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2021-09-30-accounts

IANN.UAL*' REPORT Ill I 20-20? MEROES H_LPfo HEROE 6363256 SUPPORT FOR OUR WOU

WHILE IT TAKES STRENGTH TO SERVE IN THE ARMED FORCES, IT TAKES A DIFFERENT KIND OF STRENGTH TO LIVE LIFE BEYOND INJURY. WE BELIEVE ANYONE AFFECTED BY THEIR MILITARY SERVICE DESERVES TO LIVE A SECURE AND HEALTHY LIFE WITH PURPOSE.

TOGETHER, WE CAN HELP OUR WOUNDED VETERANS OVERCOME THEIR DAILY BATTLES AND THRIVE.

CONTENTS

3 MESSAGE FROM OUR CEO 4 RESHAPING RECOVERY

12 CHAMPIONING THE WOUNDED

20 TRADING

22 OUR RESPONSIBILITY

23 OUR STRUCTURE, GOVERNANCE AND MANAGEMENT 36 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

64 THANK YOU

This report covers our financial year from 1 October 2020 to 30 September 2021. The sections reshaping recovery through to our structure, governance and management form our Strategic and Directors’ report.

HELPFORHEROES.ORG.UK 1

MESSAGE FROM OUR CHAIR

Looking back on my first full year as Chair of Help for Heroes, I am incredibly proud of the tremendous hard work that has allowed this Charity to continue to provide vital support to veterans and their families.

It has been another difficult and transformative 12 months, but there has been huge progress with important work to change how we reach people. Our dedicated colleagues have been bold and creative and are now providing care, support and social activities to our heroes in communities across the UK and online. In total, we supported 3,289 people in the year.

We can now respond to anyone who needs us in a more agile manner, and we have extra resilience to future-proof our services. I am convinced we have put ourselves in a position to be able to help more veterans than ever before.

Change is never easy, and what makes the success of this past year all the more remarkable, is that these changes were made at scale, pace, and despite the many difficulties posed by the pandemic.

The team rose to the challenge and I have been in awe of the hard work, dedication and expertise of volunteers, colleagues and leadership that made this transition period so smooth and seamless.

I am incredibly humbled by and grateful for the invaluable and ongoing support of the UK public and our partners. It has meant that when our veterans needed us most, during a very difficult year, we were there for them.

The year provided a vivid reminder to the country of the sacrifices and challenges people face when they sign up to join our Armed Forces.

In the summer of 2021, Afghanistan once again took centre stage in the media spotlight, as UK troops helped with the emergency withdrawal.

Colleagues across the Charity immediately understood the impact this would have on people who had served in the conflict, as well as on their families, and the wider veteran community. As expected, we saw an increase in veterans requesting help for their mental health, and our brilliant psychological support team was ready and waiting.

We advised the media on the importance of reporting sensitively, and to recognise the impact the situation was

having on veterans’ mental health. I’m proud that we led the call to say that those who served in Afghanistan are still our heroes, and always will be. Through their selfless and courageous service, members of the UK Armed Forces made people’s lives better and that is what this Charity now strives to do for veterans.

One of the major concerns veterans had during the Afghan crisis was for the safety and well-being of those they worked alongside during the conflict. And we are very proud to be supporting Afghan interpreters who have come to the UK.

We spent the year listening to veterans and making sure they influence major decisions about the Charity’s work and priorities. This is one of the many reasons why veterans and their families tell us that our colleagues understand their needs.

One of my most powerful observations from the year is how well everyone who works and volunteers for the Charity supports one another. All our colleagues at Help for Heroes have been affected by the pandemic as much as anyone, and have had to adapt to new ways of working. Their great teamwork is a big part of why we have been able to achieve so much in the past year.

We will be looking back to learn from the changes we’ve made – what went well and areas for development.

With crises can come opportunities, if you’re brave and willing to do what it takes. That’s what the Help for Heroes team did last year and I know they will continue to rise to challenges and take the Charity forward.

That can-do spirit, hard work and togetherness will lead to new ways to deliver life-changing and life-saving services, innovative fundraising drives, and hard-hitting public awareness campaigns. All with a view to provide veterans with the best possible care and help.

Thank you to everyone who worked so hard for Help for Heroes in 2020/21 and who supported our work; I am very excited to see what we all achieve together next.

Nigel Boardman Chair of Trustees

2 MESSAGE FROM OUR CHAIR

MESSAGE FROM OUR CEO

In years to come, we will be able to look back and say with immense pride that throughout the Covid-19 pandemic Help for Heroes provided uninterrupted care and support to veterans and their families. This huge feat is testimony to the great work and sacrifices of many people.

The pandemic has further highlighted the vital need for the work we do in several important ways. The NHS and social care providers continue to face unprecedented and overwhelming pressures.

Lockdowns and reduced access to healthcare professionals have hit those we serve particularly hard. Social isolation and the impact on mental health was a major concern for our community even before the pandemic. That’s why it was imperative we continued to offer people the lifelines of social contact and support.

In its first full year our Recovery College provided a rich range of education courses online, to equip people with the knowledge, understanding, tools and techniques to help them on their recovery journey.

The number of singers in our choir increased by one third in 2020/21 – just one of many great examples of how Help for Heroes offers veterans the chance to meet up with people who have been through similar situations. The importance of this cannot be over-stated.

As soon as we could get back out into the community safely in 2021, we did, offering people the chance to meet up with others with shared experiences, taking part in a wide range of activities from dragon boat racing and craft activities to wheelchair rugby and cookery courses – or simply for a cup of coffee and a chat with someone who ‘gets it’.

Our dedicated teams have the expertise and experience to understand the physical and mental health needs of veterans, as well as the uniqueness of this very special community.

People we serve have life-long, complex, and sometimes unpredictable needs; we will have to be there for many veterans and families for the rest of their lives.

Over the past couple of years, we have made some tough but necessary financial decisions to ensure our long-term sustainability. Unfortunately, some colleagues left Help for Heroes as part of a restructure. I would like to take this further opportunity to thank them for their hard work and dedication, and wish them well for the future.

We made changes to our operating model to ensure that finite funds are focused on expert professionals and clinical equipment to give people more independence and a better quality of life. These measures have helped, especially as we’ve endured 12 months of cancelled fundraising events.

However, we must be under no illusion, these remain difficult and uncertain times for charities. We await to see what further economic impact Covid-19 might have and how hard inflation will hit people’s ability to support charities.

The vast majority of our funding is due to the generosity of the UK public, businesses and our partners. Without this support we would not be able to carry out our work.

I was recently contacted by a colleague from another military charity. A veteran had told him that if it wasn’t for the support of Help for Heroes, he would have chosen to end his life. He urged us to keep doing what we’re doing. A powerful reminder of the importance of what we do and the difference we make.

Colleagues, volunteers and those who lead our Charity are fully on board with the importance of the cause we fight for. However, more needs to be done to ensure that even more people in Government and society as a whole share this appreciation. That is why we are gearing up our campaign work to fight for the rights of veterans and to raise even greater awareness of the issues they face every day.

Great steps have been made in this area, but there is more to be done. We will be relentless in our crusade to ensure Government fulfils its duty to those individuals who have been injured or fallen ill as a result of serving their country.

In 2021/22 we will launch our first ever policy and public affairs manifesto, with five demands we will be taking to the heart of Government.

One of those demands is for the Armed Forces Covenant to include public health and social affairs provision where it may affect veterans. The Covenant is designed to ensure that those who served our country are treated fairly. When enshrined in law, it should reflect or exceed its original intent. We want the public to get fully behind our manifesto launch and show decision makers the strength of admiration for our veterans, and the shared passion that injustices towards them must no longer be tolerated. We are confident they will.

With the help of our partners and supporters, our team of colleagues and volunteers have given so much in the past 12 months to fulfil our pledge to those we serve. We will not stop until our job is done.

The indomitable spirit of all those in the Help for Heroes family fills me with great pride and hope for the future.

Melanie Waters OBE Chief Executive Officer

MESSAGE FROM OUR CEO 3

RESHAPING RECOVERY

OUR AIMS FOR 2020/21 WERE:

Last year we restructured our Recovery Services to deliver more care and support in communities across the UK and online. The effects of Covid-19 led us to accelerate changes we had planned to make more gradually. However, this means we are now in a strong position to provide quality services throughout and beyond the pandemic, in ways that can reach more people than ever before.

We responded pragmatically to the impact that Covid-19 had on veterans, their families, and those who have worked

with UK Armed Forces. Our priority was to ensure ongoing and effective access to health and welfare support, as well as leisure activities and social opportunities, based on what people told us they needed.

We made preparations to resume in-person community activity as soon as was feasible and responsible, starting in England in April 2021. At the same time, we improved ways for veterans to use our services and engage with us online.

This approach meant we maintained uninterrupted provision of services to veterans during the pandemic. It has also provided greater choice for the people we serve and means that our service delivery structure is now more resilient and agile.

We redesigned our cost model, by re-directing money previously spent on buildings and estates to invest in experienced staff who deliver life-changing and life-saving services.

We were able to retain and, in some cases, grow our skilled and experienced specialist teams, who are essential when providing complex, and often long-term, rehabilitation and recovery for wounded veterans.

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We benchmark and align with external quality frameworks wherever possible, for example:

RESHAPING RECOVERY 5

TAKING REHABILITATION TO VETERANS

With significant investment from the Headley Court Charity, we scaled up our Clinical and Medical Services to provide advice and support in communities across the UK, in veterans’ homes and through online appointments. This became an even greater priority as veterans and families struggled to access the NHS, which faced severe pressure during the pandemic.

We are proud to have brought together a fantastic skill mix of veteran clinical advisors, community nurses and occupational therapists. Where necessary, veterans also have access to physiotherapy sessions. We recruited eight more Clinical and Medical Services colleagues in 2020/21.

We had 549 referrals for 429 veterans for community rehabilitation in the year and, with additional colleagues in post, we were able to bring caseloads down to more manageable numbers. Our health professionals offer a high standard of clinical support and use health coaching approaches to give veterans and families the knowledge, skills and confidence to become more active in their care, maximising personal well-being and overall health.

A total of 1,218 veterans were supported by the Clinical and Medical Services Team in 2020/21, and they described their health in the following ways:

had pain or discomfort

had problems doing everyday activities

were anxious or depressed

had problems walking

needed support for self-care

1,218 veterans supported by the Clinical and Medical Services Teams

WAR INJURIES CLINIC

We have worked hard and flexibly to continue to deliver the War Injuries Clinic, in collaboration with Salisbury Hospital. This work is supported by our Veterans Clinical Advisors. These registered nurses attend clinic in person or online, to work with veterans and in some cases their families. This enables people to get the most out of their time with their surgeon and local NHS team. For those who need repeat surgery over a long period of time, receiving continuity of care from our nurses and developing strong relationships with them, proves incredibly beneficial.

While UK Armed Forces have not been involved in a conflict on the scale of Afghanistan or Iraq in recent years, casualties from those operations will need care and treatment for the rest of their lives. In addition, there will be further casualties from humanitarian and disaster relief missions, as well as from training exercises. This has been demonstrated by repeat appointments at the War Injuries Clinic.

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1,143 people were supported by the Hidden Wounds team in 2020/21

SUPPORT FOR OUR VERY SERIOUSLY INJURED

The last financial year saw the conclusion of funding from LIBOR rate fixing fines, which allowed us to provide intensive care and rehabilitation to a cohort of Very Seriously Injured (VSI) veterans. We supported 22 people with these needs in 2020/21. We funded the appropriate equipment, therapies and care to help these veterans to remain as independent as possible, enabling an improved quality of life for them and their families. Care we provided or organised included physiotherapy, speech and language therapy, and access to dietitians. We also sourced specialist adaptive equipment such as wheelchairs, cough assistance machines and furniture, which is not always available for them through the NHS or statutory services.

Due to the nature of their injuries, the majority of this group have had to self-isolate during the pandemic. Therefore, it has been more important than ever to maintain contact and find creative solutions to help improve the quality of life for this group of veterans. We funded travel for one veteran to a remote part of Scotland so he could be cared for by his family. We provided electrical equipment including tablets and headsets with microphones, to enable a veteran to participate in valuable courses while self-isolating. We also provided access to courses on health, nutrition, mindfulness, physical exercise, adaptive training and

psychological support to all this group and their families, by phone and digitally.

Many people we support have or will develop other medical conditions due to their injuries. We are working hard to ensure we can deliver additional support according to clinical need, and funding for this will be vital.

HIDDEN WOUNDS SERVICE

The past year was tough psychologically for many veterans. The ongoing impact of the pandemic has made the existing problem of isolation worse for some people, and the dramatic scenes from Afghanistan caused a lot of distress.

In 2020/21, among new people seeking support from the Charity, a greater proportion of individuals asked for help for their psychological well-being than for any other area of need.

Hidden Wounds, the Charity’s mental health service, has been proactive and resilient during these challenging times.

For example, we invested in additional training for our team so they can provide the best possible support to people feeling the impact of psychological and physical trauma on their mental health and wellbeing. In total, the Hidden Wounds team supported 1,143 people in 2020/21.

RESHAPING RECOVERY 7

We also saw an increase in the complexity of psychological issues because people often had multiple needs across different areas of their lives. For example, as well as needing help with their mental health, people may have had issues with their physical health, pain, finances, and relationships. These needs often compounded one another and required the involvement of colleagues from across the Charity’s services.

We have a range of highly qualified mental health professionals who work collaboratively to provide the best blend of assessment and evidence-based treatment specifically tailored for each individual. The service employs a rich skill mix of psychological well-being practitioners, counsellors, psychotherapists and psychologists.

