2024-03-31-accounts - Hq Hereford Garrison Officers' Mess

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Service Non Public Funds Final Accounts, Managing Trustee's Report, Internal Audit Board Report and Independent Examiner's Report (SORP 2005 compliant) Regimental Accountant Scheme

Army Form N1514 (Rev 11/09)

Unit:

Address: STIRLING LINES, HEREFORD, HR4 7DD

In Respect of the OFFICERS MESS

Fund/Charity

Charity Commission/Regulator registered number

1130112

For the period from 01-Apr-23

to 31-Mar-24

Managing Trustee(s) during the period:

From	01-Apr-2023	to	03-Jun-2023	Name	Name

From	04-Jun-2023	to	31-Mar-2024	Name

Fund Manager(s) during the period:

From	12-Apr-2022	to	03-May-2022	Name

From	04-May-2022	to	31-Mar-2023	Name

From	01-May-2023	to	31-Mar-2024	Name

Internal Auditor(s) during the period:

From	01-Apr-2023	to	02-Jul-2023	Name	Name

From	03-Jul-2023	to	31-Mar-2024	Name

Associate Auditor(s) during the period:

Associate Auditor	N/A

Associate Auditor

Associate Auditor

Regimental Accountant(s) during the period:

From	01-Apr-2023	to	30-Nov-2023	Name

From	01-Dec-2023	to	31-Mar-2024	Name

From		to		Name

From		to		Name

Notes to the accounts (Paras 2 to 12 are to be completed by all funds which have a gross income of £100K or over and those funds already registered with the Charity Regulator, all other funds are to complete Paras 6 and 7 and the declarations at Para 12):

1. Principal Accounting Policies

a. Accounting Convention. The financial statements are prepared under the historical cost convention as modified by the inclusion of investments at market value and in accordance with applicable accounting standards. In preparing the financial statements the charity follows best practice as set out in the Statement of Recommended Practice "Accounting and reporting by Charities" (SORP) 2005 (http://www.charitycommission.gov.uk/investigations/sorp/sorp05docs.asp)

b. Incoming Resources. Income is recognised in the period in which the charity is entitled to receipt, and the amount can be measured with reasonable certainty. Grants from other agencies including donations and other income from activities are in furtherance of the charity's objects and are part of the general funds of the charity. A restricted fund is only recognised where this is an agreed and explicit condition of the grant or donor.

c. Intangible Income. Due to the close collaborative relationship and the manner in which the charity's activities compliment those of the Army, intangible income, reflected in time and use of premises is not quantifiable or measurable and so is not recognised in the accounts.

d. Resources Expended and Basis of Allocation of costs. Expenditure is included when incurred or exceptionally where a commitment is made which requires an accrual when payment is to be made in the subsequent accounting period. Similarly, where prepayments are made in recognition of commitments falling due in a subsequent accounting period, the appropriate credit is entered in the accounts and reversed the following year. Grants payable are included in the SOFA when approved by the Managing Trustee. Expenditure is recognised in the period in which it is incurred. The majority of costs are directly attributable to specific activities. Irrecoverable VAT is charged to the annual report and accounts.

e. Governance Costs. Governance costs are the costs of professional advice, holding trustee meetings or committee meetings associated with decision making, any fee for audit or independent examination and any fee incurred in the preparation, statutory filing, printing or copying of the annual report and accounts.

f. Capitalisation and Depreciation of Tangible Fixed Assets. All assets having a purchase value of more than £500 are capitalised. The cost of tangible fixed assets are written off by equal annual instalments over their expected useful lives using the following methods of depreciation:

Furniture, fixtures and equipment - Straight Line over a period of 2 - 10 years. Motor vehicles - Straight Line over a period of 2 - 10 years.

Assets with a life of more than one year but with a purchase value of below £500 are included within the inventory but the cost is written off in the year it is incurred and is not depreciated over the useful life of the asset. Where the asset is depreciated over a period of more than 10 years, details of the item and period are to be provided following the notes on page 13.

g. Fixed Asset Investment. Fixed asset investments are included at market value at the balance sheet date. Any gain or loss on revaluation is shown in the Statement of Financial Activities (SOFA) on page 2.

h. Stocks. Purchased stocks are valued at the lower cost or net realisable value making due allowance for any obsolete or slow-moving items.

i. Funds Accounting. Funds held by the charity are:

(1) General Purpose/Unrestricted/Designated Funds. These are funds that can be used in accordance with the charitable objects at the discretion of the Managing Trustee. Designated funds are unrestricted funds which have been allocated/earmarked for a particular purpose by the Managing Trustee and are to be declared in the Managing Trustee's comments in accordance with Para 12 to these notes stating what they are intended to be used for and when.

