Company Reglstratlon Number.. 07142012 (England & Wales) Registered Charity Number In England & Wales.. 113420S Reglstered Charlty Number in Scotland: SC048185 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY (A Company Limited by Guarantee) REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ROYAL MARINES ASSOCIATION- THE ROYAL 14IARINES CHARITY CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Page Report of the Trustees Report of the Independent Auditor 24 Consolidated statement of Financial Activities 28 Balance Sheet- Group and Charity 29 Consolidated Statement of Cash Flows 30 Notes lo the Financial Statements 31 ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES The Trustees, who are also Directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the period ended 31 December 2020. The Trustees have adopted the provisions of 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 issued in July 2014. LEGAL AND ADMINISTRATIVE INFORMATION Royal Patron Her Majesty The Queen Honorary Patron General Sir GK Messenger KCB DSO. OBE Honorary Vice Patron Mr R Wigley Honorary President Major General MJ Holmes CBE DSO (resigned 30.04.20201 Lieutenant General RA Magowan CB CBE (appointed 30.04.2020) Trustees and Directors Mrs LR Fordham (Chairl Brigadier AR Turner ADC (Vice Chairl (Appointed 01.04.20201 (Appointed 15.10.20201 W01 ICRSM) R Angove RM Mr ST Beel Mr KM Breslauer Mr P Deacon Brigadier (Retired) PR Denning OBE Mrs S Reed Mrs K Richardson OBE MrAME Robinson Mr RJ Weaver Mr JM Zuppinger BEM (Appointed 15.10.20201 {Appoinled 24.06.20201 MrDCox W01 ICRSMI D Mason MBE RM MrWJ Stocks BEM Brigadier HJ White ADC (Resigned 30.09.2020) (Resigned 15.10.2020) (Resigned 15.01.2020 (Resigned 15.10.20201 Member The Royal Navy and Royal Marines Charity ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Company Secretary Lieutenant Colonel (Reliredl AC Wilson RM (Resigned 31.10.2020) Brigadier (Reliredl RAW Spencer CBE IAppoinled 31.10.20201 Chlef Executive Mr J Ball Company Registratlon Numbor 07142012 (England and Wales) Registered Charity Number 1134205 (England and Wales) SC048185 (Scollandl Reglstered Offlce BLJilding 72 Commando Training Centre Royal Marines Lympslone Exmouth Devon EX8 SAR Auditor Moore Kingston Smith LLP. Chartered Ac¢ountants Devonshire House, 60 Goswell Road, London EC1 M 7AD Investment Managers Cazenove Capital Management 1 London Wall Place London EC2Y 4AU Iby the time of signing a new manager had been appointed.. the Sarasin and Partners LLP Juxon House 100 St Paul's Churchyard London EC4M 8BUI Banker RBS Holts Military Banking 31-37 Victoria Rd Farnborough GU14 7NR Legal Advisor Wilsons LLP Alexandra House St John's St Salisbury SP12SB ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES STRUCTURE GOVERNANCE AND MANAGEMENT The Charity was incorporated on 1 February 2010 and registered as a challty on 1 April 2010 and adopted its current name on 1 April 2019 on the merger of The Royal Marines Charity with the Royal Marines Association Ltd. The working name of the charity is °RMA-The Royal Marines Charity" 11 is structured as follows-. There is one restricted fund with the status of a subsidiary Charity.. The Royal Marines Benevolent Fund (Reg. Charity No. 1134205-1}. This fund was formed from the amalgamation of the old Royal Marines Benevolent Fund (Reg Charity No. 10690591 and the Royal Marines Reserve 50th Anniversary Relief Fund {Reg Charity No. 1069629). There was previously one subsidiary Charitable Company limited by guaranlee.. The Royal Marines Association Limited (Company No 099324941 (Registered Charity No. 1134205-41,. this was deregislered as a subsidiary charity in November 2020, with all assets transferred to the main charity as al 31 March 2019, following slrike-off at Companies House in October 2020. RMA Ltd was a shell company preserved for one year after merger with The Royal Marines Charity to ensure nil financial activity. There are 3 reslricled day's pay giving funds.. {1} The Royal Marines Officers Trust Fund. {21 The Royal Marines Central Sergeants, Mess Fund. 131 The Royal Marines Central Unil Institute Fund. There are as at lime of signing five other restricted funds.. The Royal MaTine$ Cadet Fund. 121 The Royal Marines Sports As50cialion. The Armed Forces Covenant Fund Trust'Positive Pathways, Fund INorway}. The Armed Forces Covenant Fund Trust 'Force For Change, Fund. (31 {4) 151 The Armed Forces Covenant Fund Trust'one is Too Many, Fund. There are designated funds.. {1) The Royal Marines Museum Fund. 121 The Royal Marines Association Fund There are two wholly owned trading companies. TRMC Enterprises Ltd (Company No. 100206821 established lo enable building projects and Royal Marines Shop Ltd (Company No. 08015901} estsblished as a merchandise outlet (acquired on 1 April 2019 on merger with the Roy81 Marines Associalionl. ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Governance The Charity is a subsidiary of the Ro al Nav and Ro al Marines Charit IRNRMCI which is incorporated in the United Kingdom (Company No.60472941 (Reg Charity No. 11177941 and Scotland ISC0418981. The RNRMC is the Sole Member of RMA-The Royal Marines Charity and its Board has the right lo nominate one of its Trustees lo the Board. this is currenlty Mr Mark Robinson. The charity is governed by its Articles of Association last amended on 26 March 2019 and is subject to the requirements and the protection of both ¢harity and company law. The Board of Trustees comprises serving Royal Marines in an ex-officio status.. the Deputy Commandant General Royal Marines and the Corps Regimental Sergeant Major. alongside retired Royal Marines, two trustees appointed by the membership and olherelected Trustees recruited for their competencies. The non-ex-offi¢io trustees serve for a term of three years and may be elected lo serve iwo further consecutive terms. The Articles of Association of the Charity express the intent that a majority of the Trustees shall comprise persons who are serving or fomer serving members ofthe Royal Marines, in order lo reassure the beneficiary eommunity of a necessary level of empathy and understanding. This does impose limitation on the Board's ability lo reflect the wider diversity of UK society. The Commandant General Royal Marines is ex-officio Honorary President, ¢urrenlly Lieutenant General RA Magowan CB CBE. Four Board meetings were held during 2020. In line with the RNRMC Group slruclure, the Board has members on two Group sub-committees and one Group trading subsidiary company, which are. The Investment Committee (IC}, meeting ￿lce yearly with the fund managers {member Mr K Breslauer). The Finance, Risk and Audit Committee IFRACI, meeting twice yearly (member Mr R Weaver). RNRMC Enterprises Ltd, meeting four times a year {director Mr J Zuppinger BEMI Both commillees have delegated authority to $Grulinise their respective areas and lo make recommendations to the Board, particularly concerning the annu81 budget. RNRMCE Ltd has delegated decision making authority concerning Band Setvice fundraising events. Six other sub-committees exist lo ensure appropriate oversight over Charity functions.. Fundraising.. Health & Wellbeing,. Membership., Amenities.. Employment & Education and People (HR, remuneration nominations and grievanceldisciplinel. There are separate Boards for the subsidiary companies TRMC Enterprises Ltd and Royal Marines Shop Ltd. Trustees are selected through interview by the People Committee (acting as a nominations commitleel which then makes recommendations lo the Board. The induction process for any newly appointed Iruslee is lo make all necessary declarations and undertake necessary checks, to meet with the Chief Executive ICE) and other charity staff as appropriate lo explain the Charity's strategy, policies and oulpuls, followed by meetings with the Chair and external induction training if they are new to charity trusteeship. New trustees receive a ¢opy of the Articles of Association, all Board-level policies and previous annual accounts., they are briefed and trained so as lo ensure they are conversant with the Charity's aims and objectives, along with the responsibilities of a trustee and board as identified by the Charity Commission. The Charity does not remunerate 11$ Trustees, bul refunds travel and incidental expenses if claimed. The serving military members of the Board undertake their duties as volunteers. ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Management and Admlnlstration As al year end, the Charity employed 31 full- and part-lime staff la reduction of 3 in year, which had further declined to 29 by 1 April 20211 principally based in two locations.. the Commando Training Centre Royal Marines, Exmoulh., and HMS Excellent, Vvhale Island, Portsmoulh,. and in smaller numbers at Royal Marines Barracks Stonehouse, Plymouth., and at the office of Patron Capital Partners LLP, Piccadilly, London. There is also a part-time Relationships Manager based in Scotland. The day-to- day control and administration of the Charity is delegated lo the Chief Executive ICE}. The charity has pay ratio of 4..1 between the CE'S salary and the lowest paid charity employee. The sector average for a medium sized charity is 5..1. The Trustees are responsible for selling the remuneration of the charity's staff, which is inlonded to reward the skills, experience and competences required for particular roles. In setting remuneration, the Trustees also consider a numberof addition21 factors including an individual's geographical location, contribution, affordability and the remuneration offered by charities of a similar size. BACKGROUND Our Bengficiarleg Royal Marines are deployed on duty seNing the nation around the globe 365 days a year. A Corps of around 6,500. though they form only 4Qh of UK defence forces. they provide 470k of UK Special Forces personnel. As elite personnel, Royal Marines are disproportionately exposed lo danger, which in turn has had disproportionate consequences over the past 20 years. Currently there are 155 disabled Royal Marines, including 30 amputees and two tetraplegics who require Ihrough-life care. 256 Royal Marines have suffered life changing injuries and had their service Cut short as a result, 180 of whom have exhibited signs of post-lraumalic stress, in addition to hundreds who have developed complex post-lraumalic stress disorder though not physically injured. During the COVID-19 pandernic in 2020, several Royal Marines units were redirected from their defence tasks to support the NHS. Emergency Services, local authorities and Government al home and abroad in the first wave of the COVID-19 pandemic. In 2021, personnel from 40 and 42 Commandos. Commando Logistic Regiment, Commando Armoured Support Group and three RM bands have been deployed lo assist the NHS vaccination programme. As the new defence Integrated Review rolls out, Royal Marines will be permanently forward-based overseas in Response Groups facing the UK'S most significant overseas threats in the BalticlHigh North, and the Gu5flFar East. This new role perpeluales the Royal Marines, high exposure lo danger. The Corps Family is a community of approximately 120-150,000, a community of around 30.000 serving and former Royal Marines, the remainder dependants. All are beneficiaries of the Charity. Our case for support We are the Royal Marines. own Charity set up in 1946, and so are uniquely placed to understand, respond and react. enabling Marines and their families to overcome their challenges. We Can target support across a wide range of needs to ensure no one is left behind. We seek to strengthen the Commando Mindset in every beneficiary. ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Our Vl8lon Giving a lifetime of support lo the Royal Marines Family- Once a Roy81 Marine, a￿ayS a Royal Marine. RMA - The Roy81 Marines Charity will be the central pillar of the Royal Marines Family, drawing together those who aspire to join, those who serve, those who have served and those who support and enable us., We will be the inslinclive first place lo which the Royal Marines Family turns for support and camaraderie., We will deliver through life support serving the need8 of our Family. Our Ethos We embrace the Commando Values Excellence, Integrity, Self-Discipline and Humility, and the Commando Spirit- Courage, Determination, Unselfishness and Cheerfulness, in order lo enable the Commando Mindset- first to understand, first lo adapt and respond, fi'rst lo overcome. Our objectlves and actlvltles The Articles of Association of RMA- The Royal Marines Charity specify the following objects.. a. To maintain and increase the efficiency of the Roy81 Marines, and to promote and presetve the esprit de corps, heritage, ethos and tr8dilions of the Corps.. b. To assist or benefit persons serving in or who have served in the Royal Marines or of such dependanls, spouses, civil partners, widows, widowers, children (including adopted Children) or immediate close family of such persons as may for the lime being be in need of charitable assistance or benefit,. ¢. To commemorate and remember those members of the Royal Marines who have lost their lives or suffered injury, or pul themselves at risk of loss of life or injury, in seNice of the Crown and to encourage publi¢ recognition of their service and sacrifice., d. To support the Royal Marines, the Royal Marines Cadet Section of the Sea Cadet Corps, the Royal Marines Cadet Section of the Combined Cadet Force. the Royal Marines Volunteer Cadet Corps by any other charitable means as the Trustees shall from time to time permit. Our Mlssion Our work combine$ the following roles.. Prevent- ensure that members of our community do not descend into acute need., Respond- provide holistic support to those who have serious mental, physical or other challenges which threaten their independence and dignity., Assure- provide professional and safe support., Inform - ensure that our community knows how to promote good health and welfare, and where and how to seek help., Collaborate- ensure that members of our community are assisted by the most appropiiale source. Our work is in areas which span whole service provision from cadets lo bereaved dependanls.. Benevolonce and Transitlon.. we provide intelligent, cost-effective and sustainable solutions combining professional guidance and services with effective granl-making. in co-operation with partner agencies. charities and busines$. This is funded by money we raise ourselves., we receive no ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Governmenl fLJnding in normal circumstances, though this year we received support from the CJRS Furlough grant s¢heme due to the impact of the COVID-19 pandemic. Amenities: we deliver appropriate and sustainable financial support lo the serving Corps through infrastructure enhancements, adventure training, unit and family welfare, sport and regimental life in order to strengthen morale, improve effectiveness and encourage relenlion. Apart from support to families, this is funded by the volunl2ry donations of Royal Marines themselves or from historic reserves, rather than donations raised from the general public. Membershlp: our membership116,750, up 2,400 since 1 January 20201 is a focus for our promote and prevent work, which we undertake lo promote mental and physical well being and lo stave off charitable need and spend further down the line,. this includes working through our 92 geographical and specialist branches to promote comradeship and mutLJ81 support. This is self-supporting through from member fundraising, donations and historic AssoGialion reserves. 2020 saw needs rising across every Sphere of our work, following trends from previous years but exacerbated by the COVID-19 pandemic. PUBLIC BENEFIT We provide quantifiable and tangible benefits to Defence and by extension to the public, underpinning its support of the Military Covenant be￿een the Nation and its Armed Forces- Our work is retention positive. 11 supports RM units, personnel and families, providing a better quality of life and facililieslopportunilies which the taxpayer cannot fund, thereby communicating lo them that their contribution is recognised and valued. Our funding addresses specific needs identified by the Royal Navy which are deemed essential bul for which no public funding is available, such as in-barracks social facilities, also family cenlres and childcare Icontribuling to the MOD'S childcare policy} which are known to have an impact on retention. Our work conlribules lo military efficiency through our direct funding of the Corps Human Performance Operating Capability, and also sport and adventure training. This improves physical and mental fitne5S, teamwork and cohesion, in addition to the improvement in morale and enhancement of retention, Our work improves the morale of the Royal Marines and ils community through funding of functions and activities such as unit functions and family days which the taxpayer cannot support. We contribute to the welfare and mental wellbeing of the Corps Family through our Support Network, providing a network of locally based volunteers who are able lo give additional help lo veterans., through our funding of unit-based pastoral workers employed by the Aggie Weston's charity,. and by offering speedy access to recognised locally-based course5 of therapy lo veterans and serving personnel dependants, often following referrals from the NHS. We engage closely with the Commandant General Royal Marines and Corps Regimental Sergeant Major in order lo ensure that the funding and setvices provided to the Corps are those most needed through the serving perspective. In shaping our objectives for the year and planning our aclivilies. the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'Public benefit.. running a charity {PB21'. The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 201110 have due regard to public benefit guidance published by the Charity Commission. 10 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES POLICIES Grant maklng pollcy During board meetings, trustees consider bids for funding exceeding £10,000 and decide which fil the charity's Grileria. The CE and Deputy CE hold delegated authority lo make grants of up to £10,000 within pre-set budgets agreed by Trustees., the Director of Health and Wellbeing and Head of Grants RNRMC hold delegated authority lo make grants of up to £5,000 from within approved pre-sel budgets, with authority lo seek to almonise Ishare} grants with funds from other agreed sources.. the Employment and Health & Wellbeing staff (administering RM Benevolent Fund grants) each have a delegation of £2.500. Any extraordinary or urgent bids exceeding £10,000 falling outside these parameters may be ¢on$idered by a quorum of at least three Trustees as and when they are received. out of committee. Trustees have indicated that need arising from the wounded, injured and sick should be met first from the Benevolent Fund. with the General Purpose Fund lo being used primarily for we5fare purposes which directly benefit serving individuals and their dependants or serving communities. 11 is intended that the Day's Pay Giving Funds serve primarily as the source for amenity grants for which funds raised from the General Public would not be appropriate, bul the trustees have agreed that they may be used for welfare purposes (since this is permitted by their governing documents) on a case by case basis. Fundraising policy We have reviewed and revised our fundraising policies and procedures during 2020 reflecting the advice of the Fundraising Regulator and need lo assure our supporters and the wider general public that we fundraise ethically and within the guidelines of the Charity Commission and the Fundraising Regulator. Our approach to fundraising rests on positive supporter engagement in order lo enable us to atlracl, steward and maintain support. bul also to protect our reputation. A key element is the segmentation of supporters through our Customer Relationship Management database, so that supporters receive communications al appropriate frequencies. The charity only fundraises and promotes support to the charity from individuals and companies following explicit written I'opt in'l consent from potential donors. Trustees and staff are aware of the need lo protect the public, and especially vulnerable people, hence no cold call. telephone or street fundraising is carried out, and no bonuses or inducements are made to staff or volunteers. No professional fundraisers or commercial participators carried out any fundraising activities on behalf of the charity. The charity is registered with the Fundraising Regulator {FRI and contributes to the FR levy on fundraising charities according lo ils income, adhering to the FR Code of Practice and to Charity Commission guidelines, particularly CC20 (Charity fundraising.. a guide lo Iruslee duliesl. Trustees are aware of the Commission's six fundraising principles and ensure adherence by charity staff through the oversight of a Fundraising sub-committee of the board.. effective planning,. supervision of fundraisers., protection of charity reputation, money and other assets., ensuring compliance with laws and regulations., following recognised standards-, openness and accountability. Fundraising practices are monitored through a designated lluslee engaging in weekly oversight of the Charity's Directors of Development and Fundraising. a formal quarterly sub-committee meeting and quarterly board reporting, and oversight of volunteers by the Community Fundraising Manager, whose induction training includes the protection of vulnerable people. Failures to comply will be reported lo the FR if they occur, as will complaints, for which Iheie is a process lo follow if received., there have been none of either in the last financial year or Since the FR was introduced. Policies and processes are in place to ensure the Charity's Compliance with the General Data Protection Regulation {GDPRI, particularly with regard lo the use of personal data for fundraising purposes. 11 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES ACHIEVEMENTS AND PERFORMANCE 2020 Response to COVID-19 We are confident that we have become increasingly effective in supporting the Corps Family despite the challenges of the pandemic.. 