All our clinicians are working at full capacity, delivering individual psychological talking therapies, and psychoeducational groups through our Recovery College.

There is a waiting list of veterans, families and carers in need of our support. Waiting times for the Hidden Wounds Service were between two and eight weeks for individual psychological talking therapies through 2020/21. This compares to waits of between six and 24 months for veterans to see NHS psychological services, depending on regional variations.

During the summer of 2021, media coverage of the emergency withdrawal from Afghanistan triggered serious psychological problems for many veterans.

We worked with those who served in the UK Armed Forces with visible and hidden wounds from Afghanistan, and other conflicts, to support and guide them with tools to manage their well-being

Veterans and their families helped us tailor a version of a digital platform, called JustGo, for service users to book and manage their support activities. It was important for us that veterans were involved in a meaningful way in the launch of this platform so that it is helpful and accessible to as many people as possible.

In 2020/21 the team delivered more than 900 events. The events included: wheelchair rugby, virtual gettogethers, drop-in support sessions, surfing, diving, virtual sporting challenges, paddle boarding, kayaking, crafts and creative ventures, cycling, archery, multi-activity days, cultural visits, survival courses, cookery, webinars with guest speakers, digital education programmes, virtual training sessions, strength and conditioning work, book clubs, walking groups, photography, open water swimming, family days, model making, chair yoga and Pilates.

The team strives to ensure that activities are inclusive and adaptive to support all veterans with their health and physical needs.

900+ events were run by our Sport, Activity and Fellowship team in 2020/21

We expect there to be a significant mental health need in the future as a result of these events in Afghanistan.

We have been advocating best practice for mental health services for veterans. We continue to be involved in the Contact Group, which is a collaboration of charity, academic and professional organisations working to improve mental health support to the UK Armed Forces community. Through this, we were foundational influencers of the Royal College of Psychiatrists’ accreditation scheme for Veterans Mental Health Services in the UK, which was established in 2020.

SPORT[,] ACTIVITY AND FELLOWSHIP

This year saw the creation of Sport, Activity and Fellowship as one team, bringing together the very best of the Charity’s offerings around sport recovery, peer support and activities that promote long-term positive health and well-being. We have a regional delivery structure for these services across the four nations.

The wide range of supportive and adaptive activities are designed to help veterans and their families return to sport, engage in physical activity, and connect with like-minded people. Depending on individual needs, we can provide one-to-one bespoke interventions or larger mutual support groups.

As family members play a key role in veterans’ recovery, we also offer joint and ‘loved ones only’ social support opportunities.

8 RESHAPING RECOVERY

We launched a trial of our new Coaching Academy in 2020/21, which was open to 15 veterans who had been injured in service.

This is a great life skill and qualification for people to achieve. Sports coaches make a difference by helping individuals learn new skills, become and stay active, build confidence and connect with others. Initially, this is a one-year sports coaching development programme in partnership with UK Coaching. Pending evaluation of impact and with necessary funding, we aspire to extend the initiative to a greater number of people in the future.

We’ve enjoyed seeing people return to our face-to-face activities.

John, who served as an infantry soldier for 34 years, and his partner Claire took to the water at one of our activity events after thinking they’d never be able to sail together again.

John has multiple sclerosis and is now struggling to use his hands. He said: “People take the simplest things for granted, being able to stand, talking to people face to face, a proper hug. Help for Heroes came along and I can do all those things again. We both love sailing so to be in a dinghy together on the lake was awesome. There was also great camaraderie just being with other veterans again. After all we’ve been through this past year it’s given me a real boost and I can’t wait for the next event.”

The Help for Heroes Choir increased its active membership by one third this year, from 47 to 62.

Our Choir also provides mutual support beyond the singing experience, for example during the lockdowns, they ran quiz nights, ukulele groups, cook-along classes, and breathing for relaxation sessions.

Of the 45 members of our choir who replied to a survey during 2020/21, which asked them how they felt throughout the year, 47 per cent said that they maintained their optimism about the future and a further 27 per cent felt more optimistic about the future.

RESHAPING RECOVERY 9

8,200 views of our online self-help guides

RECOVERY COLLEGE

Our Recovery College creates knowledge and understanding for veterans and family members, either through structured online courses with our facilitators, or by people working through our self-help guides.

Topics include nutrition, sleep, managing anxiety, and setting achievable and realistic goals as part of someone’s recovery journey.

In 2020, we prioritised transforming face-to-face course content into engaging digital formats. This included up-skilling colleagues to deliver live sessions in a virtual world.

We added six new facilitated virtual courses, which veterans and family members had a crucial role in designing. This took our total number of courses to 14. Across the year we delivered 11 of these courses, and on average each was delivered five times. A total of 124 students attended courses.

Our online self-help guides attracted 8,200 website views, a higher number than anticipated.

This is good progress, and we are working closely with veterans who are engaged with all our services to encourage people to complete the most relevant courses at the most appropriate points in their recovery journey.

Collaboration is at the heart

of the Recovery College model. Veterans and family members help to produce content to make sure it is as accessible, relevant and helpful as possible. We also work with external organisations with specialist expertise. For example, with St James’s Place Wealth Management on the Financial Well-being – Taking Back Control course; and the British Tinnitus Association on the Tinnitus and Hearing Loss course.

In 2020/21, 93 per cent of veterans and families who took part in at least one course and completed an evaluation questionnaire, reported that taking part in a course or multiple courses had helped improve their knowledge and understanding to manage their well-being.

CASE MANAGEMENT

We formally introduced Case Management to our service delivery in February 2021. Case management practice now sits at the heart of our Recovery Services to increase the likelihood that veterans and families will achieve measurable progress and sustained positive outcomes.

Over 1,100 people were supported by a Help for Heroes Case Manager in 2020/21. A Case Manager is the main point of contact for a veteran who needs support in relation to more than one area of their health and welfare, or if their needs are complex. Having this overview improves co-ordination and communication between services within the Charity.

The Case Manager works with the veteran and their family to form a realistic action plan and monitor its progress. This provides a personalised approach so that we best understand a veteran’s needs, and commit to identifying, valuing, and building on, existing strengths during their recovery. This is dependent on building solid relationships based on collaboration and trust.

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£414K in Grants supporting 193 individuals

One of the main concerns of veterans of the Afghanistan conflict was for the safety of people they worked alongside.

We are proud that since 2016, Help for Heroes has been supporting Afghan interpreters who came to the UK and who experienced injury, disability and ill health associated with their time working alongside UK Armed Forces. In 2020/21 we worked with 21 Afghan interpreters. Even before the emergency withdrawal from Afghanistan in August 2021, the number of requests for support had steadily increased in the year.

GRANT FUNDING

Integral to our support offering is Grant funding. This provides essential financial support to veterans and their families in response to welfare and medical well-being needs, including specialist equipment and adaptations, such as to the home or car, to support Recovery goals and improve quality of life. During 2020/21, like other grant funders in the sector, we experienced around 30 per cent fewer requests for support, while also observing a growth in more complex requirements.

In 2020/21 payments totalling £414,000 were paid to 193 individuals, through 281 Grants. An example of a grant we provided for a veteran in 2020/21 was £200 for food. This case was categorised as addressing an immediate and priority welfare for this veteran and his family. He later told our Grants team: “I’ve started my new job and it seems to be going well. I think I’ll be fine from now on. The financial support Help for Heroes provided was invaluable. I am very appreciative of the support.”

OUR AIMS FOR 2021/22 ARE TO:

For more examples of some of the veterans and family members we supported in 2020/21, and the difference our work made, see our Impact Report 2020/21.

RESHAPING RECOVERY 11

CHAMPIONING THE WOUNDED

OUR 2020/21 AIMS WERE TO:

ADDRESSING POLICY GAPS

We continue to campaign relentlessly to bring to light veterans’ needs that are not being met by the Government, the NHS and other statutory bodies. We also work to gain increased public support for our veterans, and raise awareness of disability, mental health and other societal issues affecting our Armed Forces community.

We regularly contribute to Government reviews, Parliamentary Committee inquiries, and respond to a wide variety of consultations. We also work in partnership with other organisations to ensure that the needs of wounded veterans and their families are heard as loudly and as clearly as possible.

Progress is being made and we remain actively engaged with the Office for Veterans’ Affairs (OVA), the Ministry of Defence, and relevant NHS departments to address vital gaps in care provision for wounded veterans and their families. However, demand for our services remains high, and the impact of the Covid-19 pandemic and the withdrawal of troops from Afghanistan further highlights that critical and complex needs remain unmet.

Many of our wounded need long-term care and support. We must continue to champion those needs to bring about the necessary systemic changes that will allow our veterans and their families to live happy and fulfilled lives.

In 2020/21 we focused our attentions where there are pronounced gaps in the provision of care and support, and where change will be most impactful.

We want all veterans to have access to the best possible care and ongoing specialist rehabilitation treatment, which is currently only available at the point of injury and to serving personnel. That’s why last year we established a multi-agency working group to identify gaps in provision and to start addressing them. We are now working closely with the Government, NHS England and NHS Improvement to identify and improve pathways of care for those with complex rehabilitation needs, and to create consistency across the UK.

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“It is the Government’s duty to do right by the people who have given their service to this country.”

“ Many veterans don’t ask for much, are fiercely independent, and too often put up with the disadvantages their circumstances leave them with as a result of their service. There is already a great disparity in the health and social care provision available to them, and a lack of understanding of pathways and organisations with the right skills and expertise to support, in some cases, complex needs.

“ What is currently proposed is a hollow shadow of the Veterans Pledge, and if it is not fully realised then that feels like a betrayal. There is a chance now to level up the playing field and give our veterans the care they deserve.”

David, veteran

We are calling for the Veterans Mobility Fund (VMF) to be reinstated. This was a £3 million, five-year commitment from HM Treasury created in 2015, using income generated from LIBOR rate fixing fines. This money paid for specialist and high-specification mobility equipment for veterans who have been seriously physically injured during service. Mobility issues are among the biggest challenges faced by our injured veterans.[1]

Up until the funding ended in February 2021, the VMF had supported 219 veterans through 275 separate awards. However, based on our projections with our partners Blesma, The Limbless Veterans charity, we estimate that an additional 400 separate awards will be needed over the next five years, due to the severity and complexity of veterans’ needs. The Government is yet to commit to any continuation of the programme. It is unsustainable for the Government to expect military charities to continue to pick up the cost of life-changing mobility equipment, as they have been since the Fund closed.

We have submitted a business case to HM Treasury and the OVA, outlining why and how we think the Government should continue the VMF.

Following our Veterans Pledge campaign in 2019, the Prime Minister promised to enshrine the Armed Forces Covenant into law. The Covenant is a promise by the nation to ensure that those who serve or have served in the Armed Forces, and their families, are treated fairly. The Armed Forces Bill is currently being considered by the UK Parliament and, while we welcome the fact that it creates a new legal duty for public bodies to consider the Covenant, the legislation needs to go further. This year, we have been working with others in the sector to call for the

scope of the legislation to be widened, for it to apply to national and local government and to include provision for enforcement, evaluation and review.

Other causes we continue to champion include calling on the Government to address gaps in care and improve procedures when people are medically discharged from the Armed Forces.

VETERANS’ VOICES

To effectively champion the needs of those we support and ensure our services make a difference, it is essential that veterans and families have a voice. Having learned from our first extensive survey in 2019/20, we ran an even larger survey in 2020/21 to ask veterans, serving personnel, families and carers to tell us about their health and well-being, ambitions, concerns, and experiences of accessing support[2] . Veterans and family members helped develop the survey questions to make sure they were relevant, inclusive and accessible.

We had 2,540 responses to our 2021 survey, of which 82 per cent were from veterans, four per cent were from serving personnel and 13 per cent were from families, friends and carers.

CHAMPIONING THE WOUNDED 13

KEY FINDINGS OF THE 2021 VETERANS AND FAMILIES SURVEY

The survey also revealed that more than half of families, friends and carers would like to be better able to recognise the signs that a loved one is struggling with their mental health and know how to encourage them to seek support. This aligns with work we are doing in 2021/22 to raise awareness about the increased risk some veterans are at from suicide, and to provide suicide prevention training to families and friends.

We secured widespread national and regional media coverage of these statistics, to demonstrate the issues faced by veterans and their families, and the need for ongoing support. We are also using the survey results to help inform our service development and planning.

1 Ministry of Defence Medical discharges among UK service personnel statistics, financial year 2020/21: https://assets.publishing.service. gov.uk/government/uploads/system/uploads/attachment_data/file/1001267/UK_service_personnel_medical_discharges__financial_ year_2020_21.pdf

2 2,201 veterans and serving personnel and 339 family members, friends and carers responded to a survey conducted by Help for Heroes from 3–18 June 2021 sent to over 15,000 wounded, injured and sick veterans, serving personnel and family members, and open to the wider veteran community via social media channels and partner communications, to understand their support needs.

3 Of the 2,540 survey responses, 1,741 were from veterans and serving personnel with self-declared long-term health conditions, defined as those that create an impairment or illness that has a substantial effect on a person’s ability to do normal daily activities.

4 Of the 2,540 survey responses, 339 were from family, friends and carers of veterans and serving personnel.

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STILL OUR HEROES

We are proud of our proactive and agile response to the withdrawal of UK Armed Forces from Afghanistan in the summer of 2021. We briefed the media and our spokespeople took to the airwaves to comment on how the situation was affecting veterans; we developed media guidelines to promote sensitive reporting; and shared well-being tips to support veterans. This was alongside additional work our mental health services did with veterans.

