THE ROYAL ARTILLERY INSTITUTION LIMITED (A Company Limited by Guarantee) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Registered Charity No: 1122002 Registered Company No: 6446232
ROYALARfiLLERY INSTITUTION LTD CONTENTS Page Trustees, and Administrative Informatlon Trustees, Report 3-10 Report of the Auditor5 11-14 Statement of Financial Activities 15 Balance Sheet 16 Cash Flow Statement 17 Notes to the Financial Statements 18-25 Prior Year Comparatives 26
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES AND ADMINISTRATIVE INFORMATION RAI Trustees During the year ended 31 December 2023, and up to date of approval of thls report, the trustees were- Chalrman Major General DM Cullen CB OBE - Chalrman Members Brigadier NA Clissitt BriEadier RN Alston Colonel DM Bishop MBE VR Colonel RJ Chrlstopher Colonel CL Coton Colonel MAA Dornan Colonel RA Forster Colonel RC Harmer ADC Colonel S l Hay Colonel BMD Ingham Colonel C Palmer Colonel G Taylor Lieutenant Colonel JRM Gower MBE VR Lieutenant Colonel SJR Halliday TD Major MG Wllliams WOI IRASMI J Lightfoot WOI IRASMI L5anders (Appointed 26 August 20231 IRetired 4 September 20231 IAppointed 20 September 2023. Retired 6 May 241 (Appointed 9 October 20231 (Appointed 22 April 20241 IAppoSnted 22 November 20231 (Retired 17 October 20231 (Retired 28 July 20231 IAppoSnte(131 May 20241 (Retired 31 May 20241 A number of trustees a also involved in the governance of other charities referred to in thls report. All trustee5 have made a declaration listing any related partles and potentlal conflicts of Interest. Regimental Secretary Colonel IRetdl M G J Carter Bankers: Banker5 Lloyds Bank PLC 39 Piccadilly London WIVOAA Soll¢ltors Wllsons Solicitors Alexandra House, St John'5 Street Sallsbury WiltshSre SPI 2SB Auditors Saffeiy LLP 71 Queen Victoria Street London EC4V 4BE Investment Managers Brewin Dolphin 12 Smithfield Street London ECIA gBD
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES AND ADMINISTRATIVE INFORMATION Co1UlNED Address Royal Artlllery Barracks Larkhill, Salisbury Wiltshire SP4 8QT ReE15tered Charlty No 1122002 Company No 6446232
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Introduction The Board of Trustees of The ftoyal Artillery Institutlon Ltdl IRAII present their port and accounts for the year ended 31 December 2023 as requlred under the Companies Act 2006. The accounts complv with the Companies Act 2006, the charity's Eovernlng document and the relevant Statement of Recommended Practice (the Charities SORP IFRS 10211. The RAI is a charltable company, limited bv guarantee and not having share capital. It is governed by Articles of Assoclation. The Trustees, Report incorporates the directors, report for Compafties Act purposes. Ob ects The object of the charity, as described in its Articles of Association, is the promotion of the efficiency of the Royal Regiment of Artillery and the Officers, Warrant Officers and Other Ranks thereof. The charity meets that reqU1ment by maklng &rantS to regSments, individuals and other regimental orgallisations In support of regimental affairs. Regimental affairs are those matters which are essential to the domestlc Ilfe of the Regiment as a whole and which are contyolled by the Regiment itself, subject to the requlrements of prevailing legislation. The following activities are included.. regimental property,. regimental ceremonies, events and entertainment,. educational, historical and heritaEe affairs,. support to units and individuals, regimental sports and adventurous trainin& publications- supplementary SUPPOrt for Royal Artillery bands,. policy for regimental matters stsch as dress, messes, heritage and ceremonlal, all of which are 5UPPOrted by grant5 from the charity. Regimental welfare and the fostering of comradeshlp among all Gunners, serving and retired, are the responsibility of the Royal Artlllery Charitable Fund IRACFI and Royal Artillery Association IRAAI. anlsatlon The dutSes of the RAI Board of Trustees are laSd down in the Articles of Association. The Board members provide a skills-based Set of abilltSes and experience with some representing the serving offl¢er5 and soldiers of the Regiment. The RAI works closely with a number of other charities, in partlcular the Royal Artillery General Charitable Trust IRAGCTI, RACF and RAA, whose objetts also support and promote efficiency within the Royal Artillery. The Board of Trustees meets at least twice a year as part of the Royal Artillery Board of Management alongside the trustees of the RACF / RAA. The RACF Is the sole corporate trustee of the RAA. Subordinate to the Board of Trustees are the Investment Committee and Finance and General Purposes Committee. These committees comprise trustees from both RAI and RACF, who have been co-opted for their skSlls and knowledge, so as to ensure that hlgh quality advice may be provided to the RAI Board. The reports of these committees form part of the agenda of the meetings of the RAI Board of Trustees. The tYU5tee5 form the rnembership of the RAI. The Master Gunner's Committee sets the strategic framework for the ReEiment and acts as an advisory board to the RAI Board of Trustees as required. The Chairman of the RAI 15 a member of the Master Gunner's Committee and updates the committee biannually on business undertaken by the Royal Artillery Board of Management. The RAI works closely wlth other Royal Artillery charities and organisations that 5UPPOrt and promote the Royal Artillery's herita8e and traditions, most notably the Royal Artillery Historical Trust, the Royal Artlllery Hi5torlcal Soclety and the Royal Artlllery Museum. While the Charity Commission and Companie5 House websites show the narne of the company / charfty as 'Royal Artillery Institution Llmlted,, its correct tle In èccorijance wlth it5 Articles of As50Clation is The Royal Artlllery Institution Ltd..