2018 2019 12020 Increase 2019-20 220 Welfare Cases provided with funding support Employment Assistance- discharged RMS Armed Forces Compensation Tribunal Case Support Transition Support to Vulnerable Leavers Veteran Mental Health Referral Cases Addiction support 545 55 665 810 75 126 117 82 79 93 113 92 43 1 23.10 Smart working - ¢ollaboratlon with partners We have worked in¢reasingly closely with the NHS {Ihe Veterans, Transition Intervention and Liaison Service and Complex T￿atrnent Service), the Office for Veterans, Affairs and Third Sector partners, with a number ofwhom we have now agreed formal MOUS.. the Royal Navy & Royal Marines Charity, Walking With The Wounded, the While Ensign Association, the Special Boat Service As$oci8tion, Heropreneurs and High Ground. We collaborate regularly with Combat Stress. Help For Heroes, the Regular Forces Employment Association, the Poppy Factory, Royal British Legion Industries, Poppy Scotland, Blesma and Supporting Wounded Veterans. The NHS and Combat Stress refer beneficiaries lo the Charity because of overstretch or under-resourcing. We work in close partnership with SSAFA-The Armed Forces Charity, and other Naval Service Gharities {Ihe Royal Navy and Royal Marines Charity, Greenwich Hospital, the Royal Naval Benevolent Trust, the Naval Children's Charity, the Royal Navy Officers, Charity and the Naval Service Sports Charity) in our grant making work, with our USP being our holistic assessment of needs leading to complementary monetary and non-finanGial support. We are currently assisting the wider Naval charities to develop a more holistic service (mirroring our own) through embedding a RN casework Manager and two Transition Support Guides within our staff, while we are advising the Royal Naval Association in the development of ils membership offer and services lo reflect those offered lo our members. Rising need Our outputs are driven by need. We have monllored need systematically over the last 5 years and Can evidence that the need continues to rise,. hence our work oulpuls continue to increase. In particular.. need is rising faster in the veteran community than in the setwing Corps., il is rising e5pe¢ially quickly in the veteran mental health sphere since the classi¢ gestation period for PTSD 1$ 7-10 years, meaning we will most likely be facing this rise for 3-4 years yet from veterans who served in Afghanistan. This rising need has led to increased spend by the Charity, having to pul in place the people. resources, structures and processes necessary to provide effective first call support appropriate for ourcommunity.. The appointment of a Casework Manager- providing more effective triaging lo ensure better holistic support., The creation of Transition Support Officers South and North, and Alcohol Education Adviser posts l.e., safeguards ft)r vulnerable leavers, enabling early intervention lo stave off later interventions 12 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES and increased spend., this creates a virtuous circle whereby the benefi'ciary does not need further . intervention., The recruilmenl of part-lime Clinical Care Managers {responsible for veterans. mental health Teferrals to accredited Iherapistsl and Armed Forces Compensation Scheme & War Pensions Advisers Iresponsible for appeals to secure higher lump sum and ongoing pensions payments) taken onto staff because of the rising volume of cases., The implemenlalion of a'Lifting the Lid. suicide prevention campaign in the laller half of 2020 which was praised by the NHS, Samaritans and Zero Suicide Alliance. Llfesavlng support dellvered Since establishment of the Royal Marines Charitable Trust Fund {one of our precursor chariliesl in 2010, over £22.7M has been given in grants towards recovery, quality of life and through life care. The Charity achieved expenditure in 2020 on grants payable of £3,790,740 a rise of over £1 M on 2019 {due primarily lo the exception81 grant of the Gordon Messenger Centre lo the Corps- details on pages 14and 151. Grants 2020 £3,790,740 BenÈvolence, 689,134. 18% menities, 219,215, I Sport, 121.835, 3% | BÈnevolence Amenltles EKceptlon31 grant (Gordon fvlessenger Centrel, 2,760.556, 73% Sport Exceptional grant (Gordon fjesseneer CentrÈl The delivery of support amounted lo a further £801,166, giving a tol81 of £4,591,906 of charitable expenditure. Increased numbers supported Total number of benefiGiaries supported by charitable interventions through year.. 20,74412019.. 16,092}. Total number of beneficiaries in need supported through financial and non-financial benevolence.. 1,896 individuals {excluding their dependantsl12019'. 1,662,. 2018'.1,404). 13 ROYAL fvIARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Annual comparison of welfare grants to Indlvlduals 2016-20 RMBF Spend on Welfare Grants to Indlvlduals for the year to 31 Docembor 2020 800000 700000 4 974.00 £639,881.00 600( £586,508.00 500000 £427,757.00 400000 300000 £235,517.00 200000 ' iooooo 2016 2017 2018 2019 2020 14 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES ' C4W￿l.)ll.O C¥èHDme.?.6CV.I Oh51t4hyknJ.71a05.J?A Psyd*￿Tr￿Mil,1tl.W6 F￿nE￿I￿¢ST5.Y.)￿.t% The build costs referred lo above represent half of the costs of an extension lo a severely wounded beneficiary's home approved in 2019, which could only commence in late 2020. Total amount of amenities 2nd sportsladvenlure twining grants.. £341,050 {as against £1,192,766 in 2019 and £1.011,557 in 2018, reflecting the impact of COVID-19 on Corps life and acliviliesl. Number of serving Royal Marines benefi'tting from amenities and sports grants.. 18,893 {2019'. 14,4301. Support outputs and Impact: A record number of discharged Royal Marines 75 12019.. 71, 2018.. 551 were assisted into employment worth over £2.1 M in added local employment value (the Government's approved proxy value for one person being in employment for 12 months is £28,758),. see the dedicated section on Social value below. 298 were advised in lolal {of whom 48 were funded). 203 War Pension and Armed Forces Compensation Scheme tribunal cases were supported12019'. 117, 2018.. 971. AII 10 major Royal Marines units were visited to be given alcohol education advice. received by universal chain of command praise, 60 individual addiction cases were supported 12019.. 431, 28 serving with a replacement cost of £3.5M if they had been discharged (since it GOSIS a minimum of £125,000 to train a new recruit), and 32 veterans. A larger number of Veterans, Referral Plan mental health therapy cases were supported, 11312019.. 92, 2018.. 79, 2017.. 26). 93 new vulnerable leavers were supported by our Transition Support Officer {2019'. 96, 2018.. 621. Funding of £110,820 was provided for the coaching of 194 ballling mental ill-heallh by Rock to Recovery12019.' 193, 2018.. 1421. 9 other partner organisalions were supported by funding of £52,934. benefilling 30 individuals directly alongside pastoral work al 3 units. 15 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES The Gordon fvlessenger Centre- enabllng reslllence In the Corps Family X4 The Charity has completed a seven-year project to deliver a slate of the art welfare and community facility al the heart of the Corps, the Gordon Messenger Centre for Resilience, which opened in December for welfare support, training. rehabilitation activities, briefi'ngs, employment workshops, community events for serving and veteran Royal Marines, family activities, 8 children's creche, charity meetings, cadet activities and support lo sporting events on the adjacent sports fields. Named after the Patron of the Charity, General Sir Gordon Messenger. the centre has a large hall, cafeteria and kitchen area, meeting room, office, indoor and outdoor play areas. This £2.8M project, which could not be funded by the MOD has been paid for though grants and donations of £1.9M, and £1 M from Charity general funds, The MOD has agreed lo fund ongoing running and routine maintenance costs. It is expected it will provide charitable benefit up lo 50.000 personnel and dependanls over the next 30 years. A local management committee on which the Charity is represented will oversee use in accordance with the charitable objects of the Charity, and will capture feedb8Gk to the Corps and Iru51ees annually. The trustees have determined that the most appropriate treatment of the project ft)r accounting purposes (since the land reverts lo MOD at the 30-year point and therefore the building), is lo deem it a capital charitable grant, therefore the building's value has been removed from our balance sheet. Created Social Value.. Through 2020, the Charity has been capturing metrics using government approved Themes, Outcomes and Measures {TOMSI including calculations of added social value, with the assistance of the Social Value Portal. Government TOMS are concemed with jobs and skills. and societal and community development, to work out appropriate. There were 65 metrics captured. Areas where extra value was added were as follows.. Family members supported through Association events; 16 ROYAL MARINES ASSOCIATION-THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Veterans allending parades., Dischargeol RM assisted into full lime employment.. Hours dedicated lo supporting RMS into work by providing career mentoring, including moGk interviews, CV advice. and careers guidance,. Unpaid work experience provided by employer partnerships., Time dedicated lo supporting divorcing families., Increase in lump sum and pension won following the tribunal and pension advice service. The Social Value created by the Charity as measured through the Social Value Portal Themes, Outcomes and Measures in 2020 was £4.590,87612019.. £4,005.099, 2018.. £4,007.636). % Soclal & Loc3 BudEei EEoDomic Value created %of the proEraihme over Added per El SpETrd £587.346 E580.633 99% 12.65% £0.99 E271,468 £67,642 EO.25 Enipbymeilt £185,125 Q322,064 1254% É12.S4 Welfare £1,357,492 £994.173 73% 21.66% £0.73 £30,0 £626,364 13.64% £20.88 £2,431,431 £4,590.876 189% El.89 This sum does not tell the whole story of what the charity delivers as it only captu￿$ value lo wider society and not that delivered specifica15y lo the military community. This increment81 SLJPPOrt to the serving Corps Family not captured in SVP was £3,046,346, while the value added to the Corps through evidenced retention resulting from the Charity's intetventions was worth a further £3,500,000. Thgrefore, the total 80clal valug created in 2020 was worth £11,137,222 12019: £10,146,005), moaning that every £1 donatgd to the Group wa8 turned into £2.43 of charltable value created. FINANCIAL REVIEW The Trustees consider that expenditure has been wllhin the Objects of the Charity during the reporting period. They Consider that the Charity remains healthy and thus able lo meet ils future charitable obligations. The Charity was again reliant on income from donations, grants, fundraising events and investments. In 2020, the COVID-19 crisis removed a significant proportion of our fundraising capability which meant that we incurred a gross fundraising fall against budget of over £1.6M in year. principally due lo the inability to hold major fundraising events.. Income generation was diversified across a number of strands.. major donor and corporate gifts, regular giving and one-off donations, trusts and foundations, grants, community fundraising leilher Charity-organised inilialives or individuals undertaking their own inilialivesl and legacies,. Total gross Voluntary Income li.e. fundraisedl for the Group was £2.4M', £259K was received in legacies, a 500/0 decrease on 2019 due to the delays in Probate caused by the pandemic.. 