We launched a public campaign, #StillOurHeroes, to show our veterans that their service is valued. This was referenced in the national media and promoted by highprofile celebrities and politicians. Our understanding, positioning and compassion on this sensitive news story meant we were regularly called on by the media for comment.

Former RAF officer, Michelle, who served in three tours of Afghanistan with the medical emergency response team said:

“ It was very important to know that Help for Heroes was saying to the media ‘please be careful with how you report this story’.”

CHAMPIONING THE WOUNDED 15

STRONG MADE STRONGER

We rely on the UK public, businesses, and our partners for the vast majority of our funding. Therefore, we must ensure that the public is aware of the needs of veterans and their families, and understand the difference Help for Heroes support makes.

In 2020, we launched our Strong Made Stronger campaign to highlight the strength it takes to live life beyond injury and illness.

This brings to light the daily battles our veterans face, the strength it takes to overcome them, and the invaluable role Help for Heroes plays in their recovery journey, by giving them the physical and mental health support they need, for as long as they need it.

With the support of the public and our partners, we will fight to make sure veterans get treated fairly and have the assistance, care and support they need to overcome their daily battles and thrive.

DEREK AND ANA’S STORY

Derek was serving in Afghanistan in 2007 when his vehicle hit a roadside bomb. When he awoke from a coma nine days later, he knew that life for him and his wife Ana had changed forever.

“I grew up in a Fijian village, hearing stories about heroic Fijians who had joined the British Armed Forces. It is what inspired me to join.

“Although adjusting to UK life wasn’t easy, especially the weather, I really enjoyed my time in the military and I visited a lot of places.

“It was my second tour of Afghanistan in 2007 that changed everything. The vehicle I was in went over an improvised explosive device. It ripped our Land Rover apart and it took both my legs with it.

“I vividly remember seeing my shattered legs whilst lying motionless on a bed of rocks, after I had been thrown from the vehicle during the massive explosion. But the impact didn’t really hit me until I awoke from a coma, nine days

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later. I saw my wife, Ana, standing by my bed and I asked her what she was doing there. I thought I was still in Afghanistan. Ana showed me a picture of myself lying in the hospital bed, without my legs.

“It sounds awkward, but what really got to me was asking to use the toilet and being told I couldn’t. I remember staring at the ceiling and trying so hard to hold back my emotions and be strong.

“Adjusting to life without my legs was difficult and very traumatic for both of us. I was told I’d be in a wheelchair for the rest of my life, that I’d never walk again.

“When I stood on my bare stumps for the first time, a month later, it was a huge moment for me. To get to that point was all thanks to the medics and the physios and I knew at that point that I would walk again. And that’s where Help for Heroes came in. They got me involved in sport as part of my rehabilitation, and they even funded the prosthetic legs that took me to the London 2012 Paralympics. Competing at the Games was one of the proudest moments of my life.

“I’ve had so many opportunities through Help for Heroes. Ana and I have met some wonderful people through the Band of Brothers and Sisters Fellowship groups, other injured veterans and their families. We share experiences and learn from one another.

“Even after 14 years, I still suffer with phantom limb pain. My prosthetic leg sockets can cause blisters on my stumps, and I suffer with lower back pain, as having artificial limbs affects my posture. I still suffer with mental trauma too – I have post-traumatic stress disorder and I still experience flashbacks. And sometimes my injury stops

me from doing the simplest of things, like visiting family and friends – something we loved to do before.

“Life has changed so much, but all the support we’ve had has had such a positive impact and we will be forever thankful for that. It hasn’t just helped me physically, it has helped both of us mentally too, to adapt and to overcome any challenges that come our way. Help for Heroes and its amazing supporters, alongside all the wonderful support we’ve had from family and friends, have made that happen. They have such a special place in our hearts.”

OUR AIMS FOR 2021/22 ARE TO:

CHAMPIONING THE WOUNDED 17

FUNDING THE CAUSE

OUR AIMS FOR 2020/21 WERE TO:

The pandemic had a huge impact on the Charity’s fundraising efforts. We are immensely grateful to all our partners and supporters during this difficult time. Our experiences in 2020/21 reinforced the need to diversify our income profile, so we can continue supporting veterans and their loved ones.

We rely on the generosity of the UK public for over 90 per cent of our income. With the majority of planned face-toface fundraising events in 2020/21 cancelled or postponed, we had to be innovative in how we raised funds. We tested different ways to inspire supporters, and we will be building on some encouraging successes in the coming year.

We launched an urgent fundraising appeal in October 2020 and the response was overwhelming. We received donations of more than £150,000.

Regular Giving remains crucial, and income from this funding stream was stable during the year, reflecting the loyalty of individual donors, many of whom have supported the Charity for several years.

Gifts left in people’s wills contributed over half of the Charity’s income in 2020/21 and we remain reliant upon legacies until other income streams recover from the effects of pandemic, and new income streams build.

Our Trusts and Foundations team had a successful year developing new relationships with potential funders and building on existing partnerships.

Reacting to the changing recovery needs of veterans and their families, we secured various grants restricted to specific projects. This includes a grant from NHS England to support our Hidden Wounds Service to help veterans with their mental health.

We also received significant multi-year grants from the Armed Forces Covenant Fund Trust, including a two-year grant of £70,000 from the Tackling Loneliness programme. This will enable us to establish community hubs to tackle social isolation among veterans and their families in North and Mid Wales, where geographical remoteness adds another dimension on top of physical injuries, poor health, and the pandemic. In addition, we secured a two-year grant of £300,000 to develop a suicide awareness and prevention training programme, which will empower families and peers to help save the lives of veterans at risk of suicide.

Since the Charity was founded, we have secured the long-standing support of various trusts and foundations. In 2020/21 these donors continued to support us despite the financial uncertainty and many challenges caused by the pandemic. It is due to the strength of these relationships that we have been able to continue to meet our financial targets as well as embed the community and digital delivery of our Recovery Services.

IN GOOD COMPANY

Our Partnerships Team nurtured and grew our existing partnerships and developed exciting new ones. Moto in the Community (MITC), our largest corporate partner, raised £100,000, bringing the total raised over the course of the partnership to £2.9 million. We also celebrated our 10-year anniversary with our partner Cotton Traders.

18 FUNDING THE CAUSE

We continued to work in partnership with The Royal British Legion and Ministry of Defence to deliver the Invictus UK programme. The 2021 Invictus Games were postponed to 2022 because of the pandemic, and BAE Systems, our presenting partner of Invictus UK, kindly funded additional virtual training for the Invictus UK team.

Help for Heroes was a beneficiary of the ICAP Charity Day in December 2020. ICAP’s donation enabled us to fund three psychological well-being practitioners in the south of England for the year.

We developed a new commercial relationship with Aqua Pura (Roxane UK), from which we received proceeds through the sale of multipacks of water, raising £30,000.

The team has been building a partnerships portfolio within the gaming industry. A highlight was in November 2020 when we partnered with World of Warships for a Remembrance Day Charity Bundle set. Gamers could purchase exclusive in-game items, including a Remembrance flag and patch. A total of £33,373 was raised across 70 countries, including the UK, Germany, Australia and Canada.

A new partnership with watchmakers Dartmouth Brands was marked with the launch of a range of six watches that represent UK Armed Forces. Each watch tells a moving story of recovery from a veteran. Since their launch on 11 November 2020, five of the range of watches have sold out. Once all have been sold, the partnership will have raised £25,000 for Help for Heroes.

In March 2021, Harry Ramsden’s, along with its parent company, Deep Blue Restaurants, pledged to aim to raise £25,000 for us. In addition, Deep Blue Restaurants and Harry Ramsden’s are donating 15p from the sale of every haddock product, which are know as the ‘Home Comforts’ range.

Our commitment to improving the efficiency and effectiveness of our fundraising has created a sustainable portfolio of fundraising products able to drive widespread grassroots engagement. Despite the devastating impact the pandemic has had on community and events fundraising, our supporters and volunteers continue to demonstrate their commitment to supporting veterans and their loved ones. We are incredibly grateful for their continued energy and dedication.

The future is financially uncertain for charities and therefore it is paramount that we establish new secure funding streams and protect existing ones.

One of the dedicated friends we received a legacy gift from last year was Ursula, who sadly died aged 96.

Having survived the Allied bombing of Berlin and being held captive by Soviet troops during World War II, Ursula knew the horrors of war only too well.

It was in the aftermath of the war, in the autumn of 1945, that 21-year-old Ursula met Sgt William Bain of the Royal Signals. Ursula couldn’t speak a word of English but, aided by a German-English dictionary, she and William soon became friends and married in 1948.

Ursula accompanied William on postings to Hong Kong, Scotland, Northern Ireland, Singapore and Catterick, where she volunteered in the Garrison thrift shop. Ursula loved the North Yorkshire countryside and it was there she settled after William died.

An Army wife to the end, and understanding the heavy price paid by those who serve, Ursula kindly left a gift in her will to help her Armed Forces family one last time.

Ursula’s friend and executor, David Walker, told us: “Help for Heroes was very close to Ursula’s heart. I know she’d want us to do whatever we can to support the charity.”

OUR AIMS FOR 2021/22 ARE TO:

FUNDING THE CAUSE 19

TRADING

OUR AIMS FOR 2020/21 WERE TO:

In 2020/21 the Help for Heroes Trading arm delivered strong sales from new and existing customers. A combination of successfully demonstrating the ongoing critical need to support veterans and an attractive product offer helped us achieve higher-than-expected profits, up considerably on the previous year.

In a year when the wider retail industry was adversely affected by the pandemic and national and global supply chain problems, we converted an increase in website visitors into sales.

The performance in the run up to Christmas was strong, particularly sales of Christmas cards.

We were insulated from initial global supply chain problems thanks to our strong link to UK suppliers. However, throughout the year we experienced supply issues along with many other UK retailers.

With a new On Demand print option at our disposal, we widened our offer with a kids’ clothing collection, a wider women’s range, and we tested more men’s clothing lines. We capitalised on the requirement for face masks to be worn, with strong sales of Help for Heroes face masks. We were also pleased with sales of new lines in stationery, phone covers and bags.

Other product areas were tested throughout the year to inform our future product strategy.

We carefully managed product cost and selling prices to maximise product margins and protect ourselves against raw material price rises.

Our website improvements led to an increase in our average order values and ratio of site visitors to sales. We aimed to reduce friction points and to enhance the user experience across all devices.

Through our website and retail marketing channels we echoed the Charity’s marketing campaign Strong Made Stronger, highlighting the need of our beneficiaries now and in the future. We showcased the people we support proudly wearing our clothing and telling their personal stories to our customers, under the banner ‘Inspired by Heroes’.

20 TRADING

We continue to work with veterans who use art as part of their recovery. Their artwork featured on clothing, accessories and Christmas cards. These products are shown under the banner ‘Designed by Heroes’.

This year we expanded our range of products from businesses run by veterans. This has been developed as ‘Veteran Ventures’. We are pleased to show how veterans have moved on after their service, and we are proud to support their businesses by selling their products in our online shop.

Customers donated generously at the checkout stage. We also made amendments to our stewardship journey, so that after customers donated we could tell them how their money would help veterans.

During the year we secured a new licensing agreement which we hope will lead to new products in stores in 2022. This was as part of our strategy to secure new retail and commercial income.

OUR AIMS FOR 2021/22 ARE TO:

TRADING 21

OUR RESPONSIBILITY

We take our responsibility to deliver on our promise seriously, by raising sufficient funds and using resources wisely.

PUBLIC BENEFIT STATEMENT

Help for Heroes (the Charity) works to provide practical, direct support for those physically or psychologically wounded while serving in the UK Armed Forces. The Trustees have considered the Charity Commission’s general guidance on public benefit and have taken it into account when reviewing the Charity’s aims and objectives and in planning its future activities. The Trustees are satisfied that the aims of the Charity are carried out wholly in pursuit of its charitable aims for the public benefit. The Trustees consider the activities as described on pages 4 to 21 clearly demonstrate the public benefit provided by the Charity.

OUR CHARITABLE OBJECTS

Our charitable objects remain unchanged, these are:

  1. To assist persons who are currently serving or who have served in the Armed Forces, and their dependants, by advancing any lawful charitable purpose at the discretion of the Trustees and in particular but not exclusively:

  2. To promote and protect the health of those who have been wounded or injured while serving in the Armed Forces through the provision of facilities, equipment or services for their rehabilitation; and

  3. To make grants to other charities who assist members of the Armed Forces and their dependants.

  4. To promote and protect the health of those that have been wounded or injured while providing services to, or in conjunction with, and in either case under the direction of the Commander* of the Armed Forces, in an area of conflict or war and to provide benefits to the dependants of such persons who are in need.

  5. The Commander of Her Majesty’s Armed Forces, or, where relevant, of any allied military body to whom Her Majesty’s Armed Forces is subject during combined operations.

OUR FOUNDERS

Help for Heroes was founded in 2007 by Bryn Parry OBE and Emma Parry OBE with one objective: to help those who put their lives on the line for us by joining our Armed Forces.

In the years that followed, and thanks to the couple’s drive and commitment, Help For Heroes grew. To date, more than 26,745* individuals have received help to recover from physical and psychological wounds and get on with their lives. The couple stepped down in November 2016, passing the baton to Melanie Waters, former Chief Executive of The Poppy Factory and our current CEO.

*as of 30 September 2021

22 OUR PRIORITIES

OUR STRUCTURE, GOVERNANCE AND MANAGEMENT

Help for Heroes was incorporated on 6 September 2007, registered with the Charity Commission on 20 September 2007 and launched on 1 October 2007.

GOVERNANCE STRUCTURE

We currently have a board of eight Trustees, all of whom are members of the Charity. The Board met six times in the financial year. All sessions are minuted.