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Governance In addition to the Articles of Association, the Investment and Flnance & General-Purpose committees have thelr own directives, which are reviewed and agreed reBularly by the trustees. Powers delegated to the Secretariat are contained the directive5. secretariat policies, which are agreed by the trustees, are in place in order to ensure smooth and effective running of the charlty. The charity's risk register is reviewed annually by the trustees. Identified risks are managed as laid down in the Rlsk Management Plan. For specific Itern5, detaSled briefs are sent to the trustees so they can consider issues in depth before meetings. Trustees also receive regular reports on the value and movement of the charitvs investment portfolio. The Chairman of the trustees and the Regimental Secretary meet regularly (usually weekly) to discuss issue5. Charl Commission Governance Code The RAI as one of the Royal Artillery charitie5, comes under the umbrella of the Confederation of Service Charitles Icobseol. Cobseo, In consultation with the Charity Commission, have produced a Service Charity toolkit based on the 2017 Charity Commi55ion Governance guide. The trustees carried out a self-assessment process uslng the toolkit during 2019. Thi5 enabled the Board to identify a number of enhancements which can be consldered to improve governance. This included a resolution to limit the tenure of trustees. The self assessment was repeated in 2022. Overall this showed an improvement since 2019 but identified some areas for further revlew. A further review will be conducted in 2025. Selection of Members of the RAI Board of Mana ement The Articles of Association state the process for the appointment of trustees. New trustee5 are appointed by Re501ution of the existing trustees. Trustees are normally serving and retired members of the Royal Artillery. The Master Gunner St james's Park 15 the Head of the Regimental Family, but he is not a trustee. The Master Gunner proposes the Chairman, who will normally have been a Colonel Commandant. The appointment of the Chairman is then approved by resolution of the existing trustees. Trustees are selected for their ski115 and experience ènd their ability to understand and anticipate the needs of the serving and retired regiment. The trustees will normally include the Commandant, Royal School of Artillery, Commander 7 Air Defen Group, DepLtty Commander I" Deep Reconnaissance Strike Brigade Combat Team, and the Royal Artlllery Ser@eant Major, who between them represent the Interests of serving Gunner soldiers and officers. Veterans and family beneficiaries are represented by both servlng and retired trustee5. ement Personnel The Regimental Secretary is the Chief Executive of the RAI and is responsible for- the day-to-day management of the charity's business- implementing policies agreed by the trustees and; the management of the charlty's staff. The Finance Secretary is responsible to the Regimental Secretary for the accounting of funds and all financial records. The Assistant Regimental Secretary leads on day to day activities and acts a5 Staff officer to the Master Gunner. Revlew of Flnanclal Actlvltles The charwty's funds continue to be employed to promote efficiency withln the Royal Artillery. The detailed results for the year under review are shown in the Statement of Financial Activities at page 15 In 2023 the charity had an excess of expenditure over income, before gains on investments, of £94,132 12022.. expenditure over income, before losses on investments, £88,028).
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Review of Flnancial Activities continued After investment gains of £497,21712022.. losses of £1,665,789) there was a net increase in funds of £403,08512022'. net decrease of £1,753,817). Total income increased by £125,785 in the last financlal year to £960,042 mainly due to an increase in grant5 received. A large grant from the Army Sports Control Board, covering 2022 and 2023, was received in 2023 for £95,000 to assist in the support to Gunner sport. There wa5 also an increase in grant5 from the RACF for support to sport. Sporting activitles has increased signiflcantly in 2023. Investment income from the portfolio achieved in exces5 of the budgeted £260,000, the total being £282,495 (the excess being retained in the portfolio). Despite the increase of investment value, investment income fell by £19,461 due to decrease in dividend payments from stock. There were no legacies reIved in 2023 but 189 donatlons totalling £9,62112021: 202 totalllng- £10,389). The malorSty of donations arise from contributions from the Unity Lottery and from hlstoric standing orders for Gunner Magazine, where recipients have requested to no longer receive the ptjblication but have chosen not to cancel their standing order5. Income collected through the Service Pay Giving Scheme from serving members of the Regiment has increased by £6,223. There are four main income streams. They are.. Service Pay Giving Scheme ISPGSI, where all servlng personnel are encouraged to give part of thelr pay to the charity Investment income Grants Donation5 The majority of funding comes from SPGS136%1 and the investment income129%1. The RAI drew down £260,000 of investment income, which was in Ilne with the budget for 2023. The balance of income from Snvestments1£22,4951 was relnvested within the portFolio. General charltable expenditure increased by £127,043 to £932,08212022'. £805,039). Overall there was a general increase of expenditure and uplift in grants due to inflatlon and the cost of living crisis. Sport5 expendlture increased in support of increased activity. There was increased support to regimental heritaEe, including the preservation and restoration of artefacts and support to the regimental archives. There were also increases to support cost5 due incremental pay awards, cost of living allowance and the employment of a Media & Comms dlrector. and legal advice. The remainder is accounted by InCaSed draw down on the 8axter Fund. The trustees approve the forecast of Sncome and expenditure annually and monltor it regularly through the Finance & General Purpose Committee and at Board meetings. Bids for major grants are called for annually and are scrutini5ed as part of the budgetary proce55. Grants made by the Chairman of the Board and Reglmental Secretary under their delegated financial powers are subsequently reported to the trustees. The RAI'S object IS the promotion of efficiency within the Royal Regiment of Artillery. This follows the Charity Commission's guidance on legitimate charitable purposes, one of which Is Yhe promotion of the efficiency of the ormedforce5 of the Crown".
