￿￿'￿- The Royal M￿neS Chwity. Trmc ent•rprl8u Llmlt•d is the traJiThJ subshdw for RW-TRMC which was init￿11Y esiablished on 23 FebnJary 2016 in order to anable a single t￿Ilding woJe¢t wh￿h wa$ comploled in 2017. il ha¥ Since then completed several fijrthef projects supwb.ng benefM?aries auoss the RM family. Royal Marlnm Shop LSmlt•d is the tradiNJ subs1di￿ of RMA-TRMC. brought in as part of the RMA-TRMC merger on 1 Aprll 2019. SirKe sa￿ember 2021 RM Shop aso lulf#s onllne merchandlse sal&s for Ihg RNRMC. Unlncorpovated charltl the RNRMC Bowd has overall responsibity fcff thèr managèment and adrnIn15trat￿n and dele9aies day-l04ay operal￿n8 lo mwment comrnrttees Ihrough term8 of reference. A number of these management committees are thairgd ty an RNRMC Trusteè. The rd8 of the managemenl commillee is lo ￿r￿lin189 and pwriti￿ ￿an1 applicalh?ns line %wth their ofy'ecls and providè oversight lo the minor uYont¥ pr￿4MMe. RNRMC SubQimmitteg8 of Ihg Board. iTrJuding apwtlonmenl of TftJstees.'- Commissioning Development and Funding (was SFC) Group Finance, Risk and Audit Investment ThE Invesiment Commiltee IICI monilDr and sciulinisÈ the Invesrmeni Managers ongoine perfDrmancÈ. Mccls four I1￿CS 3 VCclT rhe Group Finance, Risk Jnd Audit Committee IFRACI monitor and Commissioning, Development ond Funding Commitiee ICOFCI oversees and seis Phe siiateey and policy for all grani rnakLng L'C'.s three r me5 a ye.Ir risk and audit issve5. Meets twice a yÈar Mernbers Rod Birkert Ichsirl John 83rrlett John Barilett (Chairl Rod Birkeit Members".. Keirh Breslauer ITRMCI Alice Whearley INSSCI Indpendeni Inve51rnenr Advisors.. Mark Robinso M15 Kare Phipps Wilishire (Chairl Ll Harfiei Delbridge RN Comrnandei Michelle Wesrwood RN Katherine Beadle R.'ch3rd Weaver ITRMCI TBC IN55CI 8ryan Buriough Alex Crooke Independant Advisor. Rear Admiral Iretdl Steve Bruiiion C8E Mark Fitigerlild THE ROYAL NAVY AND ROYAL MARINES CIIARrrY REPORT OF THE TRUSTEES People Fundraising and Marketing PÈoplÈ CDmrryitlee (PCI manage Ihe Board and sÈnioi staff 5ucce55ion pla nd sièlf remuneraritsn Fvn&raising aTrd MclTket ng Commit¢ee IFMCI oversee Ih ar4¥45 and ine exocuiion of thi. 8reed Ma￿a8￿Ment plan .eels 3 li￿e5 per year SITDOn 81ack (Chairl RAdm Jame5 Paikin CBE Cdre A Trd¢ew ))mesoD OBE R IReidi Biii Mike Tonner OBE RM JÈmes PILI LliiJn Oell ICEOI In earty 2022 we renamed the SITalegK FuThliry Commitlae ISFCI as thg Commlssionlng. Development and Fundino Committee ICDFCI, so that we C￿ld incorwaie oversuhl of the work we we doing on Oevelopmenl and Resewch Into the needs of our beneficiaries. In 2021 we continued with our 2 gfanl pathways as sub Committees of commiss￿ning D6velopmènl and Funding Cornmilleg an(1 t￿11 meml)ers can in Ihe table ￿loW.'- Through Life Quality of Life ITLCI oversieh scrutiny and appioval tyl gran15 101 Benevolenre oveisiÉhl SCIVllny and appfov,)I Meeis 4 limes a year l.££t5 4 tiTres a year ein Members".- K8ie Phipps-wilishire Ichairl Kim Richardson OBE Lt Niculas Toms RN Wol Carl 51eedman RN W02 lan Davie5 MBÈ RM WOI RSM Rick Angrove RM Wol Por¥ Moore RN Wol Imick Turnb.Ill RN Wol lan Wi150n RN W02 Andy Vercoe RP4 CPR15RI srepfren Doyle RN LWTR Eliiabeth Win6Ble RN LET Liotn Piilford RN ISET N4all Laudei RN LD StuA Tl Fardpn RN C.Pl MJxine Cruisc R. Chris Banks Sarah Ayto Duncan Lamb Sur8 Cdr Jo Keogh RN Chic S&ewart Sara FielLf Nicol.i Thornpson 10 THE ROYAL NAVY AND ROYAL ￿RINEs CHARITY REPORT OF THE TRUSTEES Managom•nt and Administratlon The pol5c￿$ and priwples induded wthin this Trustees Annual Rep(wt ar8 those b8k)ngiNJ to the Group, however individual charities can adopt l adapl these FdKies and pnncifv to suit their own circumstances as disclosed with their individual slalulwy account5. Employ••s The RNRMC Group employs over 105 3￿ff. wlh 55 in th8 RNRMC, yyedomlnanty bos•J on Whalg Island, Hampshire. with a small number based dsewhere. The day-to-day contrd aTrJ adminrslration of the RNRMC is delegated lo the Chief Executive Officer, whose 68nior staff manage tunc¢¥Jwl departmenis. Thé RNRMC is commrtted lo lh8 IrainiThJ. and personal devek)pm8nl of all empk)yees. Each employee has on annual appraisal where their perfcrfmance ￿ assessed againsl the Charity's oll'ectives alongsth personal achievements within their specffic role5. A training pr￿3￿￿0 is devised that meats both the Charity's needs and also enh*ce8 the individual's potsnlial towards their NofessK)n4 devek)pment. We are proud lo hiAd the Silvar Award for the Employee Réeognilh)n Sch8me under the Armed Forcos Covenant, supports Ihe transition ol serving members of the Armed Fcrtès into employmenl. R•mun•r•tlon Thè Charity does not remuneratg ils Tru$lees. TheTru51885 are responstib for settin9 the remuneratlon of the Charlly'$ Chief Executiv¢ and the remaining Slaff arg pahd an ￿eed rernUn8ra1￿ framework that sits within Ihe overall reward policy that Is agreed annually. RNRMC'S R8ward Pdy, introduced in 2018 has four pri￿1paI pillaf$. comprising remuneralion, ben8lils. recowilion an¢J leaming and tlevelopment. The Iramework is underpinnod by a TotrMJ$l job evaluation prtKess for each rde within the charity whlch ha$ been valhlaled by our exlemal Human Resource thisors. Senrty Managomonl salartgs we reported annualty lo tha People SU￿CoMMIttee. Hierarchy is kept lo thè minimum lo be effective arnl as a Conseque￿ the charty has a pay ralio of 3.2..1 between the Chiof Executive's salary ond tho avefagg for Ihg charity staff. Th8 sectN average for a medlum s￿d charity is 5..1. FLKltr*r details of employge rernuneration arg drnclosed ￿ Notes 12-14 lo ihe accounts. G•n•rnl Data Prot•¢tl¢)n L•gl•la¢l¢)n (GOPR) RNRMC in 2018 Im￿emented a suilo oftools and staff training p&kw to mnilor and ensure ongoing Complia￿ lo GDPR. We conlinue to endeavour lo ensurè that all Ihe wsonal infomwbon that ￿ nggfl in running the charity iy properly ￿￿teCted. correctly used and $8lely slored all Staff re¢elve training al point of induclion and annually. Our privxy pollGy and olhef associated policy changes can ai b8 a￿SSed from our website lo ensure Iran5parency and gssurance and are reviewed regularly. We 7hrrfk dosety wilh our rr manW servth rrtovlder lo monStor and ensure the security and com￿lance of IT systems. Fundral8lng Prlnclpl•8 Tho RNRMC and RMA-TRMC bolh have eslablished fuNJraisirvJ ￿￿J￿Me$ across simlar incorne stfeams. The RNOC'S 1￿me porffolio i5 histcrficalty derived largely from inveslmwl inm aThJ therefore Iherg was no reqU1￿ment to fundraise albeit during the past year the ch•"ty has spenl al allocated reserves and has realised odditional income through sale of assets. RNOC ￿ now actNdy fvndrasir4J via the As50cialion Royal Navy Officers, IARNOI membership arKI other initiatives. NSSC'S i￿>￿e is derNed largely from investment income and grants received {induding from the RNRMCI and Ihere is ltsfefore no requwerr*nt lo fundraise. The Royal Navy and Royal marr￿ Charity and RM￿TRMc are reg51wed with the Fundraising Rewlator aThJ adhere lo the standards of the Fundrasing Codes of Pract￿4 to Charity CommB$w guideline5. pwlirJJlady CC20 (Charity fundraisirrfJ: a ￿ld? lo Iruslee (jul￿). No complaints abwl fundraising aGlivity were received by the RNRMC or RMA-TRMC in 2021 and theref￿e there was no Tequtrement for e$¢aFalion to the Regulatr￿. We have ow own wocethjres in ￿ace for dealing with complaints. The THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES complaints process is open and transparent and easy to access from our respective websiles. Within the proce$¥, we publish a clear procedure for escalalh)n and timesca￿S when sup￿1￿5 can exF*Ct a response. Anyone is kind enough lo COn￿der support for the RNRMC be assured that.'- we never sell personal data to other tYganisatb)ns or tharIt￿S. We do sometimes ask third pty organisations lo ￿1p process ￿ data bul they wll xt under wr Instr￿tK>n. We never allow these organisalions to use RNRMC 5UPPOrter tjala for Ih8Y own purw)ses and the daLg remains tyJr18gal responsi)ility'. we ensure that it is Irealed with the sarnelovel of Ca￿ as if we wwe handlirvj il d*eclly. 1115 our poI￿Y never lo undertake any telepho￿ fundr8L%ing ¢y'cdd c811ing'. all of our electronic ¢Th￿￿￿n￿at1or￿ 10 5UPkXXtfrt w)dudes infc*m81ion on how lo opt out of fvlure commurmcalions. we do not undertake d¢)or40th fundraiwng. We display th6 Fundraising Rewkilor badg8 on our websites and fuNlraisry c¢Alaleral to dernonstrale ￿r commllmenl to best prxtlce. We work with the Fundraising, Mail and Telephore PrefeferKe SeNlc88 lo ensure that th088 who choose not lo receive specific types of communu1￿ tjo nol havo lo. Voluntger fundraising is fundarnenlal lo the effort5 01 both the RNRMC and RMA-TRMC and we wouh4 be ￿nal￿e to a¢hiev8 the level of voluntary irujme we do without the sUpp￿t ol ServKe and civilian volunteers. Normally in the Summer event season when we are not faced wrth the Consequer￿e5 caused by the pandemic environment. we rety on a pool of people who gNe their Ilme freety lo directy cc41ecl mo￿y, orwise and assisl al events, or make COMeclion8 th local businesses. Those volunteers collecling money'on behalf ofthe RNRMC and RMA-TRMC a￿ doing so wllh the prior krbowledge of the charilies and receive a vdunleer induCt￿n, have a dedicated staff 'Line Manager, and havo signed Volunteer Atyeement with the respective charlty. Thos8 vtslunieèrs who C£Jllect 'in aid of thè RNRMC and RMA-TRMC are often ading on th8* ¢Min inilialivt and wt are consequenuy unaware until we receive Ihtr montsy that has been Taised. Officia collections are always made with sealed RNRMC and RMA-TRMC collecting bins, Coll8Ctors in publ* places require pefmission from ￿31 aulhorilies or. il V•ryllin its dislncl, Ihe Melropolitsn Pdke. These licenses are applbed for and recorde(I by the RNRMC and RMA- TRMC FuTrJraisng teams. We regJlarly review and update our Volunlegrtng poliGios. Volunt••r# and Rd•t•d Partl All Trustees and members of the management commlltees oflhe subsKl+arK98 gNe Ihdr seplices volunlarlly and recelved no remuneration for Iheir aclivilies. olher IW travel and ir￿Iden14 ex￿n$?$ thre daimed. The serving members of the Board undortako the¥ RNRMC duties as vdunteers in addition lo thew norrnal line dutl85. Tho RNRMC continu8$ to develop and expand its ￿0UP ol volunteer5 to assist in all weas of the Charity. These vdunleers are supporled by s￿ff mèmbers a8 kn*ll a8 Spetsf￿ Fxtt8dw6s whK* nclLths a handbook for volunleèrs. Dlv•rnlly, Equality and Inclu•lon Our exlsling charity values rgnod the need lor dNgr%ty. gqudity. and indu$ion {DE&II. Wg also rgcognise that Ihgre will always be hjrther improvements or enhar￿8nts that we can make lo rnaximise DE&1 within the Charity. We alm lo achieve the folbwing key outcornès by I￿rking toward5 ddi¥￿ng thè recommended practice within thè Ch*ity Governance Code whth will hdp us lo build a diverse, equal and indusive ojllure *ithin the charity.'- The princi￿e$ of equ￿ty, dNw8ity and ir￿u$l)n are embedded in the organisallon and help lo de14ver the charity's benefit. Obstacles lo participalion are redu¢e(I, with Ihe ￿ganiSa11￿.S dgslg￿d atKI open for everyone included VAlhin its charitable purF*)ses. This SUPWts the clw to ch*rye inequality and achieve improved equality of oulcomes. The board ￿ morg effeclNe te¢ause li relkncts drflwgnt persfftes. exp8rign¢fjs and skills. including. wherg applicable. from current and future benefKiaries. In 2020 we Tefreshed the objectives d tyjr Staff Referer￿ Gr¢YJP lo i￿lUde Culture wh￿h emt*aces equality. diversity arKI inclusion and for those new lo the SRG we have sel up specfft DE&1 training cxiurses which help develop both their urmlerslanding as well as being benef￿la1 for al of those WIK) enga9e them arKI the charity. THE ROYAL NAVY AND ROYAL IAARINES CHARITY REPORT OF THE TRUSTEES Tru8t•88' Roport Strat•glc R•port Th• Trust•• Board last r•vl*w•d our •trat•gy and our slra¢•gl¢ obJ•¢tlv•s durlng 202Q conflmilng our vl¥lon and ffl188lon In th• proc•M. Our Vl•lon'. A worfd Sn which our salors. nwines. and fam1￿ we valued and supporte(I for lile. Our Purpog•.' <￿T purpose 15 to honour our visKJn by w)surivJ vffj:. Pmvidè Ih816adetship and of common purpose for ow b8nafkxTies' needs; Find Ih08e who need help, especially the hkJ¢Jen and lost. and ensure they can find us., Respond appropriately through dwecl svptKMi wlh key partners from ihe naval and olher chwrtkgs, lh& tteallh and social care sector. and the benefrts syslem.. Wofk lo develop an effeclivg * sustainable a(xe5s and triage System wtth appropriate18vel of case and care suporvision for the enl￿e rbaval family. Our Str*t•gi¢ obh•ctlv￿. We ￿11 work with othw charilies operaling in our sedor lo eSta￿Lsh a confederalK)n In Ofder lo provlde those In r￿d within our benefKiary group with a FrtThnl of access lo the lolality of state and chariiablè support available.. Acting wilh olher naval Charitiès ar￿ *8y 8takelN)Iders. V•t wll ensure that potential bernf￿1￿1es are made aware of the Support Ihal 1$ availa￿e lo those wlw need it.. We wll collaborate wth Greenwch Hospital lo agree fvnding priorities. and Secure a loro-lwm finandal commllmenl from Greenvith to ddlvor tho RNRMC'S charitatAe objects.. We will commit lo spendwy ovw 50% of our charilable expendiluro on collaborative and l¢)ng-l8rm commissioning proiecls wilh otwdwi￿$ aThJ organisation5 whth seek io address undertying causes of ￿t0,. Recowising thé néèd lo acl deciswety. we wrfl un¢Jertake bord and fof4eachlng plans and W￿0¢t8 with our partnèrs that w41 draw-down $ubstanlJ"o1fy on lolal nel a$sgts. Otsr ValuM'. Benefdary-focussfjd - wg wll uso best èv¥J6nce availab￿ lo achleve maxlmum IMp￿i on the Ilve$ and morale of those who $8ry8 loday OT have serye(l. and Ihoy familio¥. Inlegrity- we wiN act with honesty and tran5pwery in ￿1 (wr activit￿5. InclusNeness- we will recognise cdebTale ¢JNersrty In Ihe sect￿. Teamwork- we wll a￿ayS behave in a way that strengthens Ihe cffganisalion. Commitrnent- we will Oemorolrate the h*st ambrtion aTrJ commitment for our cause. During 2021, and in furtheran￿ of these RNRMC 51ralry obieclwes, the CDFC approved £8.9m of RNRMC charilable expendilure througth a furKling focused on idenirfyry need, intervention and prevention. £8.2m was hieved Ihrougth a Combination of.. Progr*nM￿- which focus on a pwli¢ulw b8rnfi¢i￿ or community and respotKI lo Klenlffied needs. Palhway• - ensurg remain by Ihe smle of dl benèf￿18￿6 from thir first day in the Royal Navy Id lor decades after they SwvKe eTrJ5.' and A HaTd•hlp Fund Iskvted in 2020 arKI conlmxjeil in 20211 to resp￿￿1 lo the unKiu8 pwsuw resullSng from the coronèvirus pandern￿. 13 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES CommSs•lon•d Pr¢J9rammes Funding for the ¢C￿mISSion1r￿j wwammes in 2021 was srArt bet￿n seven rytyyammes, the aim of eath of each 1. Naval S•rvi¢• Support - To wov*Jè SUPFKrt. ncffmalty irrfrastnKture. lo serviTrJ naval personnel. This year Sign￿l¢an1 funds allocated for Ihe SBSA Resilwc8 Centre with SUFfX)rt wth a grant from The Nuffield Tru51. 2. F￿llY Support - To provide supwt lo naval farn111￿ of serying pw$On￿l, e.g.. partnering with the Kings Fwndalion to provide actNity camps lor chiklren duru)g thè sthod trKilidays.' partnering wtth Relate lo provide relationship and famity cwnsellw 8nd Hornè￿&￿. provNYirrfJ support fc* families with Y￿ng children. 3. H•alth & W•llb•ln9 Support- To supwl menial health and wellboing of s8rvKo pwsonnel and Iheir familios. e.g., partnerin9 wlh Portsmouth Mlitary Health All1¥￿e to wov6de 9ambling & add￿tIOn support. Anchoring Mlnds lo support famd*s". 8 project with Ihe Go¥*Yt and F¥eham Mulli Academy Tnjsl lo create a Community Sefvus 14ub on ￿te and additiona support for RN molhefs ￿th pre- and post-natal deprossion. 4. Communltlu support Progr•nm•- OrKJinaly desonod as wojects lo cwibal loneliness and soclal I501816on and extended this yearlo pylol Proiecls that suppcyi all benefKiwie5 and enhar￿e exi51ing wovision. e.g.. fvnding a posl with Fighting with Pride to r&￿h into the LG8T+ community., and providing a Speoalist workor lo work Irom the While Ensyn AssocK4lvJn lo supwt access lo the Armed Forces Compensation Schema. 5. Indlvldual Support - To ensure that those f811 on haro lirnes have access lo financial support, notabty through gran15 to the Nava Children's Charity. Ihe Royal Naval 8enevdent Trust. lh8 Sailors. Children's Society and Royal Marlnes Association (rhe Royal Marlnes Chority). 6. V•t•r•n•' Support - To support Ihè speCTf￿ needs of vèterans, è.g., partnership with SSAFA lo provKIo casework for tho naval farnily ol ch*iti6s and the RFEA lo support veterans inlo employment. 7. Prom¢t• Ind•p•nd•n¢• •nd Protect Olgnlty - To ensure Ihal and depeTrJenl benef￿1￿18$ have the care and SUPPKKI they deserve. e.g., funding M￿lt￿Y care homes arKI innovatwe approaches like Spwko TV connecting poo￿8 lo ¢ornrado$ aThJ fam￿•8$ from Ih•ir h￿fj. A nurnber ol aclivitios in prowamme commLssKiniNJ tAans V•*W suspended during th8 pand8mic and plan8 10 expand pilot wojÈcl$ were curladed 2021. Ihis 15 retlecled n Ihe variance belween Ihe budget allocaliorb and the actual grant awards. 20% of addrt￿nal srant making was mainly to suppcrt pro9ramme areas of unplanned need. P•thw During 2021, ￿ operated 2 pathways whth, ioinuy, seek lo deliver on vision lo support our sailors and rnarine5, and Iheif lamilies. for lrfe: Qualtty ol LM• Pathway- To kyovide ￿ants wh￿h imwove condrtK)ns of seryice a￿1 fvrther the efficièncy & morale of the Royal Navy. typKally as a result from a lunding bKI from an indNidua ship, èstablishment or unil. e.g., refurbishrnenl of rness spaces. contribulion to team trNJ1di￿sOC•a evenls. or Fffttes and awards. With a global deployment for the Roy81 Navy in 2021. the charity has provthd support swiflty lo the frontline,. in 2020, 182 minor grants were made to ship5 ar￿ uni15,' in 2021. Ihis rose lo 283. a 55% ir￿reaSe. Through Llf• Path￿Y - To supkvl the welfare of serviw persmnd. veterans 8rwJ they families. typicalty ty partnering wrth other tharilies lo provide servtis. e.g.. Vèterans Ahl supportiw hOme￿sS Veterans aTrJ centrès like Woody's Lc*e. FYov*Jin9 a range ol servKes for Veterans in Wales. Hardshlp Fund The Hardship Fund. which established duriNJ 2020 in reswnse to the cixcM)avnJs pandemic and seeks lo provide relief arising from the hardship c2vsed ty the pand8rn￿. C￿ts"nued throughout 2021 e.g., virtual community activtlies for deployed families. support for provision of accommodation for wsiling families from th8 Commonwealih caughl vp in the pandemic and a f￿uS on supportiry eff￿r￿ and moralg ¥livit*s tP*th8n Shorg leavg not possible for those deployed. 14 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF ThE TRUSTEES ontlngent Spend AddilKJnal Granlmaking of £1.671m was approved aNJ spenl in 2021. This spend suppcKted the SBSA Resllience Centre I£1.3ml ofwhich £700k was RNRMC fu￿lS we recer¥ed a ￿an1 01£￿0￿ from The Nuffield Trust lo support this project. Olhef grants induded.. RBLII£1￿k), Whrte EnsNJn (£51kl. RNBT (146kl and SCS {£74kl. Summary The graph bdow tpw Ih6£8.2m spertby the d)arty in 2021 was di5tribul•J behveen the programmes, pathways. and har(Iship furKI descrbeil abov8'. How w• dlstrlbuted our funds In 2021- Total £8.2m Gi•nvn•kl￿ 20% How w• dlstrlbuted Funds In 2021-Tot•l £8.2m £'OOO I.8￿) 1.474 1.4CQ 817 620 220 261 261 319 238 21X) 15 THE ROYAL NA￿ AND ROYAL MARINES CHARir REPORT OF THE TRUSTEES Grant maklng Policy The RNRMC continues to adhere lo its Frameth of FurNJirYJ principles. Wh￿ provKles thè lemplale for good partnershlp working and $8ts wl our fuiwe fundirYJ ambitM)ns for the RNRMC. The framework is fvrth8r supporte(I by the annual revision and publ￿tIOn of Ihe charty's outcomes whth describes diffgrence we wish lo achieve for our beneficiafles. Tho key aim of these fv40 documen1$ is lo fjnabbe ihe chwitable $oCtor and Givilran or9anisations to play a signlfunl rde in delivering inrThiatNe. dNeTse and resp)nsive SerV￿S Icff all OUT beneficiaries. including those serving on board ships. units and ptfsonnd of the Naval and Aux1k￿. thèir familias and thè veteran community. Bla¢kBaud Granl Manag•m•nt Syst•rn The Grants department began the irnplemental*)n and devdopmeni of the new ￿a￿lS rnanagernenl system in 2020 10 ensure rt meets all the requwements of tyanl making across ￿mer￿S lunds 3rwJ associatèd criteria. Throu9hout 2021, tho system has ideveloped to begin lo ulilts8 more ol the features avaiLqtAe and exlend usage lo process gr8nl8 across all pathways aThl twrammes. The online [￿al is now fully utilised for all our grants. Thfj moniloring questions formulated in 2020 have rthy been built into ￿aCkbaud and will enable applicants to cornplele monrtoring relurns via the online Fthal. Haviry th15 infcffmalion 51wed wthin 81￿kba￿d will enable us lo easlly measure the quanlilalive Impacl ol grants. as VAI 88 St￿1n9 walrtatNe data to asslgt In the impacl measurement acro88 all Pathways and PrO￿amMe$. The reporting functionality has dso been develo￿ thrcwh￿l 2021, wilh *Jlornaled rèports tAJ￿{ to show activity, output and outstanding tasks not only for Grants,. tjespoke rep￿ts have been ttsaled for Marketing, ComMun￿li0n8 Finance. whlch18 maklrvJ Ihls a useful toc4 aCfOSS the chwlty. Almonh•llon The cenlrsllsed naiure of thè RNRMC supwt str￿tUrn alkThv8 èxtensive almon18al￿n1Shaft￿J) of lunds by a small ants department, This team has access lo most ol the funds V•rylhin the RNRMC Group and also th8 allttalion made lo Ihe Naval Servico ty the Nulfield Trusl aTrJ shwes information wrth other Navy Command funds thus rnaximi8ing the efficiency of dislribJlh)n. CgmmS••Son•d Gr•nts In rèsponse to Ihe 2019 RNRMC Need Rew1 wlh ils idenlif*d Cross-￿ttIng themes, the RNRMC developed e programmes lo proaclively adress the neetls of 119 beneficiar￿$ with a sevenlh added In 2021. A new Funding Model sel out the inlendetl response lo idenlif*d nee(1 with key prO￿0mMeS *on9sKJe the exislwio pathways. Th8 abdily lo ex and amgnd servv delivory in rgsponso to improved undeT5taThJing of nggd arKI1g$son$ barnl is a major bgngfit of havSrvJ longer-t¢rm lurKlw aggemenls in p*e ratlw than amual ￿an1$. For each of the programmes, but in partthlar PIr￿aMMe 2: Famity Supp>￿, and Programme J.. Health and Wellbeing, the charity has activdy s(wghl partners who can assisl its understanding of extsling chalenges. how services could and should be develope(l ar¥J organisalK)n5 capable of atldressing parluAar needs. In esserKe, thi5 means Ihal the charlty ts operating a commissw)nir#J apkvoach lo funding. Tho di¥Jram below illustrates the cofflmisshining cyde as recognised by heallh and social care sectors across the UK. Whilst Ihfjfg are differences for Ihe charrtable S￿l0r. the rnapjnty d the process arKI concepts are useful to the RNRMC In progressing ￿0d practice in our ￿an1 making. 