The Trustees, who are also directors under company law, who served during the year ending 30 September 2021 and up to the date of this report were as follows:

Professor Veronica Hope Hailey, BA, MSc, Ph.D., MCIPD (resigned 1 January 2021)

Nigel Boardman (Chairman) Charles Donald CDipAF

Shirley Cramer CBE (appointed 10 March 2022)

Clive Warner FCA

Major General (retd) David Hook CBE Royal Marines (resigned 18 November 2020)

Professor Nicola Fear (appointed 1 April 2022)

Adam Brooks OBE MBA FRCS (appointed 1 April 2022)

Liz Rylatt

All Trustees are unremunerated.

Manroop Khela (resigned 31 December 2021)

As well as regular full Trustee Board meetings, the Trustee Committees that met during the year were:

Oliver Gregson (resigned 31 January 2022)

– Nominations – Audit and Risk – Finance and Investment

Philip Yates (Vice Chairman from 2 September 2020)

The Nominations Committee is responsible, amongst other things, for recruiting new Trustees and making board appointments. One of its aims is to ensure a broad mix of skills and backgrounds and, as a minimum, the board would include representation from the Armed Forces community and the professions.

Robert Watsham (resigned 10 December 2020)

Roderick Dunn MB DS DMCC FRCS (resigned 19 November 2020)

Stuart Bell CBE

New Trustees go through a period of induction and training, managed by the Head of Risk and Compliance, as part of the wider ongoing programme of Trustee briefings and development. The Board undertake regular assessments against the Charity Governance Code to develop high standards of governance.

Thomas Wright (resigned 10 December 2020)

Tony Schofield (resigned 23 November 2020)

MANAGEMENT STRUCTURE

The day-to-day management of the Group is conducted by the Executive Team under authority delegated to it by the Board of Trustees.

During the financial year 1 October 2020 to 30 September 2021, our Executive Team, which meets weekly, consisted of the Chief Executive and Directors:

The pay policy for Help for Heroes is approved by the Nominations Committee and applies to all colleagues, including the Executive Team. In setting overall pay levels for colleagues we take into account data from organisations of similar status to Help for Heroes. Reviews of the policy are approved by the Nominations Committee.

Chief Executive Officer Melanie Waters OBE

Marketing, Communications and Public Affairs Director Beth Miles

Chief Financial Officer Polly McGivern FCA

Chief Operating Officer

James Needham

Services Director

Lis Skeet

Interim Commercial Director

Marion Rose (from 4 October 2020 to 2 July 2021)

OUR PRIORITIES 23

LEGAL AND ADMINISTRATIVE DETAILS

GROUP STRUCTURE AND SUBSIDIARIES

Help for Heroes Recovery

Help for Heroes Recovery is registered in England and Wales as a charity, number 1143004, and as a company limited by guarantee, number 07647921. Help for Heroes Recovery was not active in the year.

Help for Heroes Trading Limited

Help for Heroes Trading Limited is registered in England and Wales as a private limited company, number 06380957.

The sale of merchandise and the licencing of our brand continue to be key focuses. The main aim of these activities is to provide income to Help for Heroes (the parent Charity), as well as raise awareness of its activities.

Help for Heroes Development Company Limited

Help for Heroes Development Company Limited is registered in England and Wales as a private limited company, number 07464349. The company was not active in the year.

Charity Status

Help for Heroes is a public benefit entity, registered in England and Wales as a charity, number 1120920 and as a company limited by guarantee, number 06363256. Help for Heroes is also registered as a charity in Scotland, number SC044984. The Charity has no maximum permitted membership and membership is open to any individual interested in promoting the objects of the Charity. There are currently eight members, all of whom are Trustees. Each member guarantees to contribute up to one pound sterling (£1) to the Charity’s debts, liabilities and costs in the event of the Charity being wound up and for one year after ceasing to be a member. Help for Heroes is governed by its Memorandum and Articles of Association. The Annual Report is filed with the Charities Commission, Companies House and the Office of the Scottish Charity Regulator.

Registered Office

14 Parkers Close, Downton Business Centre, Salisbury, Wiltshire SP5 3RB

Company Secretary

Wilsons (Company Secretaries) Limited, Alexandra House, St John’s Street, Salisbury, Wiltshire SP1 2SB

Bankers

Barclays Bank PLC, 1 Churchill Place, London E14 5HP

HSBC, 8 Canada Square, London, E14 5HQ

Lloyds Bank PLC, 25 Gresham Street, London EC2V 7HN

Nationwide, Nationwide House, Pipers Way, Swindon, SN38 1NW

Santander UK PLC, 2 Triton Square, Regent’s Place, London NW1 3AN

Investment Fund Managers

Ruffer LLP, 80 Victoria Street, London SW1E 5JL

Veritas Investment Management LLP, 90 Long Acre, London WC2E 9RA

CCLA, Senator House, 85 Queen Victoria St, London EC4V 4ET

Solicitors

Wilsons Solicitors LLP, Alexandra House, St John’s Street, Salisbury, Wiltshire SP1 2SB

Auditor

BmyHero Limited

BmyHero Limited is registered in England and Wales as a private limited company, number 07192143. The company was not active in the year.

Crowe U.K. LLP, 55 Ludgate Hill, London EC4M 7JW

All subsidiary companies donate all distributable profits to Help for Heroes.

24 OUR PRIORITIES

POLICIES AND DISCLOSURES

RESERVES POLICY

Reserves are held to make sure we can deliver on our promises to our wounded and their loved ones. It would be wrong to promise long- term support if we were not certain we could provide it. The Trustees have considered the guidance issued by the Charity Commission: CC19 Building Resilience and the requirements of the Charities SORP (FRS 102) when considering the reserves policy below.

It is essential to appreciate that a significant proportion of our funds are held in the form of the building of the purpose-built recovery centres. These funds, which includes our fixed assets, including our recovery centres, are not realisable as cash reserves to support any day-to-day running costs.

Against the financial backdrop of falling income in recent years and an unpredictable external environment, Trustees continue to assess how much of our reserves should be spent and how much should be retained. An analysis of our funds is shown in the table below.

----- Start of picture text -----
2021 2020
£’000 £’000
Restricted funds 5,245 5,775
Designated funds
Fixed Assets (including recovery centres) 15,100 36,357
Capital Fund 6,500 6,500
-
Urgent Response Fund 2,000
Recovery Fund (two years’ running costs) 17,000 16,000
Total designated funds 40,600 58,857
General funds 22,232 17,490
Total funds 68,077 82,122
----- End of picture text -----

RESTRICTED FUNDS

Donations, legacies and grants received where the donor has specified that the monies should be used for a specific purpose (e.g. a specific area of recovery).

At 30 September 2021 the restricted fund was £5.2 million. It is intended to spend down restricted fund balances within five years. As these funds are required to be spent on specific parts of our activities, and so are not freely available to support all our objectives, they are excluded in determining our reserves.

DESIGNATED FUNDS

Fixed Assets

Representing the value invested in the Help for Heroes recovery centres and other fixed assets. These assets cannot be sold on the open market and were developed by Help for Heroes as part of our recovery delivery for wounded serving personnel, veterans and their loved ones, working with the MOD. As the value of this fund is made up of fixed assets used for the delivery of our activities, this fund is not included in the calculation of our reserves. At 30 September 2021 the designated Fixed Asset Fund was £15.1 million.

Capital Fund

Funds needed to meet future major repair and maintenance projects (expected to be incurred within the next 10 years), plus one to two years’ forward capital spend.

At 30 September 2021 the designated Capital Fund was £6.5 million. Most of this fund is expected to be held for more than three years and, as this fund is set aside for future capital and maintenance projects, the fund has been excluded when determining the level of reserves held.

OUR PRIORITIES 25

Recovery Fund

This fund is set at two years’ running costs for our recovery service delivery. This is to ensure that, should we no longer have the income to run our recovery services, we can continue to provide recovery support to our beneficiaries whilst we look to transfer our services to other providers.

At 30 September 2021 the Recovery Fund was £17 million. Although the Trustees consider the Recovery Fund to be part of Help for Heroes reserves, we believe that this fund should be ring-fenced to ensure that we would never be in a position where we would be forced to rush closure of our recovery activities, as this would cause our beneficiaries to be unable to obtain the support they need.

Urgent Response Fund

This fund has been established to ensure we have funds available to support emerging and urgent issues as they arise . The events in Afghanistan in the summer of 2021, and the ongoing uncertainty globally highlighted that there will be times when we need to act quickly to respond to emerging needs. This fund will ensure that we have money set aside to be able to respond quickly to the changing needs of our beneficiaries. Funds totalling £2 million have been designated to the Urgent Response Fund.

Although the Trustees consider the Urgent Response Fund to be part of Help for Heroes reserves, we believe that this fund should be ring-fenced to ensure that we are able to support urgent needs as they arise.

GENERAL FUNDS

Given the impact of Covid-19 and the restructure of the charity, the Trustees reviewed the level of general funds it thought appropriate to hold during the 2019/20 financial year. Following that review it was decided that the general funds should be held at a level that would support 12 to 24 months of non-recovery running costs to help maintain our stability as a charity. This was considered again in 2020/21 and it was agreed that given the ongoing impact of Covid-19, and the uncertain economic situation in the UK, it was appropriate to retain reserves at a level between 12 to 24 months of non-recovery running costs. This will ensure that in the event that income remains significantly lower than in previous years or our running costs increase (due to rising costs, inflation and increasing wages) we can meet the costs of fundraising and essential support, such as IT, Governance, Finance and Communication, during that period. Should this position not be reversible in that period, we would look to utilise our Recovery Fund to ensure we can continue to meet the costs of delivering our essential recovery services to our beneficiaries whilst we look to transfer our services to another provider.

Based on the above parameters, this general fund is expected to be between £10.4 million and £20.8 million. The balance in the General Fund and Help for Heroes reserve level (excluding the Recovery Fund and Urgent Response Fund) was £22.2 million at 30 September 2021, which was above that range. This is mostly due to the fact that our investments have performed better than we originally forecast. This allows us to consider how we can re-invest into recovery activities in subsequent financial years and return reserves to within the range Trustees have agreed.

FUTURE RESERVE LEVELS

At 30 September 2021 our reserves are above the range the Trustees consider to be optimal for Help for Heroes.

The Trustees are continually monitoring the plans and performance of the Charity to assess the continuing impact of Covid-19 and making adjustments, where necessary, to ensure reserves will return to the target level.

The Trustees will be reviewing the strategy of the Charity during 2021/22, this will lead to a new five-year business plan. It is likely this will impact our reserves by identifying areas for investment, innovation and development across the Charity to enable us to increase our support for veterans and their families. We aim to keep our reserves within the parameters set by Trustees.

26 OUR PRIORITIES

INVESTMENT POLICY

The amount held in investments and the type of investments is reviewed by Trustees in line with the reserves policy and anticipated expenditure.

Our ethical investment policy requires that investments held must be sensitive to the cause of the Charity that provides care and support for wounded British military personnel. Investments should not be held in any company or country whose intentions are contrary to those of such a charity.

A review of investment managers commenced in the 2019/20 financial year and has concluded following a tender process in the 2020/21 financial year.

Following the review it was agreed that it was now appropriate to take a less conservative approach to risk and capital preservation. The previous three year benchmark of Retail Price Index (RPI) + 1 per cent was increased to Consumer Price Index (CPI) + 3 per cent annualised over a five-year period, net of all fees.

Following the review, a decision was made to retain Veritas Investment Management Limited and to appoint CCLA. Investments previously managed by Ruffer LLP were sold and the funds transferred to CCLA. Further funds were also released from cash at bank and invested during the year.

The portfolio held by Veritas showed a total return net of fees of 11.6 per cent in the year to 30 September 2021 and 41.9 per cent over the last five years. UK CPI + 3 per cent was 5.9 per cent and 27 per cent in those periods respectively.

Funds were transferred to CCLA during the year and have not yet been held by them for a full year. However, in the period since inception to 30 September 2021 our portfolio managed by CCLA increased in value by 9.7 per cent.

RISK MANAGEMENT

The Executive Team review the Group Risk Register on a quarterly basis for prioritisation before it is presented to the Trustee Audit and Risk Committee and Board for validation. Risks are prioritised according to their probability and potential impact, and then adjusted for the effect of mitigating controls.

Significant areas of risk currently include:

1 Fundraising

The priority for the Trustees and the Leadership Team is to drive sustainable and secured income, as detailed in the Funding the Cause section on pages 18 to 19. We are focusing on enhancing our supporter journey by investing in a new CRM and alternative fundraising opportunities.

2 Safeguarding

Maintaining the highest standards for our beneficiaries, staff and volunteers is of paramount importance. In the last year we have continued to enhance our policies and procedures to align to regulatory and best practice standards. Our Internal Safeguarding Board has provided ongoing guidance and assurance to the Executive Team and Trustees.

3 Data protection and information security

The security and protection of information is fundamental to the effective and efficient working of Help for Heroes and the maintenance of confidentiality. In the last year we have conducted further external testing of our network security and moved to remote working, implementing guidance and training which covers all aspects of data and information security.

4 The ongoing pandemic

In 2020/21 all areas of activity have been impacted by the on-going Covid-19 pandemic.

We have carefully monitored latest Government advice and a working group has met regularly throughout the year, and continue to meet in 2021/22, to make key decisions around the impact of Covid-19 and any mitigating actions that we need to take to minimise the risks to the Charity, its beneficiaries, supporters and staff.

We have strong internal controls, an Income Protection Team and we outsource Internal Audit where required, to prevent financial loss and reputational damage. Any suspicious or inappropriate activity is promptly investigated, and the relevant actions taken.

