**COMPANY REGISTRATION NUMBER: 06782587 CHARITY REGISTRATION NUMBER: 1129091**
## **The RAMC Charity**
## **Company Limited by Guarantee**
**Financial Statements 31 December 2021**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Financial Statements**
## **Year ended 31 December 2021**
||**Page**|
|---|---|
|Trustees' annual report (incorporating the director's report)|**1**|
|Independent auditor's report to the members|**9**|
|Statement of financial activities (including income and||
|expenditure account)|**14**|
|Statement of financial position|**15**|
|Notes to the financial statements|**16**|
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 December 2021**
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 December 2021.
## **Chair's report**
Another accounting period has passed, and we remain bound by government and MOD guidance in dealing with Covid 19. The outlook is of course more optimistic, and we are now returning to face-to-face meetings, gatherings and social events.
Our investments with AFCIF have remained stable and at present we have not seen any major economic downturns, our investments being low risk with growth and safety. We continue to operate best practice in line with Charity Commission guidance.
We are proud and supportive of those deployed and those personnel involved in support of the NHS on OP RESCRIPT and those involved in the airlift from Afghanistan on OP PITTING.
In Arduis Fidelis.
**- 1 -**
**The RAMC Charity**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 December 2021**
## **Reference and administrative details**
**Registered charity name** The RAMC Charity **Charity registration number** 1129091 **Company registration number** 06782587 **Principal office and registered** Regimental Headquarters **office** Royal Army Medical Corps Slim Road Camberley GU15 4NP **The trustees** Maj Gen A Hawley CBE Maj Gen P Cain (Resigned 1 January 2022) Brig A Macmillan Brig M Nadin OBE (Appointed 1 January 2021) Brig C Parker CBE (Appointed 1 January 2022) Brig R Simpson Colonel S Mellor Major M Ellis WO1 M Bowley (Resigned 1 April 2021) WO1 (RSM) R Meville RAMC (Appointed 1 April 2021) **Auditor** TTCA Ltd Chartered accountants & statutory auditor 269 Farnborough Road Farnborough Hampshire GU14 7LY **Bankers** Holt's Lawrie House Victoria Road Farnborough GU14 7NR
**- 2 -**
**The RAMC Charity**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 December 2021**
## **Solicitors**
Wilsons Solicitors Alexandra House St Johns Street Salisbury SP1 2SB
## **Structure, governance and management**
## **The methods used to recruit and appoint new charity trustees**
As agreed in the Memorandum of Articles Trustees of the Charity are all either serving or retired members of the RAMC. The Board is also made up of 'ex-officio' Trustees who hold certain offices, ie, The Regimental Secretary.
## **The policies and procedures for the induction and training of trustees**
Trustees are given an induction on assuming their role. They are provided with a Trustees guide supplied by the Charity Commission and they are also advised to follow guidance for Trustees on the Charity Commission website.
## **The charity's organisation structure**
The Board of Trustees meets at least twice a year and the following matters require board approval: The annual budget Reserves policy Investment policy Risk Assessment Annual financial statements
## **How the charity makes decisions and how decisions are delegated**
The RAMC Charity has a Benevolence committee which meets once a month to consider benevolence requests. The committee has Terms of Reference and a set of guidelines approved by the Board of Trustees.
**- 3 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 December 2021**
## **Objectives and activities**
## **The purposes of the charity as set out in its governing document.**
The objectives of the charity are:
To promote the efficiency of the Army and in particular the Royal Army Medical Corps (RAMC) in such charitable ways as the Trustees think fit, including;
Maintaining contact between past and present members of the Corps through social gatherings and other means;
Fostering espirit de Corps, comradeship and welfare;
Perpetuating the deeds and preserving the traditions of the RAMC;
Promoting medical research and undertaking the dissemination of the results through the Drummond Committee.
Providing prices and rewards;
Educating the public and service personnel about the history, deeds, traditions and role of the RAMC.
The principal objective for the year ended 31 December 2021 and for the future is to continue to provide assistance for those in need through the RAMC benevolence.
## **The main activities undertaken in relation to those purposes in the year**
The aim of the Charity is to continue to support those soldiers either serving or retired, and those financially dependent on them, through the delivery of Benevolence in committee and in support to the Veteran community through our Association.
Review and award grants to Units and formations, sponsor team and individual sports including adventurous training.