16 THE ROYAL NAWf AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Comml8slonlng Cy¢ "maklno thg b•st us• of all •v•llabl• r•sOu￿￿5 to produc• th• bmt ￿teaM•S of our ￿ne11¢[arlOS.. Analyse Beneficiary outrome5 vie Our gran1¥ pathways are publicis&J widety, and all bK18 reeArve expert peer review and ass8tssmènl. During 2021 we ¢onlinued lo re¥￿ our applicatyw kYooes$ ¢0 a liqu*Jity quéstionnaire Iwhid) covered both reserves and 8UStainabilltyl wtt￿h enablgd us to urKlgrstand ihe fman(yal ￿sItIon bettor for all applicalK)n8 and is based on Currenl a8 well as hi$lorK finan¢i4 data. This method of assessment allow5 both us and our appI￿antS to ensure our combinod reservos are used to support those who need it m051 when they neod il and this indudgd those partner charlhes whose narw& were signrficanlly hrt during the p8rthK. All Successft￿ wnl8 are revM¥gd at18ast 6 fflonlhly for evidènce ol the athievemenl of intended outcomes. The chwlly 8ector, rI￿tly. continues to be ol ir*yè8skn9 rwIa1￿ and t)verskJhL In recenl Ilme8 the GDPR legislation has required consKlerable effort lo ensure person￿ dal8 is managed in a s¥fe and compllant manner. Thi$ effort follo￿ additional enhanceménts lo lundralsiNJ rewIal￿n8. safewarding poltcy and a new Code of Govgmance l$sued by the Charity CommissKJn. 1118 ImF￿an1 that IW im1￿￿eMen1S are lully integrated into all ol the charrty's buslng53 t)ut balanced with a drive lo keep overheads as low a8 posSi￿e so that Ihts addllional bweaucracy doas not pr8venl our F¥imary objedivg of providing maximum suppr￿1 to ¢)ur b￿r￿T￿lar￿. s￿•gUardIng Priof lo Ihe inlroductK*n of the Tiansilify) Support serv￿ in November 2021. RNRMC had a Salegu*dlng Policy Slalemenl rather than a comprehensive aThJ guwjance document. This polity slalemenl was presented to and agreed by the Trustee Board in janu￿ 2019. AdvKe was soughl from NCVO who a￿e9d that as the Organisat￿n was not Invofved in individual or direct support lo ber￿T￿larIeS that this stalernenl was both proportionate and relevant. This Is no longer Ihe case ncw Ihal Ihè orgar¥salp)n has commerKed dlrect support lo IndiV￿ual$ a5 part of ihg Transition Support pilot. pri￿ lo the pilot commendng 41 case w(Kkers ur¥je￿en1 safeguarding training and fthl safeguarding guidance was issued by the charfty. This now pc4y documont covers the exBling slatemenl for grant making and staff )1 involved in direcl support of benef￿.￿leS and as a'cappirvJ' do¢)Jmenl for the compreherAlve guldance provlded lo thos¥ involved In Transition Support. The new elernenl of the policy dea15 with the dlrect supkx¥t of bene￿ar195. As S￿h. the RNRMC belleve$ Ihal it Is lays unacceplable for a ch4d (Y vulner8tAe *JuN lo suffer abuse of ony kind and recognises ils Tesponsibilily lo safeguard the weffare ol all people rt erKounters, by a ¢cKnmilmenl lo wactu Prolects them. We un(lersland Ihel the weware and safety of the person al risk B ￿arn0￿nI. The wrp)5e of the and the as￿lated and more cc¥nprghensive guidance dooJment IS 10: Provide prOt￿l)n for chldren VUlnera￿e adums who come Into contact wilh our tharty. Pro¥￿e ty¢darKe lo staff and vduntews to recwise. resp￿1 to and report atsjse appropriately. 17 THE ROYAL NAVY AND ROYAL MARINES CHARtTY REPORT OF THE TRUSTEES Create a cajllure of openr￿S within the organisalion arKI ensure staff feel 5UPPOrted to talk candidly about suspected abuse. The Organisat￿n ncw has a Trustee respons*Jle for safwrdrrvj arxl a rnember of staff as the designate safeguarding lead. In ￿ditiOn. each element of Ihe Oicy has a lead within Ihe Televant department or function, and thi8 indudes a lead Ihe Senwjr Leadership Team. Th• Support Lln• Sel up towards the end of 2019. the Suppcrt Line was OP￿ mO￿laY lo Friday from 08.30- 16.30via a dedkaled phone, emall and onllne enquiry function enaL4ing benefKiarie$ lo c¢)nlxt us 1hrOu￿ fv most conveni8nl channel. The Support Line had been staffed by the Granis Depwtment and a ieam of siaff who were volunteers unlil the end of October. In Novembèr 2021 this function was tsk￿ into thè Tranwlion sJp￿rt sèrNice (Project ￿naM01. BeneficSarl88 11 conliryje lo be signposted lo S￿¢￿5 ol SUPPKVt a￿1 those thèl are particJJlarly in need ol urgent support or are dtstressed will be 8t48 to spbak lo a Transit￿ Supwt Guide. Mwthl¥ETrwlryTol•KUloY 2019 OL120111 Jw Prol•ctlon for n•xt 3 ymrn D•mand and N••d The huge variety complexity of Need was *tK%lated in the RNRMC'S cc¥))prehensNe need report presented lo Trustees al the beginning 012019. These Ihemes and wsden threads femain the drivers of our funding delivery and development ambllbn. Th• B•ndl¢lary Cross￿UltIng Th•m•s T*•rn Id•ntlll•d Debt and financial managemenl. cohol and adt1icl¥)n support. Mental health support. Loneliness antl social isd81th. Househc4d and general li¥ir•J ¢ost8. Relationship support. Cornmunity farililE5 with nJnnirKJ costs. On-line toolkits for a range of issue5. Health and wellbeing. Support for carers. Social exclus¥)n 18 THE ROYAL NAVY AND ROYAL MARINES CHARrrY REPORT OF THE TRUSTEES This year have seen an increasiThJ awareMu of the reed to address gam1￿1n9 and Ihg ¢onsequence5 li can bring. We are looking al how the servti developed in the P(YtsmtXAth region can be ￿dened lo other area5. Goldon Thr•ads The foNowing goldon Ihrea¢l$ wwo heard at vKffkshops and from each of lh8 8 Wo￿treaMs:. Charities need lo work together lo supwt ben8ficwi85. A One Slop Shop for naval famdy shoukl b8 considered. Communicating Nav81 Sector Charity offw requires improvemenL We wlll continue lo wrKk wrth tYovider¥ arKI wtneTS to scope the provision of holislr seryices based on successful lol pwammes. D•mogrnphk• We have explor￿￿ Ihe changing Royal Navy ond RO￿ Mwines beneficwies. Whllsl we know Ihe veteran d8mographSc is dedining - fflost especially veteran communty land we wll work Iwd to m881 their need5 toward the end of their livesl- the serving pO￿al￿ arKI ￿1r fam1￿ %will ￿M01n al the currentlgvel or gently inc¥ease. Work is und8pNay with the Mafilime CharitW SVOLJP lo refresh the themes of n¢od hjonlthod In lh8 wblScalSon Navigating chawe vthich was last refreshed in 2019. Work wilh Professor Mall Kiernan at Northumtxia UnivwJty pull$ togèther iden1K￿ need share(I by a host of mlli¢8ry charrties and shared by Cob5eo. Worklng TO9￿h￿ to M••t N••d lknur• knpacl The charilatrAe objects of the RNRMC ¥9 Ixo•J. our ￿an19 apFAra1￿ and monlloring wocesses provSde a prlrn source of data lo delemiino need arKI domcrtstrale irnpact. P￿tr￿ShIp vK)rking with fundgd charities to èxplore our loinl impact contsnues lo mature in addition lo thè delfvery ofworkslw lo consdKlate Ihinkiry aTrJ the d81ivery oljolned up sdutions lo address w8¥ènlèd nèed. All grant holding Organlsalions requyed to provide key monltorir4J infomalion againsl the outcomes they have idenlrfied al Ihe poinl ol app4icallon. rèlwns *t ¢arèfulty scrulinised lo Inform lurther all¢xation of funding arKS shapln9 01 wanl funded provision. The ryants team have Intr0th￿ed mwtoriry that wll bo ￿ptUred vra Blackbaud Grant Managemfjnt system directly linked lo funding ￿lcomes. An outcomes ret*yt wll bg produced in the SPTIIVJ of each year in Ihè future. A IrSal run ol an outc¢)me¥ report was ￿￿oduced in the spring of 2021. Ihis yovlded key Ins￿hIS into thè drffèrènce made for beneficiaries. As a result of this rep(¥t Ihe grants team will be offering V*Drkshops lo funded partners lo support them lo identify and evidenc6 their so that we can feF¢rt meaningfvlty on Outcom￿ in the spring of 2023 and every ye ng I0￿￿d. RNRMC Grant Maklng Pollcy- Prol•ctlon In Ihg last fi￿ Yfj￿. Ihe RNRMC has distritwle(I t£3S.6m in tharilable fuThlry as well as working closely with oth charrties lo almoni5e h'nancial Supp￿ to our benef￿1¥ies. In t￿ past. mosl chariiable expenditure has been way of granl-making, based rffl demand and by ¥plKation. This a reaclbve servKe that ￿lOw5 ch8ri1ies and organisatlons wrth similar aims and desired oulcomes to bhl money Io SUPE￿ thew w(wk. However, this year we continued lo adopt a more woactive approxh. seeking lo the causes of need, often Ihr(wgh long-lerm partnerships wrth other charities. We call thi8'c¢)mmissKJning'. and in 2020 we spent lime inve$lThJ in our partn8rship work lo improve the off for beneficiaries we ern￿oyed a commiss*)ning managerto le•J thi5 area ofwort urKlerthe D¥ectorof RelalSonships and Furmling. Trustees commltted to spgnd muth of ourchar11ab￿ expwhjiture on collatrtxalive programmes addressing unmet need. 47% of our granl tr¥Jdgel was alocated atross the 7-kYwammes, with a further 20% of additional granlmaking, woTking with a range of charity and Stale INHSI pwtws. This fomis th8 basis for devdopirKJ rdalionsfv.ps and re-shaplng service deshjn wrth existirKJ (￿nIsat￿n$ arrfl 4s0 to explore in some areas new opportunities. 19 THE ROYAL NAVY AND ROYAL PAARINES CHARITY REPORT OF ThE TRUSTEES The commiss￿ning approach to grant making wll Woykle the means to address the needs of our benef￿larI•S in the nèxt few years. Need is aw diffKult to predict and followng a p3￿MiC this is less Ur￿rtaIn. however. w8 kmw some of the challen9es our communty laces we changirMJ and greaty lnfiuel￿e our future plarts. The RNRMC has continued lo di8tritxrte ¢￿table lundiThJ to a wwje range of organi5alions working closety with other charities lo almonise finanryal supptNI lo oijr berter￿lanes. The development of our commissioned ￿antS arKI Ihr8e-ye8r funding ag￿ement have enabled targeted $uppcKt to meet the mosl compelling ￿edS where and when needed. The role of Commissioning Managgr is r￿¥W embedded $UFWrted by a small commissioning team lo drive innovalSon in service design arKI partnership workiry wilhin the 7 maiurirvj kYwamm8S. Workshops with partners in 2021 wryll ts)nlril)ule lo up(laling tyjr understanding of r*èd post ￿ndern1¢ and to assist in the fenegolialion of funding agre￿￿t$ which are due to expre al tho end of 2022. Twslees have commrtled to spend down reserves lo maintain levels of funding availa￿0 in ￿ next Coul￿ of year. Achlov•monls and Porf￿nanc• hl -RN Thè work we have done on 'Need' has sharpened focJJs ¢Jn our beneficiariès, sa￿or8, marines. their famllies, and veleran8. We are fev*wlng our processes and slwclweg. and this has already roleased a Store ol energy and enquiry that h8s led us to better understand need and allocate our resources to me8t Ihat n8ed. W8 remain fimly of Ihe ownion Ih81 Collaborat￿n. co-operation and possibly convergence are not only h￿hlY desirable in m88ting th8 nggds of our beneficiaries bul also necéssary lo rtmovè dU￿ttIN)n 8fKI reduce inefficw, whilst balancin9 the felenlion of proud brands the sector. We are a leading player in Itms debale arKI are wcffking wlth our pwtners lo move the agenda Iorward. We are locused on'.- 80ing proaclivg and. where rnces$ary. pwmptNe IntervenirrfJ earfy and seek to g81 'up$tream" ol *Jen1rf￿d ￿ed and wobbms wherever po$siblg pron)ollng independence, preserving dKJnty and proleclir& indNidual8 Being ambrtious but pr89mat￿ with our lundfaising 08veloping an tnlhusia$lK worklorce molivaled afyj skilled to Investing in our ¢ommurNcalN)n$. al￿SIt￿.1￿ and diwlal akn'lty MainlainirYJ a reSi1￿nI, suslawi*Ae and COm￿lant orgaThsation is financialty healthy Fundlng hlghllght• ID 2021 New 3-year funding agveements RNBT, NCC, SCS v*re sh3ned with the RNRMC aThJ Greenwich Hospital. as well as 3- year commitments beh¥een the RNRMC and RMAITRMC) and also Ihe Naval Service Spjrts Charity. A safety net was provided for a veteran who needed ConsbJeia￿e help followirKJ a lile chanyng accwjenl. This involved slgnrfic8nl bul¢Jing project and negoliallon wilh slalul(Yy partrers and funding charities lo enable him lo return home lo his famly. SuppM for A$so¢iations to ensure they can leach oul lo supwl those suffering from lonelin955 and isolation ￿ntinu￿d lo be a f¢xu$. a substantial increase in membership fcf Ihe RNAwas the resull ollunding lo remove ￿$1 of membership. We have ¢onlinue(J lo work wlh the Royal Navy ind￿lIty the Reserves Fwces and the ROY￿ Fleet Auxliary lo understand need and idenlrfy lundirKJ tymyilies for Itw)se on Ihe fronlline. The RNRMC supports famil￿5 in many ways arKI IW a clKJrch of ddivery part￿r$. Sukwcrt for famllles Is provided through the award of Quality of Lrfe and amenities gants. and thr(wh annual benevolence grants. Where we are looking to address undertying causes of need. we are devdoping a loyr-tem) strale9ic partnership with other charilies and organisalions whilst conlinuiThJ lo make other grants as the need arises. Our commissioning plans reflect the Chwil￿S slrdtegic objectives ar¥J comrnitmenl Ihal the RNRMC undertake bc4d and far•reachir*J plans and projects with our partners where needed. 20 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Through rnoniloring and evaluation ol key metr￿$ ￿0Vided by lunded partners we are able to keep wr uNl￿StandIng of need current and up lo (Jale w￿lSt rea¢tiro quKkty where SUPF*NI is needed most. Th8 Commissioning plans Prthyammè 2- Famlty Suppcrt and PfryJamm8 3- Mental Health and Wellbeing Support were presented to thè CDFC at the March rneetirKJ. These plarts demonstrate the development a￿1 ftjlure intentions for these key themes for SeThiNJ Pwsonnel and th&'r faMil￿s. The pandernK has impacted signrficanlly on the irnplernentslion, bul the commkssionin9 aFwoach ￿ served us well in being able lo respond lo thg charying environmenl. Our menlal health w'lot work in the wider portsm￿ arna wil wovKle a S&￿Ing p￿nI to wovide thesè proi8Cts in Faslane and the Swthwesl. [￿riftg 2021 we have lomied pwtrwships irK4uding The Submwine Family, to support the submarine comrnunity past and present and their families, as well as workirtg with tho Royal Fleel Auxiliary lo support. in the first instance, those currently serving in recwilion of th6 inlrinst nature of the wcKk of tl* RFA in supporfing the Royal Navy. The formation ol the 'Gel Paul Horne, fijno wh￿h successfulty delivered an updaled home environment for Paul lo enable hirn lo return ￿rne lo his farn1￿ after a swnificanl lime apart and 'Hdp- Jirn's Fund, lo rais6 awareness of mental h&811h aloNJ81de the mental health prowamm? Supported by the RN and"HMS Oardacious Fund" Suppo￿.ng Ihe mentsl hgall of submariners o1$0 begon to take shape in 2021 wilh the aim to rahse signrfK3nl funds LY awareness into the lulure. Proj•￿ Dynamo and D•v•lopm•nt Project Dynamo w88 created as the explorathjn and discovèry plmsè of ¢yJr fijture d￿e￿)Pment phase. 2021 began with locus on operallonalisir¥J sorm ol the recommendations from th18 init￿1 pha8e the staled prloriligs as follows:. SuccessfLbl rOll￿￿t of Transition Support Servit* pth)t cont￿Ue lo refine need driven by data and eviderte cdwion ar￿ by tyjikling rglalioll5hips across sector harilies, stakeholders and rthvanl oltws Investigate 8 Single Point ol Entry and Try fu￿tA)n Inve61igal8 a case recording System, differential￿￿ by pathways of supwt Intenslty, lo enable an actlve case navigation solullon lo provide betler oulcomes for moré of b8n8fi¢iari8s Continue lo build RNA I RNRMC partnership io dèvèlop befr*nding and hK10en a￿J10St capability Look for opportunities lo strengthèn the Na¥￿ Sactof All￿nCe Devebop a concept to provide a much dearer underslarKling of bgnefKiary's appelile lo engage wlth Armed Forces and Naval CWitable 8ectcrfs We recrulled 3 Oala Manager In Janu￿ 2021 th) immedkgloty sel aboul adapting a Case RgGordlng Inforfflallon System Ihal had been developed by a partner organisa1￿. In we Su￿$51u11Y rgwiled a Case Manager lor the Transition Support team and completed recruiting Ihe remaining 3 case wrykers by early aulurnn (based In Scolland, the SW and. the Soulhl. AJI case workers were recent retsrees from the RN. DuTiThJ thi5 perthl we a180 Starled the process of creating the twocesses and documentalion lo enable sale I￿rking In the dwecl support of Ihis vulngrablg of our beneficiary populalion. This i￿luded the general￿n of a new safeguart1in9 p￿￿Y and a revised structure wthin the charity lo oversee thi8 poI￿y. induding the election of a Tnjslee with respons￿1$￿ for safeguarding. pri￿ to go-INÈ of thè SeNice we visited 811 the RN unrts Ih81 would likely lead in Prov￿1n9 referrals into Ihls new sethce once it hwd st8rted, as well as establishing a netr*ryk of conlacts in Cffganlsat￿nS that we would probably be rgfgrring our service into f(Y specrfic suppN)rt n88ds. The serv￿ wenl live on 3nl NovemboT by the end of the ye¥ wg have dealt wlh SO Service Users, many cl ￿orn have fairly com*x or time need$. Earty trends from Ihe data we have coll￿(9d suggesl we are Seei￿ a higher woportion of V￿Men that was envisaged, immediate accommo(lalion needs on dischaTg8 are a problem an(d the supp(rt needs are mc*e complex than y￿ had anl*paled, Meaning that c8$e workers cannot handle more than 15 live cases at on¢9 a reducbon in the ser¥￿e level we wsh to provide. We have conlinued to adopl a be￿￿lary fvsl apwoath in lookirvJ at our other developmonlal prioril*s and have conllnued to gngage regularty with Nmèrous tyganisalby)s research Imjbs Ihrou9hout th* year to understand how bost lo delivgr the role of benef￿lary adv(xw ￿tAin complex environment of the armed force5 charity sector. Thi8 has enabled us lo align our plans with the progress arKI evdulh)n across the Sect￿ whi151 also highlighting gaps In provision a5 well a5 ￿51 pract￿ in specific areas of ddivery. We remain focused on easing access lo servi￿$ lx support and ènsuring as simFAe a pumey and as positrve an outcome as POSSit48, Ithilsl ah¥ays allowing the benefKiary lo have choice in the path tw wish to steer. W8 wero invited lo participate in the transformation programme fry RN Farn￿Y and People Support IRNFPSI towards the end of the year arKI this Coir￿&1 wlh much doso enwmenl wth the RN'S d￿lts1 portal development forfamilies. the 'RN Forum,. We a￿ keen to ulilise tlis frmum a5 a solutx>n or part-st4ulion lo our search fty a One-stopshop or 21 THE ROYAL NAVY AND ROYAL hlARINES CHARITY REPORT OF THE TRUSTEES single [￿1￿1 of conlacl for all our benthkryr￿ when reaching into sedor for $upFK)rt. Th￿ w(Kk wlll conllnue Into 2022 and beyorKI. By the end of 2021 we have lumed our f(MJs to settlThJ up 8 triagè palhvrdy so that we can link level persratenl coniad that association pmvide to the more crigis oiwtsl8d aclNe case management that the Transition Support SON￿8 is provkling. We will coMmer￿E thi5 effort in ewwst in 2022 wrth the reuuilmenl of a Triage and Resear Coord￿al01 wilhin the team. Flnally. wg havg continued to work dosely with Iho Royal Naval A$S￿La[10n in ewrying oplK)ns Ihol wll treal the lonety and isolaled need. A5 anlicipaled this is leadirvJ to a resurgence in t•that has been a 20 year dedine in mombership wlth 3,000+ new members over th8 cours6 of th6 year. We r8main open io provhliThJ a similar ￿Ve1 ol support to other n8val membership organisali(x)s as research ￿ clew that the resilienee and Carnarad￿le that such nefvlorks provide Is crucial in combating loneliness and isolation. aswell as acting as a kYeveTilalive and eady inlervenlion lool in the armoury of reducing the dOwr￿ard spiral ol our bon•f￿￿•S into c(¥npl•x crf ¢dses *'luatkffjs. As parl of its ientswtsd Slrategy. we are poslllvely supportlng Ihe RNA to b￿ld bel￿en￿ng arKI m¢thNJ $Wvi￿ to a greater populaUon of worklng ago v818rans. Ral•lnq Fund• 202181arted wllh a wlsed