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2021-08-31-accounts

REGISTERED CHARITY NUMBER: 1128684

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 2021

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 2021

TRUSTEES Dr G Soar Mrs R McCarthy (resigned 18.11.20) A Nunn L Ridings (resigned 17.11.21) A Barlow (resigned 1.11.20) C Crowcroft A Foreman A Thorne (appointed 1.1.21) Mrs M Williams (appointed 10.3.21) D Richmond (appointed 17.11.21) 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 2021

The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. 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 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 the enlightenment philanthropy of the time, like the Foundling Hospital, London. The mission continues to this day - Dukie parents have served in all the conflicts of modern times - with 55% 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 over £1 million has been invested in 'helping the Dukies of today.' Income received of £51,381 in the current year decreased by 61% year on year due to the impact of Covid on fundraising activities and a change in our Alumni & Development Officer (Rachel Robinson appointed 02/2021). Recognised within The Clocktower Society, Dukie donors stand at 151, 10% of total alumni database. We seek to reach 20%, the top end of UK alumni response (IDPE).

Expenditure was £86,418. Due to Covid we made few grants which included a starter investment in Social Archive matched by Dukie donors: sporting, house and cultural images since WW2, internet-platformed with the aid of a skilled archivist; and music instruments and equipment, all split with Dukie donors. Despite this, net funds at year end increased to £452,693 (£429,805 - 2020). The Foundation's investment portfolio was the main driver, recovering well into positive territory after an initial Covid hit of -15%; adviser Quilter Cheviot has materially aided investment performance over time.

We also pay for the Alumni Relations & Development Officer function which has driven the growth of alumni contribution to the life of the School, investing time and expertise as well as funds. Despite losing two months due to ADO changeover, the new appointee has launched a new alumni website, acted successfully to reinstitute alumni events and begun smaller-scale fundraising. Major renovation of the School's iconic Clock Tower estimated at £150k will be her focus in FY 2021/22.

Progress on our Archive with the Army Museum Ogilby Trust (AMOT) has completed digitisation of 78,000 images 1900-1930 including pupil petitions for entry, catalogued by volunteer effort. These will form part of the AMOT e-platform available for public access from autumn 2021.

Looking forward, we hope to get back to normal post Covid and to develop further relationships for example with external grant-making bodies; some already make significant bursary grants direct to School. We want to expand the effort, if possible, with service charities given that the School has been for more than two centuries 'the Army's own'.

We are gratified to see the School's upward march in numbers and academic results despite the pandemic. The Dukies' Foundation has a complementary part to play, a part we seek to grow.

Page 2

THE DUKIES' FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

FINANCIAL REVIEW

Total funds held at 31 August 2021 amount to £452,693 (2020 - £429,806) of which £91,390 (2020 - £70,964) is restricted and not available for the general purpose of the charity and £361,303 (2020 - £358,842 ) 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 9 May 2022 and signed on its behalf by:

D Richmond - 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 2021.

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

10 May 2022

Page 4

THE DUKIES' FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
9,853
Investment income
4
8,886
Total
18,739
EXPENDITURE ON
Raising funds
25,181
Charitable activities
Promotion of education
847
Other
3,092
Total
29,120
Net gains/(losses) on investments
49,039
NET INCOME/(EXPENDITURE)
38,658
Transfers between funds
13
(36,196)
Net movement in funds
2,462
RECONCILIATION OF FUNDS
Total funds brought forward
358,841
TOTAL FUNDS CARRIED FORWARD
361,303
Restricted
funds
£
41,528
-
41,528
-
57,298
-
57,298
-
(15,770)
36,196
20,426
70,964
91,390
2021
Total
funds
£
51,381
8,886
60,267
25,181
58,145
3,092
86,418
49,039
22,888
-
22,888
429,805
452,693
2020
Total
funds
£
131,734
8,082
139,816
28,963
78,523
3,040
110,526
(128)
29,162
-
29,162
400,644
429,806

The notes form part of these financial statements

Page 5

THE DUKIES' FOUNDATION

BALANCE SHEET 31 AUGUST 2021

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
2021
£
403,296
5,496
91,059
96,555
(47,158)
49,397
452,693
452,693
361,303
91,390
452,693
2020
£
355,827
8,610
137,267
145,877
(71,898)
73,979
429,806
429,806
358,842
70,964
429,806

The financial statements were approved by the Board of Trustees and authorised for issue on 9 May 2022 and were signed on its behalf by:

D Richmond - 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 2021

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 2021

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:
Accountancy and independent examiner's
fees
Investment management fees
2021
2020
£
£
51,381
131,734
2021
2020
£
£
8,872
8,006
14
76
8,886
8,082
Governance
costs
£
3,092
2021
2020
Other
resources
Total
expended
activities
£
£
792
870
2,300
2,170
3,092
3,040

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

continued...