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES, REPORT FOR THE YEAR ENDED 310ECEMBER 2023 Charitable Activities The Charity Commlssion states.. Yhe armedforces existfor public defence ondsecurity. It is churitable to promote the efficiency ofthe urmedforces of the Crown os o means of defending the country. Thot includes ensuring that thoseforces ore properly troined and equipped during times of conflict. It u150 includes providingfucilities (ynd benefitsfor the urmedforces". The charltvs princlpal activity during the year was the provision of grants to promote efficiency. Durlng the year the RAI made the following major grants in support of regimental event5 and actlvities judged by the trustees as conducive to the promotion of efficiency within the Royal Artillery: Royal Artillery 5POrts teams - £207,010 Ilncluding £86,580 from RACFI Regimental heritage- £137,712 Regimental grants- £71,596 Gunner magazine & RA Journal within ralsing funds- £41,141 RA HQ Messes- £23,848 Regimental Expenses (Regimental remOnIal and commemorative, other events and Dinners) - £23,059 Recruiting - £21,185 Details of addltlonal grants can be found on page 21. The RAI holds and maintains a collection of chattels comprising pictures, sllver and furniture which have been acquired by bequest, by puychase through subscription of the officers of the Regiment and through property being held by the charity following the disbandment of regiments and the placing in suspended animation of individual Batteries la process that has been on-going since the end of the 2. World Warl. The charity loans item5 to regiments, headquarter5 and some individual officers in representational roles and these a accounted for annually. There are also a number of items on loan to regiments from the Royal Artillery Museum which are also monitod by the charity in order to ensure suitable insurance is in place. Accounting for the Collection is the principal responsibility of the A5SiStant Reglmental Secretary who continues to revSew the holdings and maintain the database a5 additional items are received or loaned out. Much of the Collection (which totals MO than 13,ODO artefactsl is held in the Royal Artillery Mess at Larkhill where It Smbues a sense of historical continuity, ethos and tradition to members of the regiment, past and present, other items are loaned to other Royal Artillery messes, other military messes, museums and other public bodles, in all totalling some 120 different locations. In addition to the above, the RAI continues to provide staff to support the Master Gunner, the Master Gunnevs Committee and the Royal Artillery Board of Management in their representative and stewardship roles within the Royal Regiment. Public Beneflt The Objects of ihe RAI are to promote effitiency within the seNing Regiment Inextricably linked with this Object is the aim of contributing to the public good by service to the SovereiBn, Ihe Country and all its citizens. In addition contributes a significant sum towards the preservation of regimental heritage, which in itself contributes to the history and heritage of the nation. The trustees have taken due regard of the Charity Commi55ion's guidance on Public Benefit.
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Future Plans The charity has a sound financial base for future operatlons. The trustees wlll contlnue to support the evolving needs of the Royal Artillery and in particular the outcome of the Master Gunner St James's Park's Strategic Review which has six workstreams. The trustees will continue to respond to changes brought about under the work5treams, which are.. Governance,. People & Ethos,. Operational Purpose & Distinctive Competencies; Heritage and,. Charities & Veterans. In 2020 the trustees agreed to earmark £1.5M of capital funds for future transfer to the Royal Artillerv Museum IRAMI. Of this £500K was to have been in the form of a grant and £l.OM in the form of a loan. Although the offer of this sum has now been withdrawn followlng the retrattlon of the offer of a suitable site for the museum, the tiijstees are likely to consider making a similar level of funding available in the future once the conditions upon which the orlginal offer was made are met. The current situation is that a revised plan has been approved in principle by the Master Gunner's Committee and a new site approved by the Chlef of the General Staff. Trustees will be invited to reconsider a revlsed bld for funding in 2024 Reserves Pollc The tru5tees' policy is to maintain a sufficlent level of reserves to.. provlde a stable base and income generatlon for the charltvs continuing activitiesi generate sufficient funds to cover routine management and admini5tratwe costs and- enable the charity to respond to any emergency applications for grant5 which may arise from time to time. Total fijnds as at 31 December 2023 were £11,330,81812022'. £10,927,733). Unrestricted reserves were £10,333,98112022.' £9,961,052) of whlch are all free reserves. Restricted Funds were £996,83712022- £966,681) and compromises of Baxter Fund - E969,357,. RegSmental Church - £16,980 and RA Church Refurbishment- £10,500 of which a large proportlon Is represented by investments. Our rlsk-based approach to determining our free reserves requirement is carrled out, based on the anticipated future need5 of the regimental family, and the management of financial risks, partlcularly the uncertainty of future income from other Sour5. The effect on the charity'5 investments as a result of the situation in Ukraine demonstrates the beneflt of maintaining strong reseDJes Sn order to be able weather such market fluctuatlons while maintaining required levels of Investment income. Trustee5 review the level of reserves regularly to ensure funds are available to deliver the charitie5 object, and to secure, as far as possible, future financial vlability. Our annual review of reserves included assessing the impact of the invasion of Ukraine and the cost of living crisis on our business plans. projected incorne and expenditure, and on our investments. Followlng that revlew, we determined that we should hold a mlnlmum of £9,500,(KJO in free reseNes to be assured that we are able to sustain the support we provide to the regimental family in the long term as well as meet other obllgations, irrespectlve of fluctuations in income and without creating the need to actively fundraise. This sum, held as part of our investment portfolio, is judged to be capable of generating sufficient investment Income to meet foreseeable needs. Thls sum, held as part of our Investment portfolio, is judged to be capable of generatin8 sufficient investment income to meet foreseeable needs. Wlth free reserves of £10,333,981 currently exceed this requlrement. The trustees are content that the additional funds we hold provlde ability to disinvest in order to support major capital projects If and when required, but In the mear)time are held as Investments generating additional income.