Staffing SlnKtUfe the Fundralsing and Commun￿•t10n$ team. Introthjcing a Fundraising Database Officer who is expwienced in our Raiser's Edge CRM dalabase. Crit￿llY Ihls role suppx*ts fundraising with data imports, analysis, arKI fir￿nCIal reconc1liatic￿s. In the fvst parl of Ihe year, Il was fundamentsl lo exploit all èrwagemenl Ènd event opportunities, launchirg a series ol V￿l￿al events such as our popular'Vl&w from a Bridge, and 'V¥tual r￿Id gun. fvndralser. This was a avenue for the RNRMC and ¢)ne has develop8d ond grown slnce. Indlvklual glvln9 was ￿)Istered by charity launchirYJ tespoke Ir88 Will-wriling 88Ntctis and an'ln Mèmory, micro site developed by Just Givin9. Thgse pro-active efforts are seeing posrtlve results, s￿h as a legacy pledger spèclfylng that the RNRMC'S receNes a S￿r￿fican[ sh*é of thew eslate. a sink4e large 'ln Memory, donation of £35,000 and a £80,000 18g8cy rècthved towards the end ol Ihè yéar. Regular GNing Ir￿orne ran behiryj Iwdgel as PRG ¢Jonors leavlng the RN W88 not replaced by new Joinets due lo the inablily to face ￿ face recruilrngnl presonlation$ due lo covSd re81riction8. Civilian PRG, Standlr& thiers and Online Twlar donat￿n$ all remain8d on budggl. Communrfy fvn(traisin9 was thg incomg ¥trgam that suffere(I Ihe most from Ihe Impact of the Covid pandemic. Tho 3 88rvicg charit￿$ wwe gN8n 5 days of collections aThJ concession starbj donatr.ons al Ihe 2021 Royal Ascot me8llng. During thé meeling Ihts belling and Gaming Councl also selecled ihe charities to benefit Iwlh 3 olhersl from the profi18 of the Britannia Slakes. HMS 08rda￿u8 conlinue to Supp￿ the RNRIAC. secwing a £400k $p¢)nsorship from the Elba Foundation over the next 3 years. Cwjorale inwme remained Sta￿8, and the year ended wilh a successful Tr8fagar Ni￿1 Dinner and the launch of the rsl RN an¢ RNRMC cookbook'Galley which was fulty skwis¢y8d by our Platinum Partners ESS. Commerclal aclivlli88 expanded with the RN Shop website wng IN9 a￿1 Wyalt & Jack a￿eeing lo a line of Items making the most of disustsd Life Rafts. Lrfejaekels arKI oncé only Su￿S. These items are dual branded and sold via the Wyatt & Jack wtbsile wlh th6 Option ol RNRMC obtainiNJ items lo sell via our chann813. Manag•m•nt of mon•y In worklng toward$ delfvery of our refreshed slrategy. in li￿ wllh our vlsion, thè Board atyeed lo ￿ntinUe to draw down on its identffj￿￿ aVaila￿e free reserves (more detail can be found later in ¢xr risk-based reseThes pdicyl lo support our benefbciaries. This commilrnenl will enab￿ u5 10:_ spend over 50% ofour charitable expenditure on c￿lat￿INe and knr¥J-term commissionlng proiecls wSlh other charities and organisalions whKh seek lo athdre5s UnderI￿ng causes ol need: and act decisively. underlaking Ix4d and faT-re&*iThJ pbans and woiects wlh our partners whKh will supporl key areas of need In 2021 we committed 67% ofour th￿ilable expenditure. i￿￿d￿ addIt￿nal spend. to our twammes. We continued wlh our Pr()iect Dynamo. a Pilot Programme to support an id8nlrf*d key area of need. A simplificat￿n appI￿at￿Th lo the Charities Commission of our fund slnjcture was planned for 2020 howevw th& impact of the paftdern￿ meant that a ¢kner lotJJs was aFvlied to cash Ikm ￿nIng atThJ reserve management in the firsl 22 THE ROYAL NAVY AND ROYAL MARMES CHARITY REPORT OF THE TRUSTEES instance instead. The simplffjicatKJn Pfojecl remains in d8lNery ￿an for a Laterdate. In line with the simplification plan we cMtinue priuitising ￿ spending down of restr￿ted fvnds whilst mainiaining benef￿4•ry support throug unreslricted funding which allows f* mcrt grant flexilj.lrty in Ihe fvlure withoLrt pendising wr benef￿l￿s. Natlonal vol We have worked with a rgwd wrnber of chaity P*tnws over the course of Ihe past year, to improve lh8 gualSty of life for all those who sefve and they familie5. as wdl as wLwnotirg independence whorevei we can among our veteran cornmunily. The Royal Navy is d)ampi(M)ed by a range of naval charrties, each with ththr w $pecffi¢ area of SUP￿1. OLW cdleclivo 8im is lo cooperate collaborate as closely 8$ possiNe so that together we can best meet the need of our b8neficlari8s. In part￿￿laT, all naval charities are f(￿sed of wwking logether to tackle rnissed and unmel nee(l. In 2020 w dedicated the homepagè ol our website lo presenting a support wheel of the family of n8val ch￿ties. Sumrnary of Iheir services and dwect Ilnk8 to their websi18s. show dficl•n¢y Maintaining a low overhead rat￿ is ccffe to our bdiel of ddiveriry nmire ￿ a of beneficSaries through an effective Middle and back officè. In addition lo rnanagement of fund$ we have wthed with olhor naval charities and funds to d8liver ba¢k-office serybce8 across all departmenls al RNRMC, Fffimarfy forxjsed on financo and operations. for free lo enable ihem lo focus efforts on direct support for benef￿larieS %thilsl wo 8$sBI them through our professionally qualrfied staff in Prov￿1n9 those we8$ of admini8tralw)n that can delloct sm** ¢harilies from their core busln8ss. In 2021 wa continued lo provide services to Ihe ft￿- Royal Mwrnes Chanty RNOC and NSSC as well as sev6ral r*w pwtners such as tho RNA and tho Naval Families Federation who r￿1 part of Ihe RNRMC group bul who dellver dlrecl suppc*t lo our beneficiaries. this had a value of £150k in 2021. We alm to rAay 8 full ro￿ In erKouragiw effwKio¥ and eff￿l￿ent$S ac¥o8S tha sector Indudlng o￿Our491n9 discUss￿nS at4)vl how the naval charity sectry $poufi¢ally, aThJ Ihe mllt•y charity sector more ￿Thera1ty, mlghl gain from the benefits of doser convergenee. HIEVEM R••pon•• lo C0VIl￿19 Our first prKJrlty was to provwjg ¥upport lo the m051 vulnerablo members of our community, t1￿6* suffering from the downlwn in the ec￿noMY and the s¢￿181 of CLvonavirus arKI pwlKulwly tfv)se who suffered moro due lo the 80cial distancing measures imposed. W￿1$1 fri)nt line. we we conf¥Jenl that we havè allevialed significant PTVJ3ure on the NHS 8ntl govefnmenl. os ￿tInu•j to address the fOl￿Wi￿ Lyucial area$ where COVID.19 Mnpacled our community signrfKantly'." Menla ill-heallh across our communty,. Family stresses a¢XJSS community," Medical discharges of serving Royal M￿"n85,. UneM￿￿ment among velerans arKI dependanls. We are confident thai ￿ have bècomé increa$ingty effective in supwting thg c￿p5 FamAy deS￿le the challenge8 of the pandern￿ which ran throughout 2020 and 2021:_ 2018 2019 319 Inc 61 Employment Assistarw- disChar￿d Rms Addiction support TranSl￿n Support to Vulrnrab￿ Leavers Amied Ftyces CompW￿01¥￿ Tribun￿ Case Support Veteran Mental Heallh Referral Cases Total 0￿•v019￿c• C•¥M ￿PpOrt 298 479 89 131 NA 82 97 93 3)3 41 117 113 102 -10 47 23 THE ROYAL NAVY AND ROYAL MARINES CHARtrY REPORT OF THE TRUSTEES The pandemic removed a signfftant pmportKm of (wr funthaising ￿pabIlty in 2020 and had a signfficanl impacl on the rirsl haw of 2021, recovering in the latter part of the year such thal an expecied £400K deficii was tLmed into a £275K+ surplus. This was due partly lo lower demand for grants aTrJ ajministraiion costs. but also to increased regular gNing. grants received and a successfijl Lornlon Guijdhall Dinner ¥) November. Smart worklng. ￿llaboratIOn wllh p*1nws We have worked increasingty dosely ￿th the NHS IOP Courage). the MOD Departmenl lor Community Mental Pleallh and Third Sector partners with whom we have a￿d fomial ￿￿Us.. the Royal Navy & Royal Marines Charity. Walking With The Wounded, sUpr￿rting WthJrKle(J Veterans. the While Ensw Association. the Special Boat Service Associat￿￿. Heroproneurs, H￿h GrtxJfKI. Rock lo Recovery and 8crf)tnecks In2 Busw)8ss. We cdlaboraled fegularfy in 2021 with Combat Slress. Help F(K Heroes and th8 Regular Forces Empioymenl Associalion. In our ￿onI m8king we work in dose partnwship wilh S￿￿The Armed Forces Charity, The Royal 8ritlsh Legion and Naval Service charities.. the Royal Navy and Royal Marines Charity, Greenwich HosF#tal, the Royal Naval Benevolent Trust, th6 Naval CNldren's Charty an¢J the Royal Na￿ orrws. Ch¥ity. with our USP being our hdh%lic assessment ol needsloading lo cc*nplementary mo￿18ry and rK*n-finan¢ial support. We have asslsled the wwjer Naval charits8 to develop a ffl￿¢ IMYis1￿ wvicg through gmbe(Iding a RNRMC Casawork Manager and Ihrefj Tfansilion Sypwt GU￿9¥ within staff. we arg advi5irvJ ihe Royal Naval As$gGsalion, the While Ensign ASs￿lat￿n and Supwl Our Paras Ilhe Parac￿le R8gimenl and Airborng Forces Charftyl In th devèlopment of their 8ervlces to fefflect those offered lo ￿r members and benef¢iarns. Rhlng n••d Our outputs are driven by naed. We have rnonitored need systematThlty over tho last 5 years and can evldence th81 th8 need conllrojes lo rise.. hence our outpu15 continuo lo increase. In partirJJlaT:. 8uckng the w6tyJ8 tr￿d, Mi 2021 need lo￿ faster in the sefving community (numbers supwled doubled} than n the veteran communlty la rise of Ihirdl." il rose parti(xJlwly In those requiring alcohd addKlion $UPF￿rt due to sxessures of Isolallon arl$lng from the COVID pandemic.. Ihe numberyJ of involuntarily discharged pgrsonnel suppMod wllh Employrnenl advlce roso steeply, bul princlpally due to our n￿Y gained ability to enga98 wlh al vuln8rable leaveTS. inclLKling those wamed off for medical discharge and all recruil183vers: there was a small dedim in neéd in lh6 vèteran menlal h￿1h sphor6 81nce dassic ￿$tal￿￿n ￿rIOd for PTSD is 7-10 year8, meanM)g that we h￿e mosl likety reached the peak in presenlallon followlng the 1 anniversary ol the most b"Trller r￿tift9 in Af9hantylan. This iising need has lo increased $pgnd by the Charity. havirvJ to wt in plac? Iho people. rowurces and pr￿8¥se5 n8c¢ssary lo provido Iho offgclive first cal Sup￿ approFnale our community. Soclal and Lo￿1 E¢onoml¢ Valué add Since 2018 the Charity has been caplLffiW melrics usry ￿V9Mment approv8(l Themes, Outcomes and Measures ITOMSI including cakulalions of adtled social value. wth the asstslance of the Social Value Portal. Govefnmenl TOMS are concerned Wblh jobs and thlls. and S￿letaI aTrJ ￿MM￿￿ty devdopment. lo work oul appropriate. Thwo are 75 metrics Captured M￿thIY. Argas where exlra vabJe was added were as loll￿..- Famity members Sup[￿ed thrcwh Asso(xahon events.. Veterans attending parades.. DiSChar￿d RM assisted into full lime ernFloyment.' Hours ded￿ted to supporting RMS into wcrfk by pn)v*Jing career mentoring. indudir¥J m¢xk interviews. CV advice. and careers guKlance". Unpahl work exPerier￿e pyowded ty employer partnerships" Time dedicated to Supp￿l￿g divorciro faMI￿s.. IrKrease in lump sum arKI pension won follcwrKJ the tri￿nal FenS￿n service. THE ROYAL NAWf AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES The Social Value ¢￿ated by the Charity as measured through the Social In 2021 was £3,167.756. res Ttas sum does not leH the whde story of C￿lty ddivors. as it onty captures value lo wwjer scrtiety and not Ihal delivered speeifi¢81ty lo the mlilary communily. ThK8 irvgmenta SUPF*Nt lo the serving Corps Fambly not caplured In SVP w8s £155,636. while the value added lo the Corps t￿￿oUgh evide1￿1 retention resulting from the Charity's inlervenlions was worlh a further £4.375.CIXI. Therefore, t1￿ total xKial value creale(l in 2021 was worth £7,698,392. meaning Ihal frvery £1 donated to the Charity was IL#rnd into £3.17 of ¢hari¢oblo value ueated when sel against chwilablo spend of £2,421161. Llf•saving •upport d•ll¥•r•d Sirte establishment of the Royal m¥[r￿ Charitablg Tru51 FurKI lone of ¢xJr We￿r$Or chan'liosl in 2008. ovér £24.9M has been given in grants towards r￿)very. quality of lrfe and ttr￿Ugh lrfe ￿8. Thg Charty achieved eX￿￿11t￿re in 2021 on grants payaLl6 of £1,Y)7.674. ts 2021 •Bene¥olente •Sport * Amentiies •￿1. 3>% ll2JJ57, SS% 1SSh)6, IVA Total £1,307,674 The delNery of support ￿OUnted lo a fvr￿ £1.115.487 gNirvJ a tolal of £2.423.161 of charitable delivery expendStur¢. Incr•as•d numb•r• •ui)port•d Total number of beneft4wi￿ supported ty charitable Intervent￿ yew.. 22,342 12020.. 20,744. 2019.. 16.0921. Total number of bert￿1￿8$ in suppcffted throLTrgh finawal and non-financial bonevolence.. 2.794 individua18 exclLKSino their depgndanlsl12020'. 1.8￿: 2019. 1,662: 2018:1,4041. THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES RMBF br￿kd(￿n of grants to Indlvlduals 2021 Buikl Costs. 631 Remcvals 5.208. 1% Medkal Treatmenl 8,846, 2% Rehab, 47.925, 11% Courses, 0.0% Dtsabirty ￿d, 82.777. 20% P5ycWogical Troatrnent, 57.810, l4% Debt Rellel, L9,Z15. 5% Subststence. 62.370 15% Househoidlvehklel Gootts, 77,923, 19% Tr4vdlRtspife Breah 15,JIO. 6% Removals Debt Rellel TravdlRespke Bre•k Rehab Cour5e5 • MÈd*al Tre•tmeni Househow VeNclel Go)ds Subsistence Care Horne Ois•6iltyAid Funeral Cosis Psycholoikal Treatment BurTh5 BUIW Costs Support output• Impact: A record number of involuntarily d*chwged RO￿ Marines and vulnera￿0 recrult leaver8- 47912020.. 298, 2019.. 319, 2018., 256} - w•r8 provkjed wrth em￿￿OYmenl advice," 51 recerved funtlin9 grants totall1￿ £73,000,. 34 were assisted inlo empbyment over £1.4M in added local ern￿OYment Val￿ (tho Government's approved proxy value for one person being in employment lor 12 monihs being £30.3531.' $88 Ihg dedi¢ale(I on sooial valug below. 198 War Pension and Arrned Forcos Comp8n¥ation Schgme Irit￿n￿ ￿Se3 *we supported. ofwhich 172 were new in yeaT12020'. 203, 2019. 117, 2018.. 971. 89 individual addiction cases were 5upporfed (2020.. ed). 2019.. 431. 35 sorving wth a r9p1￿ment cost of £4.375M if they had been discharged1sinc* il cosls a mlnlmum 01 £125.1x￿ to train a r￿W recrull}. and 54 veterans. 131 new vulnerable leavers were supported by our Trar01th￿ SupF*Nt OffKers12020'. 93. 2019.. 96, 2018.. 621. A slighlly reduced number of Velerarbs. RefeThal mertal heaNh th8rapy wgrg SUPWrted. 10212020.'113. 2019.. 92, 2018.. 79, 2017.. 261. Funding of £92,780 was provwjed lor the coachiry of 110 batuing mental ill-heallh by Rwk lo Rfjcovgry {2020'. 194. 2019.. 193, 2018.. 1421. 19 other partner organisaliorts were supported by fundfvJ of £395K. benefilting 147 individu* (double the financial support and douNe the numbers benefilling over 20201 awide pastor* Trt*k at 4 units supported by funding of £45,000 to the Dame Agnes Weston Charity. THE ROYAL NAVf AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES CHIEVEMENTS AND PERFORMANCE- Th• R al Naval B•n•¥ok￿t So¢1 Th• Ro al Nav Offi¢¥rs' Charit RNOC lor Offlce RNBSO known 2021 conb"Ned to present many challenges. We *er& to b8 abla to support a wide raroè of beneficiaries wllh ants in excess of £5(N).OIXI. a new hwJh water mark. Grants are covered from investment received from tho RNOC investmfjnt portfolio no addit￿n81 bkKk luTrJiNJ is feceived from any other organization. We support in the region of 70 peo￿e on an ongjing basi8 by way of an annuity that allows them lo meet the costs ol day to day living expenses and all of them find the *Jdition31 furKlirKJ1£3.(K)O pa in 2021) hLV8ty impactful in terrns ol Ihebr qvallty of life Additionally under heading of SupFXYt Grants we made a number of one off grants in 2021 10 individuals which allowed them lo meet Specif￿ needs them and thew families during limes of particular stress. These oover. examp￿, co815 wKurred when setting up separate homes Ic41owry relationships ending. or when an unexpèded illness c¢ accident occurs. In 2021 Ihe numbw and value of education related ￿a￿lS increased. ¥thile I arnount contnbuled lo we home costs remained stab￿. albeit the powlalwm of b8nefic1ar￿S for this SUPPOrt evolved signiffcandy I'joiners and leavers"). Contribjling to the cosl of disability aKls and adaptalions cff rehabililalion and resplle Care has allowed weral benefick¥*s lo remain living al twyne. AIthw￿ Ihe toial Spent on consoithtsng and repayi debls is less in 2021 Ih3rt pior year this remains a swif￿an¢ area requwirwJ OUT SUPPOrt. RNOC Grants 2021 Removals Oth•r Éduc•tlon 11% Home Repalrs 3% Whlte Goods Ix Debts 11% Dlsablllty Aids Support 57% C•r• Trlomes In addrtbn lo the financial grants awwded the RNOC kxovKled continuous accèss by mail. email and telephone for current and potential benef￿larI&s. Assislance was provKled to nurner￿￿ wbJow5hwdowers 5ufferin9 bereavement, novigaliThJ the sy51em5 and processes lo W Ihe pens￿n8 *MI supprffl to wh￿h they are enlille(l. Many olhws bengfil from having a point of contacl lo discuss Iher c¢)rwns and chaI￿n98$. We ccM)linue lo partner with Zlmbabwe a National Emergency IZANEI and Royal Commor￿ve81th Ex.S8ry￿s Lea9ue IRESLI to deliver Support in other jurisd￿tIOnS, and with SAIL Iseafarers AdvKe Informal￿n Lw)8J to resolve debt reialed issues. In vi9w of the conlinuirrfJ chaNenges people f8ce(I lo th* pandernio we maintained a hlgher tempo of ommunications ¢)n-line arKI in hard copy lo ensure Ihal ￿ Could r&Kh those not as digTt8lly aclNe. All of the atM)ve dalivered s￿ftty and wth minimum ol fuss. by a team of or* person the support of Tru$lè8s aTh pwtners in lTrke-mirKled organisations. CHIEVEMENTS AND PERF￿NCE - Naval 2021 has continued to be subject lots￿ th￿91￿9 reSIr￿li0nS pul in p￿￿ by the Govemmenl in response to th8 Covid-19 pandern￿. This has resulted in $ignrf￿anL changes lo the pknned sports prO￿arnMe within the RN arKI widor ATme(I Forces Ihat meant much of what has iaken pkn has t*en u)mwessed hnlo Ihe second halfol 2021. Desprte the impad of the Covid-19 pandemic. tyjr fvndin9 has suppyled the followng actNities'. Sp(Kts Associations. The RN SF#Yts Staff and NSSC Direc{￿ of OperaLK+r￿ re¥￿ the annual bKJs of the 45 Sports Associations lo support their operalin9 costs fry tho followry y￿, w7lh a I￿$ being on sustainin9 a broad menu of 27 THE ROYAL NAVY AND ROYAL PAARINES CHARftY REPORT OF THE TRUSTEES Op￿tUnI1y. grass roots development 8nd indusivty, ￿11$1 *0 Supporting the RN'S a￿'litY to compete and win al presentatNe level. The operatiry cosis generally cover the requirements for Insurar￿, National Governing Body sub5criplK)ns, Tr￿Mbership fees. caleriry. hospilality, coMpetit￿n fees. IT sup￿, trophies ènd FffiZeS,' effectively the lifeblood and vK4bilily of a sp(Kts association. With Sp(Kts Assoualions able lo cary forward unspenl fvnds from 2020, the £270k induded in the NSSC 2021 bu¢Jget was reduced lo £182k lo meet the expected operating costs, and this was reduced further lo £132.100 as Covi&19 wntsnued to limrt th8 0(wlunities for Sports Associations to hdd events. Talented Athletes. Once again those sportsmenlwomen are lalenled enough lo compete al national and inlernallonal level have been supported ty a 9erwous ￿an1 Of£30.0￿ from BAE Syslams. This ha¥ enat4ed the NSSC lo ￿ntin￿ lo supwt the lolknving iThYividuJs in time n*ional sports training.. Marine G Ciolty ieoxingl- won the FIN SF¥ylsrnan of Ihfr Yw Award for 2021. Steward B Wild IPara-Skiing)- Brett Wild is the svJhled widè for GB Para-Sk￿ Mllie Knight won 11 Gold, 5 Silver and S Bronze medals in the 2017 Workj Cup champ￿ShipS ar#J 2 Si￿er and 1 Bronze med81 in the 2018 Paralympks. Having been sdecl8d for Ihe 2022 Winter Paralympti in 8eiiiNJ r8eenttywon 2 Gold medas in the Super Combined and the Super-G r￿3 in the 2021 Wfskl Cham￿l￿￿h1ps wnniry a 8ronze meda in Ihe Paralympics Downhill. Mwine T Lawrence IGB 4 Man Bobsleigh) . recontty a Silvor medal and thed 4th overall in World Cup events before being seleded for the Winter OlympKs ihal look ￿8C8 in February 2022. Marlne A Baird and Leading Fknyslcal Trakw M Haslam IGB Men arKI w10n￿n.5 Bobsbelgh Development Teams). The NSSC also 8UPP)rte(18 other alhleles comp•ting at nation￿ and intemalNJnal level in kayakiNJ. skiwCXOSS, judo. IrL91hlon. dualhlon, powedifting and hockey. Coaehing and RegK*na Sport. Wrth CoV￿-19 ￿SIr￿li0nS reduciw the amount of sp(wt that could be played the dernand for financial support for coachirrfJ and rwonal spcrft was olso redLKod from Ihg Lwdggtod £ISOk lo £74k, NAVYFrt CampakJn. In 2021 the NSSC focussed Its NAVYFit Campaign ￿p[•￿t in 3 arèas.. an Oporallonal Filnè8$ Le8gue open lo naval persorbnel ￿e￿oYed ovefseas and al home. 8 e51a￿l$hment èv8nl$ in thè Autumn lèrm and a 98ly successful RN Sports Awards event held at Lords Cricket Ground In D8cemb&r. The Sports Award8 Celebrated individual and learn actwevemenls in 2020 and 2021 and also i￿1VIe(l rgcognilK*n of lifetime achievemenls. Pl•n• ft+r Fu¢ur• P•rfods TURE PLAN$- Our Ihinking has Obv￿uSIY been greally infiuen(*d by CovHY19 W1)￿h has only cau8ed signrficanl lumoil in soclely but has also served lo highlight 50rne of the marked Inequalit￿ that 7MII Incrnasi￿Y affect some of our beneficiar￿$. A $n8pshot of the sort ol challer¥Jes t￿1 face us all ￿K4￿je..- An ageing powlatN Increasing frailty and mUlti￿e health cOThJit￿nS Grealpr wnplexity in ther care. L(M9er IN8S Rise in caring responsibilit￿ amongst sp￿seS. partners and family mem￿r5 Currently, three in five peoF4e will be carers al Some poinl in their live5. CholleThJes in social wellbwThJ including 10ndir￿S 13sue acr055 all age group3 LMJt Part￿larlY arn(￿g5t the 1&24 agB group. who now experience the highest levèls of l¢)nèliness of ary age demowaphic. Continued growth in mental h¢￿th issues part￿larlY amoNJsl yourKJ peok)le lrtKJding dewessK￿. anX￿ty and conduct disorder. 