17 ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Total Nel income for the Charity (including grants reGeived and after cost of raising funds) was £1.7M behind budget al £2M, £1.1 M below lolal net income in 2019., Investment income was £1 OOK behind budget at £308K'. Overheads (Office and administration costs and Direct Governance costs) were reduced al £387K, reflecting the move of costs of the build of a new Customer Relationship Management database to the asset register. The Charity received setvices in kind valued al £201,004 from our parent charity RNRMC. This includes finance administration, grants adminislralion, HR and IT support. Investment pollcy and performance The Articles of Association authorise Trustees to make and hold investments using the funds of the Charity within current rules and regulations. During 2020 the Charity had investment management teams.. the majority offunds were held by Cazenove Capital Management, who were currently instructed to invest in a portfolio which will generate an agreed level of income whilst growing capital with a medium risk portfolio. This return COLJld not be achieved during 2020 as a result of the COVID-19 pandemic's impact on the markel$'. income was 250h down on budget. Legacy RMA investments worth £1.6M at the end of 2020 were held by BNY Mellon. The combined investment funds value decreased from £13.1 M at the end of 2019 to £11.1 M 8t the end of 2020, reflecting £1.25M drawn down to provide contingency cash flow, increasing cash held from 2- 3 months lo 5-6 months, and the funds losing £666,000 in value. A joint revlew of investment manager has been held by RNRMC and the Charity, with a decision to appoint Sarasin and Partners LLP. The transfer of the Cazenove and Newton funds is expected lo be complete by the end of June 2021. The whole fund value of the Charity dropped from £16.9M to £13.4M', £2.8M was due to the grant of the Gordon Messenger Centre. the remainder was investment losses as a ￿sU11 of the pandemic. The oversight of the management of the Charity's investments lies with a nominated trustee {Mr K Breslauerl. and also with the Investment Committee {ICI of RNRMC, which is responsible for monitoring the performance of the investment managers in line with the investment strategy approved by the Board alongside RNRiVIC. Reserves Policy a. The Charity hold reserves for the following reasons.. In order lo ensure that the Charity is able lo meet unexpected and unbudgeted demands., In orderto ensure the Charity's short-long term suslainabilily in a context where it must generate its own income lo cover costs., In Order lo ensure continuity of service to beneficiaries in the event of an unexpected decline in charitable income., In order lo enable the Board lo fund any required transformation of operating model. b. The particular context in which RMA-The Royal Marines Charity operates is condttioned by the operations of the Royal Marines, and is changing and uncertain.. The actuarial liabilities of the Charity in the medium-long term are not known since the military operational commitments of the Corp5 and their consequence on the Charity's beneficiaries cannot be planned for., their frequent and changing operational deployment pallern leads to disproportionate exposure lo the possibility of death or injury, therefore increasing the chances of casualties and potential future calls on funds. Indeed, in the event of a major operation, the Trustees may find that they must draw on a substantial amount of capital to assist the Corps family al a lime of need,. hence reserves musl be readily accessible. 18 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES The beneficiary community, estimated lo be in the region of 120-150.000 {serving and veterans with dependantsl, will remain stable in size for the next 30 years since the size of the Corps itself has changed little over that period, while life expectancy continues lo lengthen and the welfare needs of the elderly become more complex. The fundraising and income generating context for military charities has become more challenging following the cessation of large-scale overseas operations in 2014, meaning that the military community and its supporting charities are no longer in the public eye as they once were, and competition from other ¢harilable causes has become stronger. c. The reserves of the Charity must be flexible lo meet these changing demands and Calls on the Charity's funds, which are held and applied for many different activities in line with ils wide range of charitable objectives and slralegi¢ plans, arguably the widest of any military charity. d. Vwhilsl the total value of the reserves held in investments as at 31 December 2020 was £11.09M, £2.71M Is held in restricted funds which arise from the Royal Marines Day's Pay Giving schemes, money which may only be applied in specific circumstances to support regimental life, welfare, sport and adventure training. These funds are principally held in investments to ensure that there is a balance of income lo meet the needs of current beneficiaries. bul also growing capital lo ensure that the needs of future beneficiaries are met, in orderthat they remain a sustainable resource for the Corps for future generations., £1.74M is held in the restricted Royal Marines Benevolent Fund, which may only be applied lo benevolence grants and support, projected to cost £1.7M in 2021., £0.13M is also a restricted fund to be applied in grants supporting the activities of Royal Marines cadets. £1M is held in a designated fund with the intention of part-funding a National Museum of the Royal Navy project lo provide a new Royal Marine$ Museum, subject lo review in mid-2021', £0.5M is held in a designated fund to SUPF)Ort the membership activities of the Royal Marines Association,. £5.01M is left as unreslri¢led funds, however of this £3.19M is held as a minimum reserve against the potential financial impact of identified, tabled and mitigated risks which Could impact on the Charity's ability to deliver ils objectives. e. Therefore, the free reserves of the charity are £1.852M, which equates to just over 5 months of expenditure lo provide for grants, services and the adminislralion of the Charity. RISK MANAGEMENT The Charity Trustee$ have considered the major risks to which the Charity is exposed and review those risks and the established systems and procedures lo manage those risks through oversight of a risk register al each Trustee meeting. This register is directly linked to the delivery programme in order lo ensure that risks whieh cannot be removed are miligaled against through the operations of the Charity's staff. A three-slage line of defence assurance system is in place, based on the ￿gUlar checks of staff, the oversight of Iruslees, and the annual interrogation of the appointed auditor. Princip81 rlsks identified as al 31 December 2020 were.. Rlsk Financial which includes.. Not meeting our Voluntary Income targets. Constraining Corporate and Major Donors- Loss or reduction of funding streams. ation We have diversified our income generation opportunities as much as possible, focusing particularly on strengthening the support of major individual and corporate donors, trusts and foundations. In the COVID-19 Context this means identifying companies, donors. trusts and These rlsks would rodu¢e our capacity to deliver our strategy. 19 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES foundations which have proved re5ilienl in the economic downturn. We are further developing measurement of whole social value lo demonstrate impact to donors, and our marketing function in order belle¥ to promote case studies We have a systematic approach to budget selling and financial planning with detailed monthly sequencing and monitoring during the year, with monthly cashflow projections and quarterly forecasts used to mitigate any budgeuincome pressures that arise during the year. We regularly review our investment strategy and its performance managed by appointed externa1 fund managers. The Board has adopted a policy of holding be￿een 5 and 6 months of expenditure in cash reserves. increased from 2-3 previously. We have reviewed our Insuran￿ needs and provider to ensure financi81 losses are minimised. A full Chair-led governance review will have been completed by mid-2021, identifying areas of improvement for governance, skills gaps and Iruslee succession planning. We have reviewed all Charity policies and ensured that all required Board level policies have been refreshed for 2021. We are registered with the Fundraising Regulator lo evidence our compliance with the Charities Act 2016 and comply with regulations,. no complaints were received in 2020. We benefit from the extensive cyber protection provided by our inlernel provider. We have a whistle-blowing policy that is known to employees. There is a robust process for any issues arising from a disclosure lo be dealt with promptSy and properly. We have developed Improved methods of oniloring the impact of grants made lo individuals and organisalions, including ensuring safeguarding proto¢ols are in place with those we fund. We are developing a PR function which will give the Capability lo respond to repulalional challenge, with direct links into Navy Media. We expect regular reports to the Board of Trustees from through year funded organisalions and implement MOUS where appropriate. We have revised terms and conditions for those outside organisalions. Governance which includes.. Lack of compliance with legal and regulatory requirements., Breach of data andlor IT breach by external agents.. Lack of impacuoutcome evidence may lead to sub-optimal block grant making. These rlsks wlll Impact our operational delivery and Increase regulatory scrutiny, both of which w511 Impact our ablllty to dellver our objectives. Reputatlonal which includes.. Adverse publicity concerning the Royal Marines may affect public's perception of the charity's need for support and funds., Lack of control of funded organisations, aclivilies.. Lack of control of membership branches and individual members. These risks would impact our reputatlon whlch Is absolutel e8sentlal to kee ke stakeholders 20 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES funders and benoficiaries positively engaged In assisting us delivering our outcomes. Our branch and membership byelaws are subje¢t to close oversight from the Membershi Committee. We have reviewed and agreed a new staffing structure for the charity, alongside revised role descriptions and improved means of regularwhole staff communication to improve retention and enhance relenlion. We have introduced a revised Performance and Development Report to improve our performance and focus on learning and development. We conduct an annual Training Needs