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2020-08-31-accounts

REGISTERED CHARITY NUMBER: 1128684

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FOR

THE DUKIES' FOUNDATION

McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL

THE DUKIES' FOUNDATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 12
Detailed Statement of Financial Activities 13

THE DUKIES' FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES Dr G Soar Mrs R McCarthy (resigned 18.11.20) A Nunn L Ridings A Barlow (resigned 1.11.20) C Crowcroft A Foreman Mrs G Martin (resigned 8.6.20) A Thorne (appointed 1.1.21) M Williams (appointed 10.3.21) PRINCIPAL ADDRESS Duke of York's Royal Military School Guston DOVER Kent CT15 5EQ REGISTERED CHARITY 1128684 NUMBER

INDEPENDENT EXAMINER McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL

Page 1

THE DUKIES' FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The objectives of the charity are as follows:-

The main activities undertaken during the year were the provision of items, services, facilities and opportunities for the Duke of York's Royal Military School and pupils of the School.

The trustees of the charity have had due regard to the Charity Commission's general guidance on public benefit. The charity's objectives and aims have been reviewed taking this guidance into account.

ACHIEVEMENT AND PERFORMANCE

The Dukies' Foundation is the tied charity of the Duke of York's Royal Military School which opened in 1803 by royal decree under the leadership of HRH Prince Frederick, Duke of York when Commander in Chief of the British Army. He wanted to look after the children of ordinary soldiers, boys and girls (readmitted in 1994) many of whose fathers fell in the Napoleonic Wars - Dukies aged 14-22 fought at Waterloo in 1815. It was a symbol of enlightenment philanthropy of the time, for example the Foundling Hospital, London. The mission continues to this day - Dukie parents have served in all the conflicts of modern times - with 50% of pupil roll coming from service families.

A decade ago the Foundation was reorganised, drawing in funds from redundant military and other charities. A policy of larger distribution was adopted; since 2011 £975,000 has been invested into 'helping the Dukies of today.' Donations and legacies received (£131,734) in the year increased by 28% due in the main to the increasing contribution from old Dukies which included a major legacy. Recognised within The Clocktower Society, Dukie donors grew by half again to 151.

Expenditure was £110,526. Despite this, net funds held at year end increased to £429,806 (2019 - £400,644). This was in part due to the impact of COVID-19 on the School and the consequent reduction in grants bid for and made. The Foundation's investment portfolio recovered well; advisor Quilter Cheviot has materially aided investment performance over time. Channels of expenditure included equipment and amenities designed to give current Dukies an edge in their studies.

We also pay for the Alumni Relations & Development Officer function which has driven the growth of alumni relations in the life of the School, investing time and expertise as well as funds. For example, working with a small group of alumni the ARDO was able to devise and deliver the launch of a major legacy-seeking campaign to older Dukie alumni which will be ongoing.

Progress on our Archive continues with the Army Museum Ogilby Trust and is concentrating on the examination and intended digitisation of pupil petitions for entry. A notable discovery was the petition for the entry of Thomas Sulivan (sic), father of Sir Arthur Sullivan of G&S fame. Thomas educated his son in the wind instruments of the military band, which the School proudly possesses to this day.

Looking forward, we hope to get back to normal post COVID-19 and to develop further, deeper relationships for example with external grant-making bodies; some already make significant bursary grants direct to School. We want to expand the effort here, perhaps beginning with service charities since the School has been for more than two centuries 'the Military's own.'

We are gratified to see the School family's onward march. The Dukies' Foundation has its part to play in this, a part we seek to grow.

Page 2

THE DUKIES' FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Total funds held at 31 August 2020 amount to £429,806 (2019 - £400,644) of which £70,965 (2019 - £64,366) is restricted and not available for the general purpose of the charity and £358,841 (2019 - £336,278) is unrestricted.

The charity's reserves policy is not to pay out any grants or scholarships that would leave the funds in deficit. The charity has very low running costs and, therefore, the trustees do not consider it necessary to set a minimum reserves figure.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is governed by a Charity Commission scheme sealed 5 March 2009 under which the following previous charities were consolidated:-

The Coventry Tupper Trust The Amenities Fund 28th Divisional Scholarship Fund 6th Division War Memorial Scholarship Society of St Georges Fund Prizes, Games and Sports Fund Old Boy's War Memorial Scholarship Fund 1st East Anglian Regiment (Royal Norfolk and Suffolk Fund)

There should be not less than seven trustees including the principal and chair of governors of the School. The chair of governors of the School should not also be the chair of the trustees.