1 in 10 chiklren and young people are affecigd ty m8nlal health problems and 70% wll not re¢eNe apprwiate interv¢n￿n$ al a suffKienlty earty age. Reduced fina￿la1 wellbeing The cosl of liviro continues lo oulpxe 1￿me 28 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES 46% of UK adults dis* on8 or rn(￿e charthstics offinarwl vu]ner8billty and are al risk of f41iry into severe debt. 0¢)ff*s1￿ abuse an bewth a pandern￿" Over 2.5 millbn people in the UK domgstK at￿se in the last year. Rising'unmel, need Pressures on slatulryy hgath social swvices Waib'ng limes lor servKe5 awe lertgtheniry. WKI Ihre5hokJ$ fw recelw'ng care are rising. In the lighl of this and Covid19, the Bowd r6v*%%*d our Strategc Objectives and de$ired outcomes whKh were agreed in 9￿Y 2020 and are detsled below. Both the oWr4es and ￿lCOmeS fimily endorse•J. Our Slrale* Objectives.. We will wryk with other charit￿S operating in our seci(* lo establish a ￿n(ederatiOn or alliance in ordèr lo ovide those in need wlhin wr benef￿Y Gyoup wilh a SH￿8 wnt of lo Ihè totslity of sla18 and Charitab￿ support avadatle.. Acting wllh other naval chafilies and key stakfjhc4ders. V** w￿1 ensure that our polontial beneficiaries are made aware of the support that is avadable to those who need it.. We will collaborale with Greenwth Hospital lo wee funding pyiorilkn, 8nd secure a long-temi financial angement Irorn Greènwich lo ddlvw the RNRMC'5 chwltable objects., We will commit lo spendiro over 50% of our charital￿e expenditure on ¢dlaborative and lonolerm cornmls$ionSng prolects wlh other ¢harilw and crfganisalws seek ￿ address undèdying cau888 of need, ilsl continuing lo mak¢ other ￿an15 a$ the need arr&gs' and Reeognisin9 the need lo acl de￿$￿ety. ￿ wll undwiako bohl aryj farvreachlr@ plans ard projects with our partners that wdl thaW￿Own ¥ubslantially on tolal nel assets Our EXp￿ted Outcomes.. 1. An explicit locus on the needs of RNRM b6nafickg1i8$ - womollrKJ reslllence, the lived experlgnco, tKlependgnce, and dvjnity. 2. Increasgd support lo more benefKi*ies 3. lrtreastd likelihood of findiw the hthlen. k)sl aNJ lonely and ihem being a￿e lo find the Support they need 4. SlralegK all￿ment of the RN C￿lty Sectcv 1hroU￿ a singlg trra9￿sUpwvnav1gatiOn system S. IrKrease(I credibility and repuialion of al Naval than1￿9 8. The potential ol inuéased retention of serviNJ personn We are Working lo ensure that wo ere suitably kyepargd to maet Ihe challenoes articulaled above whefever they mlghl impact on benefic￿rIes. This includes ihe Commiss￿nIng of SWV￿￿5, partnering wlh other specialisl Ofganisations, granl-lurrtjing projecls, ond securing a heallhy and sustainatAe fInar￿la1 frjture. We are particularfy ¢0￿Med about the challenges to lundraising and the capacty and apwile ol scrfiely lo Supp￿ charilable causes to the same exlenl il dSd before Covid-19. We are ¢he￿I¢￿e lookin9 al h¢M our fvThJs our wl lo b8$1 usg. thg level of reserves we rnusl maintsin, reduction in costs where apwopriate, a￿1 the av0mla￿e of du￿ICal￿n of costs across the chwilable sector. To this en(I, we are wort(ing vAlh Greenw￿h Hospiial, wilh whom we share purpxe. charita￿e objeclg and beneficiaries. lo find Ways of Wo￿1￿3 together effectNely arKI eITK￿t1Y in order to be be81 to support beneficiaries. We will continue io use evidenc* lo drNe benef￿lary locussed d8vdopment. Our Key Drivers lo enable this will bo:_ PRIMARY- Beneficiary First- 1ml￿ng access. iournry and experience. SECONDARY . Enhance urn1erstanding ol need through rese¥th and ev*JèrKe lo provide a mwe proactive balance in supporting prevenlative ar¥J early intervention services. TERTIARY . Collaboration ithugh infrastructure provisitin The primary driver 0[￿Y be athieved effectivety an¢J eff￿l￿ty rf signrfKanl wogre$$ is mad8 in th8 secondary and tertiary driver5 i.e. wogfess is in1er-de￿￿nl. Acc8ss can only be improved rf the sectcff can collaborate towar115 the use of a single point of entrylrelerral. i(bLNW for benefici¥ies wll orty improve if navigators I gu￿e$ are provided for¢0M￿ey cases and advlce. informatKJn aNJ gutdance is avaIla￿e at the point of enty for all ewulr￿S lone-stop-shop and triagel. Experience will be good if referr￿ pWIr￿ consi51ew of servicelsupport are all assured and need is understoc*J by maintaining a data l e¥thr￿e bose that incorrxKate or include data frorn across the secttr. Combined, Ihese capabili1*$ ftrm the infraslruclure necess¥y lo dgliver for our beneficiaries to a level that honours our THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES vision, and wdl drive d¢y+vn overhead5 arloss the s￿tOr wll provKle m¢ye for tom(￿rOW whilst looknng after those who present today. Our Transilion Suppm Service pilot will enatAe us lo tesl concepts. buikj an eviderKe base and improve wr understanding of beneficiary thocacy using a person-cenlred apwoach. This. cornbin8d with a Case Recording System to collect evidence and the crealion d a swpx)s1irwJ ap￿￿al￿)n will enable us to uTrJersland the infrastructure required io support such a holist￿ approach. But. we wll onty achieve S￿CesS rf we collaborate ever more closely across th8 sector and nlo Icca wveTnmenl via the Armed Forces Covenant. The infrastructure 15 lthely lo contain 4 separate but inter-dependenl pillws:_ A triage faclty lor all beneficw￿$. accessed from a sinule prynt of enlrylreferral into a one-slop-8hop for advice, informat￿￿ and widance {AIGI wh￿h will be grown from the *son8 established ty the Transition pilot and will likely invofve collaboralion with other exisling FrfKtsIs. A reglonal case wwking organisalp)n for all benef￿1*￿5 that can be intthjratéd inlo the Transition Support Service. and wobably involvirwj several other existing case workThJ organisalions. A portal supported by a Decisw)n Tree l*gorithml lo ¢naNe effethe Triage and AIG, and in due course a1￿lity 10 ollow open access to a vwsN)n of tho awrithm lo enatrAe self-hèlp by any b8nefick4ry. A dala war8houso Ihal caplL*es andlor can integrate seclor-wKYe data lo an8￿0 a morè complete data sèi and thus assured evldence to imwove proactive and ￿￿*t￿ supwi provision to our whde benefici￿ population. We are also very c￿Cerned about the ¢JeleterKMJs effects of social Isolat￿)n loneli￿$5. Al the start of 2021 we partnered with Ihe Royal Nowy Associats.￿ in a t)old project lo increase membership by subsidising head office costs nd thus negating the need for subscript*Jns from m8mbers, as part of a campaKJn lo promote a befriending nefv￿rk beyond th6 RNA membership. Embedded within this is an innovatNe prqgct wilh a commercial partner, Sparko TV, which looks lo wovlde inl8ractiv8 Tvs in the horne5 01 those who are housebound. rgmolg. or isolaled which offer range of interactive oppwtunltk8s and chance lo lalk lo friends aTrJ rdauves remolgly and gasly. We are kjoking to spread this work inlo other naval assocaalK)ns and we xtivdy pursuin9 this presonlly. A8 well as thésè néw partnèrships will continue to work Closely *tylh other naval ch¥11￿8 who aL80 SUPPOrt our benef￿lar￿8 by ryoviding them free of charge back*offu ser¥￿S such as HR. Payroll, bookkeoping, inveslrnenl management, fundraNng, comnKJnulion6 and want gving supp(xt in ordef that they for￿S on Ihe direct Support lo those in neetl. The Governance ol RNRMC is strong Is ab￿ lo wovide a wealth of expenence and advlce lo our partner ch8rili88 lo tslp them and in lum help b8nefK1ar￿. PLAN -Th•Ro al Marl Strat•gy and Progr•mm• 2022-24 In 2021 the Trustees conducted a str8tw review ￿88 evwy aspecl of ihe Chafity's delivery, resulting in timetabled new delivery and delivery improvements against measurable outcomes lo be ￿hIeVed by Ihe end of 2024. We aro following a &year budgeted ddivery pr9Wrr￿ wilh ass(Kialfjd tsk r￿Ster based on the revlsed stralwe8, ddivere(I by the staff bul with wul* TeF￿rti￿j oversthi fr(¥n th8sub￿rnmil1oes all￿￿ tothe Charity's fvnctional teams, which ui lum report lo the Board. ThSs programme %wll ertsure that charity is woacbve and bold. dilfeTenlrdled, sustainable. owned by the Corps Family, reco￿1$0￿ by the wder community. and effeclNe {effKienl. cost-effectsve and achieving maximum impacll. Th6 programme ensures the fdlowing slrateglc obp¢lNes wll be secured.. 1. We will •na￿t those wo sth lo INe by the Commando Mindset Irgstorityg. maintainlng and enhancing independence, dignity and effectiveness) through financial ond non•monelary $upwi.' 2. We will promote and sustain the Royal Marines brand and eswit de corps.. 3. We wll increase and achieve a representalrve membership mix of the Corps Family and supporters. in order that the Charty and A$S￿l81￿n become Il* heart ol Corps F￿lly. In paitular. the Charity has the fouvwing desred Opera￿n31 outcomes by th8 end of 2024: THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES 1. To b8 the natura and Injsted fwsl point of uJntscl fly t1￿ Ctyps Famity 2. To offer active and èffectiv6 supp(Kl to Commando Forces 3. To be the leading UK ￿lMental charity charnpw)ning our fflembeTS antl enabling collaboration bètwaèn major trl.serv￿e assowlK)ns 4. To number 24.000 members wilh a younger derrwaphic 5. To have an enhanced geographul f¢x)Iprlnl O. To have better trained and enabled volunlews 7. To enable a fully dev¢kJped PR func11￿ lo ￿ble advocacy 8. To secure an annual net income £5mln (Cu￿endY £3mln} irKSuding Su$￿aL￿e Major Dornr and Corporate IrKome The Exoculive has cornmenced lurther WAyk to hjentsfy likely dernwaph￿ and actuarial changes of benef￿lary comrnunity in the next 5-10 years, the revised operat￿1 commitments tsl tho Royal M8fines, and olheraccewed trends in ihe sefving and veteran military populathjn of the UK, wilh Ihè opportunities and challenges that will be presented in order lo ensure appro￿.81? and effective support. We seek lo develop the uniq￿ Selling Point of the charity as the embedded charity of tho Ccffps, so unNuety lo wovKIg appn)wiate ch￿bI& suprth. Budgelod sp￿d lo delfver rrt888ary support In 2022 has leil lo Irvstees apKYoving a def￿1¢ budget of1£530.0001. There are sufficient free reswes for 10 m¢￿th$ of expenditur8 a5 al Ihe Ilme ol signing, bul if fundraisino and othèr income4Jeneraling activit￿$ are Ml ab￿ 10 continué normalty, tNstees wdl need lo I￿u￿18t• investrnènts which are Inlended lo be held for Ihe lor¥J term in ord¢f le 98nerale a rwring stream for beneficiaries. Cashflow Is moniloied monthly, lookry forward 12 months. Based on ihe revised for0￿stS the Tnjslees are satisfied that thor818 a reasonable expectalion that the company has adequate resoLfft*s to continu8 in operalional existgn¢g for the foreseeablo future. The company therefore conknues to adcol thtr wng concwn basls in prewir¥J its financlal stalemenl8. UTVRE PLA harlt RN The need for benevolonce ¢ontinues the full and true consequences ofthe pandgmicremain unkrKMn. Thè ¢harily'8 Benevolence Sub-commitlge wll closely monitor trends, grants and emerging cases recommending, whwe and when nece89ary, increases and additional res￿1¢8$. Th8 standard anThJity ganl lor 2021 was £3,CW pa. During 2022 the Benevolence sUt￿mmIttee will review Ihglgvel of grant uslng data from Rownlre? Fwndatk)n aknng with evKIw￿e from cag8work making any necessary observation8 and rocomrnen(latiwo lo tho bowd. UTURE rvl The NSSC will endea¥￿ lo iwgase the bevel of ￿an13 to swt in tr* Royal Navy by a percenla98 8qUNa￿￿t lo any increasè in CPI or lo satisfy all reasonat4e demands in later years. In setting the budget for 2022 and future yeaTS the NSSC has made assumptiwffj that the size of Ihts Roy4 Navy, Ihe ThAmber of Sports A$s(Kial￿nS ar￿ the numbers accessing sport wll not change Si￿￿1¢andY in the next S years. As many other charilles. Ilwe are Ind￿91￿n9 that maintaining inc4yne in future yews will be chalengng and the NSSC will need lo conlinue to work closely wilh rts pwenl th￿ty, the RNRMC, to ensure that the outcomes of Ihdr Jality of Llfe ￿ants pathway continue lo jusbfy the defined levd of wants made to the NSSC. The NSSC Gontinues lo supp¢xt the Royal Navy Sports Bo¥d by assisting s￿rts AsScKia￿ns 8ntl, whwe publicfunding is unable to mainlain staffing levels. by empbying indNhluals in SUPFOrt of naval sportiNJ oulpuls. In 2022 Ihis will include 4 new Sports developm8nt posts on 2 year lemi (x)ntracts that wll focus C￿ imwoving delNery 81 the as8roots level and in support of those RN personnel on the fr￿111￿. 31 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES an¢Sal RN Ov•r¥l•w The RNRMC Group closed the year wlh tola furvjs ¥alu&l al £￿.3￿, an uwea5e against the weviws year of£3.1 m. The agreed spend down of ow reswves conts.nued in 2021 resulted In a dekil of £5.3m before net gains on Inveslrnenl asseis of £8.4m. Overall perfo[ma￿eWhen compwed 102020. when takiThJ into Ihechallewng effects ofCovid-19. was positive. with operating income increasiThJ by £0.3m lo £11.7m aNI Ir￿ èxduding Investment incomè ￿treaSing by £0.9m to £10m. Whme charlIa￿t expendrtufe vras reduced from £1 S.1 m in 2020 10 £13.9m in 2021, a reduclion of £1.2m. grant making aclivity continued to ww while wpport rnsls hekl at £3.7m, as ts charity $c￿h¢ lo mainlain a lighl cosl base while onknnuing to support beneficiary need. The successful p¥ogramrne of commissionir¥J continued lo re￿ve investment In 2021 as spend in this ¥ea tyaw from £4.7m in 2020 to £S.6m in 2021. UnrMtrl¢t•d Fund• The value of Unreslricle(l Fun(l$ including desMJnaled fu￿$ (Vth￿h can be seen in more detail In nole 26}. reduced from £29.7m 10 £28.2m a dguoase of £1.5m. InCOff￿ of £2.em re¢gNed into unrg$tricled funds and there were investment galns of £2.5m. Th's was offsel by resources expended from unreslricled fund5 of £6.6m, of wh￿h £3.7m were transfers lo reslrKted funds. This tr8nsfer rdales in p•1 lo payrdl wing irtome that is rècorded as unroslrfcled income, thi8 income IS 8ppliefJ againsl reslrtted funds aNI 8UPkXWts JI of uyanl making programm88 and pathway8 dependlng on Ihdf level of need. In¢om• The total IrKome ol the Group was £11.7m, an irtrease of £0.3m {+3%1 from 2020. Key variances am'.- Donollon8 and Legacy in¢ome irmased by 8% from £S.6m lo £6.1 m against Ihe prior year. Income from Olhgr Trading Activities reduced by £0.3m 1-34%) as COV￿ re8lr¢clion8 rejulled in Ihe cancellation ol Ihe ticketed MFM event that look ￿ace in 2020. Investsnenl Income reduced by £0.6rn1-25%1 because of market perforrnance due lo Covkl-19. However, the group operates a total Telurns polKy, of which. wrKxe Inf(￿MatIon 15 available below. Income from chwitable activil*s increased by £O.*n I*40%} due lo addrtional grants received from Nuffield tru81, 10 8UPPOrt th S8SA Resllw¢e Centre ond from the Forces Covenant Trusl Fund. Donatlon8 & L•gacl•• Donatlon• - A dffKult larKlscape due to CovbJ-19 meant that furKlraisir¥J wonls Gwtingd to be cancelled throughout 2021. Howev￿, irKTeases in community fundT8i5ing meant that there was against the prior year. While not lo ple-pandeM￿ levels. Ihere was an I￿eaSe of £0.2m. Payroll Glvlng - The Covid-19 irnpact of r￿1 being ab￿ Io [￿eSe￿I direclly to enlranls took effect in 2021 due lo the lime il lakes to ￿￿OCesS r￿ members. H(hvever. I￿OUgh generous donations from serving Naval Personnel. Ihe Navy's Payroll Giving scheme onty fell slightly 1-5%) against the year belwe LegaclM- In 2021 legacies receiv￿ were £0.7m an Increase ol o.sm on ￿ prior yw. Demand again wlmatched income and we wll conlinue to develop our incom8 streams such as legacies, major dorM)rs aNI corporalo relat￿rIShIpS whlst utlisirwj our reserves brrNJght forwar(I to moel this ur*n81 need. 32 THÉ ROYAL NAVI AND ROYAL PIARINES CHARITY REPORT OF THE TRUSTEES Expend5turn Total exp8ndilLKe in 2021 was £17m in 2Q21{2020 £18m). Thi5 was s￿11 N)lo the following area8. Fundral•lng ¢08ts - The costs in llis Wea contirwje lo bè contrdled vknilsl m8lntaining engaggmenl through developing marketing arKI ￿mmunICatIonS to engage futur8 dows antl supporters. In 2020. the Group'5 C051s Increased only very slvJhlly from £2.4 10 £2.5m in 2021. These costs, as a % of Donations & Legaci65 decreased from 42% in 2020 10 41% NI 2021. demonslratiry conlr(A cffi a5 the fundraising dèpartment soughl new ways of fundrai&ng during the conb"niJed ￿￿￿Ul1 landscape. Inv•slm•nt F••s- An increase in investrT￿l fe•s of £22k1+4%) was seen in the 2021 year partly due lo d￿nge in inveslmenl manager during Il* year. INhile overall charitable spend lel In 2021 from £15.1m in 2020 to t13.gm in 2021 {-8%1. 2020 Ir￿Ude(l a granl lor the Gordon Messenger Centre lor £2.8m. Comwing the pr*)r year exp8ndilure net ol the GMC gronl, Ihere is an in¢rea$e in Charitable spend of £1.6m {+13%1 in 2021. deMOr￿tra￿.￿ ￿ followi￿,. Commilrnenl of sunrfunl Commlsslonry Pr(yammes. year 3 of 3 In partr￿Ship with Chwities both In8lde and outsid8 of the militsry sectw. Commitment lo uphold our lotsl wl m*iro duriry and posl the pandernk to enswe benefldarles remaln 8UPPOrted l*Yough Ir￿leas1n￿Y tim88 Grant M•klnq The RNRMC Group remain$ committed to supporting I￿ ben8fK4ari88 V•ilh £10.2m distributed through grant making 12019£11.4ml. Thè RNRMC eonlinued lo enhance through its commEsioning pathways established in 2019 ￿th 8peThY for the year at t4.1 m. an mcrease of £O.Sm on 2020. An addit￿￿ £0.9m of ￿ants V•Ere made in support of the Spend for Ttrwou￿ Llfe Pathway againsl Ihe previous ye*. Furthw inf0m￿l￿n on the breakdown ol Gron18 can be found al r￿￿& 8&9. Balan¢• 8h••t Total Fixed Assets wllhin Ihe gywp I￿0a$¢d by £3.7m to £89.2m for 2021, of wh￿h tho vakje of Fixed Assets gxduding Inveslrnenls was £1.PJn. Investments in website ar¥J IT w)fraslnKture. lo improve benef￿lary expèriènce and improve efficiency. rèsulted in a smaN In¢￿aSe of £0.1m in values al Ihe year end. Inveslrnenl8 In the woup had weose¢l from £83.9m lo £87.5m. an in¢ffjase 01 £3.6m. Auoss the group there was £8.34rn of nel gains on investment assets {charity £5ml. with the offsettiNJ feduclh?n in fvrffl valu9$ dug lo cash drawn down inveslmenl$ in a¢￿[dance with Ihe RNRMC Cash Pdw, which Is lo hold a rdling 12 months arAivity as well as an Idgnlified arnounl lo supkNNt w)lenlial ￿)nt￿l9￿nI grants requr&J by p*lr* charities in cash or near cash products. Both Debtor and Credlior baanc8$ swan irKroase in 2021. Thi8 wa6 ¢*Je lo a Iwge debtty balance for Grants recewed, where cash receipis ¥e due in 2022. ollset by ￿editi)r b*rK•s fty Gronls paymenls thJ8 to be made in 2022. During the yw £4.Sm w88 as cash across the ￿p. all related to the RNRMC dwity and is refieGled in the cash balance below. Cash In the group increased from £8.6rn al the end of 2020 to £8.8m {charlty £6.3m) al the end of 2021. with the arnounl of cash held re(l￿ting the RNRMC Cash P￿￿Y and is oftsel by speThl in other areas within the Group. Prin¢lpal Rl#k8 and Uncert￿n￿•S The Trustees regularfy consider the mapy rosks to the charity is exposed and a three-tiered 5￿tern is used to manage risk. First tier- re9￿* management by Ihe Senior Marwement Team THE ROYAL NAVI AND ROYAL IAARINES CHARITY REPORT OF TrIE TRUSTEES Second tier- quartedy oversight by the Twstees. Third tigr- annual r8vigw by Ihg Audiicv as pwl of audil process. Trustee reviews ar6 undertaken ￿ e&h qu*terty Board meeling when the rnityation plan for all major risks is assessed against the ability lo deliver the charity's tyJlFdJls detailed in the annual Delivery Prograrnme. In addition. each quarterly meetin9 conskl8rs detailed reKths on th8 hKJhest ri%ks lo ensure Suff￿lent attention and resou￿? is fwu$ed on Irealing or Mitigati￿ these risks. These miWIH)ns are delaled on the risk Tegister aloThJ with polerblial further actions that are being taken to further reduce rtsks where possible. In addit￿n, subsidiwy charikn'es within Ihe Group make a rekhyt to each main Board meeting, induding any rlsks that Ihay wish to elevate to thè Grthjp Board. The Gr(￿p FRAC Group risk ￿t￿n they meet. As Trustees we recognise there remain uncertainlies Ihal ccMJk1 affect ￿r risk mitbJation strategy through uncontrdlable. external factors such as government pjicy, exlwnal focus ￿ the charity ￿tor fundr815ing profile and the wder economic conditions. The areas below remain those of the hwjhesl potenlial risk rf not mitigalgd: Th• Royal and Royal Marfnm Chlrlty Flnanclal whlch inclutle8'. A slgnrficanl downlum in UK prosper War. conflict or calaslrophic event Poof inve8tmenl fvnd mana9emenl Not meelin9 our Voluntary Income targets Stock markel Crash Conslrainls on Corporale and Major Donors giving L05s or redu¢l*)n of funding streams Not meeting idenlrfied need thTwh developing crtjr comrnissioning aprrt¢)ach A paucity of infraslnKlure supwrt seNic8s We are rovvwing our fundrotsing and engagement capability post Covid-19 to diversfy our in¢orne oppKvtunii*S as much as possibl8. We have developod Casè studiès of suppcrft providèd by we fvnd lo improve our success al Securing major individual and corporate grfts We ha￿ a systematic approach lo budget seltsng and financ￿1 planning induding cashflow with delaI￿d monthly mor4loring during Ihe year and quarterly f¢xecasls are used lo miligale any tsJdgeVints)me essures Ihat ar￿ durlng Ihe ye8r. We regularly revw our inveslmenl slralegy and Its