Analysis. leading lo whole staff training as appropriate. and individual education and learning needs being addressed. We have introduced an Employee Assistance Programme and regularly consider staff workloads, promoting positive mental health and work-life balance. People which includes.. Inability to recruit and relain people with the required skills and expertise., Appropriate training and safeguarding for all staff., Burnout due to increased demand for support. These rlsks would reduce our effectiveness to dellver our objectlves, reducing our impact. The Trustees consider by reviewing accounts and cashflow at each Board meeting that they are able to manage income over expenditure effectively, whilst they are also able to seek advice from the RNRMC Group Investment and Finance Risk and Audit Commillees and other specialist advisors, all who have a depth of relevant experience. FUTURE PLANS COVID-19 The impact of COVID-19 has been considered on the company's future plans and budgeting processes, as the effect of the outbreak will be a significant risk ft)r the year to 31 December 2021 and it is estimated, 2-3 years beyond. The crisis resulted in the Charity staff ceasing Offi￿-based operations and moving to remote working from home. this was achieved seamlessly due to a major IT migration programme undertaken in late 2019. Staff have continued to deliver most aspects of welfare support, though il must be conducted remotely, but all membership events were cancelled in year., it is hoped that staff will return to office by mid-2021 and that events will recommence in September. Our first priority was and will be to continue lo provide support lo the vulnerable members of our community. those suffering from the downturn in the economy and the social impact of Coronavirus and particularly those who may have even greater troubles due lo the social distancing measures imposed. Whilst not front line, we are confident that we have alleviated significant pressure on the NHS and government, as we continue to address the following crucial areas where COVID-19 is impacting our community significantly.. Mental ill-health across our community., Family stfftsses across our community., Medical discharges of serving Royal Marines.. Unemployment among veterans and dependants. 21 ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES Even before COVID-19, the Charity faced a significant challenge in fundraising.. LIBOR bank fine funds are exhausted and will not be replaced., There is no potential governrNent funding 2Part from Armed Forces Covenant Fund Trust grants,. Brexit anxieties which have not yel restored business confidence., No public campaigning by the Royal Marines meaning that the military are out of mind. The pandemic removed a significant proportion of our fundraising capability in 2020 and has a significant impact on the first thirds of 2021. We have planned accordingly, bul in order to ensure that essential services continue lo be provided, the trustees approved a projected deficit budget of £400K. There are sufficient free reserves for 10 months of expenditure as al the time of signing, bul if fundraising and other income-generaling activities are not able to recover, the Iruslees will need lo liquidate investments which are intended to be held for the long term in order to generate a recurring income stream for beneficiaries. Cashftow is monitored monthly, looking forward 12 months. Based on the revised forecasts the Trustees are satisfied that there is a reasonable expectation that the company has adequate resources lo continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing ils financial statements. Strategy and Programme 2021-30 In 2020 the Membership strategy was reviewed and revised for implementation in the first half of 2021, which completed the revision of all the charity's functional strategies. We continue lo follow a 3-year budgeted delivery programme with associated risk register based on the revised strategies, delivered by the staff bul with regular reporting oversight from the sub-commillees allied to the Charity's functional teams, which in lurn report to the Board. This programme will ensure that the charity is proactive and bold, differentiated, sustainable. owned by the Corps Family, recognised by the wider Community, and effeclivelefficient, cost-effeclive and achieving maximum impact). The programme ensures the following objectives will be se¢ured'. 1. We will enable those we serve to live by the Commando Mindset Iresloring. maintaining and enhancing independence, dignity and effectivene$sl through financial and non-monelary support., 2. We will promote and sustain the Royal Marines brand and e$prit de corps,. 3. We will increase and achieve a representative membership mix ofthe Corp$ Family and supporters, in order that the Charity and Association become the heart of the Corps Family. This year the charity celebrates the 75￿ anniversary of the founding of the Royal Marines Association in 1946, which will be the focus for membership events and community fundraising inilialives. The Board and Executive have commenced further work to improve the charity's delivery in the 2022- 24 period,. and further to review the whole strategy of the charity for 2025-30 against the projected demographic changes of the beneficiary community, operational ¢ommitmenls of the Royal Marines, and other accepted trends in the serving and veteran military population of the UK, with the opportunities and challenges that will be presented. We will seek to develop the Unique Selling Point of the charity as the embedded charity of the Corps. so uniquely placed to provide appropriate charitable support. 22 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES ACKNOWLEDGEMENTS The Board wishes to place on record its gratitude lo all those who have contributed to the fundraising progress of the Charity and its outputs in 2020, in particular.. Our corporate partner Patron Capital Advisers LLP and its Managing Director land our Irusleel Mr Keith Breslauer, who have enabled the generation of further income by bringing in subslanlial support from other corporates and individuals, alongside giving support to individual Royal Marines seeking employment or training, whilst also providing meeting space and an office free of charge,. Peak Scientific alongside June and Robin MacGeachy. who have provided significant donations and sponsorship lo projects., The Armed Forces Covenant Fund Trust, which has provided subslanlial support to the charity'$ mental health work in year with COVID-19 Impact Programme funding of £125,000, £35,000 Positive Pathways funding towards the 2021 Norway Families Deployment, and £20,000 from its Force for Change programme towards branch welfare support,. The donors who have enabled the Gordon Messenger Centre to be completed, among them the Mrs Nancy Warren Trust. the Gosling Foundation. The Royal British Legion, the Naval Children's Charity. Mundy Group, the Swire Charitable Trust and our West Country 100 business network. other individuals who have provided subslanlial donations are too numerous lo mention in full, but particular thanks musl go lo supporting organisalions - the Royal Marines Band SeNice, the Royal Marines Sports Association, Commando Training Centre Royal Marines, the Corps Colonel's Department, and all regular and resetve units of the Corps,. and to the tireless army of ¢ommunity fundraisers. many of whom are members of our Association. The Board wishes lo thank the RNRMC for its subslanlial back office support provided pro bono during the year, alongside its significant grant towards veteran benevolence support. The Trustees also thank other independent charities and organisations with which il works closely.. SSAFA the Armed Forces Charity, the Royal Naval Benevolent Trust, the Naval Children's Charity, the Royal Navy Officers, Charity, The Royal British Legion, Greenwich Hospital, the Special Boat SeNice Association, the White Ensign Association, Aggie Weston's, Walking With the Wounded, Combat Stress, Help For Heroes, Heropieneurs, Boolnecks in2 Business and Rock to Recovery. Statgment of Trustoes, Responsibilities The Iruslees (who are also the directors of RMA-The Royal Marines Charity for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the trustees lo prepare fi'nancial statements for each financial period that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable company for that period. In preparing those financial stalemenls, the Iruslees are ￿qUired to: select suitable accounting policies and then apply them consislenlly., comply with applicable accounting standards, including FRS 102. subject to any material departures disclosed and explained in the financial ststemenls., state whether a Slalemenl of Recommended Practice ISORP) applies and has been followed, subject lo any material departures which are explained in the financial stalemenls., make judgements and estimates that are reasonable and prudent., prepare the financial statements on a going concern basis unless it is inappropriate to presume that the ¢haritable company will continue in busines5. The trustees are ￿SponSible for keeping proper accounting records which disclose with reasonable accuracy at any lime the financial position ofthe charitable company and lo enable them to ensure that the financial statements comply with the Companies Act 2006. the Charities and Trustee Investment 23 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES (Scotlandl Act 2005 and the Charities Accounts IScotland} Regulations 2006 as amended by The Charities Accounts {Scotlandl Amendment (No. 21 Regulations 2014. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit information of which the charitable company's auditor is unaware., and the Iruslees have taken all the steps that they ought lo have taken to make themselves aware of any relevant audit information and lo establish that the auditor is aware of that information. The charitable company has taken advantage of the small companies. exemption. This report Was approved by the Trustees on ....... and signed on their behalf by Mrs LR Fordham (Chairman) 24 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY Oplnlon We have audited the financial statements ofThe Royal Marines Charity for the yearended 31 December 2020 which comprise the Group Statement of Financial Aclivilies, the Group and Parent Charitable Company 881ance Sheets, the Group Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice) including FRS 102 'The Financial Reporting standard Applicable in the UK and Ireland,. In our opinion the financial statements- give a true and fair view of the slate of the group's and the parent charitable company's affairs as al 31 December 2020 and of the group's incoming resources and application of resources, including ils income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment {Scotland} Act 2005 las amended), regulations 6 and 8 of the Charities Accounts (Scotlandl Regulations 2006 las amended) and the Charities Act 2011. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing {UKI IISAslUK)l and applicable law. Our responsibilities under those standards are further described in the Auditor'$ Responsibilities for the audit of financial statements section of our report. We are independent of the chaiitable company in accordance with the ethical requirements that are relevant to our audit of the fi'nancial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordanee with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the financial stalemenls, we have concluded that the trustees, use ofthe going concern basis of accounting in the preparats'on 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going concern are described in the relevant sections of this report. Other Informatlon The other information comprises the information included in the annu81 report, other than the financial statements and our audilorfs report thereon. The Iruslees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. 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 lo be mateTially misslaled. If we identify such material inconsistencies or apparent material misslalemenls, we are required to determine whether there is a material mlsslatemenl in the financial statements or a material 25 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY misslalemenl 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 iequired lo report that fact. We have nothing to report in this regard. Oplnions on other matters prescribgd by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, annual report for the financial year for which the financial statements are prepared is con8lStent with the financial statements,. and the Iruslees, annual ￿port has been prepared in a¢cordance with applicable legal requirements. Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the group and parent charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the trustees, annual report. We have nothing lo report in respect of the following matters where the Companies Act 2006, the Charities Accounts (Scotlandl Regulations 2006 las amended) and the Charities Act 2011 require us to report lo you if, in our opinion.. the parent ¢harilable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us.. or the parent charitable company's financial statements are not in agreement with the accounting records and returns., or certain disclosures of Iruslees, remuneration specified by law are not made.. or we have not received all the information and explanations we require for our audit., or the Iruslees were not entitled lo prepare the financial statements in accordance with the small companies regime and lake advantage of the small companies exemption in preparing the Trustees, Annual Report and from preparing a strategic report. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 23 the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the fi'nancial slalemen15 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 fi'nancial statements that are free from material mi5slatement, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and parent ¢h8rilable company's ability to continue as a going concern, disclosing. as appliGable, matters related to going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the group or parent charitable company or to cease operations, or have no realistic alternative bul to do so. Audltorfs responsibllltle8 for the audit of thè flnanclal statements We have been appointed as auditor under Se¢llon 44(1){cl of the Charities and Trustee Investment {Scollandl Act 2005, the Companies Act 2006 and Section 151 of the Charities Act 2011 and report to you in accordance with regulations made under those Acts. 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 lo issue an auditor's report that includes our opinion, Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in a¢cord8nce with ISAS IUKI will always delect a material misstatement when it exists. REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY Misslalemenls Can arise from fraud or error and are considered material if. individually or in aggregate, they could reasonably be expected to influence the economic deGisions of users taken on the basis of these financi21 stalemenls. Irregularities, in¢luding fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misstalemenls in respect of irregularities, including fraud. The exlenl to which our proGedures are capable of delecling irregularities, including fraud is detailed below. Explanatlon as to what extent the audlt was consldered ¢apablo of detectlng Irregularities, Includlng fraud The objectives of our audit in respect of fraud, are., to identify and assess the risks of material misstatement of the financial statements due lo fraud,. to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstalemenl due to fraud, through designing and implementing appropriate responses to those assessed risks,. and to respond appropriately lo instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows.. We obtained an understanding of the legal and regulatory requirements applicable lo the charitable company and considered that the most significant are the Companies Act 2006, the Charities and Trustee Investment (Scollandl Act 2005 las amended), regulations 6 and 8 of the Charities Accounts (Scollandl Regulations 2006 las amended}, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council. We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. We assessed the risk ol material missl8lement of the financial slatemenls. including the risk of material misslalement due to fraud and how il might occur, by holding discussions with management and those charged with governance. We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific appropriate audit procedures lo identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. As part of an audit in accordance with ISAS (UK) we exercise professional judgement and maintain professional sGepticism throughout the audit. We also.. Identify and assess the risks of material misstalemenl of the financial statements, whether due to fraud or error. design and perform audit procedures responsive lo those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. The risk of not delecling a material misslatemenl 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 lo design audit procedures that are appropriate in the circumstances, bul not for the purposes of expressing an opinion on the effeclivene$s of the group and parent charitable company's internal control. 27 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARSNES CHARITY Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimate$ 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 lo events or conditions that may cast significant doubl on the group and parent charitable company's ability lo continue as a going concern. If we conclude that a material uncertainty exists, we are required lo 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 group or parent charitable company to cease to continue as a going concern. Evaluate the overall presentation. structure and ¢onlent of the financial statements. including the disclosures, and whelherthe financial statement$ represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or busines5 activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report. 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 thls report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006., and lo the charity's Iruslees. as a body, in accordance with Section 44{11{cl of the Charities and Trustee Investment IScolland} Act 2005, and in respect of the consolidated financial statements, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might slate lo the charitable company's membèrs and Iruslees those matters which we are required to slate lo them in an auditor's report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility lo any party other than the charitable company, the charitable company's members, as a body, and the charity's Iruslees, as a body for our audit work, for this report, or for the opinion we have formed. J.A LL* Neil Finlayson {Senior Statutory Auditor} for and on behalf of Kingston Smith LLP Chartered Accountants Slatulory Auditors Devonshire House 60 Goswell Road London EC1M 7AD Date.. 26 Au9.USt 2021 Moore Kingston Smith LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 28 RMA THE ROYAL MARINES CHARITY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 Total Funds 2020 Total Funds 2019 Unrestricted Funds Restrlcted Funds Nat• INCOME & ENDOWMENTS Donations and legacies 1,596.766 801,729 2,398.495 3,977.974 Tran8fer of a8sets from RMA 2,605,944 Other trading activilies 441.200 441,2 490,748 Investment income 176,288 132.415 308,683 439,222 2.214,234 934,144 3,148.378 7,513,888 Charitable activities Other income- CJRS grant 15,000 72,028 342,049 357.049 72,028 391,947 Total operatlng Income 2,301.262 1,276,193 3.577,455 7.905.835 EXPENDITURE Raising fund8 Investment management fees Fundraising co818 39,062 1.489,680 40,380 10,629 79,442 102,508 1,500,309 2,082,896 Total cost of raising funds 1,528,742 51,009 1,579,751 2,185.404 Charitable activities Through life pathway Quality of life pathway Fil for life pathway 274.920 2,978.742 118,118 839,919 418.621 212.514 1,114,839 3,397,363 330,632 1,849.429 877,203 894,450 Total charitable expenditure 3.371,780 1.471,054 4,842.834 3.621,082 Tgtsj operating expendlture 4,900,522 1.522,063 6,422,585 5,806.486 Net operating lexpendlturelllncom• 12,599.2601 1245.8701 {2,845,1301 2.099.349 Net Ilossesllgalns on Inv•stm•nt assets 17 1328,3841 1333,6661 {662,0501 966,786 Net lexpenditurelllncomè 12.927,6441 1579,5361 13,507,180} 3.066,115 Gross transfers between funds 945,934 1945,9341 Net movement in funds 11,981,710} {1,525,4701 13,507,180) 3,066.115 Total fund8 brought forward 10,164,181 6.712,S53 16,876,734 13,810,619 Totsl fLrndB carried fO￿ard 22 8,182.471 5,187.083 13,369,554 16,876,734 The Charity ha8 no recogni8ed gains or losses for the y68r other than as detailed above. Thè nèl movements in the charity's funds for the year arise from the charity's continuing activitles. The notes on pages 3110 48 form part of these accounts. 29 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY BALANCE SHEET- GROUP AND CHARITY AS AT 31 DECEMBER 2020 Group 2020 Group 2019 Charlty 2020 Charlty 2019 Note Flxed assets Intangible assets Tangible assets Investments 15 16 17 107,762 557,302 11,086,093 107,762 553.966 11,086.193 2,412,477 13,081,101 2,410,435 13,081,201 11,751,157 15,493,578 11,747,921 15,491,636 Current assets Stock Debtors Cash al bank and in hand 18 19 195,003 314,869 1,988,262 185,585 395,047 1,708,339 60,651 284,424 1,770,631 67,585 381,170 1,484,449 2.498,134 2,288,971 2,115,706 1,933,204 Liabilitles Creditors falling due within one year 20 1834.7371 1905,8151 1672,6731 {755,0841 Net ¢urrent assets 1.663,397 1,383,156 1,443,033 1,178,120 Total assets less current liabilities 13,414,554 16,876,734 13,190.954 16,669,756 Creditors falllng due in more than one year 21 145,000} Net assets 13,369.554 16,876,734 13,190,954 16,669,756 Accumulated funds Reslricled funds 22 5,187,083 6,712,553 5,187,083 6.644,951 Unrestricted funds 22 8,182,471 10,164,181 8,003,871 10.024,805 Total accumulated funds 13,369,554 16,876.734 13,190,954 16,669,756 Company registration number.. 