(2) Endowment Funds. Endowment funds are those investments and other gifts accepted by the unit, the capital sum or property being held in perpetuity and the income only being available for charitable use.

(3) Restricted Funds. These are funds that 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 to be included in the notes to the accounts.

j. Heritage Assets. In the course of the unit's history, the charity may have acquired gifts, memorabilia, regalia, silverware, antiques and other historical artefacts in the course of distinguished military service in service of the Crown. The value of these pieces is in large part derived from their close association with Regimental history which precludes the use of conventional valuation techniques being applied. Whilst the objects of the charity do not specifically include preservation and conservation, the pieces represent an essential element of celebrating the unit's history and foster esprit-de-corps. Consequently the Managing Trustee considers the charity to hold heritage assets both for functional use and as an element of national history on behalf of the nation. Heritage assets acquired prior to 1 Apr 06 are therefore not capitalised on the balance sheet but a description of those assets is disclosed as part of the notes to the accounts. Heritage assets acquired after 1 Apr 06 where the purchase price is known and which exceed £500.00 are included in the balance sheet at acquisition value but are not depreciated.

k. Other Costs. Other costs are those costs not incurred in the undertaking of charitable activity in furtherance of the objects of the charity, i.e. the provision of facilities, recreational programmes or activities in furtherance of military efficiency. They are also costs incurred in the making of grants and donations, in the costs of generating funds, i.e. the costs incurred in trading or fundraising undertaken by the charity, or in governance costs.

Grants Made. (if total grants are over 5% of the charity's total expenditure).

The charity made the following grants/donations:

Grants to institutions

Grants to institutions
Name of institutions	Purpose	Total number of grantsgiven	Total amount of grantspaid
N/A	N/A	0	0.00
N/A	N/A	0	0.00
N/A	N/A	0	0.00
N/A	N/A	0	0.00
N/A	N/A	0	0.00
Total grants to institutions		0	0.00

Grants to individuals

Grants to individuals
Purpose	Total number of grantsgiven	Total amount of grantspaid
N/A	0	0.00
N/A	0	0.00
N/A	0	0.00
N/A	0	0.00
N/A	0	0.00
Total	0	0.00

3. Related Party Transactions & Remuneration and Expenses

Whilst the charity has a close working relationship with the Army, there are no transactions with the Army which require disclosure under SORP 2005. The only transactions made by the charity in favour of the unit are wholly attributable to the charitable activities of furthering military efficiency. The Managing Trustee is an officer or equivalent and fulfils the role as trustee in accordance with the applicable laws and regulations. No expenses have been paid to the trustee. In the event that expenses have been paid to the trustee these are disclosed under the Managing Trustee's comments.

4. Analysis of Capital Property

	Fixtures fittings & equipment £	Total £
Balance b/f	336,287.95	336,287.95
Purchases	1,494.00	1,494.00
Sales & W/Os	0.00	0.00
Depreciation	0.00	0.00
Balance c/f	337,781.95	337,781.95

Total Value of Investments by Category

	Value £
Carryingvalue(market value at beginningofyear	0.00
Add additions to investments at cost(investmentspurchased)	0.00
Less disposals at carryingvalue(investments sold)	0.00
Add/(deduct) net gain/(loss) on revaluation (gain/loss at end of accounting period/audit)	#REF!
Carryingvalue(market value)at end ofyear	#REF!

Breakdown of Market Values at

Yea r End	GPF/ Unrestricted	Restricted	Endowment	Total value	Income during year
	Value £	Value £	Value £	Value £	Value £
Investment properties	0.00	0.00	0.00	0.00	0.00
Investments listed on a recognised stock exchange	0.00	0.00	0.00	0.00	0.00
Investments held in unit trusts or other collective investment schemes	0.00	0.00	0.00	0.00	0.00
Investments in subsidiary or connected undertakings and companies	0.00	0.00	0.00	0.00	0.00
Securities not listed on a recognised stock exchange	0.00	0.00	0.00	0.00	0.00
Cash held as part of the investment portfolio	0.00	0.00	0.00	0.00	0.00
Other investments	0.00	0.00	0.00	0.00	0.00
Total	0.00	0.00	0.00	0.00	0.00

6.	List of Debtors	List of Debtors
	Debtor	Date of Debt	Amount
See attached.		31-Mar-24	12,419.37
Total			12,419.37

There are no amounts falling due after more than one year (delete as appropriate).