perfcman¢o managgd by appoinled external fund managws who are rev￿ed regulady. We regularly re¥￿W ¢)ur reserve$ lo combat ma¢ro- e¢￿￿rn¢ as well as other $lTalegic shocks Ihal could Impacl M Ihe charity. We have inlrtrjuced a risk base(1 reserves IR8RI policy to ensure we have a sufficient range ol funds shoukl a s*Jnifvnl risk bfr realisod. We support a￿dit￿)nal idenlrffft1 need through ￿41 RBR furKls above maximum and monitor spend Th•B• rlsks would r•durA our to dellvor our gtrat•gy. dosdy Proiect Dynamo Inves1￿teS, using evidence and pilot projects, to provhje insight as lo how to reinforcè the Infrastructu￿ from a beneficia ers ctive. We conlinue lo review our legal structure and wll seek to siM￿fy it lurther in the futwe wilh the Charity ComrnissKsn. ACINit￿ of subsidiaries are overseen by regular rep￿ts lo the Group Bo*d and Group Trvsl80s sitting on Subsidiary Boards. We review governar￿8 of wup againsl CC8 g)vernance c(*Je Gov•mance indudes.. Cornplex Group 9)VeMar￿ slnxture and irnpact of inappropriate xtNlties by subsidianes Lack of compliance wlh legal and regulalfmy reouiremenls Breach of data andlor IT tKexh by external agen15 Lack of impactloulcome eviderKe may ad lo sub-o timal block rant rnakn.ft ThE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Rlsk We continue to f(xus on data proteCt￿n followiThJ the intr¢xluclion of GDPR reuwlalK)ns in May 2018 and cytrw security. We have dovdoped and irnplemonled a consent lo caMpa￿n and are registered with the FundraisiryJ Regulalorto evKJa￿e our Complian￿ with the Chwilw Act 2016. We have a whisll8-L4owrng poly (freedom to Speak upl that is kno4vn to employees. There is a robust process for any rssues arising from a disdosure lo bo dealt with womply and properfy. We continue to develop an impoct and monitoring capabdity of the gyants we make, induding ensuring fewarding prOtoC￿lS *è in pla¢6 with those we fund. Th￿0 rl$ks wlll Impact our op•rational d•llv•ry and Incr•ase r•gulatory ￿tinY, both of whlch wlll Impact our ablllty to deliv•r our oblectlve•. R•putatlonal which I￿￿des. Adverse publicity ol RN may aff8Ct public's percfjpt￿n of ihe chanty's need fc* support and lunds Lack of control of furKled cffganisation's activit￿S We %*•yk very dosdy wllh RN Comms lo mllvJale the impact of ￿Y a(fverse chany lo Ihg percepllon of tho We have slror¥J lem)s and condit*)rb5 for those outside organisations we fund and wè have a dedbcaled Rdalionship Director who maintains regular contact Ih these charilw as wdl a8 ¢)ur key $1okeholders. Through commis8￿nIng programme$ and wr commiSs￿1n9 manag8r we are strengthening tho r￿at￿nshIpS we have with funded organisalions. We regularly revknv polic*s enacted during Covld as pwl ol the norma of thè FRACIIC ThM• rf•k• would Imp•¢t our r•putthn whl¢h 18 ab•olut•ly ￿•￿tIal to k•ep k•y otak•hold•rs, fund•r* and bon•ficl4rl•4 po8Stlv•ly •n9ag•d In a••l•tlng u• d•llv•rfng our outcomm. P•opl• and A•s•t Rl•k whth indudes.. Inability lo wruil and reioin pa0￿ the required skills and expert15e Not achieving bBSt value •xperKlrture OUT infrastruclure not beSry fft fw purpose Wè cAJr m08t important asset. Wo havg revwed Ihe reward policy have for all OUT omph)yees in order to rnainiain and ènhance retention. IntroduCt￿n offorrnal Talent Management Programme. We c*ry wl an amu* staff survey and, from this. develop and implomenl an aclK)n plan lo address key issues using a Staff Reference Group. Wo have revwMd our Perf¢yMOn￿ and Development Rep￿ to Knprove our pgrfomance and frxus on aming and dev8lorMn8nl. We continue lo re¥￿ the guitabilily of our linanclal C4Jntrol measures lo redLKe the kb)ssibility of dellb8ralo accidental loss. We have sh3nfvantly refreshed our IT infraslfucture durm9 2019 and introduced both doud based storage as well as Office 365 wh￿h has m8anl 811 staff are able to work In)m IK)m&, a key roquirement during the ndemic. ThM• rfsk• would r•duc• our •ff•ctlv•n•s• to d•llv•r our obl•ctlv•8. r•dudng our ImpacL Royal Navy Offlc•rn' Charlty Rl¥k Loss of key Staff Robusl supe(seSS￿ planning OngoiThJ revthw of records. systems. ￿an5 and Fxojecis Inlgrnal cross desk traini Close 5crulin FASC Audit, Regjlar revi9W5 Operating in an honest and ethKa manner Monitoriro charrfjes in re￿lIal￿agI$la1K)n EnsuriTrJ qualty and liNdy legal adv￿8 FInar￿la1 Viabili Compliance THE ROYAL NAVf AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Royal Marlne• A8￿CIatIOn. The Royal marIn￿ Charlty Rlsk FSnanclal vthich includes.. Nol meeting our Volunw Income targets.. Conslrainir¥J Corporate and Major Dor￿.. Loss or re(Juclicrf) ol funding streams. atlon We have divorsbfied our in¢om8 generation OPF*Nlunilie5 as muth as possible, fo￿SIng particularly on strengihening the 5upp(Yl of major individual and cwora¢e dw¢xs, trusts a￿1 statutory syants. In the COVID-19 context this n*ans idenlrfylng Compa￿$, don¢ys, trusts and fOUndat￿nS which have proved resilient in the economK downtuin. We we fvrther deVelo￿.n9 measurement of ¥A￿le cial value lo domonstralè impact lo donors. and OUT marketing funclitin in (K(Jor botter lo (Y¢Mnol& case $tudi&s We have a syslematlc apP￿h lo bud981 $8tting and financial Flanning wilh dotailod monthly $equen¢lng rnonitoring during tho year. with monthly cashflow proi8clhJns and quwlerfy lor8casls used lo mitigate any Lwdgevincome yessures that artse durlng th8 year. We revlew inveslmenl strategy and 118 rfomiance managed by appointod exlemal lund mana9efs. The Bo¥d has adopted a policy of holdlng between S a￿1 6 months of èxpenditure in cash reserves. inc¥oased from 2.J wèvitiusly. Wè have reviewed our insUrar￿e needs and prov•Jer to ensure fina￿la1 Sosses minimised. A Chaw-led comprehensive govemance revlew was ¢ompJeted in 2021, Klentifying areas of improvement for &#)vemance, sklls gap8 and tru$lee succe5sk>n (Aanniry. We have reviewed all Charity pol¢cie5 and erssured that all rgquired Board level rx)Iicia8 have been refreshed for 2022. We arg rggistorod with the Fun¢Jraising Regulator lo ev*Jence our Complian￿ wilh Ihg Charltl8s Act 2016 and Comply with Tegulation$'. complalnls were received bn 2021. We bertefrt from thè èxtènsiva cyber wotection owded by our inlernel prOv￿er. We have developed imyoved methods of monitoring Ihe impact of tyants made lo 1ndNIL￿a1S and anISat￿$. induding ensuring safeguarding t￿oIS arg in lace wilh those we fund. We are devebpir4J a PR function which will give the ¢8pability lo resp￿1 lo repUtat￿nal chalbnge. with direct links into Navy Media. Weexpect Tegulw report510 the Board of Trustees frorn Ihrough year furKled oTgani5alions and imFlemenl MOU$ vthe￿ approyiale. We have revised terms and eondilhjns for those outside organisatk)ns. CKJr branch and membwship byelaws are subiecl lo dose oversi ht from the Membershi Commrttee. We have introduced a revised Perfomance and De¥elopmenl Report to improve our performan￿ and frrtU5 on learning and devdopmenl. The￿ rl•k• would r•du¢• ¢Jur to d￿[vor our •trat•gy. Gov•inan¢• whlch indudes.. Lack ol comFdi3nce with legal reoulatory requirements., B￿ach of deta an¢Yor IT breach by exiern agents., Lack ol iMpacU￿jtcorne evldence may lead to $ub•oplimal bbck grant making. Th••• rf•k• wlll Impact our op•ratlonal d•llv•ry and IncT•a•• r•gulatory S¢￿tIny, both of whlch wlll Impact ¢￿¥ ablllty to d•ll¥•i ouf obJ•ctlve•. R•putational whKh indudes.. Lack of control ol funded Organisal￿n5' admlies.. Lack of control of membershlp branches arnl indlvKlual members. Those rlsks would impxt our rwLitlon whlch Is absolutely •ss•ntial to k••p k•y #tak•hold•rs. fund•rs and b•n•fi¢iari•$ witiv•ly •Trgagod In asslstln9 us deli¥•rlng our outcom￿. People which include5'. Inabillty lo recruit and retain peoF4e wth the required sklls and expertise.. le Irainin and Saf ardin for all staff: THE ROYAL NAVY AND ROYAL IURINES CHARITY REPORT OF THE TRUSTEES Rlsk 8Ltmoul due lo increased demand for supp(xl. We u)nduct an annual Training Needs Analy5i5, 18adin9 to vthole slaff training as appropriate, arKI indiv￿ual ed￿atson arKI learryng needs being addrossed. We have bull extra staifirwJ r6source lo face increased dgmand. We have introduced an Employee Assistance Pwamme *)d regularfy consthr staff wrjrkloads. promoting posTrlNe mentsl health and work-lrfe balance. The8• rlsks would r•duce our 6ffectlven•ss to d•llv•r our obJ•ctlves. r•duclng our Impa¢l. Th• Naval S•rvlu Sports Ch*lty Rl•k The risk is definod as a result ol a stock market crash or poor Investment Fund management. funds under active Man8￿men1 do not deliver planned capital value arKS ir￿Me. Investmenl Mana9emwl is delegaltd to the RNRMC Investmonl Commitleg IICI ￿efullY selecl inv6stmenl M￿gers.. sgt ro01￿tIC Iwge15', and monllor results quarierfy. The RNRMC Truslge on the NSSC Board is Chairman of the IC and aso a rnernbef of the Fwiarte, Risk and Audil Comrnilt¢¢ (FRAC). The RNRMC condude(l a r8vi8w ol Investment Manag8rs in May 2021 that resulled in a change of Investment Manager from Cazenove cap*￿ Mana9emenl lo Sara$in & Partner5 Wrth the transit￿n compleling on 30 JUM 2021. ¢u•t•dlan Fund• The Royd Navy and Royal Mwines Charity ￿$0 hokjs olhgrextemal fvnds a$ a ¢wstodian. Thesa are funds wilh similar oblec18 to the charity who support Ihe same benef￿1¥Y pool and who don't hav8 access lo Ihdr own $guYegaled Investment portfolio. The capila is held and invested within the main p￿(0110 by Sarasin who were appointgd in 2021. vAlh div￿endS being paid quarterly lo the respective funds. Funds held with a long term ¥￿W Iwl be drawn down upon al any lime. More infomwtion on the Cuslodian lur¥Js can b& f￿nd in Note 23 of thè slatulory accounts. Publ1¢ B•n•fit In shaplng our objeclives lor the year and ￿annIng our *Niligs. the truylees have considere(I the Charity Commi$$lon$ Idan¢g on publ￿ benefii, induding the gu￿a￿a'pu￿1c benefit.. Tunnir4J a chwity IPB21'. The Iruslees confffm Ihal they have corn￿￿￿ wilh the ¢Juty ffi section 17 ofts Charibgs Act 2011 to have due fegar(I to publlc bgnefil gU￿ance puLAished by the CWity Cornmiss￿. The Iruslèes have recowlsed the Iwo prinGiF48s of pU￿1C ben8frt and belleve that Ihe RNRMC mgets Ihom, namefy:_ That the￿ musl be an Klenlrfiat49 benefrt or benefits and ttw musl t* dè8r. related to the aims of the RNRMC and be balanced against ary detr1r1￿ or hwm.. The objects of the RNRMC are lo f(NxJs on tho roli8f in need. hardship or dlslre88 of dwlvantaged pgrson$. provh1e eOucali¢M and to improve the eifKierw of the Na¥￿ Swvice. The range of the benefits deriving frorn benevolence ¥tivities indudes the rel￿ of poverty arKI imwoving Iho eff￿'encY of other charil*s Ihr¢xffjh lh8 grants made. The RNRMC also WOVKles Its benef￿lar*S with fa¢lilw lor 5POrt and rè¢realK)n. That the ts￿￿rrt rnusl be lo ihe Publ￿ or to a sectkjn of the publK. That the ber*fici*i8s must b8 appropriate lo Ihe awns and. rf lo a sectK)n ol the public, must nol be urffeasonatAy restricted and thal Ihose in povuty musl I be excluded from tho opp￿tuf￿ty to benefft. The polenli81 benefiryary wup ol the RNRMC wwje and iNgudes nol just currenl servirvJ peT50nnel, bul also the vast majonty of OUT benef￿lar￿ who fomer Naval knice personnel, families and ¢Jependanl$. Benev0lw￿e gran15 aTe dl based on need demortstrated by Ihe dwilies that apply for gfants and do not duplicate Slate fundiw. 37 THE ROYAL NAVY AND ROYAL PIARINES CHARITY REPORT OF THE TRUSTEES In addition. the RNRMC provides pU￿1C benefrt by enhal￿Ang and pfomoliThJ mli ilary effrAerq, slrenglheniro the moral component of the Royd Naty5 and the Royal Marine5' e5Wt de ccffps. which in turn brings tangl￿e benefi15 to the public:. the maintenance of maritime securily wlh reg¥d to Ihe UK home bases arkl they people., the Naval Servti's O¢Jbal commitrnenl lo the furthefance of worhj peace and slabilily.. the proteCt￿n of lawful m8Titsme trade and the prevention of unlawhjl acts uporb the h*Jh seas.. the c0ntrltyj￿n lo enhan(*d morale and retentK)n of Naval Seryice peTsonnd. INVESTMENT POLICY AND PERFORMANCE Inv•$tm•nt Ov•rslght Durlro 2021 Sarasin Partners LLP became Tespon5ible lor the investment management for th8 majority of the Group'¥ funds. following a full inve51menl managemelll revw. This arrangement w05 strength lo the Group and benefits from o¢on¢)mlès of 8cal8. A portion ol the Group's fvnd$ r¢m•in hekl al Coze￿¥0. whth i￿A￿deS the RNRMC No 2 (private equity funds) and inveslments held ty RNOC. The oversight of the rnanagemenl of the RNRMC, NSSC and Royal mar1r￿S Assoclalion- The Royal Marines Charlty's Investments lies with the Inveslrnenl Commillee IICI. IC meels every three months and is responsbsa lor monitorin9 the perfomiance of Investment slralegies approve(I by ￿ respe¢tNe Boards. Three Inderendenl investment 8dvlsor8. Mr Mexander Cr(4)ke, ol Janu$ Henderson Imio$tor$. Mr Bryan Burrough previwsty of Inveslec, 81ackrock and Cazernve and Mr Mark Frtzwald of 8¥days Glob￿ Invo$l¢ys18GI). 8lackro¢k aTrJ HS8C advise the IC. Every 5 years a review of the Inveslmenl Manag￿$ pthmance ovw the period to be c8rried out. In January 2021 a formal review was held and Sarasin was appointed as tho nthv imieslmenl manager after detaded scrullny and review by the IC and its advis¢ys. The Group Inveslmenl Poly was updated as a result ol the review. Transfers of the from Cazwv)v¢ to Sara3in rnadg Slarting in Jung 21 as at 31 Dgc 2021 S¥8sin held 79% of Ihe lolal value of the invèslrnents1£70MI with the b￿ance 01 £18m {21 %) held by Cazenove. In 2021 the fdlowlrYJ pNdolios ￿ere held vhlhin tho Gr￿p..- 4 ￿￿45￿[ 1 . 4WRh'. •RNRMC unl•Strkt•d nds RN￿c r1%trkt￿ lunlrforwiated tha1￿•5 •N•v•l Sethee Sw Charlty *Cu5todl• •*4iatefund rnlnapd byumt Sara5in te •Stparaie1￿d man¥4d knthpendenly •Pri¥Ait Eyhy Fund I Sir*wJ￿0n mod¢l m*w•d In6Epérthr ttyCwerth*ie•m InvMtm•nt Pollcy & Slrat¢gy The Investment Strategy and Inveslment Poly tho Grwp IC are regulady reviewed antl updated as necessary, in March 2020 with Cazenove and subsequentty in June 2021 wth Sarasin. The polw detail now follows rel*es lo Ihe current pollcy. The over￿1 irwestmenl objectfve is lo preserve a￿1 enhance th8 real capttal value of the p(*1ft4KJ whilst suppx)rting a sustainable ￿lIK1rawal to lund currenl ￿mmItMents". The Charity Seeks lo achieve its obJ"eclive within an 3￿pI*l0 levd of risk for their assets. the parameters of wh￿h have been agreed with Sar8sin & Partnws: Ihe rt)iethe ts qu8nlffied as the need to ger￿ate over the long term a 38 THE ROYAL NAWf AND ROYAL MARINES CHARtrY REPORT OF THE TRUSTEES return of Infflatlon ICPII pkJ$ 3% per annum. Thi5 shtyjld all(yw the r881 v4u8 of the assets to be maintained whilst fuTh1ing r￿Ular annual experKliture. The relum targel and apwopriale bwKhm¥k ¥e drfined kn Ihe dwet•Jnary aty8em8nl with S8rasin & Partners. who wll ensure aijherence lo this polry. The Trustees are koon not to I￿PaId￿t th8 obJ'ectNe of'maximi8ing rBk adw$ted total retum. by targets'ng loo h¥Jh an Ir￿Qme requirement and her￿ have adopl8d a largel of around 1.75% of startirwJ year capital valuès. Any further required withdrawals will be taken by sellh3 of caimta assets. Portlollo compo¥tt• b•n¢hm¥k and permltt•d rnng•# The below table outlines the composite bènchmark. which was agreed with Sarasin and forms an important part of rforrnance monitorin 11 also details the lower and u r bounds for each 85sel class. Asset Cl3s5 Low Neutral High Benchmark Index Cash GoVernM￿t bonds 7J E bofAML GlhsAI Stocks I Jo forp¢Y*i• a￿$ Tot•1 B•nd•& C4 re tsfAML siwllry Ntsn Gllt 40.0 Int•inat%)NI EgWwl£ h•dyl 2QO MSCIAIICwntil¢s wryl4lLCI G8P Intvft•rkn•l Eq4 m5cl￿1cWn1w￿5 Worfd TDt•l EA￿¢1 70 10.0 MXI ￿1 Bal•￿d PropertyhJTrd Ind•x- OneQuarter Iw•d SONIA knt•r•5t R4t• BwKhnwk +2% io Stwlln8 Wel8Fllns 40 52 The alt8fnalNe Investments arn trKoadly dlversbfied and indude ¢ommodilw. infrastruCt￿t. hedge fvnd8, and Pfr4ats equlty. The RNRMC Group's ba80 curroncy ly SleFling and rAmncy he*'ng is permitted liven Global natura of the Invgslments. 2021 Maln InvMtm•nt P¢)rtlollo Valu Thè lotal p(KrfQl￿ value as held #l Sarasin was £69.610,487 The bglow tatde outlines the Gr￿p asset 8Ikxal￿n relotfve to Ihe bor￿hMth las al 31.12.211: C•pltal 8enchm•rk A8s•t Allocalon Fixed Income 5,879,440 49.538.326 4,076. 7,763.212 2,352.654 15.0 EquSI'68 71.2 5.9 11.2 70.0 temative Investments 10.0 Llquid Assets Toial 89,610.487 2021 Maln Investment Portfollo valu￿ for Charlty 100.0 100.0 The porlfolK* value as al 31st Oecembw 2021 was £57.416.303. ThE ROYAL NAVY AND ROYAL PAARINES CHARITY REPORT OF THE TRUSTEES The bdow lable oulliws the chanty's. asset alkKatK)n relative to the benchmark las al 31.12.211'. lal 8•nchm*k Ass•t Allocatlon Fixed In¢)Jme Equibe8 Property Ajternative InveStn￿ts 4.874.342 40,751.351 3.3W,444 8.3￿,690 2,029,476 15.0 700 710 10.0 Ljqud Assets Total S7.41l303 We also detail below our rat￿le lor each assel ¢la$$.' 100.0 100.0 Bonds- uThd•rw•lgM- yrtjal Inllaiion￿ pressures arg elevaled arKI rislng Interest rale rfsks remain. Equltl•s~ n•utral- refflecting monetwy poly INJhleniThJ and slowdovm in ecorK)mi¢ gyowth. Alt•rnativM - 0¥•r￿h1 - g)k1 ard other urKwdaled assets can b8 a hedge againsl policy error, while infrastructure and renewable Investments offer wfflaliM4inked retums. •8h- ov•rw•lght - weler cash wen hethtened u￿tainty aTrJ risk of capital lo$$ in bonds. Will seek lo Inv9$1 into ri3k.assets should our laclThl view on markets become more po$ilNO. RNRMC Portlollo as at 31 December 2021 Flxtd Intomt ll EquI1*5 • Prnperty • ￿ternO(l* In¥esimtnts * Liqu￿￿ Assets More Inftmb'on on the Charilies. Investments can be in Note 20 of the stalul(vy accounts. InY•Jtm•nt R••trI￿10nS The Investment Manager is appointed with discretionary p(Mers ofinvestment under the Trustee Act 20￿ and is sutr4.ect lo th8 lerms of thelr investmenl management yeement. The truslees require that th& Inveslmenl Manager pays allenlion lo Ihe staThJard inveslment crileria, namety the suitsblty of each dass of inveslmenl and Ihe need for dNersrfication as apwopriale lo the C￿CuMStar￿5 ol the vartous pOrff￿1)s. The trustees have also sat Specrf knveslrnent limils and reslriclions for each portfc4ki. aswell as apwowiale berKhmarksforlheir performan￿ Comparison. The Trustees have con5idwed whether Ilw 51vJuld impose arry ethKai restr￿11￿ on the irwestm8nl ol the RNRMC Group assets by Iheir investment managws. In d￿ng so, they have corKluded Ihal they would not wish lo reslricl the M)veslmenl managers abillty lo ach*ve their sximary obJe¢tNe of seeking the bèsl relurns within the limits of the Gr¢)UP'8 overall investment pdy. However. it is likdy lo be in the Grwp's Wlem interests th81 ils investments lavour those companie5 that pursue eth￿31 and sctkglly respon*tA8 rather than those which do not. To that end, Ihey have instructed the m8n*3ers that they should consKJw this ￿51t￿n when (*￿sIng investrnen15 for the Group accLYdingty. Tiuslees recowises th* tts investments have wKler imp&ts and seeks lo all￿ its investment strategy with Ils aims, refleclin9 the views of its stakeholders and taking inio acwjnl broader wblic benefit. Tnjstees expect its investment managers lo integrate Env￿nMen1a1, s￿la1 and Governan￿ {ESG} considerations into the norm81 investment process 40 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF ThE TRUSTEES and to fu￿11 the requirements of the UK Stewwdship Code, actTvdy engagirKJ wth th8 c(Mnpanies in wh￿h they invest lo promole besl pr￿tiCe corporate behaviour and sustaina)le pwlice$. GN8n Its limited staff resources, il is not practical for ihe Charity to engage direcdy tMth ffldividual c)>mpanies. bul it does exp8Ct 115 inveslrnenl managors to report annually on their erKJagement activities aTrJ iesutts. The Tn￿lee5 expect rts irweslment mana98rs lo apply ESG onsi(leralions lo both segreg*8d hoklThJs and pooled ￿di￿$. tskirKJ account of the extent to which suitsble allemalive invostrnent vehicles are availatAe and in MINJ de minimis conswjerations. The Charity WIN only appoint managers who are 3ignalories lo the UN PrirKiples of ResFrt)nsible In14estmenl {UN PRI) and will take into account the ranking assigned lo Ihose managers by the UN PRI. Ttr* Charity may exdude certain slod($ or sectors where these seen lo be in direcl confitl wth ils objecls aThJ ¥lIvi￿$. Equaly, where consi51enl with the fina￿181 objeclives, the Charity seeks to invest in areas %Mth posilwe environmentsl and l or s(xial impacl. such as cloan ener9y and various areas of new lechnology. The Trustees recognise that dim8le change is 8 key Challenge lor the next decade and that Ilrnrting global temperature rises will requwe s￿nif￿an1 chry in busine$$. inveslmenl. lechnology development antl fossil fuel use. The Charity monitors the carbon emissions of its main èquity Invtttm8nl ptyttollo antl through Ils Investment managers seeks to feduce these emi$SK￿S over time. No dlrecl equlty inveslmenl slmyjd gxcoed 5% of the totd valu8 of each pNrfdk). No diro¢1 investmgnl in a regulated thirdytyfund {OEICI slMxAd exceed 10% ofthe lotal value of gach RNRMC Group porlf01￿ (knrirvJ the pefV)d of investment. No direct investment in an unregulated IhYd-p¥ty lund $lKKthJ exc¢ed 2.5% of ts lo&￿ value of each RNRMC Group portfdio d￿ng the period of kweslmenl. The lolal amount In uNegulal&l funds shxAd not exceed 5% of RNRMC GrtyJp'8 pthrfollo dwlng the period of investment. Total inveslmenls in Ihird party funds Iregulaled and urnewlaledl 8hwkl Mt excee(130% of the total valug of gach RNRMC Group portlolio dur￿￿ periLxJ of investment. Tolal investments in third-party funds should not exceed 10% of each Ihwd-party fvrKI'$ total vauè. Cash balance5 should be deposited wilh irtslitvl*)ns ¥wth a minimum ratM￿ of A- or invested In a dfverslfted money market furKI. Deposits shoukl bo $pYea by counlerparty. subpci lo a minlmum of counterparties, unless express pwmissi¢)n Is Gwon by the IC. The portfolios are permille(I lo have indirecl exposum to derNallves wlthln FuThd8. OtheTrvlse no unouolod stocks, derivalNgs. lulures or und8Thvn'ling are permilled. Th&re wdl be no glock londing from dire¢lly held assets but stock lendin9 Wlthin third pariy fundy held wrfl be accepled, W0v￿d tho manager Gan display Sufficienlty robust fisk controls lo man•Je the stock lending pro¢e¥s. Sara•ln Hold Portlollo Durlng H2 2021, th• portfollo g•Tr•r￿ a n•t r•turn of +&9% •11ghlty b•hlnd th• b•n¢hrn•rk of 5.7%. Key faclors that have impacted the portId￿'S p8rfmance:. A•••t allo¢ailon had a posStlv• Impact - thè portfdio was overwei￿1 the best-porforming a5S9ts lequltie5, propety, alternatives). and undepweight th8 w¢rs1*Wf￿rnry asset Ibondsl. 