Complaints handling

We aim to ensure that any concerns or complaints raised are fairly, transparently and robustly managed in line with our complaints policy, and seek to understand where improvements to service delivery can be made for the benefit of all.

Where appropriate, and led by their guidelines, we pass information about complaints or other incidents to the Charity Commission and/or the Information Commissioner’s Office (ICO).

During the last year we have referred four serious incidents to the Charity Commission. In all cases, after providing the outcomes of our internal reviews, no further actions were required. The Charity works closely with the Charity Commission and is a member of the Charities Against Fraud Group.

The Group maintains a panel of banks and aims to hold no more than two-thirds of its cash and deposits with any single institution.

OUR PRIORITIES 27

FUNDRAISING DISCLOSURES

Help for Heroes is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice.

Whilst we fundraise in many different ways, we do not undertake door-to -door collections and all of our registered volunteers are given guidance on the expected standards. None of our staff, volunteers, professional fundraisers or commercial participators are put under pressure to raise funds on the Charity’s behalf.

We employ three professional fundraising organisations (PFOs) who act on our behalf to recruit new regular donors as part of the Give As You Earn scheme via a large roster of businesses and companies which we would not, otherwise, have the resource or be permitted to approach. Each PFO is paid by results, meaning we only pay for each new supporter they sign up.

We monitor the approach of our professional fundraisers and commercial participators to protect donors, supporters and the organisation from poor practices. Monitoring includes meeting regularly with commercial participators and communicating regularly with fundraisers taking part in our challenge events such as BBBR.

During the period to 30 September 2021 we received eight complaints relating to fundraising, none of which related to professional fundraisers or the companies with whom we have a commercial participator agreement. We investigate all complaints and are satisfied that none of these complaints relate to a breach in fundraising guidelines.

In 2020/21 we worked with one further PFO. The PFO arranges challenge events, for which Help for Heroes is a Charity partner.

We have formal agreements with our professional fundraisers with specified standards of performance. We enter into these agreements to raise net funds to continue our important work.

Some individuals who sign up to our challenge events, e.g. Big Battlefield Bike Ride (BBBR), are also considered to be professional fundraisers because they receive a place on the event in return for a minimum fundraising target. They are provided with formal agreements which include fundraising standards.

The Help for Heroes group also engages with a number of corporate organisations, many of which do not fundraise for us but make a payment for use of our logo. We are ensuring that all of our contracts are regularly reviewed and are being updated to include all regulatory requirements.

28 OUR PRIORITIES

STATEMENT OF COMPANY’S BUSINESS RELATIONSHIPS WITH SUPPLIERS AND OTHER STAKEHOLDERS

As a large charitable company, Help for Heroes is required to report on how the Trustees have discharged their duty to promote the best interests of the Charity whilst having regard to the matters in section 172(1) (a) to (f) of the Companies Act 2006, namely:

The Trustees recognise that relationships with stakeholders are key to the success of the Charity. The table below sets out our key stakeholders, our considerations with regard to them and how we engage with them.

STAKEHOLDER MAPPING

----- Start of picture text -----
Stakeholder Consideration How we engage
Veterans and Help for Heroes has supported almost 27,000 Direct communications, including a fortnightly
their loved ones veterans and family members. newsletter (Bandstand) and closed Facebook
(beneficiaries) groups for our Fellowship members.
We want to make sure they, and all eligible
veterans and families yet to engage, understand the Over the past year, we held virtual get togethers
difference our support can make to their recovery over Microsoft Teams and added face-to-face
and what is on offer. activities as Covid restrictions allowed.
Including the voices and perspectives of our Veteran events, courses and activities have
beneficiaries is critical to the development of the continued to run virtually and face-to-face in
Charity and we want to ensure all beneficiaries the community as restrictions have allowed. We
have the opportunity to be part of the conversation, communicate these specific activities via tailored
are able to give feedback and feel confident that regional emails.
the Charity is championing their needs.
We ran our second annual Veterans and Families
It remains a priority for 2021/22 to continue to Survey with over 2,500 individuals participating.
drive beneficiary engagement and ensure veterans
Other channels we use include the Help for Heroes
and their families influence the Charity’s plans
website and mainstream social media platforms,
and delivery, as well as help the Charity advocate
including Facebook, Twitter and Instagram.
successfully for veterans.
Employees Our aim is to create a culture where all colleagues Staff Intranet site called The Loop.
feel proud to work for the Charity and understand
Regular emails from CEO and others within the
the difference they are making to the lives of those
Executive Team.
we support.
Quarterly all-staff meetings and briefings, which
Our approach to creating an inclusive culture has
are currently all virtual.
the following vision: Together we will develop and
nurture an inclusive organisation and culture which We receive feedback and seek to implement
values diversity. This will mean all employees as positive change through our team of employee
well as volunteers, beneficiaries and supporters Super Connectors.
see and experience Help for Heroes as a Charity
Employee represented Diversity and Inclusion
for them, somewhere they belong and thrive.
Working Group called The Forum.
We must ensure we are transparent with
Employee surveys, including well-being surveys
opportunities for growth, training and development
and ways of working proposals.
and that we contribute positively to a diverse,
inclusive and equal workforce. Learning and development through our
People team.
We provide fair and appropriate remuneration,
benefits and conditions.
----- End of picture text -----

OUR PRIORITIES 29

STAKEHOLDER MAPPING

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Stakeholder Consideration How we engage
Volunteers Our aim is to ensure volunteers are connected with Volunteer Intranet (workplace).
the Charity and each other, encouraging positive
Monthly meetings (joined by a member of the
interactions and participation.
Executive Team).
We provide content to support volunteers in their
A monthly ‘Audience with a Help for Heroes
role so that they are engaged and confident.
Ambassador’ session.
We supply Charity news that drives volunteer
Newsletters.
contribution and reinforces the reasons why they
support Help for Heroes. Personalised phone calls.
We want to inspire conversations and encourage Face-to-face engagement with the
accessibility to information and stories. Community Fundraising Team, as and when
restrictions allow.
Partners We want to build and sustain relationships with key Sharing publication of research and
(including but stakeholders and influencers. impact reports.
not limited
It is our mission to demonstrate our knowledge One-to-one engagement on relevant issues
to Cobseo
and expertise in issues affecting veterans, and and membership of working groups with sector
members,
wider society – particularly mental health, sport, partners.
Ministry of
trauma-informed recovery and disability. We want
Defence, Lobbying for change at a policy level.
to use this knowledge to advise and consult on
Government,
issues that affect our veterans. Direct communications.
Corporate
Partnerships We aim to clearly communicate externally what we Joint working on case studies, where appropriate.
and NHS) are fighting for and why, and increase visibility of
our lobbying work.
Ambassadors We want our ambassadors to feel engaged and Receive communications as per
well-communicated with so they can endorse and beneficiary cohort.
advocate for the Charity across their networks and
Direct communication: provided with updated
help myth-bust if necessary.
messaging, statistics and FAQs.
Facebook Workplace group for Ambassadors,
with key information and updates shared.
Monthly conference call with Chief Advocacy
Officer and Communications.
Media The need to protect the Charity’s reputation whilst Proactive media releases featuring our beneficiary
promoting positive news stories to ensure we hit or fundraiser case studies and around relevant
fundraising targets and that eligible veterans come topical issues.
forward for support.
Providing reactive responses to media enquiries.
Fundraisers and Our aim is to drive engagement, loyalty and Social media platforms (Facebook, Instagram,
supporters income, supported by a single supporter view. LinkedIn and Twitter).
News and information published on Help for
Heroes website.
Monthly All Charity Mailer.
Fundraising events and challenges throughout the
year. Some virtual ones have run in place of face-
to-face events due to Covid restrictions.
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30 OUR PRIORITIES

KEY DECISIONS IN 2020/21

The table below sets out the key decisions taken in the year to 30 September 2021 and how the interests of our stakeholders were considered when making those decisions.

Existing 2020/21 was the third year of a three- Key considerations:
strategy
management		 year business plan which focused on
closing the gap between the Charity’s
income and expenditure. The main
pillars of the strategy were Reshape
Recovery, Champion the Wounded and		 In considering which projects and work were pursued within the
three-year business plan, a delivery plan was developed outlining
the key milestones and strategic projects prioritised in order to
deliver the plan.
Fund the Cause, all underpinned by the • This business plan was reviewed and updated each year
premise of ‘making it happen’. throughout the three-year plan and approved by the Board
of Trustees.
• The overall business plan was approved by the Board prior
to its launch.
• Day-to-day decisions were delegated to the Charity’s
Executive Team.
• High value, key projects, income and key partnerships were
considered, and if appropriate, approved by the Board with
regards to:
• The use of charitable funds.
• Assessment against both object and strategic alignment.
• Compliance with the ethical fundraising policy.
• Compliance with the Charity Commission regulations, and where
appropriate, Office of the Scottish Charity Regulator, Financial
Conduct Authority, and Information Commissioner’s Office
• Board meetings were held regularly, and the Board received
regular updates on all activities.
Managing The impact of the Covid-19 pandemic Key Considerations:
through
Covid-19		 continued into the 2020/21 financial
year. There was a second national
lockdown in November and a further
lockdown from January to March
2021. This continued to affect
operations and necessitated continued
use of measures that had been put in
place in 2019/20.		 As it became clear the impact of the pandemic would continue
to affect the UK significantly, we maintained the cross functional
working group that we had established in 2019. This group
continued to manage impact on the day-to-day running of the
Charity and make decisions in line with the rapidly changing
situation. The working group met regularly to review Government
guidance and issue direction to the employees of the Charity.
• Decisions were taken to continue with digital and virtual service
delivery and not return to face-to-face service delivery until
restrictions allowed.
• All employees continued to work from home with a move to a
hybrid model from September 2020.
• All face-to-face fundraising was ceased until guidance allowed
with a return in June 2021.
• The Board were kept informed of all developments.
• Well-being of employees and beneficiaries remained a priority.
• Charity business plan was adapted to change deliverables in line
with the situation.

OUR PRIORITIES 31

Transferring In September 2020 we made the Key considerations:
operation of
the Recovery
Centres		 decision to not operate out of three
of the Recovery Centres for the
foreseeable future, while intending to
trial a return to face-to-face delivery
at Tedworth House when Covid-19		 • Recovery Centres continue to be part of the journey for wounded
serving personnel, improving their recovery pathway, as the MOD
takes on responsibility for the centres. This honours the original
purpose of the centres.
restrictions allowed. We entered • This agreement means we can direct our funds to fully focus on
negotiations with the MOD and, in supporting veterans and their families in the best way possible
March 2021, reached an agreement for them.
where all four Help for Heroes
Recovery Centres will be operated
and funded by the MOD for the
following 12 months		 • All our services and support priorities remain the same, to enable
recovery progression, choice and independence for wounded
veterans.
• All services continue, with those that were delivered at a
Recovery Centre changing to a community location.
• Change management and the impact on employees, volunteers
and beneficiaries were carefully considered.
• We ensured clear communication of the change to colleagues,
beneficiaries and volunteers.
• We continued regular beneficiary communication to ensure they
were informed and knew how to continue to access support.
• We engaged with stakeholders to ensure clarity and control
of message.
• We are continuing negotiations with the MOD around the full
transfer of responsibility for these Recovery Centres to MOD
longer term, as part of the Defence Recovery Capability.
Work on a The Board and Executive Team have Key Considerations:
new long-
term strategy
for the		 been working together to develop a
new long-term strategy for the Charity.		 • Wide ranging exploration and analysis of information, inputs and
insights to help inform direction.
Charity. • Review of internal data and Veterans and Families Survey data as
key inputs.
• A broad direction was agreed between the Board and Executive
Team which has led to two further workstreams – one
developing the theory of change1and another focused on
building internal culture. We place significant value on our people
and recognise that it will be through our people we achieve
success in implementing our new strategy. We also recognise
that there has been significant change to the way we work over
the past year and want to ensure we continue to support and
develop our people through building the culture of the Charity
together. These will continue into the next financial year with the
full and final strategy being shared in 2021/22.

1 Theory of change defines the long-term impact that the Charity will aim for and how the Charity will deliver that impact over the short, medium and long-term. It also defines how we will evaluate the impact the Charity has.

32 OUR PRIORITIES

SUSTAINABILITY AND CARBON REPORTING

Help for Heroes is reporting energy and carbon emissions in compliance with The Companies (Director’s Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018.

ENERGY

ENERGY
2021 2020
Source Consumption KWh CO2 Emissions Consumption KWh CO2 Emissions
Electricity 186,848 43,562 531,871 124,000
Gas 379,173 70,249 1,119,754 207,835
Total 113,811 331,835

TRANSPORT

2021 2020
Source Consumption CO2 Emissions Consumption CO2 Emissions
Fleet (diesel litres) 3,595 9,348 15,528 40,375
Fleet (petrol litres) - - 118 259
Hire (diesel litres) - - 250 650
Claims (miles) 40,880 11,611 158,808 45,105
Total 20,959 86,389
2021 2020
Total Emissions 134,770 KgCO2e 418,224 KgCO2e
Carbon Intensity (per person) 537 KgCO2e 1,504 KgCO2e

METHODOLOGY

Energy consumption was obtained from monthly meter readings or energy supplier invoices. Where practical, this covers the period 1 October 2020 to 30 September 2021, but if this has not been possible (due to invoicing dates) the nearest 12 month period available has been used.

Transport emissions have been calculated with data including:

RENEW OF ACTIVITIES

During the year to 30 September 2021 our energy consumption and emissions fell substantially. This was due to the impact of Covid-19 which changed our ways of working. Less of our team were able to travel and to engage in face-to-face activities and we were unable to operate out of our recovery centres.