7.	List of Creditors	List of Creditors
	Creditor	Date of Credit	Amount
See attached.		31-Mar-24	1,330.40
Total			1,330.40

There are no amounts falling due after more than one year (delete as appropriate).
Paid Employees

	Thisyear £	Lastyear £
Gross wagespaid	0.00	0.00
Employer's National Insurancepaid	0.00	0.00
Pension Contributionspaid	0.00	0.00
Total staff costs	0.00	0.00

Give the number of employees who were engaged in each of the following activities:

Give the number of employees who were engaged in each of the following activities:
	Thisyear £	Lastyear £
Costs ofgeneratingfunds	0.00	0.00
Charitable activities	0.00	0.00
Other	0.00	0.00
Total	0.00	0.00

No individual employee received a salary of over £60,000.00

9. Governance Costs

	Thisyear £	Lastyear £
Audit or independent examination fee	0.00	0.00

10. Restricted/Endowment Funds

Give details of the movements of the individual funds summarised in the restricted and endowment column of the Statements of Financial Activities (SOFA). FUND RETURN SUMMARY ATTACHED

FUND RETURN SUMMARY ATTACHED

See attached SOFA.

Fund Name	Fund Bal B/F	Incoming Resources forperiod	Outgoing Resources forperiod	1Transfers	1Gains and	Fund Bal C/F
					losses
Entertainments	£34,398.96	£40,730.05	£39,700.00	£0.00	£1,030.05	£35,429.01
Garden and Imp	£3,622.62	£2,016.00	£44.00	£0.00	£1,972.00	£5,594.62
Presentations	£27,163.52	£9,945.00	£7,362.41	£0.00	£2,582.59	£29,746.11
Silver	£4,573.19	£382.47	£8.80	£0.00	£373.67	£4,946.86
Bi-annual Function	£0.00	£180,172.63	£176,274.18	£0.00	£3,898.45	£3,898.45
FUND	£348.92	£0.00	£348.92	£0.00	£0.00	£0.00
FUND	£2,772.74	-£1,510.42	£0.00	£0.00	£0.00	£482.87
FUND	£0.00	£0.00	£0.00	£0.00	£0.00	£0.00
POSAC	£615.88	£2,809.79	£3,802.71	£0.00	£0.00	-£377.04

A brief explanation as to the nature and purpose of the charity's Restricted Funds is to be provided.

Name of Restricted Fund	Name of Restricted Fund	Purpose of fund
R001	ENTERTAINMENTS FUND	Toprovide entertainment throughout theyear and to enhance functions.
R003	GARDEN & IMPROVEMENTS	For improvements to the mess andgardens for comfort and aesthetic appeal.
R004	PRESENTATION FUND	Forpresentation to mess members on leavingthe mess.
R005	SILVER FUND	For the maintenance of mess silver.
R006	BIANNUAL FUNCTIONS	Onlyused for Summer and Christmas functions.
R008	FUND	Used for hostingby personnel.
R009	FUND	Used for hostingby personnel.
R010	FUND	Used for hostingby personnel.
R300	POSAC	Used as a means of controllingthe debit and credit followingstock checks.

Heritage Assets

Heritage assets that are owned by the charity but purchased/acquired prior to 1 Apr 06 are not included in the charity's capital property value (see note 1.j). A list/description of these assets is below:

N/A

12. Declarations

All of the charity's commitments are provided for in the accounts.

No guarantees have been given to third parties.

The charity has not received any loans that are outstanding at the year-end and secured on assets.

The charity has not granted any loans to institutions or companies connected with the charity.

The charity did not make any ex-gratia payments during the year.

Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions imposed.

The financial activities, assets and liabilities of all the charity's branches or sections have been included.

The trustees have not changed the year end date or the length of the charity's financial year.

The charity has no designated funds (if there are designated funds the reason for designation and when each designated fund is intended to be used by is to be stated in the Managing Trustee's report).

All the charity's operations are continuing operations and there were no operations discontinued or acquired during the year.

No funds (unrestricted, designated, restricted or endowment) are in deficit at the balance sheet date.

The charity has no intangible assets.

There were no inter-fund loans outstanding at the balance sheet date.

None of the charity's functional fixed assets have been re-valued during the year and the charity does not have a policy of revaluation of these assets.

The charity has no subsidiary companies.

The charity has no material fixed assets which have not been capitalised and included in the balance sheet.

No internal transfers have occurred out of restricted/endowment funds. In the event that a transfer has taken place, full details of the reason for the transfer are disclosed in the Managing Trustee's comments.