8ond$ - have f￿1¢n in value Lwl imm ol this was mrtigated by the significant underweighl posit￿￿ w hold, wrth jusl 8.5% allocated lo fixed irwme. qultl•s- as lorylerrn investors. the ewlty allocaliw accounts ￿ the 1*9￿1 portlon of the portfollo anLI was up by 5.9% durmg the pefio(d. The retums la938d Ihe txoader Oob31 equty ￿n￿er8e prlmarty due lo stock seleth'on in the health cwe sector. Prop•rty -eXPoriencod robust gains. up 9.6%, as d8rn8rn1 commercial property and rents have ri58n over the la51 year. AttornatSv• Inv•8tm•nts- V￿ had been ¢areful te manage risk-exposure wthSn the allemativgs. lavouring uncorrelaled assets such as gold, togelher wth renewal￿85 arKI other infrastructure funds which often offer inllaliw-link8d cash fiows. The altemalNes Ir¥yea8￿ by 2.4%. 2021 as a whol• Global stoGk markets finished last Y￿ on a hth, led 0￿e again by Ihe Unitgj Stsles. with Europe and to a lesser extent the UK providing SUPF#Nt. 8ond markets were dogJed by the ￿1n threals of inflation and ri51r￿ interes1 rates, whlle allernthe inve51men15 woduced mixed results. When taken together. 2021 has turned out lo be another good ye* for our Investments. 41 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES RNRMC InveBtm•nt Fund no.2 Portlollo The no.2 portrolio. whth 0￿Y holds private equity. perfomwd Y￿1. The retsjm for the ￿k)d 14 Jan 2021 _ 31* Dec 2021 was 26.6% as the lund conlinued lo move thr￿gh the dk%Iril￿IwJn phase ol its lrfecyde. RNOC portfollo The RNOC p￿￿0110. also held for the year to 31d Dec 2021. Ferformed wdl too. Equilies contribuled the mosl wilh returns of 18.2%. North America beiThJ the strorMJesl reg*Jn over Ihe year %wth a 26.8% retum. Multi-asset fund5 and lernalives also gave solid relums wth 12.4% arKI 14.3% re5peclNdy. On the negative side, bonds proved a drag on the portfollo wblh only a 1.1% relurn. Over811. portldio achwed a relurn of 14.4% for the year. On a tolal returns basis, the total relum was 11.98%. Ca¥h Pollcy In 2020 the FRAC approved a n8w cash p￿￿Y fry Ihe RNRMC Ihal e$t8bllshe(l a long4em cash reserves pollcy for the RNRMC lo ensure Ihal lundin9 agreed gyanl activity Ic* tho next 12 months wa$ wafonleetl. This policy appl188 to thè RNRMC and aot5 as advice lor the Group 85 necessary. Th• PropoMI: Suff￿￿nI Cash is held lo supwt our benef￿.￿18$ and operations lor a minimum of 12 months. Thbs would be b8$tsd on a range bewn our forecast cash llrm Ihe 'd¢y*nsidelcontingent' cash llow foraca51. In lime the aim is lo three yeafs ol our nel cash reqv*emenl in cash c* near cash Instruments. RM•rv•• Pollcy Thè Trustees havè è f8serves pdicy, wA)ich is lo sel asidti Sufficiènt freè reséry8# so as lo be able to meet or smooth out the unexpected fhjclualions in Charitable expendilure c* slthall in inccthe so as lo ￿ ablè lo mèet the increasing needs of current benefu8r￿S and remain 8UStwnable for both current ano (uiure 08neralN)ns, as wdl a$ meèllng tha needs of the WKl8r Group 8nlitlg8. A8 the nalional charity of thg Royal Navy wa wovidg the'stratggic Reswvg. against fuluro nee(Is and commltte(I lo protecting the reserves for dgcades to ￿Me. The reserves of the RNRMC are comtlex. The re$lw¢ture and merger with related charitie5 has led lo Ihe am31gamah.on ol Separate furKls inlo a r￿re inlegaled and managea organisal￿fial 8lruclure. Each leg* entty wlhin the Group has their own Reseryos polw in line with their rr)ore speclfk siralegic objectives and Ihelr Reserves are excluded from wr cakulah.ons below. The indlvldual res8N86 policies have all previously been based on cal￿1318d fr8e reservos and a minimum required lime period for coverage ol expenditure. These Polici￿ ox¢ludgd investments as non4M4uid re$8rves. The RNRMC Board havee5tablished a Group risk-ba5ed reserve polKywith a minifflum and maximum required rgserv•s range in wh￿h they aim lo operat8. The charvJe ￿ caIrJJlal￿n ol re5eTves was made lo refiect the TnJslees desire lo make sure il only hdds the reserves required lo covw ils agreed risks allowed thè Board the ability lo apply more fundlng lo ldenllf￿d need for Ils current beneftkgri88 whilst wnalislng ils beneficlar*s in the future. Our risk-based reserves policy Is underwnned by Ihe gY¢xJp risk ￿l$ler and is linked with the charity's Stralesic Oblgdive$ and 0glNgry Programmg. Thi5 poly key areas of risk whith our free re$erve5 are there lo Support. These key weas are:. Governance Finance Reputation stakeholden & Relati(￿shIpS Peo￿8 & Assets Our slruclure is comF4ex aNI is made up of a hNyI F¢re￿la9? of restricted funds. We have managed io mitigate risk through these restricted funds thereby allowiNJ us to slthi a knver Ur￿trIcted reserve rarg9. This [￿11¢Y only covers our reserve requlremenl within our unrestr￿le0 funds. A full revwl of our risk-based reserves pdicy has been undertaken in eaty 2022. This Involved a fvll revrew of 811 currenl risks and their associaled risk values. This has resulted in changes in the res8Nes we now need to hold. These changes have prirnwily been driven by the sIrate9￿ di[￿lic￿ of delivering more to our bewficiaries. and therefore when 42 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES applying monetary values lo risks. results the need lo hdd more funds. 11 has determined that tsrg81 range ofgeneral reserves (exduding those reserves rewesenled by reSt￿8d funds aThJ designated reserves) requ¥ed by the chanty as beirwJ beNveen £14.6m and £23.4m. Our current unrestricted and free reseNes balance thè ckn.ty slands al £27.4m. The Twstees appTerAate Ihat this exceeds the ￿rrent upper taw reser¥es level by £3.2m therefore they have made the excess available for addrtiond ￿an1 making ovw the n8xt few ￿ bul Ihts is heavily dependent on the challenges we face in both ￿ern￿d and a150 in sustainable The RNRMC Bowd we reviewing the Spend down on tho excess reserve against the expedod increased need as a ￿$￿It ofCovkJ-19 and the cost of kving challenges and fernaln commltted lo meeting the requirement of the benarK￿lIes. wlith is likety lo indude addilional suppcrt over thè next coul￿8 of years. truslfjos ￿nduct an anr￿￿ revi￿ ol Ihe apyopriate thl crf ggnwal reserves, arml c*arys lo the tharity's risk ofile, strategy and plan wlll be con8#Jerad as part of that rv4ie44. Th8 ￿1￿1 crf the annual revw irrfryms subsequent F4anning and budgetsng cycles. Policy cakul81h￿s." The total rèsèrves lor thè charty as 0131 Dec 2021 £90.3m12020.. £87.2ml. For the Charity, unresIr￿Ied re$erv88 formed £27.4m12020.. £28.knl and Designated luThJs £0.75m {2020. tO.78ml. Reslricle(I reserves were £62.2m12020'. £57.6ml. Reslrkle(l and DesvJn¥l6d rn8erve8 eonstrtule £63m {2020." £58.31 of Ihg lolal RNRMC grtyjp funds, thi8 is made up of Sub8idi¥y Charities rnanaged by a separale Twslee body. ry Restr￿l￿d funds managed by relevant Sub Commiltees. Morfj information on the makeup of these è18ments can be found in th6 notes lo the Slalulory account$ in nole 26. Area Nole8 Minimum R888rve8 Lèvel Maxlmum Resep488 Lovol Govemon¢o £O.Sm £1.4m SynifKanl change In exlern81 envwonm8nl amounury to Incr￿ drop, c¥ bgn•ffc FI￿ne £12.8rn £18.4m RepLtt8tlon Effvct on v01urtwylnG￿ Rel8lk)nshlp wtth Crypyote$/Key fuTrlars £0.4m £1.1m Stskehc4ders Relallon8hl £0.7m £2.Om Peo￿8 and A88ets e of Reserv￿ Re Slpnlllcant Inu••s• In Slaff Twnovor 8nd nllal cosls of r•stnK £0.2m £0.Sm uired £14.8m £23.4m 43 THE ROYAL NAVY AND ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Acknowledg•m•nts W• Would Llka To Than* You With Ong￿ng restrict￿nS arKI remote vthing cnn11￿1Trg in 2021, t*e had to be especwlty crealive in we communicated with our supporters and provhled ima9inatNe OppOrtunrt￿ for Ihem to gel involved. Thanks lo I technical wizardry ol Ihe studio team al CTN and the intervMwng virtuosity of our Vice PreS￿ent Stephen Waison. our virtual 'View from the Bridge, serie5 h3S ￿)ne from slreWh lo strength. with candKI conversations and insights into I global defence landscape frtyn senK)r Royal Navy officers broadca51 live irblo living rooms. Other digital firsts for the charity, included 0 Ir¢e online wi114vriting servK¢ and inwral Vwtu4 Feld Gun Challenge, in which part￿1pants re challervJed lo train like a r￿Id gunner and run. row, lift crf ride the number of naj1￿ miles from Portsmouth lo Port Elizabeth Ilhe site whére th8 Royal Navy Fiehl Gun orwj'naled). ¢￿umStanCeS ￿loWe[l. supp)rte*s ￿me lo￿ther f(¥'Sland Easy, coffee M(￿ning$ WKI 165 people answered the call lo host their own Tralalgar Night Oinners al IKyne. Prodwu5 lurKITaiser Chief Petty OffKer Andy"Gibbo- Gibb8 Speatheaded a Servu-wide'charily Champions. inilialNe. recruiiing seThing personrnl lo help ratse awareness of the RNRMC and the supwt il offers lo sailors, marines and Iheir families in shi￿, units aThJ a¢ro$s the naval estate. We hav6 ¢OnlinU￿ to txploTe cr6alivè collaboratKJns wilh a numI￿r of Partr￿rn, inclLKling long-standir¥J Plalinum corporat8 P8rtMr ESS Defence, whos8 support enablèd the wbli¢alh)n of Galléy, a unique collection of recipes Irom Royal Nawy chefs interspersed with fascwting snippets ol histwy tra(lilK)n wlh all the Prrteeds benefiting the RNRMC. Much as we would like lo, we can't Ihank all of our donors, luThJraisers, ctrwale, trust and other supporters individually her8. bul wg are indebted lo each and every one of you for y¢)ur Suppwt in 2021. Wo also reco9nise Ihal some of our most $iwifiGanl donors Wish to remain anonyrrmx L•av• a Glft In your Wlll Every time Someo￿ boves a gfft lo the RO￿ Navy anil Royal Marirw Ch￿ty in thwf Will, help us lo ensur8 that lh8 United Kingdom's naval lamily are supporied. lor lrfe. Evwy gft. of every srLe. has o lasting impact. We are Indebled lo all those who choose lo suppNt us in this way. 11 w are Moved lo support Ihe Royal Navy aThJ Royal Chanty. th6 mosl wondethjl Jft you ctsjld 6vor makè lo 8UPPOrt the nallon's sailors, marines and their famil*s ￿tr.t cost you a penny in your 1rf8lime bul will hdp us transform Ilvos in the fulure and for 9gnoralions to coff￿. The RNRMC offef ￿ free Will oplws lo suit all our Supporters, either face lo face or onlino. To start a convw$8lion about leaving a grfi in your Will. ￿ease contact fllrts￿. k or speak lo a mgmber of our Inendly team on 023 9387 1520. ��� ## **����������������������������������������� �����������������������** ## **����������������������������������������** ��������������������������������������������������������������������������������������������������������������������� ���������������������������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������������������������������� ����������������������������������������������������������������������������������������������������������������������� �������������������������������������������������������������������������������������������������������������������� �������������������������� - ��������������������������������������������������������������������� - ������������������������������������������������������������������������������������������������������������ ������������������������������������������ - ������������������������������������������������������������������������������������������������������ ������������������������������������������������������������������� - �������������������������������������������������������������� - �������������������������������������������������������������������������������������������������������� ��������������������������������������������� ����������������������������������������������������������������������������������������������������������������� ������������������������������������������������������������������������������������������������������������������������ ����������������������������������������������������������������������������������������������������������������� �������������������������������������������������������������������������������������� **��������** ������������������ ���������������������������������������������������������������������������������������������������������������������� �������������������������������������������������������������������� ������������������������������������� - ����������������������������������������������������������������������������������������������� - ������������������������������������������������������������������������������������������������������������ ��������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������������� ���������������������������������������������28th July ������� **�** ��������� > **��������** ������ ��������� 45 REPORT OF THE INOEPENDENT AUDITOR TO THE MEMBERS OF THE ROYAL NAVY AND ROYAL MARINES CHARITY Opinion We ha¥e audited Ihe financial statemenls ol The Royal Navy and Royal Marines Charity for the year ended 31 D¢c8mber 2021 which comprise the Group Statement of Fina￿￿91 Aclivib'es. ts Group and Parent Charitable Cornpany Balar￿* Sheets. the Group Cash Flow Staiernent and notes to ihe financial statements, including a summary of s￿nif￿an1 accounting poll¢*$. The fInart￿ rapcffting tr8me•VOTk that has been apPl￿d in their eparalion is applicabk law and United Kirydtyn AccounliNJ Sland¥(Is Iunited KinLKJom Generally Accepted AccounliNJ Prxticel induding FRS 102 'The Finartwl Rewytkvj Standard AM)licatile in the UK and Ireland,. In OLf ow'nion the financial stal8mènts: gNe a true and fair ol the stale of the ￿l￿'s arKI thg pargnt charitable Gompany's affairs os at 31 December 2021 and ol the group's inC(￿￿vj resOLWc￿ and app1￿1￿)n of resour￿. including rts irwme and expondilure. lor tho year Ihen ended.. have been propety wepare¢l in XCOrdar￿e wlh United KirKJJorn Generalty Accepted Accounllng Pr&tke,' and have been prepwed in aCcrytsr￿e With Companies Act 2006. Charltl88 ar4J Tru8te8 Invoslmenl IS¢ollandl Acl 2￿5 las ameTrJed) and e arKI 8 of Chariiw Accounts Iscollandl Regulalions 2006 las amended). B••l• for oplnlon We conducted our audit in accordance with Inlernalion4 Standards on Auditing (UK) {ISAslUKII and appllcable law. Our responsibilities under Ihose standards are furthgf dg$¢ribgd in Ihe Audilor's Responsibilities for the audil of financial slatemenls section of our report. We we ind8P8ndenl of the ch¥rtable ￿)rnpany in accordance with the ethical requirements that are relevant lo our audll of the financial $latamènls in thè UK. including thè FRC'$ Elhtsl Slandard, and we have fullille(l our other elhul re$p)nsibilili8s in accordance wrth these requirem8nls. W6 belièvè that the audit eviderKe wg have ob¢aine(l is Sufficienl arKI appp)pnate to provKl8 a basis for oplnion. Conclu•lon• rdatlng to goln• cone•m In auditing the fina￿la1 slalemenls, we have concluded that Ihe trustees. use of the going COr￿M ba$1$ of oc¢ounlSng In the preparallon of the fina￿01 slalements is apwo￿le. Based on the work we have wrformed. we have nol Klonlifled any material uncertainties fel8ling lo even18 or condits'ons that. individually or cdleclively, may cast s￿rf￿an1 dcyjbt on Ihe charitable company'8 ability lo continue as a goin9 concern for a perK>d ol al least fv￿1¥e months from when the financial statomgnts we authofise(I for issue. r ￿SponSibl11110S and the resp)n8bllilie8 of thè Ivuslees with respect to 9)in9 conc8rn are dgwib9d in the relgvanl sections of this repcvt. Other Inlormatlon The other information eomwises tht infcffmalkin inchjded in Ihe annual reporL otsr than the financial slalemenls and our auditor'5 rewt Ihereon. The Iruslees are resportsibl8 for thg other 1rrfryma1￿n. Our opinir)n on the financial slalements doe5 IN)1 cover Ihe other inlormation and. except lo the extenl othe￿1$8 eXpl￿111Y $ialed in our report, we do not express any fomi of a&Wra1￿ ￿r￿lUs￿)n thèreon. In connection vAth our audil of the financial statements, ow reS￿rts￿lI1fy lo read the other informalton and. in doing so, consider whether the other infomiation is malwially incMsislenl with the financi81 slalements or our knowledge obtained in the audit or 01he￿iSe appears lo be malerolty misslated. If we idenlrfy suth material inconsistencies or apparent male￿1 mK8$tatement$, we are requred lo deIwmi￿ whether there is a malwial rntsslalemenl in the flnancial slatements or a material misstatement of the other infrymath"on. If. based on the work we have perfomied, we condude that there is a material misstatement of this other 1nfrKmali￿, we are required lo report that fact. We have nolhing to rep(wt in this regard. 46 REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF THE ROYAL NAVY AND ROYAL MARINES CHARITY Oplnlons on other mattors pros¢rlb•d by th• C¢Jrnp*ni•8 Act 21)06 In oynion, based on Ihe wc¥k urKlert8ken in the ccwrse of Ihg aKIrt'. the inforrnali¢)n given in the strate9¢ report aTrJ the truslees. annu￿ rewrt ftw the finanaal year for wthich the financial statements aro prep￿￿ is consistent wrth the fina￿ry￿ statements.. and the strategic rewyt and the trustees, annual reporl have been kK8pared in aGcordance with applKable legal requirements. Matt¢r• on whi¢h we ar• r•qulr•d to r•port by •xc•ptk>n In the light of knO￿edge and under5tarKIiNJ of the goup atxl parent charitable company and Its environmant obtained in the course of the *Jdil. V4* have n0tMJenlif￿ malwk41 mi5slatements in the 8tr8legtreportor Ihg trus18es' annual report. We have nothing lo reFh)rt In respeclof the fOlkn￿ng mètler8 tr* Companles Act 2LM)6 or thè Charltie8 Accounts {Scollandl Regulat￿￿3 2006 las amende(J} require us Io feFort lo y¢)u if, in our Opin￿n.. the parent charrtatle cornpany has not kept adeqyale and suffKbgnl accwnting records, or relums adequ810 for our audit have not been received from bfanches nol visiled ty US., OT the p8renl charIta￿e compan￿S ffinancial Slatem￿ts are r￿1 li with the acc￿nting records And returns,. or cgrtain disc105ures ol Iruslees. rnrnuneration by law are not made: wé have not receNed all the inlwmatM)n and èXrAanatNy￿ we rewire for our audil. RMpon•lblllllM of tru•l• As explained more fully In the trustees. re¥Kn3iblrties slatèmenl $81 wl on page 47. Ihg trusteey (who are also the directors of the charSlable c¢)mpany f¢y the purposes of company law) are responsiblè for the kyepwallon of Ihg nancial sia18wnls and lor being Satisf￿ that they a Iruo and fair view, and for such Inlemal conlrol as the trustee5 delermina is necéssary lo en8￿e the preparation of finarKial slalemenls that are freo from malwial mlsslatemgnl. whether due lo fraud or orrw. In pr6parln9 the flnancial slatemenls. the tnjslees are respOns￿le for asse$¥ing the group and parent charitablé compèny'8 alylity lo conlinue as a going concern, dwknsiry, as applIcab￿, matter5 related lo going concem and uslng th8 gc4.ng concefn basis o18cC￿nI1ng U￿08S Ihe tru51ees eilhtr intend lo 1Squklale Iho wup or parent charilable company or lo cease operat￿n$. or have reali51K allemalive bul to do so. Audltorfs r••pon*lbllltl•• for th• audft of th• financl•l •lal•m•nts We havo been appointed as auditor under Section 44(1 Xcl of the ChwilE5 and Truslee Investment {Seoilandl Acl X￿5 and under the Compar4es Act 2006 and reF*Xt lo ￿ in with regulat￿nS made under those Acts. Our obleclives ￿ to obtain reasonable 888urarKe al￿1 vthettw the final￿14 Jlalemenls as a htholg ¥a free from material misslatemenl. whe￿r due lo fraud or error, and to Issue an audilc*'s report ihal indudes our opinion. Reasonable assurance is a hKJh ￿¥￿1 ol o$$urance. tr￿1 i8 rv)t a guarantee Ihal an audit conducted in accordan with ISAS (UK) will always delect a Mater￿￿ misstalemenl when il exists. Mis$talemenls can *ise from fraud of error and are consKlered material if, individually ￿ in aweg*le, Coukl rgasonably be exrrtted lo Inffluence Ihe econorn￿ de¢isKJns of users taken on the basis of these finarKial Stater￿ts. As part of an audit in ￿)rns. Thi5 making enqu¥i85 0( mana98rrénl and I￿)se charged T￿th b*)vernanc• and ob¢ainirwJ •*litiC￿l (xyrLiNyali¥e wlidm as r•wrnd. Th6r8 arn ir*ww* limitations in ihe wr￿d￿re5 des￿￿ above. W• ¥• knss l%Wy to b￿X)me aware of instar of non-complw￿ wth I￿ ¥•J rew1alK￿ thal are not ch)s* rdat8d lo evenls and tranw1￿$ rgftected in the finar￿￿1 staknnénts. Also. Iho rY&k of Tr)t det&ting a misslatement due ￿ fraud is hIg￿r than the risk of not delectiTrJ or* I￿v￿n9 from efr￿, as fraud may Thiohe d￿*￿rale ty. fcy examth. or intentional fflisrwesental*M. w throu#b cdiusmw. Il•• ol th1• r•ptyt This repNt is made soknty lo the charilable CoMpan￿S members. a5 8 body. in accrydarKo with Chapter 3 01 Part 16 of Ihe Comp•nles Act and lo charita￿e c(rfnpany's trustees, as a Lwjty. in accordance ￿ttt S￿lI0n 441IXcl ol the Charl(￿S #nd Truslo8 Investmonl (Scotlandl Aci 200$. (>Jr audit has been undortakon so Ihal wo might Jlale lo the charitable companls mgmbers and Iru51e*s Ihose matters are required lo stale lo Ihèm In an audrtorfs Teport &k1re88e¢J lo thom and lor no olhef Pwpo￿. To Iho lulknsi èxtent permrtled ty law, w6 do nol xcopt or ajsume r•spon8lblily lo any party othef than choritatAé c(mP8ny WKI ¢h¥btable c(¥npany's mmbers body, and tho charity's Iru8108s. as a tody. lry ￿db1 VKrtk. ts Ihty rwt. or the ¢w"niMs w have forrned. J.A LL Neil Fthl•y8M IS•nK>r Stsltsi￿ Al￿￿0() lor beh￿1 of Moore Kingston Smth LLP. StsttAcry A￿11101 Floor 9 Appold Street London EC2A 2AP Date.. 15 August 2022 MocY• Kingston Smith LLP is elKJit4e to act a8 oudSlor in t•rm8 of S•ctlon 1212 of the Companle8 Act 2008. 