Continue to support the work of the 31 Association Branches and raise awareness of this support network via the website including ease of membership application and by offering friendship and moral support to those housebound.
Continue to support individual grants for training, to contribute financially to new memorials and upkeep of those in place.
Support and promote the relocation of The Museum of Military Medicine and day to day business.
**- 4 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 December 2021**
## **Objectives and activities** _**(continued)**_
## **The main activities undertaken during the year to further the charity's purpose for the public benefit**
The Trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. Members of the public benefit from the activities of the charity if they are directly connected with the RAMC by virtue of being a serving or ex-serving member of the RAMC or are a dependant of such a person. Such benefit is provided/promoted by maintaining contact with and between past and present members and their families of the Corps though social gatherings.
The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.
## **Achievements and performance**
## **The main achievements and performance of the charity during the year**
Throughout the year the Charity has processed 250 benevolence cases and made grants to approximately 200; increased its contact with Association branches, although major events were cancelled virtual events/commemorations did take place to mark key dates. The Drummond Committee has continued to award prizes and support grants for medical research. The Medic Magazine is being revamped and will relaunch soon in a new format. Social Media is being used widely.
## **The difference the charity's performance during the year has made to the beneficiaries of the charity**
Offering assistance to those in need through the delivery of benevolence has improved people's lives both young and old in a variety of ways e.g., their mobility and support/adaptations in the home, home decoration, rehousing, food vouchers, payment of travel costs for hospital visits, respite care for terminally ill, debt relief orders and funeral costs. It has helped serving single parents and relatives of those who have died in service or killed in action. We have seen an increase in requests from serving soldiers and have worked closely with the Chain of Command and our partner organisations TRBL, ABF and SSAFA.
A new IT system implemented by ABF has increased the speed of notification and delivery.
## **The degree to which the achievements and performance during the year have benefited wider society**
The RAMC Charity is pleased to offer financial support to the initial work required to prepare the Museum of Military Medicine (MMM) for the future. The MMM has both national and international recognition and in addition to its heritage for the four Corps of the AMS in terms of history and artefacts it also has a world-class archive. MMM is both a military museum and a Centre for military medical research. The RAMC has continued to take a close interest as part of our heritage responsibilities and we will be looking at ways to continue to offer our COs and RSMs detailed Corps history education through Staff Rides and Battlefield Tours, we are working with our historian in putting together these events. A newly formed heritage committee will be able to target areas for improvement.
**- 5 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 December 2021**
## **Financial review**
## **Financial review of the position at the reporting date, 31 December 2021**
The trustees consider the financial performance by the charity during the year to have been satisfactory and are keen to ensure that the long term financial security of the Charity and its beneficiaries are maintained. The principal funding sources of charity come from donations and legacies largely from current and former army personnel, and returns on investments held by the charity,
|The financial position on the charity at 31 December|||
|---|---|---|
|2021 and comparatives for the prior period, as more|||
|fully detailed in the accounts, can be summarised as|**2021**|2020|
||**£**|£|
|Net movement in funds|**939,182**|891,398|
|Unrestricted Revenue funds available for the general|||
|purpose of the charity|**19,574,064**|18,634,882|
## **Policies on reserves**
The Trustees have examined the requirement for free reserves, which are unrestricted funds which not represented by tangible fixed assets and which are not designed for specific purposes or otherwise committed. The Trustees have affirmed that, having regard to the nature of the activities of the RAMC charity, the level of free reserves should be approximately £450,000 which is broadly equivalent to 12 months ordinary expenditure. The Trustees are of the opinion that this would provide sufficient flexibility to cover fluctuations in income flows and in meeting the costs of the other contingencies.
## **Availability and adequacy of assets of each of the funds**
The board of trustees is satisfied that the charity's assets in each fund are available and adequate
## **Accreditation**
The RAMC Charity is compliant with GDPR (DPA17) and has gained full accreditation.