Each appointment must be made for a period not exceeding five years. The principal and chair of governors of the School should be ex-officio trustees and, therefore, not subject to any time limit in their appointments.

In addition to the chair of governors and the principal, no more than two School governors should be trustees and there must not be more than 50% of trustees that are also governors of the School.

The current Trustees have a strong network of contacts from the educational, fundraising, not-for-profit sector and the Alumni of the School to provide the necessary skills and expertise.

Approved by order of the board of trustees on …………………….. and signed on its behalf by:

C Crowcroft - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE DUKIES' FOUNDATION

Independent examiner's report to the trustees of The Dukies' Foundation

I report to the charity trustees on my examination of the accounts of The Dukies' Foundation (the Trust) for the year ended 31 August 2020.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Jonathan Fullarton BSc ACA McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL

…………………………

Page 4

THE DUKIES' FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
53,968
Investment income
4
8,082
Total
62,050
EXPENDITURE ON
Raising funds
28,963
Charitable activities
Promotion of education
7,356
Other
3,040
Total
39,359
Net gains/(losses) on investments
(128)
NET INCOME
22,563
RECONCILIATION OF FUNDS
Total funds brought forward
336,278
TOTAL FUNDS CARRIED FORWARD
358,841
Restricted
funds
£
77,766
-
77,766
-
71,167
-
71,167
-
6,599
64,366
70,965
2020
Total
funds
£
131,734
8,082
139,816
28,963
78,523
3,040
110,526
(128)
29,162
400,644
429,806
2019
Total
funds
£
103,039
9,011
112,050
28,187
84,504
3,364
116,055
8,451
4,446
396,198
400,644

The notes form part of these financial statements

Page 5

THE DUKIES' FOUNDATION

BALANCE SHEET 31 AUGUST 2020

Notes
FIXED ASSETS
Investments
9
CURRENT ASSETS
Debtors
10
Cash at bank
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS
2020
£
355,827
8,610
137,267
145,877
(71,898)
73,979
429,806
429,806
358,842
70,964
429,806
2019
£
358,602
18,441
127,189
145,630
(103,588)
42,042
400,644
400,644
336,278
64,366
400,644

The financial statements were approved by the Board of Trustees and authorised for issue on ……………………and were signed on its behalf by:

C Crowcroft - Trustee

The notes form part of these financial statements

Page 6

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. STATUTORY INFORMATION

The Dukies' Foundation is a public benefit entity registered as an unincorporated charity in England. The charity's registered number, principal address and nature of operations can be found within the Reference and Administrative Details page and the Report of Trustees.

The financial statements are presented in sterling which is the functional currency of the charity.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Income

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

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

continued...

Page 7

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

3.
DONATIONS AND LEGACIES
Donations including gift aid
4.
INVESTMENT INCOME
Dividends
Interest
5.
SUPPORT COSTS
Other resources expended
Support costs, included in the above, are as follows:
Insurance
Accountancy and independent examiner's
fees
Investment management fees
2020
2019
£
£
131,733
103,039
2020
2019
£
£
8,006
8,950
76
61
8,082
9,011
Governance
costs
£
3,040
2020
2019
Other
resources
Total
expended
activities
£
£
-
137
870
780
2,170
2,447
3,040
3,364

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

continued...

Page 8

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

7. STAFF COSTS

The charity does not have any staff, however the charity does contribute towards the cost of a member of staff at the Duke of York's Royal Military School who works predominently fundraising on behalf of the charity.

8.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
48,032
Investment income
9,011
Total
57,043
EXPENDITURE ON
Raising funds
28,187
Charitable activities
Promotion of education
32,076
Other
3,364
Total
63,627
Net gains on investments
8,451
NET INCOME
1,867
RECONCILIATION OF FUNDS
Total funds brought forward
334,411
TOTAL FUNDS CARRIED FORWARD
336,278
9.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 September 2019
Additions
Disposals
Revaluations
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019
Restricted
Total
funds
funds
£
£
55,007
103,039
-
9,011
55,007
112,050
-
28,187
52,428
84,504
-
3,364
52,428
116,055
-
8,451
2,579
4,446
61,787
396,198
64,366
400,644
Listed
investments
£
358,602
45,364
(38,578)
(9,561)
355,827
355,827
358,602

There were no investment assets outside the UK.

continued...