49 THE ROYAL IIAVY ANO ROYAL MARINES CHARir CONSOLIDATEO STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OECEIIJ8ER 2021 Total Fund• 2020 Unw••twkt•d RMtwlei•d Endown*n¢ Funds Fund8 Fundi Fynd• 2021 INCOME & ENDOWMENTS Oonati¢M Ivjaths 2,084.784 4.(th.4 6.091,264 5,643,152 Other tradlw ac￿tIeS .937 J,937 1,039,709 Investrrthl IrKom8 499,988 1216.014 1,716,002 2,286,071 3275.709 5222.494 3200.991 2.726 8,498203 8.968,932 3,2￿.991 2.2¥2,673 27.555 122,111 CharllatAe aC1w￿e$ Other income- CJFiS gwt 24.829 T¢)tal opv*lng Incom• 3.3(Kl.538 8.426211 11.726,749 11.383.716 expENDmJRÉ R•bBlng fundi Invgslment Manag￿￿￿t l•as Fund￿$¢ng eo6ts 208.811 1.508.103 .1 975.874 604,771 2.483,977 S83,L￿9 2,356,929 Tolal cost of ral8iw l￿d9 1.716.714 1.372.034 3,088,748 2,939,998 Charlt•bl• Ktl¥lti CommIs8lo￿￿ Prcsrarnrne8 Through Lrfe Pathw8y Quallty ol Lil8 Pathway Fll for Life Palhway End of Llfe Pathway 8& 727.642 495,442 653,028 74,$34 42.280 4.852.288 3.880,374 2.432.957 497,039 281.945 s.$79.gSO 4.706.123 4.375.816 3.057,023 3,08S,985 6.393.768 571.573 658.321 324.225 280.371 Total charft&)le 1.992.VL6 11.944.623 13.937,549 15.095,eAIT b￿rntIng •xp•ndltur• 3.709.640 13.316.657 17.026297 18,035,eos N•1 oP•r￿n9 l•xp•ndbtur•) {409,1021 14.8W).446) 15.299.548) 16.651,8891 N•t gaIn￿l¢l￿> t)n In¥Mtm•ni 2.543,554 5.867,424 8.410,978 14,434,30QI Not Incom•ll•x￿ndltUr•l 15 2.134.452 976,978 3.111,430 111,086,189) Gross ¢w¥f¢rt bthffj•n fvnds 16 13,633.4411 3.633.4140 Nrf M￿m•nt In fund• 11.498,gBg) 4.610,419- 3.111.430 111,086,189) Totsl funds brwghl foNAwd 29￿53.&31 56.725.732 655.649 87.233.912 98.320.098 Total funds carrf•d fonyard 28.353.542 61.336.151 655.649 9),345.342 87.233.9)9 Th& Charfty has no rnC(#￿ISed gain8 or lossesfor Ihe ye￿￿ as ￿tal8￿ above. Th8 n8t movements in the Charitys funds for lh8 year arise fr￿n Iha Chaiiws C￿tiN1￿j aEli￿ri￿5. The N￿e$ on pa9e8 53 to 81 part oftho8e wKrwl8. **���** ## **��������������������������������������� ������������������������������� �����������������������** |||**�����**|**�����**|**������**|**������**| |---|---|---|---|---|---| |||**����**|**����**|**����**|**����**| ||**����**
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**�����������������������������������** � 51 THE ROYAL NAW( AND ROYAL MARINES CHARITY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 C•*h flowllouffiow) from oporatlng actl¥lU Net cash {used In) operab'ng aclfvrfies 16,051,849} {5,575,6751 Ca•h Ilowfy from Inv•¥tlng acllvlll•* Investmont income and interest rtteived Proceeds frorn disF¥)sal of fLxed asset investm8nts excluding endowment funds Acquisition of fixed asset investments excluding endowment funds Paymellts lo acquire tangible fixed assels P4ymenls to a￿uIre intar@1￿￿ fixed a5Sèt5 1.716,W2 2,288,071 94.093.411 24.917.594 {89.374.8071 (17.899,8231 {30.6711 {916.8701 {167.69Jl {107.7671 6.236,245 8.279.205 Cash Ilowllouttl¢)w) Irorn Ilnandng acllvlti New bank lo {5.9331 N•t In¢rw•l(d•crMM) In e••h afftd e••h •qulv4l•nt• Ca$h and cash tquivaènts al b8gnning of y 178.463 8.612.273 2,753,530 5.858.743 Ca•h and cuh •qulval•nts at •nd of y•ar .790,736 8,612,273 R￿0￿114*¢[0n of n•t Incomfyl (•xp•ndlturnl lo n•1 ¢••h from op•r•tlng •¢llvhl 2021 2020 Nel Incomellexponditurel includirvJ endowments 3,111.430 111,086,186) Adlu•kn•nts for: Depreciation ch¥ge5 Amortisalion Grant lo MOD- fixed 8s8el disposal Loss on disposal of fixed asset Nel Igainsy Ioss8 on investments Imieslmenl income Increase in siock De￿ase in debtors Incfease in creditors 107.421 41,598 119,089 9,032 2,740,335 33.805 4,434,297 {2,286.0711 {27,6591 477.250 10.433 18.410,978) 11.716,(Y)2) {60,183) 944,610 1.819,475 Nel ca•h {u8•d In) OPOTatlng aCtI￿tIO* 16.051,8491 {5,575,6751 52 THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE FINANCtAL STATEMENTS FOR THE YEAR ENDED 31 DECEPIBER 2021 1. ACCOUNTrIG POLicies finwrAal stalernents (y)mkYtse the aNI ils subwdi¥*s urKler Ch*ty Commissim Schemes or Uniting Oireclions. The88 fInar￿la1 statements ￿ wepwed cffl a go¥wJ ￿nC￿n basrs. htslcvKal CA)51 convention. as modffi8d by Ihe revalualw￿ of inve51m8nts bwrg mèa8ur&l at fa* value Ilyw￿ NKomg and exFenditure within th8 Ststemeni of Finart?* Athrt￿. The f￿n￿al slalemenls have been wowed n ￿CordarKe vthh ￿ Fi18ncial ReportSng Standard applkablg in the UK and Rewblic ol Ireland (FRS 1021. The Ch*itabl8 Company atml its subsidiarh?s are a pU￿1C ben8fil grwp ihe purposes of FRS 102 arHI theTelore the Charity aso wepared its financial statemènts In accordancé with the Statement of ReCOmme￿Ie¢l PraclKe appI￿￿e to dlaribes weparing the¥ 8c£ounts In 7Kcordance wlh the FnarKi4 RewtirKJ Slandard appli¢at4e in the UK and Republ￿ ol Ifeland (The FRS 102 Charrties SORPI, the Companies Act 2LI)6 the provis•)n of ihe Lwge and Modium-sttod Companie5 and Groups (Accounts and Reports) Regulaihiny 2CM)8 (SI 20081410), 1￿ch￿ties Acl 2011 and Charit￿$ Accounts IS¢oll8ndl Regu￿lic￿ 2(￿ as ameth by The Chan1*8 P£cwnts IScvUaTrJl Am8TrJment (No. 21 Regulat￿n$ 2014. The financbal slalemgnts arg prepared in sterfing. whth ts hjrthnal ¢urrery of the charity. Monglary ¥mounls In these financ￿1 ¥talemenls are rounded to the nearest pwnd. prfndpal ac¢tyJnliThJ polic188 adopted In the wepor01K￿ of Ihg financial slalemerts are 881 out below. bl Golng COn￿M The Iruslees have assessed whether the us8 of Ihe corwn ba$ls b appropriatè and have considered possible gvenls OT condilior15 Ihal ffl￿1 casl s1wif￿ant th)ubl on Ihe abilily of the tharily lo continue as a 'ng cortern. The Iru$lees have made this assossment for a period of al lèasl one year from Ihg dale of approval ol the financial slalements oTrJ havg wnsidered polenli81 oNJoing impacl of the Covid-19 pandemi¢. In partiuJLar the trustees have con5NJered the charity's fiyocasts and projeclions and have taken account ol pressurès on ¢Yonalion and investmenl inwne and likely impact of ihe parKleffl￿ on investrnenl valuos and income, as well as expendilure. After making 9nquiri￿ the Irustees have concludod that Ihorelg a roasonable expectalth Ihal tho chty ha5 adequate resourtss lo continue in operational ex1ster￿8 lor Ihe foreseeable future. The charity Ih8relore contir¥Jes lo ad¢W the ￿Irt9 concern basi$ in wgparlng ils hnanc¢al slateftwnls. c) Group Ilnancl•l #tal￿￿n￿ These financkql ststements wnsdidate the results of the Charity arKI RNRPK Enterpri$es Llmited, rts tholy owned trading subsidiary. the Royal Naval Bènevoknl s￿Iety for orrws, as the Charity 15 a ¢orporale truslee wlh a right of velo, the Naval S8Thi¢e Sports Chority. as the Ch￿lty is the 501e member, and RMA- the Royal Marines Ch¥ity lincludiThJ its own subs*Jiaries. The Royal Marrr* StrK)p Limlled and TRMC Enlerpri5e5 Limiledl. as the solg member from l April 2011. on a line by line basls. A separale Slalgmenl of Financi81 ActNrties and Income and Expendibxe Acc(wJnl a￿ presented for the Charity itsellas the Charity has token advantage of the exemption5 aff￿ded by se(aK)n 408 of ts Cornpan￿ Act 2th)6. The eorporale chanvs f#ia￿al statenKnls agaregate its 17*71 results 7Mth th)se subS*Jiar￿S where the Charity Cornmission has tssued a Uniti'ng t*reci￿ the purp￿ of ￿￿nting. The subshliaries whose results are aggregaled with thosè of thè charitable company are." Subsidrary 1 - The Naval ServKe DeF￿ants. Fund INSDFI Subsidiary 2 - The Naval Serv￿8 Benevofence FuTrJ (NS8FI SubSid￿ry 3 - The Fl881 Bonevdant Tn￿1 {FAABT} 53 THE ROYAL NAVY AND ROYAL MARINES CHARir MOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 1. ACCOUNnNG POUCES {¢ontlnued) Subsidiary 4- The Nava SeNice Amenity INSAFI Subsidiary 6- The Navd Service Pryzes and Awards Fund INSPAFI Subsidiary 7- Queen Al8xarKlra'5 Royal Naval Nursing Se￿￿ Trust FuTrJ IQARNNSI Subsidiary 8- Ptymouth Royal Naval AKI Fund IPRNAFI Subsidiary 9- The Sir Donald GO￿ing Marrtime Reserve Amenity Fund IDGMRFI Subsidiary 10- Naval med￿ Compa$s￿nale Fund INMCFI ASlhtsJgh subiècl to a Charity ComrnissM Unitiro Direct￿￿. the resulis of Subs•Jiary 5- The Naval ServKe Sports Charity INSSCI are r￿1 aggregatèd with those of the charitable Company because Ihe NSSC i8 a limited company and is Ihorefore requ*ed lo be treated on a con5dKlated ba515. d) Incom• All incom8 18 rè¢ouMised w￿n thèrè i8 6ntiUem8nl to th8 funds. thè rrtèipt is probable the Amunt can be measuied reliably. Legacies are recognised follovAng probate and onc• there is Suff￿￿nI evKlence that Teceipl 15 probable and the amount ol the legacy rgceivatye can be measure(I rdiably. Where enlitlemenl lo a legacy exits bul Ihe is uncertainty as lo its recApl or the amount r￿1Va￿e. detail$ disdosed as a ￿n(ingent assel until the 't¢rla lor Income recognrtion ¥è mot. Inccmne is delerred when the donor att￿h6$ condilKJns outside ts ChaWs own control or wili88 that the resources we to be u8e(i in a ftrture accounliro Pe￿d. Inv851ment income is received (rf investment mana9amgnl fees Is ￿$s0d up in the accounts lor Inv831rnent managernent lees. Gov•rnm•nt grants Granls relating to r￿en￿¢ are recognlsed In irKcAne cm a 8ysIemal￿ basis over the p8rnds In whSch the entity rec(wises the associated costs for whKh Ihe granl Is intended lo compensale. This Sncludes £27,555 12020.. £122,111 l of Government a55151ance under Ihe Coronavirus Job Retention Schem6 ICJRSI rglaling lo $kff who wwe furloughed due lo CovMI-19. •) Volunt••rn and donat•d ••r¥l¢M and facllltl The value ol Se￿1¢¢¥ provKl811 by ¥dunloors is not inc(wraled Into ttwse finandal slalements. Where services are prov*Jed to Ihe C• as a donation thal %w)uld normally bg pu￿has9d. Ihi¥ contribution i¥ in¢luded in the financial statements al an 8stimat8 bawj on the valug of the ￿nInt￿tIon lo Ihg Charity. n Ex￿ndItur0 Li8billlies 8re recognise(I m Ihwe is a legal woyistructive ot4p3alk)n lo transfer economic benefit to 8 third party. il is PrOba￿e that a transfer of econom￿ benefits wll be requKed in settlement and the amount of the obligalion can be measured roliabty. All eXp￿dit￿re is •xounled for on an accru815 basls and has been ¢lassrfied under headings that agJrWe *1 costs related lo the category. Grants pay8bl8 are paymenls made to th*d parties in thè furthefance of the charitable objects of the Charity. Unconditional grant offers a￿ accrued c￿ce Ilk rec4pienl ha5 been notified oflhe grant award and its payment is probable. Grant awards th81 we subj.ect lo the recipient fU￿AlIng perf￿rna￿e ¢x other conditions are accrued when the recipient has been rK)IrfEd of grant and elI￿r Ihe performance condition is mèt or any remaining unlulfilw ¢oNJrtiM att*hirYJ to the ￿an1 L% outsKl8 of the control of the Charity. gl Irr•cov8rabl• VAT Irrecovfjrabk VAT is charged against Ihe caleg)ry of resources eX[￿ded whth il was Incurrwj THE ROYAL NAVY AND ROYAL MARINES CHARIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 1. ACCOUNTING POUCIES1¢4)ntSnu•dl h) Allocatlon of ov•rlwad and •upport costs Overhead. support and govemance costs are alIC￿ted behveen Ihe cost of raising fvnds and ch¥itable activit￿$. Overh8ad. support and govemance costs rda11r￿ to charrtable actrvili&s hav8 bg8n apportioned betrrnon aciwrfigs. 11 Co•t• of rahlng lun Ttre costs of raK%irvJ funds consi$l of ￿vestment management fees and otr*r diwt ￿$t$ of roising funds and an opporttonmenl of govwnance. Overt￿ WKI supp￿1 Costs. Jl Charltabl• activltb Costs ol ch¥ilablo adwilies indude gants payable and cfjsts directly assoclaled wlth prov￿￿9 5POrts. amen11￿, prizos and awards. dependants, wants or b8nevokrte to benef￿arleS and an apportionment of overhead, support and governance costs. kl Gov•m•nc• ¢￿ts Govemance costs comprise au costs invomng the pJbit accounlabillty and running of the charity and 118 compliance with r￿lat￿n gothy practice. T￿se costs mdude ¢o$ts related to stalutory audil,18gal lees ar*J Iruslee rneeling expen8e8 wrth ￿ appLy1K￿￿t of overt*ad aThJ supwt costs. l) P•n•lon and oth•r po•t.￿1r•rn•nI b•n•fi The Gh¥lly opor81è3 8 defined Contr￿ul￿On p•nsk)D sche￿. contri￿l￿nS payaNts are chwged lo the Stalem8nl of Financial Activit￿ In the pernd lo wthich Ilw relale. ml Tanglbl• fix•d •M•ts Indivlthjal fixed assets co81ir@ £9)0 lx nvye are Ca￿.181*¢d 81 cost. Freehold larKI and are indudod in the finan(aal sthlemènl al op8n market value. as dele￿Ined periodically by profossion* vaues. TW are not derrtcialed as res￿￿81 vdue5 ore not materially drfferenl from carying value¥ induded in the acr￿Unt$. Tanglble flxed a88el8 are deweclaled ￿ a Stra￿1 line ba¥is ovw thew estimated useful economk lfves as follow8.' Freehold property Computgr and Offi￿ equipment Lea50hdd imwovemenls over 9) yws strai￿1 Ilne over 3 years slialghl line over lif8 of the lease Al Ihe er￿ of each reporting the res￿￿￿1 values and useful lives of assets are revlewed and adju$lod necessary. In addilion, rf events or change in cwcumstsnces W￿l¢ale Ihal fv carying value may not be recoverable Ihen Ihe carrying values of tsn&¥tAe fixed assets are revlewed for impayment. n) Inlanglbh fix•d al•￿¥ Intanglbb ffixgd asseis are amortised on a straKJht line baslg over thew estimated useful O￿n0￿1C INes as fdlows.. Website and software ovw 3 stra**t line Al the end of each reportmg period. the reshlual values aTrJ usefijl lives of assets reviowed and adjusted rf necessary. In additson. il events ￿ Char￿ in arcurnstances ind￿ale that the carrying vatue may not be rttoverable then the carrying v81ues of langth ffixed assets are revivwed f¢y impairrnent. THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 1. ACCOUNTING POUCIES Ic<>ntinu•d) ol Flxed ass•t inv••tments Investments are inilialty measur&J al thw cost arrtl ¥ubs8ouenUy measured at their fair vaue al each reporting dale. Fair vaue is based on I￿1r b#J vaue al Ihe b4artè shoel dal8 without déduction ol the estimated future selliry costs. Changes in lair value and gains and losses ¥K8ing on the dtsposal ol lives1￿nts are cfedile(l or charged lo the In￿Me or expenditure section of the Stsiement of Financial Acljvrt￿s 8s'gains or losse5 Qn inveslmenls. arKI are allocated lo the approprFale furvj holding or disposirwJ o( Ihe relevant investment. pl R•all••d galn• and lo$••• All gains and losses aro taken to the income and exkWKlrfure seclion of Ih8 Ststsmenl of FIna￿la1 ActivllKgS a$ they arise. Realised gains and losses on irNestmenis are calculated as the drff8re￿o bgtyvgen salo proceeds and original c051. Unrealised gains arKI105ses are cakulated as Ihe drference betwoen Iho market value al the end ol the year and OPen￿g market value. or wrthas• dalts rf lalw. RoalL%èd and unreallsad gains we not separated In the Statemern of Finanod Acttrrtie8. ql St¢xk Stock of goods for resale is Staled al the ol cost and net realis￿e value. r} H•rltag• a•••ts The Charliatle Gr¢up b the ¢Mnor of a ¢d*ti¢)n rrf Paintings. Slverware and other ilems. Mony precious works are contained wllhin messes aeross the Corps. Wh￿ is housed managed on behalf of the Charity by Serving Royal M*ines within the Corps Secretarial. The cdleclion is considered irreplaceable and Is Such il is not possible lo attr*Jule a reliable cost or value lo il. It 15 &Jdit￿nallY conS￿ered that the process of obtaining valuallons of the colleclion would be disproportKJnate to any benefit th81 might be deriv8d nd that il is impractical lo apply convenlK)nal v8lualion lechnKiues lo the u)Ilection, duB lo the uniqueness ol lis nature. •) Fund• •tnKtur• The Charity has one pernia￿nI endowmnt, whth require8 Itle iru8tee8 to invest fv cawl in perp8luily,' Ihe Income frorn this lund r4 Whol￿ Ur￿$tr￿tel. Res¢rtcled funds are fund$ whth aro lo be use¢1 in acc(ffdance speclficrestrkllons Imposed by the donor. The funds of subsKlwries noted und¢r 1c} at¥)ve are treated as reslricled luThJs. Uryeslricted funds comprise those fijrrtls the trustees are free lo use for any wrpose ￿ furtherarKe of Ihe chantable objects. Designated funds comrrfise Ih)se un￿tricted fur￿$ wherè Iho trust0￿. al Il*w disc¥etion, hav8 created lund lor a 8pecthc purw. tl Ca•h and cuh •qulvalenl8 Cash and cash ¢quiv*ents indude ￿$h in haThJ. detosits held al call wilh banks, other short-lemi liquid investment$ with ￿lginal maluritw ol three moth or less. u) FlnancSal Initrum•nts The ¢tharily has elected lo apply the provisi￿S of sect￿ 11 '8asK Financial Ir￿trUMents. of FRS 102 to dl of finan(¥al instruments. Financial instrurrEn15 we recogni8ed in the Ch￿￿5 balance Sheet when thè charty becomes pwty to the contraclu￿ of the instrumnt. Financial assets and liabilrties are oflsel, wrth the net amwnts wesented in Ihe finan(J81 statements, vthen there is a legany 56 THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 1. ACCOUNT14G POLICES (Mntlnu•dl enforceable righl lo sel ¢)ff rgwni58d alTh￿nIS and there an ￿tentiOn to setde on a net basis cff lo rèaise Ihe asset and setue the liability simullan8OLJSty. With Ihe èxcepl*)n8 of wepayynents and defwre(l Incorr￿ all other debtor c*edllor balances are considered lo ￿ baS￿rInanC￿l instruments ￿￿er FRS 102. See rth 22 aThJ 23 forthe debtor and cxeditor r￿les. vl Employ•• b•n•flts Th¢ Costs of short-lerm empknyee berfils aro reCo￿lSed as a I￿t￿lIty and an w) Crfll¢al a¢¢oun¢lng ￿tIm￿•• ar•a• of ludgwn•nt In preparirrfJ financi￿ stalem8nt8 il Is neceswy lo make certain j[￿M￿s. estimate5 and a88umplions that affect thè aM￿ntS recr)3nis8d in the finarKd slalemonts. In the vitiw of the Iruslees in apF4yirvJ the accountsNd adopl8d. no jud9em&nls were required that have a signllScanl effecl on the amounts rècowised ffi the financid stslemenls nor do any eslimales or os$umplion$ made cwry a sonifttnl risk of malwi81 adjustn￿rt in fv next fina￿1•1 yoar. LEGAL STATUS OF THE CHARITY The Charlly Is a company limrted by guaranlee and has no $h¥o ca￿tI. members of the c*arlly ore I Iruslees Ilsled on page 1. In the eveni ol tho ch&ity boing V•TrJnd up, Ihe liabllity in resF*Ct ol Ihg guwantee Is Ilmiled lo £1 per member of the djarity. 57 THE ROYAL NAVY AND ROYAL MARINES CHARtrY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 FINANCIAL ACTMTIES OF THE CHARITY The financial ￿livi118S shwn in the consolidated ststemenl indudes Ih)se of the RNRMC ar￿ 115 wholly owned Ir8ding subsidiary RNRMC Enlerwses limiled, and Iho RNOC. 8 Charty in which the RNRMC ￿ a Irusl88 Wlth the rEghl of veto, the NSSC, a charitable company of the RNRMC is the sole m&mber, and RMA-TRMC linduding ils subsidiaries RM Sfv)p Limiled and TRMC Enterwises Limiled) a charitable company of which the RNRMC is Ihe sol? member. A symmary of the financia ¥lNlties undertaken by th? RNRMC and its subsi¢Jiaries. that are the subj.e￿ of Charity Commiss*)n Sthme$ or Unitsng Directions. 15 set out below.. P•rfflan•nl unr•¥ly1￿d Rutrlct•d Endty*m•nl Fund* Fund• Fund* Total Funds 2021 Tolal Fund• 2020 INCOME & ENOOWP￿NTs Donation5 arwj *aci85 2.166.079 48.078 2,214,157 3.300,168 Inv8stment hexJm• 499. 475.670 975,658 1,401.3S4 2.666.067 523.748 2.709,707 3,189.815 4,701.$22 2,709,707 1,775.180 $4,547 Cha￿ta￿a acbwities Othef I￿rne. CJRS Tot•1 op•rntlng In¢orn• 2.666.C*1 3233.455 5.899.$22 6,531249 EXPENDITURE R￿1￿n9 lund• Inveslrn¢fti mwg•mÉnt I￿% Fundraiswva ￿lty 208.611 1,112.378 198,958 17,002 407,&37 1,129,380 413,847 1,083,124 T¢lo1 olfalw¥ fvnd$ 1.320.989 215.958 1,536.947 1,476,971 h¥lt•bl• •¢tlvbll Ctynrnissionad Progr8mm88 Through L6f• Pothw8y Qudity of Lif8 Pathway Fit for Life Pathway ErKI of Life Pathway 4,1C*.603 706,0￿ 2,069.096 883.883 1.863.881 181.706 4.106,603 2,B55,146 2,447.7fj4 181.706 238.615 3,721,137 1.699,876 2.688,072 281. 