All investments held are investment assets in the UK unless otherwise stated.

Note: Where any of the declarations are not correct they are to be crossed out and details provided in the Managing Trustee's comments.

Additional comments:

1. Debtors. I will continue to chase debtor through the Mess Treasurer and ensure a further reduction of Mess Debt.

Mess Bills . Mess bill this year have been contracted to ESS, this has reduced the additional workload required on the RA and enables emailed billing. This has provided an overall betterment to the delivery of administration.
Property Check . Property check remains a constant battle due to the size of the mess and value and quantity of items. I will look to refresh the Mess property member this year with the PMC and Mess secretary.
Stock . Stock losses have been reduced this year and a better management of stock and accountancy of stock on hand. The RAO make the RA and Mess accountant clear any shortages. The creditors above have been cleared as per normal invoice returns.

Signature ______

Name Capt

Date: __30 Jul 24______

Fund Manager (Regimental Accountant Scheme)/Account Holder (Audit Board Scheme)

Managing Trustee's Annual Report and Comments:

Unit

Address STIRLING LINES, HEREFORD, HR4 7DD

In Respect of the OFFICERS' MESS Fund/Charity Charity Commission/Regulator registered number 1130112

Description of the charity's trusts

This should include:

a. Details, including date if known of the charity's governing document (e.g. trust deed, will, constitution etc): and

b. A brief explanation of the charity's objects.

Where applicable, you may choose to give details of any specific investment powers of the charity.

Governing Document	Service Fund Regulations
(e.g. Trust Deed,	Constitution Dated 01 Mar 16
Constitution)	Regimental Standing Orders
	Queens Regulations

Objects of the Charity	The promotion of efficiency of the Armed Forces of the Crown by the
	provision and support of facilities and activities for the efficiency and well-
	beingof servicepersonnel.

Explain briefly how trustees are elected or appointed and details of any induction and trustee training attended.

attended.
Trustee selection method	Managing Trustee (MT) selected on appointment as Commanding Officer.

Trustee induction and training	The MT has attended the Commanding Officer Designate Course. Fund Managers (FM) are required to complete the FM e-learning course, which is hosted on the DLE within 1 month of assumingthe appointment.

Explain about what the charity is trying to do and how it is going about it. You are only required to provide a brief summary of the main activities and achievements of the charity during the year in relation to its objects.

objects.
Summary of main activities in relation to the Charity's objects	For the good and benefit of Hereford Garrison Officers and to facilitate functions and events through subscriptions from mess members.
Summary of main achievements of the Charity during the year	Main achievements for Yr 23-34 was the continued bi-annual function for the Summer and Christmas events. Most notable was the combined Offr's and WOs' & Sgts' Mess Summer Festival.

Provide a brief review of the financial position of the charity. This should include the principle types of income.

Financial Review	The balance sheet gives a clear indication of the financial position of the Mess. This year the Mess had an increase in funds of £12,560.07.

The Managing Trustee should give in their report a description of the following policies:

a. For the selection of investments for the charity. b. For determining the level of income reserves held, stating and explaining the level of reserves held.
c. Where grants are made by the charity, the selection of individuals and institutions who are to receive grants out of the assets of the charity.

Financial reserves policy	Not applicable.

Investments selection policy and performance of those investments	Not applicable.

Provide the name of all trustees/the Managing Trustee(s) during the report year.

Managing Trustee's name/trustees' names	Lt Col

Serious Incidents	Nil

Public Benefit Statement	This fund provides public benefit by assisting service personnel to more effectively perform their roles within the Armed Forces of the Crown. It does this by: a. Providing and supporting mess facilities and social activities. b. Providing and supporting sporting and adventure training activities This assistance enables service personnel to face the challenges and danger associated with military service by developing and maintaining_teamwork; skills;_ _fitness; confidence; character; spirit and attitude; and morale*._As a result the fund promotes the efficiency of the Armed Forces of the Crown by enhancing the British Army's capability to undertake the roles demanded of it including the defence of the United Kingdom and its interests. (I confirm that I have paid due regard to the Charity Commission of England and Wales's guidance on public benefit when deciding what activities the charityshould undertake).

*delete as appropriate.

Additional comments (include any declarations which were not correct (Pg 12/13)):

A good set of accounts however, accountant errors with income and expenditure in the GCODEs needs to be commented on. Understanding the turbulent workforce and lack of training whilst maintaining a very busy and large account does need to be acknowledged. It is pleasing to see the fund is in profit for the year noting the previous years post COVID all running at a loss year on year. I would like to see the liquidity raised and a fine eye cast over the expenditure for bi-annual functions.