Conversion factors used were obtained from two sources:

OUR PRIORITIES 33

FINANCIAL REVIEW

Following another year significantly impacted by Covid-19, the Charity has made a deficit of £14 million. This is substantially because our charitable costs increased significantly due to an impairment in the carrying value of our fixed asset recovery centres. In addition our fundraising efforts were hampered by lockdown restrictions and those restrictions also reduced our ability to undertake planned activities in all areas. The reduced activities did generate some cost savings and we also saw significant gains on our investments, however not enough to offset the increase in costs. The Trustees are committed to ensuring the Charity’s long term sustainability and will be reviewing the Charity’s strategy and developing a new five-year business plan in 2021/22.

INCOME

As explained on page 18, the Charity’s fundraising efforts were again impacted by the Covid-19 restrictions. This both reduced face-to-face charity collections and meant that a number of our fundraising events and challenges had to be postponed, reducing the income for the 2021 financial year. Our grant income at £1.2 million was also significantly behind the £8.3 million received in 2020. This was driven by two main factors. Firstly, in 2020 we received £5.1 million from Headley Court Trust which was restricted over a five-year period. Secondly, in 2020 we received £1.4 million from the Government’s job retention scheme, in 2021 only £165,000 was claimed. However, legacies income was substantially higher at £9.5 million in 2021 compared to £6.7 million in 2020.

EXPENDITURE ON RAISING FUNDS

Total costs of raising funds for the year were £6.8 million (2020: £8.7 million) which reflect ongoing efforts to reduce costs as outlined in the three-year business plan, which commenced in 2018/19. However, some of the savings realised in this year unfortunately reflect the reduced level of activity, as Covid-19 lockdowns and social distancing restrictions continued to make our fundraising activities much more difficult to undertake.

EXPENDITURE NET GAINS ON ON CHARITABLE INVESTMENT ACTIVITIES

Net gains on investment at £3.8 million are £1.8 million above those of the 2019/20 financial year. This was a turbulent year for investments with significant fluctuations in values as the impact of Covid-19 was felt around the world. Trustees monitor investment performance throughout the year and investment performance is reviewed in more detail on page 27.

Our recovery expenditure increased in 2020/21 from £22.1 million to £29.6 million. As with other areas, our recovery services were impacted by the Covid-19 restrictions. We made the decision not to operate out of our recovery centres and reached an agreement with the MOD that they would operate and fund them for the 12 months to March 2022. Whilst this reduced our operating costs on charitable activities, we have also reviewed our future use of recovery centres in line with our strategy. Following this review, we have recognised an impairment in the recoverable amount of our recovery centres and an impairment of £17.2 million has been included in charitable activities expenditure as a result of this.

CAPITAL EXPENDITURE

Capital expenditure continues to be low at £0.1 million (2020: £0.1 million). This reflects our ongoing focus towards delivery of direct services.

GOING CONCERN

EXPENDITURE ON SUPPORT COSTS

The Board of Trustees have reviewed budgets and forecasts and considered Help for Heroes activities, financial position and risk management polices together with likely factors affecting future development, including impact of the pandemic, the uncertain economic situation and other operating challenges on income, cash, reserves and delivery of its activities.

The Group’s support costs, as set out in note four on page 47, have remained reasonably consistent with prior years. This partly reflects the fact that the Charity had made efficiencies and savings in all support areas in previous years. Support functions continue to be a vital part of the Charity, ensuring we can continue to raise funds and deliver against our charitable objects.

The Board has concluded that the existing level of free reserves and available cash, coupled with strong cost control, are sufficient to ensure Help for Heroes has the resources to continue operating as a going concern. On this basis, the Board have concluded that there are no material uncertainties surrounding the Charity’s ability to continue as a going concern for the foreseeable future and the accounts have been prepared on that basis.

The needs of our wounded veterans and their families continue to grow and we must recruit and retain qualified individuals who can design, deliver, support and fund the recovery services we provide. We pay competitive salaries and benchmark ourselves to make sure we do this.

34 OUR PRIORITIES

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Help for Heroes for the purposes of company law) are responsible for preparing the Trustees’ Annual Report, including the Strategic and Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the Group, and of the incoming resources and application of resources, including the income and expenditure of the charitable company and Group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, Charities SORP 2015, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the Charity and the Group, and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the Trustees at the date of this report is aware:

Approval

The Trustees’ Report, incorporating the Strategic and Directors’ Report, was approved by the Board of Trustees on 28 April 2022 and signed on its behalf by:

Nigel Boardman Chairman, Help for Heroes

Date 28 April 2022

OUR PRIORITIES 35

FINANCIAL STATEMENTS AND AUDITOR’S REPORT

36 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF HELP FOR HEROES

Opinion

We have audited the financial statements of Help for Heroes (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 30 September 2021 which comprise the Consolidated Statement of Financial Activities, Group and Charity Balance Sheets, Consolidated Statement of Cash Flow and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s or the Group’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The Trustees are responsible for the other information contained within the Annual Report. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 37

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and Group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

38 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the Group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the Group for fraud. The laws and regulations we considered in this context for the UK operations were fundraising regulations, taxation legislation, employment legislation, Health and Safety regulations and General Data Protection Regulation (GDPR).

Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing and recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, the fraud and serious incident logs, and reading regulatory reports and minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with chapter three of part 16 of the Companies Act 2006, and to the charitable company’s Trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Tim Redwood Senior Statutory Auditor

Date: 16 June 2022

For and on behalf of Crowe U.K. LLP Statutory Auditor London

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 39

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 30 September 2021 (incorporating an income and expenditure account)

----- Start of picture text -----
2021 2021 2021 2021 2020
General Designated Restricted Total Total
funds funds funds funds funds
Notes £’000 £’000 £’000 £’000 £’000
Income from
Donations and legacies 2 14,024 - 1,697 15,721 21,559
Charitable activities - - - - 106
Other trading activities 2,487 - - 2,487 2,111
Investments 329 - - 329 492
Other - - - - 150
Total 16,840 - 1,697 18,537 24,418
Expenditure on
Raising funds 3 6,720 61 - 6,781 8,689
Charitable activities 8 6,085 21,252 2,227 29,564 22,114
Total 12,805 21,313 2,227 36,345 30,803
Net income/(expenditure) before gains
and losses on investments 4,035 (21,313) (530) (17,808) (6,385)
Net gains/(losses) on investments 3,763 - - 3,763 2,044
Net income/(expenditure) 5 7,798 (21,313) (530) (14,045) (4,341)
Transfers between funds 16 (3,056) 3,056 - - -
Net movement in funds 4,742 (18,257) (530) (14,045) (4,341)
Reconciliation of funds
Total funds brought forward 16 17,490 58,857 5,775 82,122 86,463
Total funds carried forward 16 22,232 40,600 5,245 68,077 82,122
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40 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

CONSOLIDATED AND CHARITY BALANCE SHEETS Company Number 6363256

As at 30 September 2021

----- Start of picture text -----
2021 2021 2020 2020
Notes Group Charity Group Charity
£’000 £’000 £’000 £’000
Fixed assets
Intangible assets 9 128 104 101 68
Tangible assets 10 14,972 15,286 36,256 37,013
Investments 11 41,267 41,267 27,939 27,939
56,367 56,657 64,296 65,020
Current assets
Stock 546 - 350 -
Debtors 13 1,880 2,338 2,203 2,454
Investments 6,096 6,096 15,051 15,051
Cash at bank and in hand 7,430 6,897 9,188 8,626
Current liabilities
Creditors: amounts falling due within one year 14 (2,545) (1,899) (8,224) (7,967)
Net current assets 13,407 13,432 18,568 18,164
Total assets less current liabilities 69,774 70,089 82,864 83,184
Creditors: amounts falling due 14 - - (742) (302)
after more than one year
Provisions for liabilities and charges 15 (1,697) (1,697) - -
Net assets 68,077 68,392 82,122 82,882
Funds
Restricted funds 16 5,245 5,245 5,775 5,775
Unrestricted funds
Designated funds 16 40,600 40,890 58,857 59,581
General fund 16 22,232 22,257 17,490 17,526
Total funds 68,077 68,392 82,122 82,882
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The Charity’s deficit for the year was £14,489k

The financial statements on pages 40 to 63 were approved and authorised for issue by the Trustees on 28 April 2022 and signed on their behalf by:

Nigel Boardman, Chair of Trustees, Help for Heroes

Date: 28.04.2022

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 41

CONSOLIDATED STATEMENT OF CASH FLOW

For the year ended 30 September 2021

----- Start of picture text -----
2021 2020
Group Group
£’000 £’000
Cash flows from operating activities:
Net cash provided/(utilised) by operating activities (1,279) 2,353
Cash flows from investing activities
Dividends and interest from investments 64 245
Proceeds from the sale of property, plant and equipment 10 14
Purchase of tangible and intangible assets (66) (71)
Proceeds from sale of investments 11,014 -
Purchase of investments (20,456) -
Transfer (to)/from short term deposits 8,955 (15,051)
Net cash (utilised)/provided by investing activities (479) (14,863)
Change in cash and cash equivalents/net debt in the reporting period (1,758) (12,510)
Cash and cash equivalents/net debt at the beginning of the reporting period 9,188 21,698
Cash and cash equivalents/net debt at the end of the reporting period 7,430 9,188
Reconciliation of net income/(expenditure)
to net cash flow from operating activities
Net expenditure for the reporting period (as per the statement of financial activities) (14,045) (4,341)
Adjustments for:
Depreciation charges 4,044 3,993
(Gains)/losses on investments (3,763) (2,044)
Impairment of assets 17,239 -
Dividends and interest from investments (329) (492)
Management charges deducted from investments 235 250
Loss/(profit) on the sale of fixed assets 30 (14)
(Increase)/decrease in stock (196) 118
(Increase)/decrease in debtors 230 71
Increase/(decrease) in creditors (4,724) 4,812
Net cash provided/(utilised) in operating activities (1,279) 2,353
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42 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

ACCOUNTING CONVENTION

The Charity is a public benefit entity, its status and registered office are noted on page 24.

The Board of Trustees have reviewed budgets and forecasts and considered Help for Heroes activities, financial position and risk management polices together with likely factors affecting future development, including impact of the pandemic and other operating challenges on income, cash, reserves and delivery of its activities. Forecasts have been prepared and the directors have considered plans and resources for the future. The Board has concluded that the existing level of free reserves and available cash coupled with strong cost control are sufficient to ensure Help for Heroes has the resources to continue operating as a going concern. On this basis, the Board have concluded that there are no material uncertainties surrounding the Charity’s ability to continue as a going concern for the foreseeable future and the accounts have been prepared on that basis.

The Group accounts have been prepared under the historical cost convention as modified by the revaluation of investments. They comply with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ effective 1 January 2015 (the SORP), together with the reporting requirements of the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) – effective 1 January 2015, the Companies Act 2006, and the Charities and Trustee Investment (Scotland) Act 2005. The Charity has adapted the Companies Act formats to reflect the SORP and special nature of the Charity’s activities

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Other significant areas of estimate and judgement include the recognition of contract and grant income, the valuation of gifts in kind, the period in which legacy income should be recognised and the period in which a liability for termination payments should be made. In determining the recognition of contract and grant income the Trustees consider the principles of entitlement, measurement and probability of receipt. Consideration is given to any performance conditions and the recoverability of any balances outstanding at the end of the year. Gifts in kind and donated services are recognised at the Trustees’ best estimate of the value to the Charity and recorded in income and expenditure. In terms of legacy recognition, where there is no evidence that a legacy distribution was authorised by executors prior to the balance sheet date, then that distribution is recorded in the subsequent year but disclosed as a contingent asset within the legacy pipeline disclosure. A liability for termination payments is recognised taking into consideration the date and form of any connected announcement.

In the application of the Group’s accounting policies, which are described in this note, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant.

Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period.

Significant areas of estimate and judgement include the remaining useful life of assets, carrying value and treatment of tax connected to Help for Heroes recovery centres. The Trustees have considered the net book value of Help for Heroes recovery centres and other fixed assets and the expectations for future use in line with our strategy. Within this it has become apparent that the recoverable amount of the buildings was lower than the carrying values and therefore the Trustees have made an impairment of the carrying values of the recovery centres to reflect this.

The Trustees have also considered the treatment of VAT incurred on the construction of the recovery centres. In 2019/20 a liability was recognised as a creditor within other taxes and social security. This was in respect of VAT previously saved on the construction of the recovery centres. During 2020/21, following the Trustees review of the future use of the recovery centres, a greater level of uncertainty about the continued zero-rating of these sites arose. The creditor recognised in 2019/20 has been reclassified as a provision and updated for the latest best estimate of any potential liability.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 43

BASIS OF CONSOLIDATION

The accounts are consolidated on a line by line basis and incorporate the results of Help for Heroes (the Charity); its subsidiary undertakings Help for Heroes Trading Limited, Help for Heroes Development Company Limited and Help for Heroes Recovery. Help for Heroes Trading has one subsidiary undertaking being BMyHero Limited, also consolidated. The consolidated entity is referred to as ‘the Group’. A separate Statement of Financial Activities (SOFA) is not presented for the Charity itself as it has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. Further details regarding subsidiaries are shown in note 12 on page 55.

FUND ACCOUNTING

General funds are funds which are expendable at the discretion of the Trustees in furtherance of the objects of the charities. Designated funds represent funds that have been earmarked by the Trustees for specific purposes and are therefore held separately from general unrestricted funds. Details of designated funds are provided in the funds note 15 on page 57.