209.904 238.615 Tolal Ch￿labl# expendNu 1.831,839 7,978.195 9.809.834 8,e(xi,079 Total ¢)p•ratlng •xP￿dI￿r• 3.152,628 8.194.1S3 11.346.781 10.077.OYJ 14•t 0￿ratIng l•xp•ndlturnl 1486.$61) 14.960.698) 15.447.259) 13.545.801 N•t galn•l(l0s•￿I on In¥Mkn•nt a•￿ts 2￿43.$54 2241.353 4,964,907 12,908,704) N•t In¢thiwl{•xp•ndlturnl 2.056.993 12,539.3451 14822521 16,454,505) Gross transfers beN￿On f￿)d8 13547.757) 3.547.757 N•t mov•m•nl In fvnds I1.4￿.764> 1,iKJ8,412 1482,3521 16.454,5051 Totsl tunds br￿ght 29.U72,526 23270.582 655.649 53.598.757 60.053,262 Total funds cankd fowar 28.181.762 24278.934 655.649 53,116.405 53.598.757 THE ROYAL 14AVY AND ROYAL MARINES CHARITY NOTES TO ThE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 VOLUNTARY INCOME Year to 31 O•c¢mbor 2021 unT￿tskI•d Rè•trlct•d Endowmont 2021 2021 Total 2021 Donallons Royal Navy Payroll GivirwJ Scth RM Day's Pay GNing FurKIs Legacies Other vtduntary irtom 858,999 2.779,169 1.114,W9 3,638,168 1,114,909 532.985 674,983 130.219 532.985 564.107 130,219 110.876 2.084.784 4.￿8,480 6,091,264 Y••r to 31 D•c•mb•r 2020 Unr••lrld•d RMtrbcl•d Endow￿t 21)20 2020 2020 Total 2020 Olhgr dOr￿tICI Royal Navy Payroll Givin9 Scheme RM Corps subscriptio Legae*s Otr*r volunlary Inoom• 1.637,300 1.843,694 1,169,234 3.480.994 1.169,234 525,373 217,484 250,067 525,373 171.964 142.839 45.520 107.228 2.959,282 2.683.870 5,643.152 59 THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 INVESThIENT INCOME Yoar lo 310K•rnb•r 2021 Unrnstrlcted 2021 Re8trScted Endowrnent 2021 2021 Total 2021 DivKlends- UK equit￿$ DivKfends- non UK equit￿$ Fixed inlere51- UK Income on Fffoperty funds Unil Trusts Other Interest on cash deposits 204,795 88.255 14,972 97.113 89,910 4,071 872 560,721 219.160 48,910 210,215 134,935 41,658 415 765,516 307,415 63,882 307,328 224,845 45,729 1,287 499.988 1,216,014 1,716,W2 Y••r to 31 D•¢•mb•r 2020 Unr•strkt•d RMtrlct•d Endowm•nt 2020 2020 Total 2020 DiVKI￿18- UK equil DIV￿ends- non UK equrties Fixed inloresl- UK Income on propety funds Unit Trust¥ Intere81 on cash deposits 224.873 31.272 55,774 105,920 357,481 182 867.546 41,939 76,577 122,918 401,333 276 1.092.419 73,211 132,351 228.838 758.814 438 775.482 1,510.589 2,286.071 INCOME FROM CHARITABLE ACTMTIES UnMtrict•d RMtrict•d Endowm•nt 2021 2021 Total 2020 2021 Grgenwkh HospStal Nuffield Trust Afmed Forces Covenant Fund Trust Other grants receN•d 1.375.0(Kl 771.716 352.080 702.195 1,375,(NJO 771,716 352,080 702,195 1,375,000 170,680 210,750 538.243 3.200.991 3.200,991 2.292,673 £2,221,673 of income frryn charilatAe ac¢Niti95 in Ihg year lo 31 D￿ember 2020 was subject lo specifi restrict￿n¥ IM￿Sed by the d￿. THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 COSTS OF RAISING FUNDS Y•ar to 31 DK•mb•f 2021 Unr••¢rkt•d R•sirlct•d Endowment 2021 2021 2021 Total 2021 Inves1rn￿1 management lees Fund raising costs 208.611 1.508.103 3*.160 975.874 14.771 2.483.977 1.716.714 1.372,034 3,088,748 Year to 31 D•c•mb•r 2020 Vnr••trl¢t•d Rmtrlctod Endowm•nt 2020 2020 2020 Total 2020 Investment management fees Fund raising costs 229.723 1.554.147 $83,069 2,350,929 802,782 1.783.870 1.156,128 2,939,998 ANALYSIS OF CHARITABLE EXPENDITURE An•ly•h of ¢harttabl• •xp•nd#ur• wpport co•ts Year to 31 D•¢•mbv 2021 Oth•r Support Olr•ct Co•ts (S•• 111 2021 Grwl• Payabl• 2021 Total 2021 Commissionod PT(ETammes Through Lrfe Pathway Quality of Life Pathway Frt Lrfe Pathway End of Lrfe Pathway 4,0￿,848 3,206,OS7 2,241.2S9 419,039 237.7 1,489,102 1.187,759 815,836 152,534 86,525 5,579,99) 4.375,816 3.085,985 571,573 324,225 28,8 Total 10.196.903 28.8W 3,711,756 13,937.549 Y•ar to 31 O•o•mb•r 2020 OIIMr Support Dlrect Cos1• l$•• Plot• 111 2020 2Q20 Payabl• 2020 Total 2020 Ccrfnmk8sirN)ed Programmes Through Lrfe Pathway Quality of Lrfe Pathway Fit for Lrfe Pathway End of Lile Pathway 3,562.684 2,314.263 4,836.364 49B.370 212.2 1,143,439 742,761 5.152 1.552.232 159,951 68.121 4,706,123 3.057,024 6.393,768 658,321 280,371 Total 11.423,951 5,152 3.666.504 15.095,607 61 THE ROYAL NAWf AND ROYAL MARINES CHARirf NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 DECEMBER 2021 ANALYSIS OF CHARITABLE EXPENDrruRE {Continu•dl Analysls ol ¢harlt•bl• •xp•ndllur• by fvnd ¢al•g0ry Indudlng Support ¢osls Yw to 31 tl•¢•mbw 2021 Frnrn Unmtrlct•d Funds 2021 Frorn RMtrict•d Funds 2021 Total 2021 CommiSs￿n&j Prwammes Through Lrfe Paviway Qu81ity of Lrfe Palhwdy Fil for Llfe Pathway End ol Lrfe Pathway 727.642 495.442 6S3,028 74.534 42.284) 4.852.308 3.880,374 2,432,9S7 497.039 281.945 5,579,99J 4,375,816 3,085,98S 571,573 324.225 Tolal 1.992.928 11.944,623 13.937,549 Y￿rt0 311)•cM)b•r 1020 Frup 2020 Chwlty 2021 Charfty 202Q Bank loan 34,067 45.000 34.067 45,000 During the prlor year the subskllary company. TRMC Enlefwi￿s Lim61ed. obtained a bank kjan frorn Lloyds Bank plc ndef Ihe Govwnments Coronavirus Bo{Jr￿e Back Loan scheme. Inlefesl is payable al 2.$% from July 2021 and the loan Is repayable by Junfj 2026. The amount due ￿ I￿re Ihan five years is £5.000. 72 THE ROYAL NAVY AND ROYAL MARINES CHARiff NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 26. ANALYSIS OF CHAR￿ABLE FUNDS Anal￿1• of w)Mstrld•d fund MoV￿1•- cwr•nl yw In￿$￿￿￿nt •xp•nd•d Tran•f•rn ga1￿￿{lO•￿) B•lone• at 31.12.2021 01.01.2021 RNRMC g8nwal l￿d6 28.897.170 2.fJJ8J69 {2,875,6051 I3.737.￿6) 2.543.554 27,438.482 D•81gnat•d ORUMFC14K 8ulhYlng 37 69.393 675.887 705.9&3 130,0761 Group and Charlty d••lgn* total 775.356 130.0761 745.280 RNRMC Ent*rpri8Q8 Lknllod Roy81 Marin¢s Shop Llmbtad TRMCE I77.￿] 465,934 1139.&)21 {459.e￿7l 1204.5501 138,0781 120.0001 161,643 18Q.(KJS 166,332 5,448 Group unr••lrlcl•d lot•1 29.•32,531 JJOO,S31 13.T09.6401 13,833,441) 2,543,554 28,353,542 Anal￿1• of Mlrkt•d lund mov•rnnts- ¢urrnnt y•w Inv••tm•nl 84•nce Tr￿1(•￿ gth14lo•M•} 31.12.2Q21 1.012021 •xp•nd•d Ch•rlty Naval eorfftol8nce Fund Naval Seryko DyndaThts' Fwd 10.fj19,413 Naval SeThi¢e Amwity Fund 499,469 Prtze8 and Awards FWKI 4.870209 FAA Benevo￿nI Trust 4.991.392 OARNNS Trvsl FuTrJ 917.613 PlynNxth Royal Naval Ad Fund 258.536 Slr Donald Gosllry Naval *id 276.532 Nav81 MedkA c￿paS￿onat* Fund 758.823 Nuffleld Tru¥¢ 28.479 Tho Submarlm FuThJ SO,116 Arn￿ Fort•s Covenant Funtj. SF Arned Force5 Covenant Fund. TL OARD H8ty'ng JIM Moff 1J89214 IS.306.2041 218.392 1316.9391 {1.014.4681 1210,8361 1106.4361 19,2301 3,849.702 {816,9451 514,999 87.289 1.110,406 10,814,327 1th).352 3.573 23.575 5.181 5.657 15205 771.716 127,( 220,gKI 3S.(K*) 42.734 14.513 164.758 511.074 506.614 93,328 26,394 28,815 77.434 5.270,799 5,491.143 1,02S,286 285,543 301,227 833,100 1,148 134.187 41.150 19,7771 118,3621 1799,0491 143.0151 1179.3501 135.(￿￿) 42,734 13,310 25,042 11.2031 1139.7161 Charfty r•*lrlcl•d totsl 23,270,582 3233,4S6 I1,194,1￿) 3,547,7 2,421,353 24,278, 73 THE ROYAL NAW( AND ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEPIENTS FOR THE YEAR EPIDED 310ECEMBER 2021 2& ANALYSIS OF CHARrrA8LE FUNDS (contlnu•dl Innstn*nt Balanc• at Tr*naf•rs galn51llos¥tsl 31.12.2021 01.01.2021 Ineom• eJtp•ndod Group Naval ser￿ Sports Cwty NSSC- RNRU frJThJ RNOC IRNBSOI. gen8rn1 lunds 15.￿20.808 RNOC- RN Scmwship FuThl 326.705 RMA.TRMC general 5.447,114 Marinos musewn fijnd I.(￿.£ RMA 1.556,775 RM Ben8¥olerth FuThJ 1,S37.809 RM Cad81 F￿1 128,893 RM Central Sefgeants. Mess Fund 914.403 RM Central Unil Insknilg Fund 1271,918 RM oif*ers' Tru8t Fund 1.121.116 med for¢e$ Covgnont Twst- PP 33.250 Arm8d ￿¢0$ C¢)venant Twsl- FFC 19.(KKI Arn￿d f￿¥ Covenont TNst- SS Armgd fortès Covanant TN8t- OTM RMSA TRMC EnlefPW• Llrrit•d 4,9)7.476 407.697 1622.lJ601 16351 1785.8741 {43.8391 11.498.112) 491,789 5,285,282 .104 1.778.776 16.817,874 2.311 303.563 SSO,076 7,749,017 1,000,000 700,953 1.153.650 140,943 979,&38 1,462,769 1,245,919 12,0591 10,587 30.804 33,932 144,155 2.702.7S3 $47.186 82.01S 427.193 136B.5911 18W,3341 11,122.3221 128.948 11.(1)91 1152,4161 117.5921 (117,5301 IW2.6501 {105,2141 17.0371 135,3091 18,4131 116,8521 188.6921 141,1 184n2 10.993 86.789 106.415 93.832 148.804 294.816 143.422 47.456 122,624 21.619 160.893 11,5051 117.279 Orwp RMidd•d T¢)t•l .724732 8.426,211 113.318,0571 3,633,441 S,￿7￿24 01,336,151 Analy•l• of p•rnwwnt •fid￿m•￿t fund mov•Thnts- ujrrnnt y•w •nc• •1 In¢¢mln9 R••oyr¢ In¥••kn•Trl 8•l•nc• •1 01.01.2021 r••ourc•• •xp•nd•d Tr•n•f•rn J1.12.2021 Naval Sort* 8¢nè¥t4er Fund 855.849 855,649 P•rrn•￿n1 end￿*m￿l Tot•1 055.849 6SS.849 Anal￿1• of unmtrlc¢•d fund mov•n*nts- prlor>wr Balan￿ at 01.01.2020 T￿lm•￿t Trnn•f•rn yln¥llth••*) 8al•nc• at 31.12.2020 •xp•nd•d RNRMC general funds 33.151.871 3.878.942 13.324.259) 13.095.1041 11,712,080) 28.897,170 D••lwat•d DRUMFORK LIBOR. Algh¥istan BuildiNJ 37 145,831 91,629 736,039 176.4381 {3.3SOI 130,0761 69,393 188,2981 70S,963 Group and Charlty dMlgn•t•d totsl 973.499 19 11(YJ.8641 188.29BI 775.350 RNRMC Enterprises Limrted Royal Marlnes Shop Llmlted 581.859 480.499 1472,7111 1109,1481 1419.8701 139.376 180,IX15 Group unre•lrkl•d tot41 34,264.546 4,919.31• 14,326.7041 (3.292,5501 11.712,0801 29,B52,531 74 THE ROYAL NAWI AND ROYAL MARINES CHARrrY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECÉMBER 2021 ANALYSIS OF CHARITABLE FUNOS {continu•d) Inv•¥tm•nt B•l*K• at TranBkn galn*ll1￿*•lj 31.12.2020 01.01.2020 Charfty Naval Swicè B•nevolènc• Fund N8V81 S8rte D8p8rKJants' Fund 11.023.71Tr3 Nsv81 Sef¥ir* Affl￿ty Fund 1.286.844 Naval S8f¥iCe Pn'208 and Awards Fund FAA Ben8vO￿nI TnAt QARNNS TM8t F￿j Ptyn¥Juth Royal Naval FWKI Sir Donald Gosllng Marit Reserye Amonty Fund Naval Mo¢Jkal CompaBwon* Fund Nuffietd Trusl Naval Seryic¢ R¢¢o¥¢ty Polthy Fund SMBF LIBOR 2016 LIBOR 2017 Afmgd fore•$ Cov•nwA TN8t Fund 1.420.420 I4.$28,￿> 289,179 129),IWI 139.Th3 {930,6651 3,141.0 133,4041 1403,29SI 10.819,413 1272,5721 499,469 276. 5.119,758 5.188,192 938,470 264,449 140.375 133.657 29.451 1197,5191 1118.2681 115.2491 13.9271 1192,4051 4.870,209 1212,1891 4,991,392 135,0591 917,613 18,8701 258,536 286,646 7,4 16.9451 110.6591 276,S32 772.n8 3.192 20.144 171.938 128,1711 758,823 28,479 {146.6511 10.OCQ 110,3181 77,483 50,116 177.4631 I276.￿) 1158.5th)1 378.445 9.1e6 158.9x1 Ch•rfty f••trlct•d total 2&272,443 ?,5￿￿89 14217.18•1 2,•54.043 11.196,8241 23.270.582 Nav81 se￿¢0 Sport8 Charity NSSC. RNRU fund NSSC-Talenled Att4818 knd RNOC IRN8SOI. y8nw31 fthjs 1S.879.511 RNOC. RN Scholarship Fut>J 356.34S RMA-TRMC gtn¢fal 6,671,707 M•rina$ musèum Iw¢J 1.000,0 RMA-TRMC LIBOR F￿￿1 537,422 RMA 1.815,694 RM Benevolence Fund 2.376.874 RM Cadet Fund 132,8U RM Central Ser9eants' me￿ F￿￿1 938.315 RM Central Unl( Ingti¢ule Fund 1.291.056 RM Offif*rs' Trust FuTrJ 1.069.470 TRSM4Veterans FWKI 832.70S CTC Family C•ntrs 3,687 Armed k)rces Covomnt Trt￿l Fund- PP Armed forces Cov4nant Trust Fund- FFC RMSA TRMC Enterprfsas 5203,194 418.319 1703,ISOI 178.3YJ 1189,2821 4.907,476 635 14001 1699,8121 I15.0￿) 14.0982021 1.$88.82S 551.808 9,282 1,56S.022 1860,3391 15.020,888 113,9221 336.705 1280.2381 5.447,114 1,000,¢)00 IS37,4221 13.3131 173. 501.499 1381,0441 {1.169.6191 18331 1107.8831 129.4551 197.3371 {155.1321 133.8341 111.7821 13.4771 {884.2461 13.0871 148,1461 1,558,775 1171,1451 1.537,609 15,9771 128,893 147,7721 914,403 157,8611 1.271,918 150,9111 1.121.116 161.178 291.192 148.173 SS.018 33250 33,250 19.( 8.024 19,OCQ 160,893 11,5051 67.￿1 1109.1011 11.5051 I￿.269 Group R•strlcl•d T￿41 63,399,903 6.464,397 113.706.9011 3.283.9¢0 12.722,2171 50.725,732 Inv••tm•nt Balan￿ at •Mpended Tra￿f•￿ galn81{108•MI 31.12.2020 01.01.2020 rnsour¢ Naval SqNce Ben8v(*ncé Fund 655.649 655,649 P•m￿nent EnItr*m￿t Tolal 655.649 655.649 75 THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Classlfi¢atlon of Group Funds The RNRMC has a 5trLKtu￿ o)nsssting olunrestricted, designated, reStr￿ed and one p8rmanenl endowmentfund. Unreslrfcled Fund- Ihis fvnd rewesents t￿)$8 funds whth have n¢X been d8signaled. aThJ ar8 available lo support any ol the objecls of Ihe parent charily. Designat8d FurKls- are hdd ag&nst comrnitments as explained below aThJ aré a cal8oJry of unreslricled fund8: LIBOR - Afghanistan the designated funds to be used to prirnarly support thè farnilies of thè fallen and wounded, injured and sick veterans of th8 Af&*ianislafi Campaw. These fun¢Js were 4)8nl in 2020. Drumfork - In 2015, th6 RNRMC re¢eNed a £2m dOnat￿n from HM Tr8asury for th6 ￿lUrbi9hMen1 ol the Drumlork dub in Helensbufgh. SColla￿l. Tho RNRMC dè￿n3ted £lm from its own funds in October 2017 10 ensure the compleli¢)n ol the proi8Ct. of which £931 k has been spent. £69k remains in Ihe designated fund for fixtures and fillirwJs across 2022. Building 37 ~ In 2017, the Tnjslfjes deswated £770k for renovation of Buildings 37 and 35 within HMS Excellent. Portsmouth in cfder to give Ihe charity a fil for purFKJse workir¥J 8nvironmènl for the next 25 years. The desynaled fund WIN be Telained lo deprecaale the cosl over the lerm of the lease with th8 MOD125 years) and is considerabty kss than Ihe commerc￿1 Tental rates of £40k per annum {£1 m over the lease p8rlod al today's ralesl. Pemianenl Endowment- held Se￿4¢4Y a$ part ol the Nav4 Service Be￿¥01•fiC• Fund. Reslrithd Funds- Ihe subs*Ji*ry ch*ll￿ts are restricled funds and are gvouped under main ￿adingS in order lo achlgva the RNRMC'S charl1ab￿ objectives. Each subsidiary's furKls are reStr￿ted by the provis*)ns of that ch¥lly' governing in51rumenl, whether Royal Chartw., Memorandum ol A8socialk)n" or Charity Commiss￿n Schemo 8•n•vol•nc• Ro al Na OffScers' Charil Naval Service Benevolence Fund Plymouth Ro al Naval Aid Fund Navd Metlical Com 8ionole FurKI'- Promotl¢)n of Effl¢l•n Naval Seryu Arnenil Fund Naval Seryice Prizes and Awards FuThJ" Naval Service De Janls, Fund Fleel Aw Arm Benevolent Trusl Sir Donakl G051in Maritime Re5eThe Ameni Ro al Marings S A$$ociakn" Charlll•s vAth dual obl•ct8 Queen Wexandra's Ro al Naval Nursi Serv￿￿ Tru51 Furyj The R al Marines Asscoalth . The Ro al Mari￿$ Chari Fund-. The rem8ining restrkt8d funds ¢h818re nol m8ntAY*d in th8 lalAe a￿ve h8ve l)een recelved as restrlcted Income rather Ih8n existing as separate charit￿$ ￿thIn the RNRMC rJmlYell8. 76 THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2021 27. AMALYSIS OF GROUP NET ASSETS BET￿EN FUNOS As at 31 D•c¢mb•r2021 Unr•¥trlct•￿ Re8trlct•d Endowm•nt Fund• Fund• Funds Total Tangible fixed assets Intsngible Fixed Asseis Fixed 8ssel investrnents Cash al bank and in hand Other net current assets111￿lIrtI&5) Long term liabiliti88 838.019 534.978 242.446 24.574.678 62,316,110 3.304,245 5,486,491 {329.773} (7.243,8741 <34.067} 1.372,997 242.886 6SS,649 87,546,437 8,790,738 17,573.647) 134,067) 28.353.542 61.336.151 655,649 ￿,345,342 A• at 31 D•c•mb•r 2020 ilnr••lrl¢t•d' RMtrlct•d Endowm•nt Funds Fund• Fund• Tol•l Tangible fixed asstrts Intangible Fixed A55ets Fixe¢J asset inveslmfjnls Cash al bonk and in hand Other net current a$$etsllliabiliti8s) Long t6Tm l￿bIlitIeS 895,781 553,966 9.032 107,762 27.733,106 55,465,299 2,Ss2.e￿7 6.059.649 {1,337.999} (5.41 S,9401 145.CrfXII 1.449,747 116,794 655,649 83,854,054 8.612,276 16,753.9391 {45,0001 29.852.531 56.725.732 655,649 87,233,912 28. DISCLOSURE OF SUBSIDIARIES- ROYAL NAVAL BENEVOLENT SOCIETh FOR OFFICER8 The charitable company is the Irusteg with li￿1 of veto of the Roya Naval Benevolent Soclety for Officers, known as The Royal Navy oificeTs' Charty IRNOCI, a tharity formed by Royal Chartgr. RNOC have objects Similar lo those ol the RNRMC. These finJKial 51atemenls consdidale Iho accounts fry the RNOC. The followng is an extract of the f#)ancial slalemenls of IINOC f(Y Ihe year ende(131 D￿mts￿ 2021.. 2021 2020 Income Expendilure Galnslllosses) on Investments 708,449 496,771 1725,6721 {650,794) 1,781,086 {874,281 } Incomel {eXp￿dI{￿re) 1.763,863 {828.284} Totsl assets Liabilities 17.144.283 15,421,843 122,8491 164.272) Nel assets 17.121,434 15,357.751 Restricted fun(ts UnrestrKied funds 303.563 3￿,705 16,817.871 15,020,866 17.121,434 15,357,751 77 THE ROYAL NAVf AND ROYAL PAARINES CHARI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 DISCLOSURE OF SUBSIDIARIES- NAVAL SERVICE SPORTS CHARITY The charitable company i8 Ihe sole wxyal6 memter of th8 Naval Servti Spc*ts Charity {NSSCI. a tharilable company limited by guwanl8e. These ffinaTh>* slalemenls consolKJale th& accounts lor the NSSC. The following 15 an extract of the financial slalemenls of NSSC for the kWKKI eNled 31 0￿0mber 2021.. 2021 2020 Income Expfjndilure Gainsl(losS￿I ¢)n invg$tnEnts 527,S43 617,519 {642,315} 1724,3551 429,LY)3 1120,4961 Ng1 incomellexpenditurel 314.231 1233.3321 Total assets L￿bilItieS 5,462,950 5.160.426 1177,8241 1189,5311 Nel assets 5,285,126 4,970.805 Reslrlcted fund$ Unreslrtl•d fund$ 636 4.970.259 5.285.126 5.285.126 4,970,865 30. DISCLOSURE OF SU881DIARIES - RMA-TRMC - THE ROYAL MARINES ASSOCIATION- ThE ROYAL MARINES CHARITY The charlia￿t company became the sole corKkY8le member of The Royal Mwines Charlty ITRMCI, a ch8rllable company limited by guaranlfje. on 1 April 2011. Trse financlal $talemonts consolidate Ihe xcounls for tho RMC. The followiro is an extrxl of the financlal stalemenis of TRMC fcff year eTrJed 31 December 2021.. 2021 2020 Income Expendrture Gainslllossesl on invfjstments 4,119,516 3,184,557 (3,833,244} 16.Crt)1.3091 1,173,195 1662.0501 Nel incomel(expenditurel 1,459,467 13.478.802) Total assets LIa￿'11t1P$ 15.113,893 13.863.62T {463.4721 1672.673) Net a$s8ts 14.650.421 13,1 gJ,954 Reslricled funds Unrestricted funds 5.200.468 5.187,083 9.449,953 8.003,871 14.650,421 13.190,954 78 THE ROYAL NAVY AND ROYAL MARINES CHARITY NOTES TO THE F114ANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEIABER 2021 31. DISCLOSURE OF SUBSIDIARIES- RNRIK ENTERPRISES UMITED The RNRMC Enterprises Limite(J was irwrrtyaled on S March 2012. as the wholly owned trading subsidiary of RNRMC with a share capltal of £1￿,000. Its results to Ihe 31 December are consolidated in the Group accounts. The following is 8n extract of Ihe financol slatements of RNRMC Enterprises Limited for the yeaf lo 31 December 2021.. 2021 2020 Intsjmè Exp8ndllure 197.500 598,505 1151.8111 {487,615} Net income- gfft OKled lo RNRMC 45,689 110,890 Total assets Liabilitiès 314,990 238,357 1214,9901 (138,3571 Nel asse18 100,0 1￿),￿0 100,OLNJ 1￿,(￿) Share Capital and retwned eamir 31, DISCLOSURE OF 8U88IDIARIE8- TRMC ENTERPRISES UMITED TRMC Enlwprs$8s LJ"miled was incorwaled on 23 Felyuary 2018, as the wholly own9d trading subsidiary of RMA-TRMC with a shale capital 01 £1. It$ results to Ihe 31 DeC￿tser are consolidated in the Group accounts. The (ollowng Is an extract d the financial statém¢nts of TRIAC Enlerwises Limited lor the perlod lo 31 December 2021.. 2021 2020 1￿me Expendilu 211,503 1204,5501 739,544 1741,0501 Nel mvtmenl in funds 6.953 11.S061 2021 2020 Current asseis Liabilities 74.331 168,8831 291,748 1293,2531 Nel assets 5,448 {1.505) Nel a55etsl(li8bi141w) 5.448 11,505) 79 THE ROYAL NAWI AND ROYAL MARINES CHARfTY NOTES TO THE FINANCIAL STATEPIENTS FOR THE YEAR ENDED 31 DECEMBER 2021 33. DISCLOSURE OF SU8SIDIARIES- ROYAL MARINES SHOP UMITED RMA-TRMC became the s(Ae shweholder of Royal Marines Shop Limited on 1 April 2019 and accordingly on Ihal dale Ihe company b9￿Me a subsid1￿ of ￿(Alp. lis results ftx the year lo Ihe 31 December are consolidated in the Group accounls. The fcAlowing is an exlrt of the financwl slalern•nt5 of Royal Markn8S Shop Limited for the year ended 31 D8￿rnbel 2021.. 2021 2020 Income Expendilure 411.105 (404.7781 441.21)0 1382.5131 Nel movement In funds 8,327 58,687 2021 2020 Fixed as5els Cufrenl asset5 Liabililles 3,755 272,960 {110.2831 3.336 259,659 182,890) Nel asset8 166.432 180.10S 34. peNSIONS AND OTHER posr-RETIREMENT BENEFIT ¢OMMIThIENTS The Charty operates g defined c0nlnbul￿i g¢heme. whth ts admini8ler6d independonlfy of Ihe Charity. The cost lo Ihe Charlty for Ihe year Yas £218.13212020". £217,617). At the Balanc* Sheel date the amount due lo the pension scheme administrath was £Nil12020.' £18,683). 3S. RELATED PARfi TRANSACTIONS In Auwsl 2009 the Royal Navy agreed to lease office space al HMS Excellent lo the Charilable Company al a peppercorn rent. These supptyl costs are drfthll lo quanlfy as they we not discrete aclNilles becwse pefsonnd and off￿e laolil*s are used fly otw Navy CMimaNJ duties. As such the value of support provide(I by the Minlslry of Defence has not been induded in Ihe CharilaNe Company's Statement of Financi Adivities. During the year trustees donated £42.47912020.. £27.192) to the charity. During the year The Royal Navy and Royal Mwnes Ch*ity mado a wanl to rts subs￿18ry. The Naval Servlce Sports Charity, of £120,CKIO12020'. £195,0￿>. During Ihe year The Royal Navy and ROY￿ marir￿ C￿lty made a grant lo ils subsidiary. RMA- The Roy Mann93 Charity. 01 £128,948 {2020". £100.0￿1. During Ihe year The Royal Nawy and Royal Marines Charity charged rts subsidiaries the 101h￿Ing amounts in res￿1 of manapment and administration seryice$: RNRMC Enterprises Limited £12.009 12020.. £14.9081. During Ihe year RNRMC Enlerwises Llmited thx)ated £45,68912020: £110,89)I lo Ihe parent charity. The Royal Navy and Royal Marines fvity. 80 THE ROYAL NAVY AND ROYAL AIARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEM8ER 2021 OPERATING LEASE COMMITWENTS At the year end the charity had the tolal ca)mmitinenls undw non