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTE£S' REPORT FOR THEYEAR ENDED 31 DECEMBER 2023 ReseNes Pollc continued In 2023 the investment portfolio generated £282,495 for the charity, of which RAI received £260,OLM) as in-year incorne. The balance of £22,495 was reinvested into the portfolio. The £260,OQ)O was 29% of total Income received. Without this level of income the charltws activities would be significantly curtailed. Trustees believe that investments should be maintained at the current levels, in order to generate income and provide for current needs whilst ensuring the charity remains well placed to meet future requirements. The trustees recognise that they have no long term mandated liability for any particular level of financial grants or artivity. They therefore have the ability to reduce expenditure to match income in the event of income reducing. Investment ollc The trustees, Investment Committee meets twice a year to consider the performance of the RAI'S investments which are managed on a discretionary basis by Brewin Dolphln. The investment objertive is to create sufficient income and capital growth to enable the charities to carry out their charitable objectives. The charlty is expected to exist in perpetuity and investments are managed to meet the investment objective and ensure thls sustainability. The charity's funds are invested on an aliquot proportlDn in the same funds as the other Gunner welfare / efficiency charitles. This is in order to achieve economies of scale in relatlon to investment COSt5. The trustees have given the fund managers discretion to manage the portfolio within an aEreed risk profile and agalnst agreed benchmarks. This is contained In a wrltten dlrective. At the bi-annual meeting with the investment managers the Investment Committee considers the state of the financial markets and measures the fLJnd manaEers' on-going performance against specific agreed benchmarks, namely 25% FTSE All Share Index, 35% MSCI World ex UK Index, IO% MSCI Emerging Markets Index, 7.5Yo FTSE All Stocks Gilt Index, 5% iBoxx Sterling Non-Gilts Index, IO% IPD UK AII Balanced Funds Index, 5% Alternative IIA Sector Targeted Absolute Return) and 2.5% Cash (Sterling Overni8ht Index Averagel.Having compared performances over the last 1, 3 and 5 years, the Investment Commlttee are of the view that the investments have done reasonably well in relation to the market and relevant benchmarks over the long term, and that there Is currently no case to prompt a change of nvestment policy. The performano of the fund manager wlll be subjert to annual review. Envlronmental Governance and Soclal Conslderatlons The RAI'S Investments are not managed with any specific environmental, social and governance IESGI restrictions. However it is expected that the RA charlties, Investment managers have clearly defined ESG Investment pDllcies and that the investments are managed by an investment company which is a signatory the UN Principles of Responsible Investment and which takes account of Environmental, Social and Governance IESGI factor5 in their research and investment decision making process. Fundralsln The trustees are very clear that all fundraising must be legal, open, honest and respectful. The charity does not actively engage in regular and organised fundraising, although it does receive donatlons and legacies. It receive5 the bulk of its income through investments and the Royal Artillery's 'seNice giving scheme,. The facility exists for indlviduals or organisations to make voluntary donations online. The charity does not work with any commercial partner or professional fundraisers except in order to operate an onllne donatlon facillty such 'Enthuse' and'just Giving,. When donations are recelved they
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Fundralsln contSnued are malnly as a result of advertlsements on the Gunner website and publlcatlons, and from open, group briefings to members of the seNing Regiment. In addition, regiments and other Gunner organSsations are encouraged to engage In sponsored activities to raise funds. The charity does not 501icit funds through direct approaches to individuals via mailshots or online unless consent has been obtained. No complaints were received in 2023. Trustee Trainin Trustee responsibilities and nece55ary training are taken very seriously. All new members of the trustee board are briefed by the Regimental Secretary on theSr roles and re5ponsiljilitles. They are provided with the Charity Commissioners handbook he Essential Trustee" as well as a copy of the Scheme. Recent RAI accounts, meeting, minutes and policy document5 are a150 provided. Trustee briefings and training take place and member5 of the Board are encoura8ed to attend external trustee training and investment briefs. Risk Mana ement The trustees maintain a continuous oversight of the principal areas of the charity'5 operations and the major risks, which may arise In these areas. In the opinlon of the trustees the charity has established resources and review systems which, under normal condStions, should allow the risks identified to be mitigated to an acceptable level. A risk management plan is produced and approved by trustees each yeaT and managed actively by the trustees, the Regimental Secretary and his staff. The main risks are: Insufficient income to meet the need.. Thi5 is managed by careful budgetlng, the investment and reserves policy and by controlling the level of support provided to beneficiaries. Fraud.. This 15 guarded against by having policies in place to ensure regular checks are made and that all transactions are properly authorised by two signatories. Conflict of Interest amongst trustees. A register of trustee Snterests Is kept and updated annually. At the start of committee and Board of Management meetings, trustees are reminded to declare any conflict arislng from the agenda so that approprlate action can be taken. Reputatlonal damage arising from activlties. This is mitigated by oversight of activitie5 by the trustees and senior management. Remuneratlon Pollc No trustee is paid as an employee or for serv1$ as a trustee, though travel and subsistence costs incurred as a trustee are reimbursed. The trustees review staff salaries annually and take Snto account the MOD pay awards for Similar Erades, when recommendlng any pay increases. Em ees The RAI aims to be an organisation for which employees enjoy worklng and where they feel supported, valued, empowered and developed. Employees are kept fully informed about the aims and objettive5 of the charity and how it is achieving them. Employees are encouraged to contribute suggestions to help improve working processes and to achieve best practice. The charity 15 an equal opportunltles employer and is committed to training and developin8 its staff.