INCOME

Income from donations, grants and other sources is recognised on an accruals basis and included in the Statement of Financial Activities when the Group is entitled to the income, when receipt is probable, and when it can be measured reliably.

Legacies subject to a life interest by another party will not be recognised. Pecuniary legacies will be recognised when the legacy is received or where there is sufficient evidence that receipt is probable. Residuary legacies are recognised at the earlier of cash received or notification of an interim distribution or estate accounts having been approved by the executors.

Gifts in kind and donated services and facilities are recognised in the financial statements at fair value.

Donated services represents gifts and facilities received from third parties for use by the Charity in furtherance of its charitable activities.

In 2020/21 significant elements of donated services included services for use by beneficiaries, such as training and well-being courses and classes, in addition to professional services such as legal advice provided to the Charity. These are valued at fair value.

Assets given for use by the Group are recognised as incoming resources and within the relevant fixed asset category of the balance sheet when received. Donated services and facilities recognised in the financial statements include those usually provided by an individual or entity as part of their trade or profession for a fee. In contrast, the contribution of volunteers is excluded from the SOFA as the value of their contribution to the Charity cannot be reasonably quantified in financial terms. Where donated services or facilities are recognised, an equivalent amount is included as expenditure under the appropriate heading in the SOFA.

is recognised in the financial statements during the year it is earned by the Group.

EXPENDITURE

All expenditure, including termination payments relating to former employees, is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Support costs are allocated on the basis of staff time and include finance, human resources, IT, administration, and governance costs. During the 2020/21 year it was decided that marketing costs, previously included as a support cost, should be directly attributed to the costs of raising funds and charitable activities. The comparative figures have been restated appropriately. Support costs are allocated based on a percentage of staff time, percentages are updated annually to reflect changes in operation and staffing.

Governance costs include costs associated with the governance arrangements of the Charity, including external audit and costs of complying with constitutional and statutory requirements, such as professional fees and Trustees’ liability insurance.

Irrecoverable VAT is not separately analysed and is charged to the SOFA when the expenditure to which it relates is incurred and is allocated as part of the expenditure to which it relates.

Income from the sale of goods and services is recognised in the year of sale or to the extent that the service was delivered during the year. Income from dividends and interest

44 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

EXPENDITURE ON RAISING FUNDS

Expenditure on raising funds includes all of the costs attributable to raising voluntary income, event fees, and all costs incurred in the trading subsidiaries.

EXPENDITURE ON CHARITABLE ACTIVITIES

This comprises grants made, recovery delivery and championing the wounded.

Grants made are commitments made to third parties in the furtherance of the charitable objectives of the Charity.

Single or multi-year grants are accounted for when approved by the Charity and committed to the recipient, less any awards cancelled or refunded.

Recovery delivery costs are the costs incurred in delivering services directly to beneficiaries.

Championing the wounded costs are those costs incurred in raising awareness and representing the needs of the wounded, injured and sick.

Support costs are allocated to the cost of grants, recovery delivery and championing the wounded based on staff time.

STOCK

The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. Year-end stock is valued at the lower of cost or net realisable value.

TANGIBLE FIXED ASSETS

Tangible fixed assets are held at cost. Items in excess of £5,000 are capitalised and written off evenly over their useful economic life. The following rates are being applied:

Leasehold property improvements

Structural works are depreciated until the expiry of the lease, or the first breakpoint not at the sole discretion of the Group, or the expiry of 20 years.

Non-structural works connected to bringing the leasehold property into working use are depreciated over 10 or 15 years.

Office equipment (including IT)

Five years

Plant and machinery

Five years

Vehicles

Four years

INVESTMENTS

Fixed asset investments are included at market value at the balance sheet date.

Gains and losses arising on the disposal of fixed asset investments and the revaluation to market value are charged or credited to the SOFA in the year.

Current asset investments relate to short-term cash deposits which have a maturity of more than three months. They are included at the initial transaction value at the balance sheet date.

LEASES

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis.

Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

PENSION COSTS

The Group contributes to a money purchase pension plan on behalf of employees in compliance with auto-enrolment legislation. Costs are expensed in the period in which they are incurred.

CURRENCY

The functional currency of the Group is sterling.

FINANCIAL INSTRUMENTS

The Group has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

Financial assets measured at amortised cost comprise of cash at bank and in hand together with trade debtors, other debtors, and current asset investments, excluding prepayments.

Financial liabilities measured at amortised cost comprise all creditors excluding deferred income and tax and social security balances outstanding at year end.

Fixed asset investments are held at fair value at the balance sheet date with gains and losses being recognised in the SOFA.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 45

2. DONATIONS AND LEGACIES

----- Start of picture text -----
2021 2020
Total Total
funds funds
£’000 £’000
Grants 1,183 8,270
Donations 4,011 4,832
Legacies 9,498 6,686
Challenges and events 605 835
Donated services and facilities 20 630
Gift Aid receivable 404 306
Total 15,721 21,559
----- End of picture text -----*

3. EXPENDITURE ON RAISING FUNDS

----- Start of picture text -----
As restated
2021 2020
Group Group
£’000 £’000
Cost of donations and legacies 3,291 4,961
Cost of trading activities 2,081 1,955
Investment management costs 236 314
Support costs 1,173 1,459
Total 6,781 8,689
----- End of picture text -----

46 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

Support costs have been allocated to SOFA categories as shown below

4. ALLOCATED SUPPORT COSTS

A. 2021 ALLOCATED SUPPORT COSTS

Charitable activities
Raising funds
£’000
Grants
£’000
Recovery
delivery costs
£’000
Championing
the wounded
£’000
2021
Total
£’000
Administration,
legal and management		 494
13
627
34
1,168
Finance 120
14
203
7
344
Information technology 265
22
700
23
1,010
Human resources 166
14
438
14
632
Governance costs 128
-
195
47
370
Total 1,173
63
2,163
125
3,524

B. 2020 ALLOCATED SUPPORT COSTS (AS RESTATED)

Charitable activities
Raising funds
£’000
Grants
£’000
Recovery
delivery costs
£’000
Championing
the wounded
£’000
2020
Total
£’000
Administration,
legal and management		 500
5
661
91
1,257
Finance 170
17
179
-
366
Information technology 508
12
555
21
1,096
Human resources 210
32
392
-
634
Governance costs 71
-
71
59
201
Total 1,459
66
1,858
171
3,554

The basis of the allocation is staff time.

Restatement of comparative

For the year ended 30 September 2021, Marketing costs, which were previously included within Administration, legal and management, are no longer treated as support costs.

These have now been directly attributed to costs of Raising funds and charitable activities.

The values for the year ended 30 September 2020 have been restated to reflect this change.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 47

5. NET INCOME FOR THE YEAR

2021
Group
£’000
2020
Group
£’000
This is stated after charging:
Depreciation for the year 4,006
3,963
Amortisation for the year 38
30
(Profit)/loss on disposal 30
(14)
Impairment for the year 17,239
-
Rentals payable under operating leases
- Land and buildings 322
372
- Equipment 20
22
- Vehicles 49
64
Auditor’s remuneration
- Audit services 41
40
- Non-audit services 6
5

48 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

6. EMPLOYEE COSTS

----- Start of picture text -----
2021 2020
Group Group
£’000 £’000
Wages and salaries 8,084 11,670
Social security 800 1,140
Pension 321 416
Total
9,205 13,226
----- End of picture text -----

The average number of employees (headcount) employed by the Group during the year was 251 (2020: 331).

The number of employees during the year whose gross pay and benefits (excluding payments in respect of leaving the Charity) fell within the following bands:

REMUNERATION OF HIGHER PAID STAFF

2021
Group
2020
Group
£60,001 - £70,000 7
6
£70,001 - £80,000 2
6
£80,001 - £90,000 2
-
£90,001 - £100,000 1
2
£100,001 - £110,000 1
1
£110,001 - £120,000 1
1

Pension contributions of £43,270 (2020: £48,255) were made on their behalf. Taxable remuneration for the year includes benefits in kind.

During the year, the Charity made payments in respect of staff leaving the Charity totalling £34,241 (2020: £1,060,768), including redundancy payments. All amounts were accounted for in the year.

The key management personnel of Help for Heroes comprise the Trustees and the Executive Team. The total remuneration including benefits in kind, employers pension contributions, employers National Insurance contributions and termination payments paid to and on behalf of the Executive Team amounted to £606,792 (2020: £879,060).

No Trustees have been remunerated or received any other employee benefits for their role as Trustees in this year or the prior period.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 49

7. GOVERNANCE COSTS

2021
Group
£’000
2020
Group
£’000
External and internal audit 40
82
Recruitment -
29
Company secretarial, finance and accounts production 36
60
Trustees’ liability insurance 2
2
Strategy (including apportionment of staff time) 118
3
Executive Team (apportionment of staff time) 126
-
Other 48
25
Total 370
201

The Group reimbursed travel expenses of Nil (2020: £1,034) to Nil (2020: 1) Trustees for attendance at Trustee meetings. Of this Nil (2020: Nil) remained outstanding at year end.

The Group has in place Trustee indemnity insurance. This is part of a wider policy and not separately charged.

50 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

8. EXPENDITURE ON CHARITABLE ACTIVITIES

----- Start of picture text -----
As restated
2021 2020
Grants made
Group Group
Institutional grants
£’000 £’000
SBSA (to contribute towards building a purpose-built recovery centre in Poole) - 2,500
Other institutional grants (48) (175)
Total institutional grants (48) 2,325
Individual grants 414 496
Other grant costs 299 386
Total grant expenditure 665 3,207
Services 6,805 11,766
Recovery facilities 21,610 6,074
Championing the wounded 484 1,067
Total costs of charitable activities 29,564 22,114
----- End of picture text -----

Recovery facilities includes a £17.2 million impairment in the recoverable amount of our recovery centres as explained in the Financial Review on page 34.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 51

9. INTANGIBLE FIXED ASSETS

----- Start of picture text -----
COMPUTER SOFTWARE Group £’000 Charity £’000
Cost or valuation
At 1 October 2020 613 571
Additions during the year 66 66
At 30 September 2021 679 637
Amortisation
At 1 October 2020 (512) (503)
Charge for the year (38) (29)
Impairment (1) (1)
At 30 September 2021 (551) (533)
Net book value at 30 September 2021 128 104
Net book value at 1 October 2020 101 68
----- End of picture text -----*

52 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

10. TANGIBLE FIXED ASSETS

----- Start of picture text -----
Leasehold
GROUP property Office Plant and
improvements equipment machinery Vehicles Total
Cost £’000 £’000 £’000 £’000 £’000
At 1 October 2020 64,673 5,733 657 139 71,202
Disposals during the year (103) (63) (9) (12) (187)
At 30 September 2021 64,570 5,670 648 127 71,015
Depreciation
At 1 October 2020 (28,721) (5,618) (481) (126) (34,946)
Charge for the year (3,894) (46) (62) (4) (4,006)
Disposals for the year 75 60 4 8 147
Impairment (17,158) (21) (56) (3) (17,238)
At 30 September 2021 (49,698) (5,625) (595) (125) (56,043)
Net book value at 30 September 2021 14,872 45 53 2 14,972
Net book value at 1 October 2020 35,952 115 176 13 36,256
Leasehold
CHARITY property Office Plant and
improvements equipment machinery Vehicles Total
Cost £’000 £’000 £’000 £’000 £’000
At 1 October 2020 65,931 5,828 658 139 72,556
Disposals during the year (103) (63) (9) (12) (187)
At 30 September 2021 65,828 5,765 649 127 72,369
Depreciation
At 1 October 2020 (29,219) (5,716) (482) (126) (35,543)
Charge for the year (3,970) (45) (61) (4) (4,080)
Disposals for the year 74 60 4 8 146
Impairment (17,525) (21) (57) (3) (17,606)
At 30 September 2021 (50,640) (5,722) (596) (125) (57,083)
Net book value at 30 September 2021 15,188 43 53 2 15,286
Net book value at 1 October 2020 36,712 112 176 13 37,013
----- End of picture text -----*

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 53

11. INVESTMENTS: GROUP AND CHARITY

----- Start of picture text -----
2021 2020
£’000 £’000
Market value at 1 October 27,939 25,831
Add: additions to investments at cost 20,456 -
Add: dividends and interest received and reinvested 358 314
Less: sales proceeds (11,014) -
Add: net gain on revaluation 3,763 2,044
Investment charges deducted from gain (235) (250)
Market value at 30 September 41,267 27,939
Historic cost as at 30 September 32,558 23,850
2021 2020
Market value at 30 September £’000 £’000
Equities 30,142 13,802
Fixed interest 5,691 12,215
Infrastructure and operating assets 1,453 -
Cash 2,116 1,722
Property 950 -
Other 915 200
Total 41,267 27,939
----- End of picture text -----

54 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

12. INVESTMENTS IN SUBSIDIARIES

Name Control
Charity
interest
Other Group
companies
interest
Registered
number
Activities
Help for Heroes Trading Ltd Share
capital
100%
-
06380957
Retail and corporate
licensing
Help for Heroes Recovery Deemed
100%
-
07647921
Non-trading
Help for Heroes Development
Company Ltd		 Share
capital
100%
-
07464349
Design and build
BMY Hero Ltd Share
capital
-
100%
07192143
Non-trading

The results of consolidated trading entities are stated prior to any consolidation adjustments.

The registered office address of all subsidiaries is 14 Parkers Close, Downton Business Centre, Downton, Salisbury, Wiltshire SP5 3RB.

Help for Heroes Recovery and BMY Hero Ltd are dormant and have no assets or liabilities.