Page 9

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

9. FIXED ASSET INVESTMENTS - continued

Listed investments have been revalued at the balance sheet date to the market value as per investment management valuation reports and stock exchange values.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Gift aid debtor
Other debtors
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Donations approved but not yet paid
Accrued expenses
12.
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted
Restricted
fund
funds
£
£
Investments
355,827
-
Current assets
61,413
84,464
Current liabilities
(38,222)
(33,676)
379,018
50,788
13.
MOVEMENT IN FUNDS
At 1.9.19
£
Unrestricted funds
General fund
336,278
Restricted funds
Student support
29,173
A Winning Edge
16,356
School Heritage
18,837
64,366
TOTAL FUNDS
400,644

continued...

Page 10

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

13. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Student support
A Winning Edge
School Heritage
TOTAL FUNDS
Incoming
resources
£
62,050
33,048
16,166
28,553
77,767
139,817
Resources
expended
£
(39,359)
(39,423)
(13,246)
(18,498)
(71,168)
(110,526)
Gains and
Movement
losses
in funds
£
£
(128)
22,563
-
(6,375)
-
2,920
-
10,054
-
6,599
(128)
29,161

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Student support
Leadership
Hockey
Arboretum
World War I commemoration
TOTAL FUNDS
At 1.9.18
£
334,411
26,275
7,690
17,263
8,705
1,854
61,787
396,198
Net
movement
in funds
£
1,867
2,898
(2,550)
(3,566)
(1,694)
7,491
2,579
4,446
At
31.8.19
£
336,278
29,173
5,140
13,697
7,011
9,345
64,366
400,644

continued...

Page 11

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

13. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Student support
Leadership
Hockey
Arboretum
World War I commemoration
TOTAL FUNDS
Incoming
resources
£
57,043
29,898
1,350
13,437
-
10,322
55,007
112,050
Resources
expended
£
(63,627)
(27,000)
(3,900)
(17,003)
(1,694)
(2,831)
(52,428)
(116,055)
Gains and
Movement
losses
in funds
£
£
8,451
1,867
-
2,898
-
(2,550)
-
(3,566)
-
(1,694)
-
7,491
-
2,579
8,451
4,446

Unrestricted funds

Included within the General fund is an amount of £35,844 representing legacy donations received during the year, whist these funds are unrestricted, the Trustees are considering how best to use these funds in direct furtherance of the Charities objects.

Student support

Donations including gift aid were received for the purposes of providing funding and opportunities for students when financial circumstances were a barrier to them continuing at the School. At the year end £22,798 remained unspent.

A Winning Edge

This new fund incorporates the previous Leadership and Hockey restricted funds below.

Donations to this fund will provide targeted support to specific student programmes across the full range of school activities, from academic to sporting, performing arts and adventure activities, personal development and life skills.

Leadership

Donations including gift aid were received for the purpose of supporting students develop their leadership and life skills. At the end of the year £7,011 remained unspent.

Hockey

Donations including gift aid were received for the purpose of enhancing both the standard and participation in hockey at the School. At the end of the year £18,435 remained unspent.

School Heritage

This new fund incorporates the previous Arboretum and World War I Commemoration restricted funds below. Preserving and Celebrating Dukies' history.

Donations to this fund could include the restoration, development and maintenance of ceremonial activities, memorials, research, archives, collections and other iconic features of the School.

Arboretum

Donations including gift aid were received for the purpose of establishing a School memorial. At the end of the year £7,011 remained unspent.

World War I commemoration

Donations including gift aid were received for the purpose of two "Tommy" figures to commemorate World War I. At the end of the year £9,345 remained unspent.

Page 12

14. RELATED PARTY DISCLOSURES

Trustees made donations (excluding gift aid) to the charity of £6,859 (2019 - £3,165).

Page 12

THE DUKIES' FOUNDATION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

INCOME AND ENDOWMENTS
Donations and legacies
Donations including gift aid
Investment income
Dividends
Interest
Total incoming resources
EXPENDITURE
Raising donations and legacies
Contribution towards fundraising officer
Charitable activities
Donations payable
Support costs
Governance costs
Insurance
Accountancy and independent examiner's fees
Investment management fees
Total resources expended
Net income/(expenditure) before gains and
losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net income
2020
£
131,733
8,006
76
8,082
139,815
28,963
78,523
-
870
2,170
3,040
110,526
29,289
(128)
29,161
2019
£
103,039
8,950
61
9,011
112,050
28,187
84,504
137
780
2,447
3,364
116,055
(4,005)
8,451
4,446

This page does not form part of the statutory financial statements

Page 13