## **Trustees' responsibilities statement**
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
-
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
**- 6 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 December 2021**
## **Trustees' responsibilities statement (continued)**
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
Each of the persons who is a trustee at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
- they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
## **Small company provisions**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
## **Chairman Statement**
The trustees' annual report was approved on 9 March 2022 and signed on behalf of the board of trustees by:
Major M Ellis Trustee
**- 8 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of The RAMC Charity**
## **Year ended 31 December 2021**
## **Opinion**
We have audited the financial statements of The RAMC Charity (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 December 2021 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 Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
**- 9 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of The RAMC Charity** _**(continued)**_
## **Year ended 31 December 2021**
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
- the financial statements are not in agreement with the accounting 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 entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
**- 10 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of The RAMC Charity** _**(continued)**_
## **Year ended 31 December 2021**
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## **Irregularities- ability to detect**
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general auditing and accounting experience and through discussion with the trustees and other management (as required by auditing standards), the polices and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly the charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charity legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statement, for instance through the imposition of fines or litigation. We indemnified areas as those most likely to have such an effect such as anti bribery and certain aspects of company and charity legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.
**- 11 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of The RAMC Charity** _**(continued)**_
## **Year ended 31 December 2021**
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
**- 12 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of The RAMC Charity** _**(continued)**_
## **Year ended 31 December 2021**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Thomas William McManners BSC ACA ACMI (Senior Statutory Auditor)
For and on behalf of TTCA Ltd Chartered accountants & statutory auditor 269 Farnborough Road Farnborough Hampshire GU14 7LY 9 March 2022
**- 13 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Statement of Financial Activities (including income and expenditure account)**
## **Year ended 31 December 2021**
|||**2021**|**2021**|2020|
|---|---|---|---|---|
|||Unrestricted|||
|||funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|£|
|**Income and endowments**|||||
|Donations and legacies|**5**|409,868|**409,868**|422,020|
|Investment income|**6**|116,275|**116,275**|115,008|
|||`─────────`|`─────────`|`─────────`|
|**Total income**||526,143|**526,143**|537,028|
|||`═════════`|`═════════`|`═════════`|
|**Expenditure**|||||
|Expenditure on charitable activities|**7,8**|(701,918)|**(701,918)**|(758,054)|
|Net gains/losses on investments and assets|**11**|1,114,957|**1,114,957**|1,112,424|
|||`────────────`|`────────────`|`────────────`|
|**Net income and net movement in funds**||939,182|**939,182**|891,398|
|||`════════════`|`════════════`|`════════════`|
|**Reconciliation of funds**|||||
|Total funds brought forward||18,634,882|**18,634,882**|17,743,484|
|||`─────────────`|`─────────────`|`─────────────`|
|**Total funds carried forward**||19,574,064|**19,574,064**|18,634,882|
|||`═════════════`|`═════════════`|`═════════════`|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 16 to 23 form part of these financial statements.**
**- 14 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Statement of Financial Position**
## **31 December 2021**
||||**2021**|2020|
|---|---|---|---|---|
||**Note**|**£**|**£**|£|
|**Fixed assets**|||||
|Heritage assets|**15**||**2,278,015**|3,043,574|
|Investments|**16**||**16,899,548**|15,019,032|
||||`─────────────`|`─────────────`|
||||**19,177,563**|18,062,606|
|**Current assets**|||||
|Cash at bank and in hand||**400,041**||575,516|
|**Creditors: amounts falling due within one year**|**17**|**3,540**||3,240|
|||`─────────`||`─────────`|
|**Net current assets**|||**396,501**|572,276|
||||`─────────────`|`─────────────`|
|**Total assets less current liabilities**|||**19,574,064**|18,634,882|
||||`─────────────`|`─────────────`|
|**Net assets**|||**19,574,064**|18,634,882|
||||`═════════════`|`═════════════`|
|**Funds of the charity**|||||
|Unrestricted funds|||**19,574,064**|18,634,882|
||||`─────────────`|`─────────────`|
|**Total charity funds**|**19**||**19,574,064**
`═════════════`|18,634,882
`═════════════`|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 9 March 2022, and are signed on behalf of the board by:
Major M Ellis Trustee
**The notes on pages 16 to 23 form part of these financial statements.**
**- 15 -**
**The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements**
## **Year ended 31 December 2021**
## **1. General information**
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Regimental Headquarters, Royal Army Medical Corps, Slim Road, Camberley, GU15 4NP.
## **2. Statement of compliance**
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going concern**
There are no material uncertainties about the charity's ability to continue.
## **Disclosure exemptions**
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year have been considered by the trustees. The main material uncertainty is over the valuation of the heritage assets held by the charity. The trustees consider that the current valuation represents a fair recognition of the assets held.
**- 16 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **3. Accounting policies** _**(continued)**_
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
## **Incoming resources**
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- legacy income is recognised when receipt is probable and entitlement is established.
- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
**- 17 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **3. Accounting policies** _**(continued)**_
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
## **Heritage assets**
Heritage assets measured under the revaluation model are recorded at fair value less any accumulated impairment losses.
## **Investments**
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
## **Impairment of fixed assets**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
**- 18 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **3. Accounting policies** _**(continued)**_
## **Defined contribution plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
## **4. Limited by guarantee**
The charity is under the control of its legal members.
## **5. Donations and legacies**
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|---|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||**Donations**|||||
||Small donations individually less than|||||
||£1,000|1,883|**1,883**|2,321|2,321|
||Donations over £1,000|4,500|**4,500**|13,703|13,703|
||**Subscriptions**|||||
||Membership subscriptions as|||||
||donations|400,975|**400,975**|403,111|403,111|
||**Other donations and legacies**|||||
||Sale of regimental magazines|2,510|**2,510**|2,885|2,885|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|||409,868|**409,868**|422,020|422,020|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|**6.**|**Investment income**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Income from listed investments|116,235|**116,235**|114,764|114,764|
||Bank interest receivable|40|**40**|244|244|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|||116,275|**116,275**|115,008|115,008|
|||`═════════`|`═════════`|`═════════`|`═════════`|
**- 19 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **7. Expenditure on charitable activities by fund type**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|Charity Activity|612,111|**612,111**|670,139|670,139|
|Support costs|89,807|**89,807**|87,915|87,915|
||`─────────`|`─────────`|`─────────`|`─────────`|
||701,918|**701,918**|758,054|758,054|
||`═════════`|`═════════`|`═════════`|`═════════`|
## **8. Expenditure on charitable activities by activity type**
||Activities|||||
|---|---|---|---|---|---|
||undertaken|
Grant funding||**Total funds**|Total fund|
||directly|
of activities|Support costs|**2021**|2020|
||£|£|£|**£**|£|
|Charity Activity|366,288|
245,823|
78,100|**690,211**|752,346|
|Governance costs|–|
–|
11,707|**11,707**|5,708|
||`─────────`|
`─────────`|
`────────`|`─────────`|`─────────`|
||366,288|
245,823|
89,807|**701,918**|758,054|
||`═════════`|
`═════════`|
`════════`|`═════════`|`═════════`|
## **9. Analysis of support costs**
|||**Total 2021**|Total 2020|
|---|---|---|---|
|||**£**|£|
||Staff costs|**39,658**|35,231|
||Communications and IT|**5,944**|8,176|
||Support staff provided|**9,720**|13,286|
||Bank charges|**611**|1,151|
||Insurance|**10,641**|10,741|
||Telephone/broadband|**396**|1,264|
||Office expenses and postage|**2,181**|7,125|
||Association secretarial costs|**8,949**|5,234|
||Audit of financial statements|**3,540**|3,240|
||Trustees and travel expenses|**4,184**|1,920|
||Legal and other professional|**3,983**|547|
|||`────────`|`────────`|
|||**89,807**|87,915|
|||`════════`|`════════`|
|**10.**|**Analysis of grants**|||
|||**2021**|2020|
|||**£**|£|
||**Grants to institutions**|||
||Grants to army personnel and institutions|**132,449**|99,487|
||**Grants to individuals**|||
||Grants made to Individuals|**113,374**|154,841|
|||`─────────`|`─────────`|
||Total grants|**245,823**|254,328|
|||`═════════`|`═════════`|
**- 20 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **10. Analysis of grants** _**(continued)**_
The charity makes benevolent grants to ex-army personnel and their families to assist them in life outside of the army. Many Ex-servicemen and women require help for medical reasons and assistance in civilian life. Help is also provided for funeral needs and costs. Grants are also provided to current service personnel for assistance for the good and benefit of current RAMC soldiers and officers.