----- Start of picture text -----
2021 2021 2020 2020
Help for Heroes DevCo Help for Heroes DevCo
Trading £’000 Trading £’000
£’000 £’000
Turnover 2,487 - 2,111 -
Expenditure (2,487) - (2,111) -
Net income - - - -
----- End of picture text -----

Balance sheets of the consolidated trading entities

Assets 2021
Help for Heroes
Trading
£’000
2021
DevCo
£’000
2020
Help for Heroes
Trading
£’000
2020
DevCo
£’000
1,257
26
1,024
26
Liabilities (1,256)
(26)
(1,023)
(26)
Net assets 1
-
1
-

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 55

13. DEBTORS

----- Start of picture text -----
2021 2021 2020 2020
Group Charity Group Charity
£’000 £’000 £’000 £’000
Trade debtors 490 431 451 423
Other debtors 133 105 545 496
Amounts owed from Group undertakings - 603 - 353
Prepayments and accrued income 1,257 1,199 1,207 1,182
Total 1,880 2,338 2,203 2,454
----- End of picture text -----

The estimated value of legacies notified but neither received nor included in income is £5,806,193 (2020: £5,162,592). This amount has been treated as a contingent asset, which is not recognised in debtors above.

Help for Heroes has provided grants to individuals to enable them to purchase or adapt housing. Should the properties be disposed of in the future Help for Heroes is entitled to the granted funds being returned. This amount has been treated as a contingent asset, which is not recognised in debtors above.

The balance which may be returned is £1,710,000 (2020 - £1,710,000).

14. CREDITORS

----- Start of picture text -----
2021 2021 2020 2020
Amounts falling due within one year Group Charity Group Charity
£’000 £’000 £’000 £’000
Grants payable 37 37 2,745 2,745
Trade creditors 347 255 407 221
Other creditors 768 767 784 782
Other taxes and social security 183 194 2,375 2,366
Accruals 1,210 646 1,913 1,853
Total 2,545 1,899 8,224 7,967
2021 2021 2020 2020
Amounts falling due after more
Group Charity Group Charity
than one year £’000 £’000 £’000 £’000
Grants payable - - 56 56
Accruals - - 686 246
Total - - 742 302
----- End of picture text -----

56 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

15. PROVISION FOR LIABILITIES AND CHARGES

2021
Group
£’000
2021
Charity
£’000
2020
Group
£’000
2020
Charity
£’000
Balance at 1 October -
-
-
-
Amount provided in the year 1,697
1,697
-
-
Balance at 30 September 1,697
1,697
-
-

In 2019/20 a liability was recognised as a creditor within other taxes and social security. This was in respect of VAT previously saved on the construction of the recovery centres. During 2020/21, following the Trustees review of the future use of the recovery centres, a greater level of uncertainty about the continued zero-rating of these sites arose. The creditor recognised in 2019/20 has been reclassified as a provision and updated for the latest best estimate of any potential liability.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 57

16. FUNDS

A. ANALYSIS OF MOVEMENT IN FUNDS

----- Start of picture text -----
At 1 Oct Incoming Operating Capital At 30
Group 2020 resources expenditure expenditure Transfers Sep 2021
Restricted £’000 £’000 £’000 £’000 £’000 £’000
Catterick Recovery Centre / Recovery North - 179 (179) - - -
Colchester Recovery Centre / Recovery East 22 5 (5) - - 22
Tedworth Recovery Centre / Recovery South - 103 (103) - - -
Plymouth Recovery Centre / Recovery West - 118 (118) - - -
Sports Recovery 131 - (104) - - 27
Very Seriously Injured (LIBOR) 589 50 (338) - - 301
Psychological Well-being 67 143 (124) - - 86
Covid-19 Impact - 396 (396) - - -
Welfare and Support Hubs - 370 (44) - - 326
Afghanistan Veterans - 136 (136) - - -
Prosthetics - 100 - - - 100
Headley Court 4,908 - (569) - - 4,339
Other 58 97 (111) - - 44
Total restricted 5,775 1,697 (2,227) - - 5,245
Designated
Recovery Fund 16,000 - - - 1,000 17,000
Capital Fund 6,500 - - - - 6,500
Urgent Response Fund - - - 2,000 2,000
Sub total 22,500 - - - 3,000 25,500
Fixed assets 36,357 - (21,313) 66 (10) 15,100
Total designated 58,857 - (21,313) 66 2,990 40,600
General 17,490 20,603 (12,805) (66) (2,990) 22,232
Total funds 82,122 22,300 (36,345) - - 68,077
----- End of picture text -----*

At the year end, the Trustees consider the required level of funds in line with the reserves policy (described on page 25) and anticipated future running costs and other spending. Changes are made to each designated reserve as appropriate. The nature and purpose of each fund and the rational for significant transfers is explained on page 25. Our fund accounting policy is described in note one on page 44.

The Headley Court restricted fund relates to funds received from the Headley Court Charity restricted to provide advice and support in communities across the UK over a five-year period.

58 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

16. FUNDS

B. ANALYSIS OF NET ASSETS BETWEEN FUNDS

----- Start of picture text -----
GROUP 2021
Unrestricted Designated Restricted Total
Fixed assets £’000 £’000 £’000 £’000
Intangible assets - 128 - 128
Tangible assets - 14,972 - 14,972
Investments 15,767 25,500 - 41,267
15,767 40,600 - 56,367
Net current assets 8,162 - 5,245 13,407
Provisions for liabilities and charges (1,697) - - (1,697)
Total net assets 22,232 40,600 5,245 68,077
----- End of picture text -----

17. OPERATING LEASES

At 30 September 2021 the Group had future minimum operating lease commitments under non-cancellable operating leases.

----- Start of picture text -----
2021 2020
Group Group
£’000 £’000
Land and buildings
Within one year 85 237
Between one and five years 28 -
Total 113 237
2021 2020
Group Group
£’000 £’000
Equipment
Within one year 10 18
Between one and five years 8 -
Total 18 18
2021 2020
Group Group
£’000 £’000
Vehicles
Within one year 42 49
Between one and five years 3 45
Total 45 94
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 59

18. COMPARATIVE INFORMATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Income from 2020
General
funds
2020
Designated
funds
2020
Restricted
funds
2020
Total
funds
£000
£000
£000
£000
Donations and legacies 13,757
-
7,802
21,559
Charitable activities 106
-
-
106
Other trading activities 2,111
-
-
2,111
Investments 492
-
-
492
Other 150
-
-
150
Total 16,616
-
7,802
24,418
Expenditure on
Raising funds 8,629
60
-
8,689
Charitable activities 13,123
6,420
2,571
22,114
Total 21,752
6,480
2,571
30,803
Net income/(expenditure) before
gains and losses on investments		 (5,136)
(6,480)
5,231
(6,385)
Net gains/(losses) on investments 2,044
-
-
2,044
Net income/(expenditure) (3,092)
(6,480)
5,231
(4,341)
Transfers between funds 8,442
(8,442)
-
-
Net movement in funds 5,350
(14,922)
5,231
(4,341)
Reconciliation of funds
Total funds brought forward 12,140
73,779
544
86,463
Total funds carried forward 17,490
58,857
5,775
82,122

60 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

19. COMPARATIVE INFORMATION

A. ANALYSIS OF MOVEMENT IN FUNDS

GROUP At 1 Oct Incoming Operating Capital At 30
2019 resources* expenditure expenditure Transfers Sep 2020
Restricted £’000 £’000 £’000 £’000 £’000 £’000
Catterick Recovery Centre 71 820 (891) - - -
Colchester Recovery Centre 22 3 (3) - - 22
Tedworth House Recovery Centre 24 405 (429) - - -
Plymouth Recovery Centre - 404 (404) - - -
Sports Recovery 31 110 (10) - - 131
Hidden Wounds - 150 (150) - - -
Very Seriously Injured (LIBOR) 371 568 (350) - - 589
Psychological Well-being - 67 - - - 67
Headley Court - 5,119 (211) - - 4,908
Other 25 156 (123) - - 58
Total restricted 544 7,802 (2,571) - - 5,775
Designated
Recovery Fund 24,000 - - - (8,000) 16,000
Capital Fund 6,500 - - - - 6,500
Recovery Projects 3,000 - (2,500) - (500) -
Sub total 33,500 - (2,500) - (8,500) 22,500
Fixed assets 40,279 - (3,980) 71 (13) 36,357
Total designated 73,779 - (6,480) 71 (8,513) 58,857
General 12,140 18,660 (21,752) (71) 8,513 17,490
Total funds 86,463 26,462 (30,803) - - 82,122

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 61

19. COMPARATIVE INFORMATION

B. ANALYSIS OF NET ASSETS BETWEEN FUNDS

----- Start of picture text -----
2020
GROUP
Unrestricted Designated Restricted Total
Fixed assets £’000 £’000 £’000 £’000
Intangible assets - 101 - 101
Tangible assets - 36,256 - 36,256
Investments 5,439 22,500 - 27,939
5,439 58,857 - 64,296
Net current assets 12,793 - 5,775 18,568
Creditors falling due after more
(742) - - (742)
than one year
Total net assets 17,490 58,857 5,775 82,122
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62 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

20. RELATED PARTY TRANSACTIONS

TRANSACTIONS BETWEEN GROUP COMPANIES

In the normal course of operations, transactions arise between Group companies. These amounts cover donations received in the trading companies, purchases settled by other Group companies, stock sold by one company on behalf of another, and VAT settled across the Group VAT registration.

The net of costs recharged between the Charity and its subsidiary, Help for Heroes Trading Limited, was £369,400 (2020: £30,300). At 30 September 2021, Help for Heroes had an intercompany debtor due from Help for Heroes Trading Limited of £597,200 (2020: £346,600). Total profits gifted to the Charity by Help for Heroes Trading Limited were £407,100 (2020: £163,500). Donations of £126,200 were received by Help for Heroes Trading Limited on behalf of the Charity and paid across in the year (2020: £156,800)· The net of costs recharged between the Charity and its subsidiary, Help for Heroes Development Company Limited, was Nil (2020: Nil). At 30 September 2021, Help for Heroes had an intercompany debtor due from Help for Heroes Development Company Limited of £5,900 (2020: £6,100). Total profits gifted to the Charity by Help for Heroes Development Company Limited were Nil (2020: £200).

OTHER RELATED PARTY TRANSACTIONS

During the year ended 30 September 2021, Help for Heroes was charged £44,350 (2020: nil) by Obhanrose Consulting Limited. During the year, Marion Rose was both the commercial director of Help for Heroes and a shareholder and director of Obhanrose Consulting Limited.

No Trustees have been remunerated or received any other employee benefits for their role as Trustees in this year or the prior period.

As a charity, Help for Heroes cannot recover VAT and the costs of related party transactions therefore include irrecoverable VAT where appropriate. The sales value to the related party may therefore be less.

During the year, Help for Heroes was charged an annual subscription of £9,950 (2020: £9,950) by COBSEO - The Confederation of Service Charites (COBSEO). During the year, Mel Waters was both the CEO of Help for Heroes and a director of COBSEO.

During the year, Help for Heroes was charged £6,000 (2020: £35,700) by ARL Partners Limited for the provision of a mental health assessment platform. One of the directors of ARL Partners Limited is the partner of Mel Waters.

During the year ended 30 September 2020, Help for Heroes issued a grant of £2.5 million to Special Boat Service Association (SBSA) At 30 September 2021, the Group owed nil (2020: £2.5 million) in respect of this grant. During the year ended 30 September 2020, Roderick Dunn was a Trustee of both Help for Heroes and SBSA. Due to the conflict of interest he did not take part in meetings or votes where this grant was discussed and agreed.

During the year ended 30 September 2021, Help for Heroes commissioned a research report from Picker Institute Europe. The cost to Help for Heroes was £26,880 (2020: nil). During the year ended 30 September 2021, Charles Stuart Bell was a Trustee of Help for Heroes and a patron of Pickers Institute Europe. He did not have any involvement with the transaction.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 63

THANK YOU Thank you so much for all the generous philanthropic support from our individual donors, corporate partners and trusts and foundations.

Corporate Partnerships

Trusts, Foundations and Philanthropic Partnerships

5G Communications Limited

ACS Clothing Alf Turner Amazon Smile

BAE Systems Combat Fuel Cotton Traders

Dartmouth Brands Ltd Debenhams Deep Blue Restaurants

Harry Ramsden’s

ICAP plc Kinly

Kinnerton Confectionery Ltd Lovell Sports Ltd Mace Military Network

Mastek UK Ltd

Moto in the Community Otter House Ltd

Palantir Polypipe

Speedo

St James’s Place Wealth Management

Stonegate Pub Company

Superdry

Tate & Lyle PLC

Team Army Sports Foundation

Team Ethos

Tesco PLC Tetra Tech

Vodafone UK Limited Wargaming Group Ltd WHSmith

Armed Forces Covenant Fund Trust

Charles Wolfson Charitable Trust

Harris Family Charitable Trust

Headley Court Charity

Intrepid Relief Fund

Inverforth Charitable Trust

James Milner Foundation JMCMRJ Sorrell Foundation Moodie Charitable Trust

Moorview Charitable Trust NHS England

Penelope Martin Charitable Trust

Plowright Charitable Trust

Stratton No. 2 Charitable Fund

The Treasury (using LIBOR Funds)

The Hermitage Trust

The Invictus Games Foundation – Endeavour Fund

Roxane UK Ltd

64

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Help for Heroes, 14 Parkers Close, Downton Business Centre, Salisbury, Wiltshire SP5 3RB

Published by Help for Heroes, a charity registered in England and Wales (1120920) and Scotland (SC044984), and limited company registered in England (6363256).