07142012 The charitable company has taken advantage of the small companies. exemption. The financial statements on pages 28 to 48 were approved by the Iruslees on on their behalf by.. and signed Mrs LR Fordham Chalrmanl 30 ROYAL MARINES ASSOCIATION-THE ROYAL MARINES CHARITY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 Cash flowl(outflowl from operatlng actlvltles Nel cash {used in}1 provided by operating activities {554,305) 2,418,202 Cash flows from Investing activitles Investment income and interest received Proceeds from disposal of fixed asset investments excluding endowment funds Acquisition of fixed asset investments excluding endowment funds Payments lo acquire tangible fi'xed assets Payments to acquire intangible fixed assets 308,683 439,222 4,227,223 1,960,923 12,894,265) 1749,651} 1107,7621 13,671,7S8) 12,412,078) 784,228 (3,683,701) Cash flowlloutflowl from financlng actlvltles New bank loan 50,000 Net Increaselldecreasel in cash and cash equlvalgnts Cash and cash equivalents at beginning of year 279,923 1,708,339 {1.265,4991 2,973,838 Cash and cash equivalents at end of year 1,988.262 1,708,339 Reconciliation of net Incomel l¢xpenditure} to net cash flow from operatlng actlvltle$ 2020 2019 Net {expendlturelllncom¢ 13,507,180) 3,066.115 Adjustmgnts for: Depreciation charges Nel lossesllgains} on investments Investment income Grant lo MOD- fixed asset disposal (see note 161 {Increase} in stock Decrease in debtors IDe¢reasellincrease in creditors 32,491 662,050 1308,6831 2,740.335 19,418} 80,178 1244,0781 13,283 1966,7661 1439,222) {126.767} 185,345 686,214 Not cash (used inllprovlded by operating activltles 1554,3051 2,418,202 31 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES al Basls of preparation These financial statements are prepared on a going concern basis, under the historical cost¢onvention, as modified by the revaluation of inveslmenl$ being measured at fair value Ihroltgh income and expenditure within the statement of Financial Activities. The fi'nancial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The Charitable Company and ils subsidiaries are a public benefit group for the purposes of FRS 102 and therefore the Charity also prepared its financial slalements in accordance wilh the Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006. the Charities Act 2011 and Charities Accounts (Scotland) Regulations 2006 as amended by The Charities Accounts Iscollandl Amendment (No. 2) Regulations 2014. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded lo the nearest pound. The principal accounting policies adopted in the preparation of the financial statements are sel out below. bl Golng concem The trustees have assessed whether the use of the going ¢on¢ern basis is appropriate and have considered possible events or conditions, particularly those arising from the COVID-19 pandemic, that might cast significant doubl on the ability of the charity to continue as a going concern, The trustees have made this assessment for a period of at least one year from the date of approval of the financial stalemenls. In particular the trustees have considered the charitable group's forecasts and projections and have taken account of pressures on donation and investment income. After making enquiries the Iruslees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues lo adopt the going concern basis in preparing ils fi'nancial statements. c) Group flnancial statement8 These financial statements consolidate the results of the Charity, TRMC Enterprises Limited and the RM Shop Limited, wholly owned trading subsidiaries on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure Account is not presented for the Charity itself as the Charity has taken advantage of the exemptions afft)rded by section 408 of the Companies Act 2006. d) Income All income is recogni5ed when there is entitlement to the funds, the receipt 15 probable and the amoynt can be measured reliably. Legacies are recognised following probate and once there is sufficient evidence that ￿CeIpt is probable and the amount of the legacy receivable can be measured reliability. Where enlillement to a legacy exits but there is uncertainly as to ils receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for incorne recognition are met. Income is deferred when the donor attaches conditions outside the charity's own control or specifies that the resources are lo be used in a future accounting period. Investment income is received nel of investment management fees bul is grossed up in the accounts for investment management fees. Government grants Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the associated costs for which the grant is intended lo compensate. This includes £72,028 of Government assistance under the Coronavirus Job Retention Scheme {CJRS) relating to staff who were furloughed due to Covid-19. 32 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 el Volunteers and donated $ervicg5 and facilltles The value of Se￿iceS provided by volunteers is not incorporated into these financial stalemenls. Where services are provided to the charity as a donation that would normally be purchased, this contribution is included in the financial statements al an estimate based on the value of the contribution to the charity. f) Expendlture Liabilities are recognised once there is a legal or construGtive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Grants payable are payments made lo third parties in the furtherance of the charitable objects of the Charity. Unconditional grant offers are accrued once the recipient has been notified of the grant award and its payment is probable. Grant awards that are subject to the recipient fulfilling performance or other conditions are accrued when the recipient has been notified of the grant and either the performance condition is met or any remaining unfulfilled condition at18ching to the grant is outside of the Control of the Charity. gl Irrecoverable VAT Irrecoverable VAT is charged against the category of resour￿$ expended for which it was incurred. h) Allocatlon of overhead and support costs Overhead and support costs have been allocated first between cost of generating funds, charitable activities and governance. Overhead and support costs relating lo charitable activities have been apportioned be￿een activities. il Cost of ralslng funds The cost of raising funds consists of investment management fees and fundrai$lng costs including an apportionment of overhead and SUPFX)rt costs. j) Charitable actlvltles Costs of charitsble activities include grants payable and other c051s directly associated with providing sports, amenities, prizes and awards, dependanls grants or benevolence to beneficiaries and an apportionment of overhead and support costs. k) Governance c08t8 Governance costs comprise all costs involving the public accountability and running of the charity and ils compliance with regulation and good practice. These costs include costs related lo statutory audit. legal fees and trustee meeting expenses together with an apportionment of overhead and support costs. 11 Pension costs and other post-retirement beneflts The charity operates a defined Gonlribution pension scheme. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate. m) Financial instruments The charity has elected to apply the provisions of Section 11 'Baslc Financial Instruments, of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the company's balance sheet when the charity becomes party lo the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial slalemenls. when there is a legally enforceable right lo sel off the recognised amounts and there is an intention lo settle on a net basis or to realise the asset and settle the liability simultaneously. 33 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered lo be basic fi'nancial instruments under FRS 102. See notes 19 and 20 for the debtor and creditor notes. n) Stock stock is staled at the lower of cost and nel realisable value. ol Tanglble flxed asset8 Individual fixed assets costing £500 or more are capilali5ed al cost. Tangible fixed assets are depreciated on a straight line basis over their estimated useful economic lives as follows.. Computer and office equipment Freehold property Leasehold propety over 3 years straight line over 50 years slraighl line over the life of the lease p) Intangible fixgd assets Intangible fixed assets are amortised on a straight line basis over their estimated useful economic lives as follows.. Software over 3 years straight line Al the end ofeach reporting period, the residual values and useful lives ofassels are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the Carrying values of tangible fixed assets are reviewed for impairmenL q) Investments Investments are slated al market value inclusive of accrued income as at the balance sheet dale. The Statement of Financial Activities includes the nel gains and losses arising on revaluation and disposals throughout the year. Changes in fair value and gains and losses arising on the disposal of investments are credited or charged lo the income or expenditure section of the Statement of Financial Activities as 'gains or losses on investments, and are allocated to the appropriate fund holding or disposing of the relevant investment. r} Funds structure Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor. Unrestricted funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their d￿Scretion. have created a fund for a specific purpose. 51 Heritage asset8 The Charity is the owner of a collection of Paintings, Silverware and other items. Many precious works are contained within messes across the Corps, which is housed and managed on behalf of the Charity by Serving Royal Marines within the Corps Secretarial. The collection is considered irreplaceable and as such it is not possible lo allribule a reliable cost or value lo it. 11 is additionally considered that the process of obtaining valuations of the collection would be di5proportionale to any public benefit that might be derived and that il is impractical to apply conventional valuation techniques to the collection, due lo the uniqueness of ils nature. t) Critical accountlng estlmates and areas of judgement In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjuslmenl in the next financial year. 34 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 LEGAL STATUS OF THE CHARITY The charity is a company limited by guarantee and has no share capital. The sole member of the Charity is The Royal Navy and Royal Marines Charity. In the evenl of the Charity being wound up, the liability in respect of the guarantee is limited lo £1 per member of the charity. FINANCIAL ACTIVITIES OF THE CHARITY The financial activities shown in the consolidated statement includes those of RMA-TRMC and ils wholly owned trading subsidiaries TRMC Enterprises Limited and Royal Marines Shop Limited., RMSA a charitable company ofwhich the RMA-TRMC is the sole member,. The RMA ofwhich the RMA-TRMC is the sole member. A summary of the financial activities undertaken by the RMA-TRMC is set out below.. 