Page 8

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

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 spends some of their time fundraising on behalf of the charity.

8.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
53,969
Investment income
8,082
Total
62,051
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
22,564
RECONCILIATION OF FUNDS
Total funds brought forward
336,278
TOTAL FUNDS CARRIED FORWARD
358,842
9.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 September 2020
Additions
Disposals
Revaluations
At 31 August 2021
NET BOOK VALUE
At 31 August 2021
At 31 August 2020
Restricted
Total
funds
funds
£
£
77,765
131,734
-
8,082
77,765
139,816
-
28,963
71,167
78,523
-
3,040
71,167
110,526
-
(128)
6,598
29,162
64,366
400,644
70,964
429,806
Listed
investments
£
355,827
32,479
(35,597)
50,587
403,296
403,296
355,827

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 2021

9. FIXED ASSET INVESTMENTS - continued

Cost or valuation at 31 August 2021 is represented by:

Cost

Listed investments £ 403,296

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
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Donations approved but not yet paid
Accrued expenses
2021
£
5,496
2021
£
46,366
792
47,158
2020
£
8,610
2020
£
71,118
780
71,898

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
fund
£
Investments
385,630
Current assets
1,646
Current liabilities
(25,973)
361,303
MOVEMENT IN FUNDS
At 1.9.20
£
Unrestricted funds
General Fund
358,841
Restricted funds
Student Support
22,797
School Heritage
19,277
A Winning Edge
28,890
70,964
TOTAL FUNDS
429,805
Restricted
funds
£
17,666
94,909
(21,185)
91,390
Net
movement
in funds
£
38,658
(5,082)
(5,036)
(5,652)
(15,770)
22,888
2021
Total
funds
£
403,296
96,555
(47,158)
452,693
Transfers
between
funds
£
(36,196)
-
35,842
354
36,196
-
2020
Total
funds
£
355,827
145,877
(71,898)
429,806
At
31.8.21
£
361,303
17,715
50,083
23,592
91,390
452,693

13. MOVEMENT IN FUNDS

continued...

Page 10

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

13. MOVEMENT IN FUNDS - continued

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

Incoming
Resources
resources
expended
£
£
Unrestricted funds
General Fund
18,739
(29,120)
Restricted funds
Student Support
26,495
(31,577)
School Heritage
8,313
(13,349)
A Winning Edge
6,720
(12,372)
41,528
(57,298)
TOTAL FUNDS
60,267
(86,418)
Comparatives for movement in funds
At 1.9.19
£
Unrestricted funds
General Fund
336,278
Restricted funds
Student Support
29,173
School Heritage
16,356
A Winning Edge
18,837
64,366
TOTAL FUNDS
400,644
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General Fund
62,051
(39,359)
Restricted funds
Student Support
33,047
(39,423)
School Heritage
16,166
(13,245)
A Winning Edge
28,552
(18,499)
77,765
(71,167)
TOTAL FUNDS
139,816
(110,526)
Gains and
Movement
losses
in funds
£
£
49,039
38,658
-
(5,082)
-
(5,036)
-
(5,652)
-
(15,770)
49,039
22,888
Net
movement
At
in funds
31.8.20
£
£
22,564
358,842
(6,376)
22,797
2,921
19,277
10,053
28,890
6,598
70,964
29,162
429,806
Gains and
Movement
losses
in funds
£
£
(128)
22,564
-
(6,376)
-
2,921
-
10,053
-
6,598
(128)
29,162

continued...

Page 11

THE DUKIES' FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

13. MOVEMENT IN FUNDS - continued

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 £ £17,715 remained unspent.

School Heritage

Donations including gift aid were received for the purpose of restoring, developing and maintaining of ceremonial activities, memorials, research, archives, collections and other iconic features of the School. At the end of the year a total of £50,083 remained unspent which is split as follows:

A Winning Edge

Donations including gift aid were received for the purpose of providing 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. At the end of the year a total of £23,592 remained unspent which is split as follows:

14. RELATED PARTY DISCLOSURES

Trustees made donations (excluding gift aid) to the charity of £3,645 (2020 - £6,859).

Page 12

THE DUKIES' FOUNDATION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

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
Accountancy and independent examiner's fees
Investment management fees
Total resources expended
Net (expenditure)/income before gains and
losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net income
2021
£
51,381
8,872
14
8,886
60,267
25,181
58,145
792
2,300
3,092
86,418
(26,151)
49,039
22,888
2020
£
131,734
8,006
76
8,082
139,816
28,963
78,523
870
2,170
3,040
110,526
29,290
(128)
29,162

This page does not form part of the statutory financial statements

Page 13