THE ROYAL ARTILLERY INSTITUTION LTD TRUSTEES, REPORT FOR THE YEAR ENDED 310ECEMBER 2023 TTUStees' Llabili The liability of RAI trustees for debts of The Royal Artillery Institution Ltd is limited to an amoltnt not exceeding one pound. Statement of Trustees. Res The trustees (who are also dlrectors of the RAI for the purposes of Company lawl are responsible for preparing the Trustees, Report and the financial statement5 in accordance with applicable charity and company law and UrTrited Kingdown Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice (UK GAAPI. The Company and Charity law applicable in England & Wales and UK GAAP requires the trustees to prepare financial statements for each financial year which give 3 true and fair view of the state of affairs of the charitable company. This includes details of income and expenditure and the appllcation of resources for the period. In preparing these financial statements, the trustee are required to-. select sultable accountlng pollcles and then apply them cons1Stentlv,' adhere to the methods and principles in the Charities Statement of Recommended Practice (Charities SORP IFRS 10211: make judgements and estimates that are reasonable and prudent,. state whether applicable accounting standards have been followed, subject to any material departures which are to be disclosed and explained in the financial statements; prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the charity will continue in buslness. The trustees are also responsible for safeguardlng the assets of the charlty, including taklng reasonable steps to prevent and detect fraud and other irregularities. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply wlth.. the Companies Act 2006. the charSty's governSng document,. the Charlties Acts 2011 and; the SORP applicable to charities preparing their accounts in accordance with the Financial Reporting Standard appllcable In the UK and Republlc of Ireland IFRS 1021 (Charities SORP IFRS 10211. Statement as to Dlsclosure of Information to Auditors In so far as the trustees are aware: There is no relevant audit inforrnation of which the charitable company's auditor is unaware; an($ The trustees have taken all steps that they ought to have taken to make themselve5 aware of any relevant audit information and to establish that the auditor is aware of that information. Thls report has been prepared under the special provisions of Part 15 of the Companies Act 2CK)6. On ehalf of the trustees il 2024 Majo Gen ral DM Cullen CB OBE Chairman RAI Board of Trustees io
THE ROYAL ARTILLERY INSTITUTION LTD INDEPENDENT AUDITORS REPORTTO THETRUSTEES FOR THEYEAR ENDE031 DECEMBER 2023 Opinion We have audited the financial statements of Royal Artlllery Institution Ltd forthe year ended 31 December 2023 which comprise the statement of financial activities, balance sheet, cash flow statement and notes to the flnancial statements, including significant accounting policies. The financial reporting framework that has been applied in thelr preparation is applicable law and United Kingdom Accountlng Standards, including Financial Reporting Standard 102, the Flnancial Reporting Standard appllcable In the UK and Republic of Ireland (United Kingdom Generally Accepted Actounting Practice). In our opinion the financial statements: glve a true and fair view of the charitable company's state of affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared In accordance with United Kingdom Generally Accepted Accountlng Practice,. and have been prepared in accordance with the Companies Act 2006. Basls for opinion We conducted our audit in accordance with International Standards on Audiling IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further descrlbed in the Auditorfs responsibilities for the audlt of the flnancial statements section of our report. We are independent of the charitable company 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 relatlng to golng concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basls of accounting in the preparation of the financial statemenls is appropriate. Based on the work we have performed, we have not identified any m8terial uncertainties relating to events or conditions that, individu211y or collectively, may cast significant doubt on the charitable company's ability to continue as a going conrn for a period of at least twelve months fmm when the financial statements are authorised for issue. Our responslbillties and the responsibilities of the trustees with respect to golng concern are described In the relevant sections of this report. Other informatlon The trustees are responsible for the other informatSon. The other information comprise5 the Information included In the annu31 report, other than the financial statements and our auditols report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated In otsr report, we do not express any form of assurance conclusion thereon. Our responsibility Is to read the other information and, in doing $0, consider whether the other information is materially inconsistent wSth the financial statement5 or our knowledge obtained in the course of the audit or otherwise appears to be materially m155tated. If we identify such material incon51Stencie5 or apparent material misstaternents, we are required to determine whether this gSves rise to a materlal misstatement in the financial statements then)selves. If, based on the work we have li
THE ROYAL ARTILLERY INSTITUTION LTD INDEPENDENT AUDITORS REPORTTOTHE TRUSTEES FOR THEYEAR ENDED 31 DECEMBER 2023 perforrned, 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. Oplnlons on other matters prescrlbed by the Companles Art 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Annual Report which includes the Directors, Report for the financlal year for which the financial statements are prepared 15 con515tent with the financial statements,. and the TYu5tees' Annual Report whlch includes the Dlrectors, Report has been prepared In accordance with applicable legal requliements. Matters on which we are required to report by ex¢eptlon In the light of the knowledge and understanding of the charitable company and it5 environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Annual Report. We have nothSng to report in respert of the followinB matters where the Companies Act 2006 requires us to report to you if, in our oplnion.. adequate accounting record5 have not been kept, or returns adequate for our audit have not been received from branches not visited by Lts; or the financial statements are not in agreement wlth the accountlng records and returns- or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. or the trustees were not entttled to prepare the financial statements in accordance with the small companies regime and to take advantage of the small companies exemption in preparing the Trustees, Annual Report and the Strategic Report. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement set out on page5 3-10, the trustees (who are also directors of the charitable company for the purposes of company lawl are responslble for the preparation of the financial statements and for being satisfied that they give a true and fairview, and for such internal control as the trustees determine 15 necessary to enable the preparation of flnanclal statements that are free from mèterial misstatement, whether due to fraud or error. In preparlng the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a Eoing concern, disclosing, as applScable, matters related to going concern and using the Boing concern basis of accountin8 unles5 the trustee5 either Intend to liquldate the charitable company or to cease operatlons, or have no realistic alternative to do so. Auditor's responslbllltles for the audit of the flnanclal statements We have been appointed as auditors under the Companles Act 2006 and report in accordan with regulations made under that Act. Our objectives are to obtain reasonable assurance about whether the financial statement5 as a whole are flee from material misstatement, whether due to *raud or error, and to issue an auditor's report Ihat includes our oplnion. Reasonable assuran is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 12
THE ROYAL ARTILLERY INSTITUTION LTD INDEPENDENT AUDITORS REPORTTOTHETRUSTEES FOR THEYEAR ENDED 31 DECEMBER 2023 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are Instances of non-compliance with laws and regulations. We design procedures in line wlth our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the e)rtent to which these a capable of detecting irregularities, including fraud are detalled below. IdentifySng and assessing rSsks related to irregularities: We assessed the susceptibility of the charitable company's financlal statements to material misstatement and how fraud might occur, including through discussions Wlth informed management, discussions Within our audit team planning meeting, (tpdating our reeord of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the flnancial statements. We identifled laws and regulations that are of significance in the context of the charitable company by discu55ions with informed management and updating our understanding of the sector in which the charitable cornpany operates. Laws and regulations of direct slgnificance In the context of the charitable company include The Companies Art 2006, and guidance issued by the Charity Commission for England and Wales. Audit response to rlsks identified: We considered the extent of compliance wlth these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company's record5 of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company's policies and procedures for compllance w6th laws and regulations with member5 of management responsible for compliance. During the planning meeting wlth the audit team, the engagement partner drew attention to the kev area5 which might involve non-compliance wlth laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulation5 or knowledge of any actual, suspected or alleged fraud. We addressed the rlsk of fraud through management overrlde of controls by testing the appropriateness of journal entries and identifying any signifScant transactions that were unusual or outside the norrnal Course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completlon Stage of the audit, the engagement partnerfs review Included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are Inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the les5 likely we would become aware of it. Also, the risk of not detectlng a material misstatement due to fraud 15 higherthan the risk of not detecting one resulting from error, as fraud may Involve deliberate concealment by. for example, forgery or intentional misrepresentations, or through collusion. A further de5crlptlon of our responslbilities is available on the Flnancial Reporting Council's website at: www.frc.or auditorsres onsibilities. This description forms part of our auditor's report. 13
THE ROYAL ARTILLERY INSTITUTION LTD INDEPENDENT AUDITORS REPORTTOTHETRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companie5 Act 2006. Our audlt work has been undertaken so that we might state to the charltable 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 companvs members as a body, for our audit work, for thls report, or for the oplnions we have formed. Cara Turtlngton (Senlor Statutory Auditor) For dnd on behalf of Saffery LLP Chartered Accountant5 statutory Auditors 71 Queen Victoria Street London EC4 4BE Date.. ILSL)*W Zozk Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 14
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THE ROYAL ARTILLERY INSTITUTION LTD BALANCE SHEET AT 31 DECEMBER 2023 2023 2022 Flxed assets Investments 11,353,057 11.353,057 10,863,279 10,863,279 Current assets Stocks 14,570 15,440 30,249 Debtors 49,216 Prepayment 1,730 Cash at Bank and in hand 94,485 160,001 200,232 245,921 Current liabilities Creditors.. Amounts falllng due wlthln one year Net current assets Total assets less current liabllltles Funds io 1182,2401 122,2391 11,330,818 1181,4671 64,454 10,927,733 Unrestrlcted Funds 10,333,981 9,961,052 Restricted Funds li 996,837 966,681 11,330,818 10,927,733 The notes on pages 18 to 25 form part of these flnanclal Statements. rov d by the trustees on il 2024 Ma General DM Cullen CB OBE Chairman The RAI Board of Trustees Company number: 6446232 16