Signature

Name Lt Col Date: ____ 30-Jul-24 Appointment Commanding Officer

Internal Auditor's/Audit Board Report

- ~~I/We~~ have examined the books of account and records from which the final accounts were prepared and have obtained all the information and explanations that were necessary for the purpose of *my ~~/our~~ internal audit.
- ~~I/We~~ certify that end of period checks have been conducted in accordance with Service Funds Regulations.
Subject to the observations given below I am ~~/we are~~ satisfied that proper books of account have been kept and that the final accounts give a true and fair view of the results of transactions over the period and of the state of the Fund's affairs as at the date of the balance sheet. Subject also to my ~~/our~~ observations *I am ~~/ we are~~ satisfied that cash and bank balances and stocks on hand have been properly checked at prescribed intervals and that adequate insurance exists.
- ~~I/We~~ have stamped and the original books of account and the original records *I ~~/we~~ have checked. All vouchers relating to this account have been cancelled.
- ~~I/We~~ have made the following observations whilst carrying out the internal audit:

a. Previous observations *have been actioned (list those observation outstanding). Nil

b. Management. The Officers Mess has had a ever present FM who understands the Funds purpose and has conducted various checks monthly and completed the 6m health check in year. The RA has been changed 3 times in the year with various degrees of experience with some assistance from other units in the daily processes. Some bookings of income and expenditure have been done incorrectly as shown on the analysis forms in the GCODES but overall the fund is in profit for the year £12,560.07.

c. Fund Manager Checks. These are completed monthly and in conjunction with the Regt Acct.

d. Stock Checks. Conducted monthly and now witnessed. There has been a change in the pricing to bring it up to date. The trading stock on hand balance wasn't closed down at the end of 2023-24. Reopening of stock on hand is therefore not correct, balance of £7911.75 should be held on the stock at hand (+£1,448.68).

e. Property Checks. Property checks have been conducted during this Audit Period and has included another handover of the Property Member. Due to the level of items held, in excess of 1,000, this is a time consuming effort.

f. Write Off. The usual write-off action has been applied throughout the year resulting in a loss of £615.59.

g. Excess of Expenditure. The Mess has two main functions each year and applies circa £30,000 to the winter and £40,000 to the Summer. This is based off the entertainments and liquidity held before an event. Our expenditure is lower then the previous year by £24,975.79.

h. Investments. The Offr Mess has no investments. However, does have bank interest of £2,648.86. This is slightly higher then expected and on further analysis Jan to Apr 24 the Hoplite interest was being placed here by mistake. Action has been taken to rectify.

I. Restricted Funds. Have shown a net increase of £6,225.05. The POSAC shows the usual flux of activity and is up for the year £992.92 with an incorrect entry to the GCODE -£479.50 for the year. RCODE 010 CO MAB2 booked to the wrong GCODE.

j. GPF Analysis. G180 -12.91, is a payment incorrectly entered in the wrong GCODE in Mar 24. GPF was in profit this year £6,335.02.

k. Trading Account. Our trading account has made a profit of 19.71% although would be slightly higher of the opening stock price was entered correctly.

l. Debtors. Have remained the same, the unit and the new Det Comd will have a renewed effort to reduce the amount owed.

m. Creditors. £1,330.40 creditors unallocated in the month but has been cleared and creditors currently sit at 0.

Signature

Name Capt

Date: ___3_0-Jul-24

Appointment Regimental Administrative Officer

Comd/SO2 SPS - Independent Examiner's report on the Accounts, and Comments

Respective Responsibilities of Trustees and Examiner

The Charity's Trustees are responsible for the preparation of the accounts. The Charity's Trustees consider that an audit is not required for this year (under section 43(2) of the Charities Act 1993 (the Act) and that an independent examination is needed.

It is my responsibility to:

a. Examine the accounts (under section 43(3)(a) of the Act).
b. Follow the procedures laid down in the General Directions given by the Charity
Commissioners (under section 43(7)(b) of the Act).
c. State whether particular matters have come to my attention.

Basis of Independent Examiner's Statement

My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the accounts.

Independent Examiner's Statement

In connection with my examination, no matter has come to my attention (other than those disclosed overleaf*):

a. Which gives me reasonable cause to believe that in any material respect the requirements:
(1) To keep accounting records in accordance with section 41 of the 1993 Act:
(2) To prepare accounts which accord with the accounting records and comply with the accounting requirements of the Act:

have not been met.

b. To which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Delete as applicable.