## **11. Net gains/losses on investments and assets**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|Gains/(losses) on heritage assets|(765,559)|
**(765,559)**|–|–|
|Gains/(losses) on listed investments|1,880,516|**1,880,516**|1,112,424|1,112,424|
||`────────────`|`────────────`|`────────────`|`────────────`|
||1,114,957|**1,114,957**|1,112,424|1,112,424|
||`════════════`|`════════════`|`════════════`|`════════════`|
## **12. Net income**
Net income is stated after charging/(crediting):
Fees payable for the audit of the financial statements
|**2021**|2020|
|---|---|
|**£**|£|
|**3,540**
`═══════`|3,240
`═══════`|
## **13. Staff costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Wages and salaries|**38,867**|34,651|
|Employer contributions to pension plans|**792**|580|
||`────────`|`────────`|
||**39,659**
`════════`|35,231
`════════`|
|The average head count of employees during the year was 2 (2020: 2). The average|The average head count of employees during the year was 2 (2020: 2). The average|number of|
|---|---|---|
|full-time equivalent employees during the year is analysed as follows:|||
||**2021**|2020|
||**No.**|No.|
|Number of staff|**2**|2|
||`════`|`════`|
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
## **14. Trustee remuneration and expenses**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
During the year, £4,184 of expenses relating to travel and misc office expenditure were paid to nine trustees.
**- 21 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **15. Heritage assets**
Heritage assets are defined as tangible property with historical, artistic, scientific, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture. The RAMC considers its inalienable properties and other properties and chattels held for preservation to fall within this definition.
||**Heritage**|
|---|---|
||**assets**|
||**£**|
|**Cost or valuation**||
|At 1 January 2021|**3,043,574**|
|Additions|**–**|
|Revaluation|**(765,559)**|
||`────────────`|
|**At 31 December 2021**|**2,278,015**|
||`════════════`|
|**Accumulated depreciation**||
|**At 1 January 2021 and 31 December 2021**|**–**|
||`════════════`|
|**Carrying amount**||
|**At 31 December 2021**|**2,278,015**|
||`════════════`|
|At 31 December 2020|3,043,574|
||`════════════`|
The RAMC holds collections of silver, painting and medals. In February 2022 a valuation of the chattels for 31 December 2021 was carried out by Gordon Patrick. MNAVA an Antiques, Fine Art and Chattels Valuer. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.
## **16. Investments**
||**Other**|
|---|---|
||**investments**|
||**£**|
|**Cost or valuation**||
|At 1 January 2021|**15,019,032**|
|Additions|**–**|
|Fair value movements|**1,880,516**|
||`─────────────`|
|**At 31 December 2021**|**16,899,548**|
||`═════════════`|
|**Impairment**||
|**At 1 January 2021 and 31 December 2021**|**–**|
||`═════════════`|
|**Carrying amount**||
|**At 31 December 2021**|**16,899,548**|
||`═════════════`|
|At 31 December 2020|15,019,032|
||`═════════════`|
All investments shown above are held at valuation.
**- 22 -**
## **The RAMC Charity**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 December 2021**
## **17. Creditors: amounts falling due within one year**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Accruals and deferred income|**3,540**|3,240|
||`═══════`|`═══════`|
## **18. Pensions and other post retirement benefits**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £792 (2020: £580).
## **19. Analysis of charitable funds**
## **Unrestricted funds**
||At||||**At**|
|---|---|---|---|---|---|
||1 January|||Gains and|
**31 December**|
||2021|Income|Expenditure|losses|
**2021**|
||£|£|£|£|**£**|
|General funds|18,634,882|526,143|(701,918)|1,114,957|
**19,574,064**|
||`═════════════`|`═════════`|`═════════`|`════════════`|
`═════════════`|
||At||||At|
||1 January|||Gains and|
31 December|
||2020|Income|Expenditure|losses|
2020|
||£|£|£|£|£|
|General funds|17,743,484|537,028|(758,054)|1,112,424|
18,634,882|
||`═════════════`|`═════════`|`═════════`|`════════════`|
`═════════════`|
## **20. Analysis of net assets between funds**
||Unrestricted|**Total Funds**|
|---|---|---|
||Funds|**2021**|
||£|**£**|
|Heritage assets|2,278,015|**2,278,015**|
|Investments|16,899,548|**16,899,548**|
|Current assets|400,041|**400,041**|
|Creditors less than 1 year|(3,540)|
**(3,540)**|
||`─────────────`|`─────────────`|
|**Net assets**|19,574,064|**19,574,064**|
||`═════════════`|`═════════════`|
||Unrestricted|Total Funds|
||Funds|2020|
||£|£|
|Heritage assets|3,043,574|3,043,574|
|Investments|15,019,032|15,019,032|
|Current assets|575,516|575,516|
|Creditors less than 1 year|(3,240)|
(3,240)|
||`─────────────`|`─────────────`|
|**Net assets**|18,634,882|18,634,882|
||`═════════════`|`═════════════`|
**- 23 -**