THE ROYAL ARTILLERY INSTITUTION LTD CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Net cash used In operating actlvltles 1390,6651 1464,7071 Cash flows from investin activities Dividends, interest and rents from investments Purchase of Investments Proceeds from sale of investments 282,495 12,893,195) 2,807,250 301,956 13,479,788) 3,266,535 Net cash used In Investlng actlvltles 196,550 88,703 Net decrease in cash & cash equivalents Cash & cash equivalents at the beginning of the year 1194,1151 1376,0041 395,958 771,962 Cash and cash equivalents at end of the year 201,843 395,958 Notes to the eash flow statement Reconciliation of net movement in funds to net cash flow from operating activities 2023 2022 Net movement in funds Lossllgainl on investments Investment income Increase in investments due to changes in aliquot IlncreasellDecrease in prepayments Ilncreasel/Decrease in stock Ilncreasel/decrease in debtors IDecreasel/lncrea5e in creditor5 Net cash used in operating actlvities 403,086 1497,2171 1282,4951 5,111 11,7311 870 119,0621 773 1390,6651 11,753,817) 1,665,789 1301,9561 17351 13971 11541 173,4371 1464,7071 Analysis of cash and cash equlvalents and net debt Atljan 2023 Cash flow At 31 Dec 2023 COIF Charities Deposit Cash on short term deposit Cash held in Investments Net cash provided by operatinE activities 200,232 195,726 395,958 1105,7471 188,3681 1194,1151 94,485 107,358 201,843 17
THE ROYAL ARTILLERY INSTITUTION LTD NOTESTOTHE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles The Royal Artillery Institution 15 a company limited by guarantee incorporated in England and Wale5. The reElStered office 15 Artillery HoLise, Royal Artillery Barracks, Larkhill, Salisbury, SP4 8QT. 1.1 Basis of accounting The financial statements have been prepared under the historlc cost conventlon, with the exception of listed Investments which are Included at thelr market value. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charitles preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland Icharities SORPIFRS10211, the Financial Reporting Standard applicable in the United Kingdom and Republlc of Ireland IFRS 1021 and the Companies Act 2006 and UK Generally Accepted Accounting Practice. The Royal Artillery Institution constitutes a public benefit entity as defined by FRSIO2. 1.2 Going Concern The trustee5 have a reasonable expectation that the charity has adequate resources to continue in operatlonal existence for the foreseeable future. Thus they continue to adopt the going concern basi5 in preparing the annual financial statement5. 1.3 Investment income Investment income 15 cdIted to the statemerlt of financial activities when its receipt is probable and the amount receivable can be measured reliably. It is allocated to both restrlcted and unrestricted funds on the basi5 of an aliquot proportion across the whole portfolio. 1.4 Subscriptions, donations and legacles Subscriptions and donations are recognlsed as income when the amount5 are receivable. Legacies are recognised when receSved or recelpt Is probable and the value can be measured with sufficient 1.5 Expendlture & support costs Expenditure is recognised in the period in which it is incurred and includes attributable VAT whlch cannot be recovered. Supports costs are those costs which have not been directly allocate to an activity of the charity but nevertheless support these activities. 1.6 Grant expenditure Grants payable are payments made In furtheran of the charltable objects of the charity. These are accrued once the recipient ha5 been notified of the grant award. The notification gives the recipient reasonable expectatlon that they will receive the grant. Provisions for grants are made when the Intention to make a grant has been communlcated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable. 18
THE ROYAL ARTILLERY INSTITUTION LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 1.7 Fund accounting Unrestricted funds are available to use to further any of the purposes of the charitv. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charlty's work or specific projects being undertaken by the charity. 1.8 Flxed asset Investments Fixed assets Investments are stated at mld-market value. The unrealised movement in market value fr(Im one year to another is cOgnised in the statement of financial activities. 1.9 Stocks Stocks are valued at the lower of cost and net reali5able value. 1.10 Penslons Staff are enrolled in a NEST pension scheme. Contribution5 are charged in the Statement of Financial Activities as they become payable. 1.11 Cash & cash equlvalents Cash and cash equivalents include cash in hand. dep051ts held at call wlth banks and other short-term liquid investments with c>riginal maturitie5 of three months or les5. 1.12 Assets not Included within the balance sheet The collection of chattels comprising of pictures, sllver and furniture which have mainly been acquired through bequest, by purchase through 5ubscriptlon of the officers of the regiment and through property reverting to the charity upon disbandment of regiments is not included in the balance sheet as the historic cost of any assets purchased is not known and is considered likely to be immaterlal. The artefacts are largely held at the Royal Artlllery Mess at Larkhill wlth others belng held at other milltary rnesses, museums and other public bodies. The assets are held as part of the setting of the regiment for future generations. The insurance value of these assets is £7.5 million. 1.13 Financial Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financlal instruments. Basic financial instr(Jments are initially recognised at transaction value and 5ubsequentlv measured at their settlement value with the exception of bank103ns which are subsequently measured at amortised cost using the effective interest method. Trade and other debtors are recogni5ed at the settlement amount due after any trade dlscount offered. Prepayments are valued at the amount prepaid net of any trade discounts due Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estSmated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 19
THE ROYAL ARTILLERY INSTITUTION LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 1.14 Critical estimate and judgements and key sources of estimatlon uncertalntv In the application of the charity's accounting policies, the trustees are required to make judgements, estimate5 and assumptions about the carrying amount of assets and Ilablllties that are not readily apparent from other sources. The estimates are recogni5ed in the period in which the estimate is revlsed where the revision affects only that period, or in the period of the revlsion and future periods where the revision effects both current and future periods. There are no critical estimatesi judgement5 or key sources of estimation uncertainty in 2023 or 2022. Donations and legacies inc SPGS 2023 2022 Officers, subscriptions ISPGSI Soldiers, sub5cription5 ISPGSI Donations Intangible Income- Wages in Kind 201,002 147,375 9,621 91,211 449,209 195,770 146,384 10,389 86,499 439,042 Charltable Actlvltles Income. 2023 2022 RA Publications- Sub5crlption RA Publicatlons- Advertising Income Grant5 IRAI & RACFI Grants Received Royaltie5 Investment Income 27,406 640 101,580 95,OCK) 439 1,135 226,200 30.037 I,ioo 60,377 310 1,128 92,952 Other Income 2023 2022 Sale of books Receipts of Laid Down Wlnes 114 293 2,024 2,138 14 307 20
THE ROYAL ARTILLERY INSTITUTION LTD NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2023 Charitable Activitie5- Grants Pald 2023 2022 Annual Allocations.. The Gunner Magazine Master Gunnel's Expenses RA Sports RA HQ Mess RA Central Sergeants Me55 Fund Support of Units - Unit Grants Support to Senior/Commanding Officers and miscellaneous events Recruiting Regimental Expenses Annual Contlngency Reserve 6,128 9,335 207,010 ./ 8,098 24,967 71,596 ,/ 16,245 6,125 7,068 153,665 12,313 22,190 65,980 14,858 21,185 J 36,778 22,890 424,232 24,105 36,613 22,535 365,452 Other Grants.. Adventurou5 Training Regirnental History Vlll Sandown Transport Misc Betterment Grants 2,231 1.596 12,576 13701 1,523 J 17,556 137,712 579,500 550 36 11,700 1,718 14,004 122,211 501,667 Grant to RAM Total Grants Paid Support Cost to Charitable Activities.. Salaries Employers Pension Contrlbutions Wages in Kind 184,960 12,009 91,211 288,180 153,461 10,039 86,499 249,999 Presentation & Awards Printins, postage & Stationery 5,830 2,984 7.148 2,999 É li Computer software/Hardware Insurance Chattels Imaintenancel Travelllng & Entertalnment Miscellaneous Audit Fees Audit Fees Under Provislon Legal and Professional Fee5 Total Support Costs 9,011 8,743 8,027 1,856 7,471 10,411 82 9,987 64,402 3,651 4,797 10,462 409 1,116 10,448 216 12,127 53,373 Total Charltable Actlvltles 932,082 805,039 21
THE ROYAL ARTILLERY INSTITUTION LTD NOTES TO THE FINANCIAL STATEMENTS Icontinued) FOR THE YEAR ENDED 31 DECEMBER 2023 Charltable actlvltles- Support Costs conllnued The average number of persons employed by the Fund during the year was: 2023 Number 2022 Number Off ice and administration There were no employees wSth emoluments above £60,000. The following payments were made to Key Management Personnel: £16,02112022.. £13,8941. One trustee received out of pocket expenses of £46 in 202312022.. NIL). No trustee received funds Sn respect of consultancy services to the charity12022.' NIL). Investments 2023 2022 uoted Investments Market value at l January Purchases Sale5 proceeds Investment Management Fee Net realisedlunrealised Losse5 Aliquot Changes Cash movements 10,863,282 12,514,425 2,893,195 3,479,788 12,807,250) 13,266,535) 152,0131 153,8421 497,217 11,665,789) 15,1111 735 136,2631 1145,5031 Market value at 31 December 11,353,057 10,863,279 Historical value at 31 December 10,0150,754 9,639,755 There was no holding exeded 5% of the total portfolio value at the 31, December 2023. 2023 2022 Investment Investments Income Account Dealing & Deposit Account Market value at 31 December Cash Breakdown 11,245,699 10,667,553 70,919 32,601 36,439 163,125 11,353,057 10,863,279 22
THE ROYAL ARTILLERY INSTITUTION LTD NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2023 Stocks 2023 2022 Medals and Sword5 Books 8,279 6,291 14,570 9,146 6,294 15,440 Debtors 2023 2022 Accrued Servlce Glving Income Insurance on behalf of third parties Investment Income Sundry Debtors 29,749 122 1,187 18,158 49,216 28,947 122 1,180 30,249 Cash at bank and in hand 2023 2022 Bank current account5 94,485 94,485 200,232 200,232 10. CredÈtors 2023 2022 Amounts falling due within one year: Gunner Investment Income RAHT Investment Income CSM Investment Income Accrual - Audit and accountancy Other Creditors RHA A550ciation Red Cypher 1,187 7,930 4,803 10,410 7,989 106,801 43,120 1,180 8,192 13,086 10,388 7,649 100,436 40,536 182,240 181,447 23
THE ROYAL ARTILLERY INSTITUTION LTD NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2023 ii. 2023 Restrlcted Fund Balance Incoming Outgoing Net gains on l January 23 Resources Resources Investment Balance at 31 December 23 Baxter Fund 939,201 17,449 128,2991 41,OD6 969,357 16,980 10,500 Regimental Church Royal Artlllery Church Refurbishment Total 16,980 10,500 966,681 17,449 128,2991 41,OD6 996,837 2022 Restricted Fund Balance Incomln8 Outgolng Net losses Balance at l January 22 Resource5 Resources Gain on 31 December £ Investment 22 Baxter Fund 1.097,965 16,980 10,500 17,397 124,1561 1152,0051 939,201 16,980 10,5(X) Regimental Church Royal Artillery Church Refurbishment Total 1,125,445 17,397 124,1561 1152,0051 966,681 The Baxter Fund is restricted for the benefit of the King's Troopi Royal Horse Artillery. The Regimental Church Fund is restrlcted for the benefit of Regimental Church. The RA Church Refurblshment 55 restricted for the refurbishment of the RA Larkhill Garrison Church. The transfer corrects the presentation of the balance due to the Royal Horse Artillery Association, which is included within treditors. 12. Analys15 of net assets between funds 2023 Current Net Investments assets Total Restrlcted funds: Baxter Fund Regirnental Church Fund RA ChLbrch Refurb 940,335 29,022 16,980 10,5CX) 56,502 969,357 16,980 10,500 996,837 940,335 Unrestrlcted funds.. General Fund 10,412,722 178,7411 122,2391 10,333,981 11,353,057 11,330,818 24
THE ROYAL ARTILLERY INSTITUTION LTD NOTES TO THE FINANCIAL STATEMENTS l¢ontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of net assets between funds 2022 Current Iliabilitlesl/ assets Net Investments Total Restyicted funds.. Baxter Fund Regimental Church Fund RA Church Refurb 926,410 12,791 16,980 10,500 40,271 939,201 16,980 10,500 966,681 926,410 Unrestricted funds.. General Fund 9,936,869 24,183 9,961,052 10,863,279 64,454 10,927,733 14. Related party transactions Income of £348,37712022.. £342,154) was received from the Royal Artillery General Charltable Trust IRAGCT) of which both charities have a number of trustees In common. This Income relates to accrued Income from the Service Giving Scheme, which were voluntary contributions from service personnel. Income of £7,93012022.. £8,192) was received on behalf of Royal Artillery Historical Trust of whlch both charltles have a number of trustees in common or who have the right to become a trustee of both. This Income relates to Interest earned on Investments. Income of £14,72912022'. £14,7291 was received on behalf of the Central Sergeant Mess ICSMI of which the Royal Artillery Sergeant Major IRASMI is an member of the Royal Artillery Instltutlon IRAII and the Chair of the Central Sergeant Mess. This Income relates to Interest on Investments. At the year end, balance5 due to and from related entities are dlstlosed in notes 8 and 10. 25
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