2020 2019 Total income Expenditure on charitable activities Expenditure on raising funds 3,184,557 14,715,469} {1,285,8401 7.130,385 {3.034,5071 {1.760,2511 {2,816,7521 1662,0501 2,335,627 966,766 Net investment Ilosses)Igains 17 Net lexpendilurellincome Total funds brought fO￿ard 13,478,802) 16,669,756 3,302,393 13.367,363 Total funds Carried forward 13,190,954 16,669,756 Represented by.. Restricted funds Unreslricled funds 22 22 5,187,083 8,003,871 6,644,951 10,024,805 13,190,954 16.669,756 35 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 VOLUNTARY INCOfvIE Unrestrictsd Funds 2020 Restricted Fund¥ 2020 Total Funds 2020 Donations Subscriptions Legacies 1,509,591 104,392 525.373 171.964 1.613,983 525.373 259.139 87,175 1.596,766 801,729 2,398,495 Unrestrlcted Fund3 2019 R8strlcted Funds 2019 Total Funds 2019 Donations Subscriptions Legacies 2.700.951 206.394 522.561 37.054 2,907,345 522,561 548,068 511,014 3,211.965 766,009 3,977,974 INVESTMENT INCOME Unr•strlcted Funds 2020 Rostrlcted Funds 2020 Total Funds 2020 Dividends- United Kingdom equities Dividends- Non-UK equities Fixed Interest- UK Propety Fund Unit Trust Interest on cash deposits 85.510 5.559 10,872 19,022 55,285 20 38,805 5,656 10,903 19,403 57,629 19 124,315 11,215 21,775 38,425 112,914 39 176.268 132,415 308,683 Unrestrl¢tad Funds 2019 Restricted Funds 2019 Total Funds 2019 Dividends- United Kingdom equities Property Fund Unil Trust Interest on cash deposits Other 81,792 20,286 98,109 673 3,597 124,459 30,873 80,103 11,8311 1,161 206,251 51,159 178,212 11,158) 4,758 204,457 234,765 439,222 36 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 INCOME FROM CHARITABLE ACTIVITIES Unrèstricted Funds 2020 Restricted Fund8 2020 Total Funds 2020 Other grants received 15,000 342,049 357.049 Unr8stri¢ted FundB 2019 Rèstricted Fund¥ 2019 Total Fund$ 2019 other grants received 58,500 333,447 391,947 ANALYSIS OF CHARITABLE EXPENDITURE Other Support Dirgct Costs Costs {see note 101 Grants Payable Total 2020 Fit for life pathway Quality of life pathway Through life pathway 121,835 2,979,771 689,134 208,797 330,632 417,592 3,397,363 417,592 1,114,839 8,113 3,790,740 8,113 1,043,981 4.842,834 Othgr Grants Payable Support DI￿¢t Costs Co$ts (see note 10} Total 2019 Fit for life pathway Quality of life pathway Through life pathway 701,487 491,279 1,394,855 192,963 894,450 385,924 877,203 385,924 1,849,429 68,650 2,587,621 68,650 964,811 3,621,082 ANALYSIS OF GRANTS PAYABLE Grants to Institutlon$ Grants to indivlduals Total 2020 Total 2019 Fil for life pathway Quality of life pathway Through life pathway 121,835 2,865,270 163,754 121,835 114,501 2,979,771 525,380 689,134 701.847 491.279 1,394,855 Total 3,150,859 639,881 3,790,740 2,587,621 37 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Anatysis of institutions receiving grants.. 2020 MOD- Gordon Messenger Centre {see note 161 Rock lo Recovery Globe & Laurel J Burns Dame Aggie Westons Horseback UK RMPCC Climb to Recovery Atlantic Others less than £5,000 2,760,556 110,820 85,315 79,036 20,668 18,000 12,000 11,100 10,000 43,364 3,150.859 ANALYSIS OF DIRECT GOVERNANCE COSTS Unrestrlcted Funds 2020 Restrlcted Funds 2020 Total Funds 2020 Auditorfs remuneration Legal fees Trustees, expenses Meeting expenses Other govemance costs 33,200 42,112 1,154 4,572 4,432 33,200 43,552 1,154 4,572 4.432 1,440 85,470 1,440 86.910 Unrestricted Funds 2019 Restricted Fund5 2019 Total Funds 2019 Auditor'5 remuneration Legal fees Trustees, expenses Meeting expenses Other governance costs 19,513 107,655 14,379 7,132 39 4,242 34,372 23,755 142,027 14,379 7,132 39 148,718 38,614 187,332 38 ROYAL MARINES ASSOCIATION-THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 10. ALLOCATION OF SUPPORT COSTS AND OVERHEADS Cost of Raislng Charitable Funds Activities 2020 2020 Total Governance Allocated 2020 2020 £ 8a818 59,652 1,548.986 Usage 67,056 335,278 Usage 573,116 Usage 79,442 Usage Cost type Staff costs Office and administration costs Fundraising expenses Investment management fees 686,273 134,111 573,116 79,442 803,061 134,111 1,472,942 937,172 Direct goveman¢e costs (see note 91 126,708 2,536,822 86.910 86,910 1,472,942 106,809 937.172 106,809 Allocation of governance support costs 213,618 2,623,732 1213,6181 1,579,751 1,043,981 2,623,732 Cost of Ralslng Charltable Funds Actlvltles 2019 2019 Total Governance Allocated 2019 2019 £ Bas1$ 68,216 1,311,449 Usage 71,844 359,460 Usage 1,189,466 Usage 102,508 Usage Cost type Staff costs Office and administration costs Fundraising expenses Investment management fees 585,507 143,927 1.189,466 102,508 657.426 143.689 2,021,708 801,115 Direct governance costs (see note 9) 140,060 2,962,883 187,332 187,332 2,021,708 163,696 801,115 163,696 327,392 3,150,215 {327,3921 Allocation of governance support costs 2.185,404 964.811 3,150,215 11. STAFF COSTS 2020 2019 Salaries and wages Social security costs Pension costs Temporary staff 1,319,362 139,091 90,533 1,123,877 116,640 65,058 5,864 1,548,986 1,311,449 Three employees earned £60,000-£70,000 in the year12019.' none). One employee earned £80.000-£90,000 in the year (2019.. One employee}. No Iruslee received emoluments {2019.' none). Six trustees {2019.' 121 received reimbursed travel and subsistence expenses lolalling £2,43912019'. £9.403}. Included in the above costs are terminallon payments of £nil paid lo no individuals12019.' £nill. 39 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 STAFF NUMBERS The average number of staff employed was 3412019.. 28 slaffj and the average number of full-time equivalent employees (including casual and part time slaffl during the year was as follows.. 2020 Number 2019 Numb¥r Support 32 33 12. MOVEMENT IN NET FUNDS FOR THE PERIOD 2020 2019 Movement in net funds is slated after chargingllcrediling}'. Auditor's remuneration {excluding irrecoverable VATI.. Slatulory audit Icurrenl yearl Taxation other Depreciation- owned assets 18,295 500 4,405 32.491 19,515 654 10,715 13,283 13. TRUSTEES AND KEY MANAGEMENT PERONNEL Key management personnel include the Trustees. Chief Executive land Senior staff reporting directly lo the chief executive). The total employee benefits of the charity's key management personnel were £535,204 12019.. £428,112). 14. TAXATION The company is a ￿gIStered charity and no provision is considered necessary for taxation. 15. INTANGIBLE FIXED ASSETS (Charity and Group) Software Total Cost or valuatlon As at 1 January 2020 Additions 107,762 107,762 As at 31 December2020 107,762 107,762 Amortisation As at 1 January 2020 Charge for the year As at 31 December 2020 Net book valug As at 31 December2020 107,762 107,762 As at 31 December 2019 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 16. TANGIBLE FIXED ASSETS (Group) Office and computer equipment Leasehold Improvem¢nts Freehold property Cost or valuatlon As al 1 January 2020 Additions Disposal- MOD Grant Total 1,838,953 911,253 {2,740,3351 550,000 105,723 6.398 2,494,676 917,651 12,740,335) As al 31 December 2020 9,871 550,000 112,121 671,992 Depreciation As at 1 January 2020 Charge for the year 82,199 12,007 82,199 32,491 20,484 As al 31 December 2020 20,484 94,206 114,690 Ntrt book value As at 31 December2020 9,871 529,516 17,915 557,302 As at 31 December 2019 f,838,953 550,000 23,524 2.412,477 TANGIBLE FIXED ASSETS {Charlty} Office and computer equipment Lea8ehold Improvements Freehold property Cost or valuatlon As at 1 January 2020 Additions Disposal- MOD Grant Total 1,838,953 911,253 12,740,335} 550,000 103,681 3,520 2,492,634 914,773 {2,740,3351 As al 31 December 2020 9,871 550,000 107,201 667,072 Depreciation As at 1 January 2020 Charge for the year 82,199 10,423 82,199 30,907 20,484 As al 31 December 2020 20,484 92,622 113,10S Net book value As at 31 December 2020 9,871 529,516 14,579 553,966 As al 31 Decembèr 2019 1,838,953 550,000 21,482 2,410,435 During the year the charity granted a 30 year lease to the Ministry of Defence IMODI in respect of the Gordon Messenger Centre. Al the end of the lease control of the property reverts to the MOD. This has been treated as a disposal and charitable grant to the MOD. 41 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 17. FIXED ASSET INVESTMENTS Group 2020 Group 2019 Charlty 2020 Charity 2019 Movements in fi'xed asset investments Market value brought forward Additions al cost Disposals al carrying valL¢e Net gainl{lossl on revaluation 13,081,101 10,403.490 13,081,201 10.403,490 2,894,265 3,671.768 2,894,265 3.671,868 14.227,2231 {1,960,923} {4,227,2231 {1,960,9231 1662,0501 966,766 1662,0501 966,766 Market value carried fotward 11,086,093 13,081,101 11,086,193 13,081,201 Analysis of market value of investments by type.. Unlisted - RM Shop Limited Equities Bonds Alternative investments Cash 100 7,031,969 828,410 2,971,433 254,281 100 8,036,549 956,717 3,417,448 670,387 7,031,969 828,410 2,971,433 254,281 8,036,549 956,717 3,417,448 670,387 11,086,093 13,081,101 11.086,193 13,081,201 Analysis of market value of investments belMeen those held within and outside the United Kingdom.. 5,686,079 11,908,938 5,686,179 11,909,038 5,400.014 1,172,163 5,400.014 1,172,163 Within the United Kingdom Outside the United Kingdom 11,086,093 13,081,101 11,086,193 13,081,201 18. STOCK Group 2020 Group 2019 Charity 2020 Charity 2019 Wine and ports Armada dishes Merchandise 65,715 580 128,708 62.690 4.895 118.000 60,071 580 62,690 4,895 195,003 185,585 60,651 67.585 19. DEBTORS Group 2020 Group 2019 Charlty 2020 Charity 2019 other debtors Prepayments and accrued income Due trom parent charity 92,798 165,571 56,500 65,661 213,856 115,530 86,358 141,386 56,500 51,784 213,856 115,530 314,869 395,047 284,424 381.170 42 ROYAL fvIARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEPdlBER 2020 20. CREDITORS., AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2020 Group 2019 Charlty 2020 Charlty 2019 Loan Grants payable Almonised grants payable Trade creditors Taxation and social security Accruals Other creditors Due lo group entities 5,000 169,803 5,346 120.792 55.692 340,496 137,608 250,315 6.625 125.841 57,218 301,087 164,729 169,803 5,346 41,895 35,922 114,939 140,450 164,318 237,884 6,625 82,076 35,310 143,441 163,850 85,898 834,737 905.815 672,673 755,084 Custodlan funds The RMA-TRMC holds custodian funds on behalf of RMA Branches and other RM Trusts. These amounts are included within creditors above. Enti Princi al Ob'ect Hold 2020 £ 2019£ Fisher House Residue of lundraising for sponsorshlp bedroom suite in Fisher House Cash 563 564 Commando Cops Now called the RM Club which is in proces5 of bècoming a branch Cash 2.937 £ 2.936 FT8nkton Memorial maintenan￿ of memori81 al Easlney Cash 2.390 £ 2.390 45 Woodlands Trust Malnl8nance ofa Memori81 Garden Cash 20,066 £ 35,CE6 Adam's Hoofing Hut Boach Hul at Christehurth Cash 17.886 £ 24,107 42 Commando Memorial Garden Maintenancg of a Memorial Garden Cash 11,842 £ 11,842 Help4Heroes Training Held for training and busine85 sel-up for form6r m8rine8 Cash 15,078 £ 15,077 RMA Rugby Branch Vlrtual branch of RMA-TRMC Cash 9.571 £ 14.046 RMA Landing Craft Branch rtual branch of RMA-TRMC Cash £ 1,025 RMA Concèrt Band Virtual branch of RMA-TRMC Cash 55,447 £ 53,586 Loeal Blanch Don81ion8 Monles eollecled centrally for RMA-TRMC branches Cash £ 1,050 566 RM Gig Club Virtual branch ol RMA-TRMC Cash 350 Ocean W8ve- RM Sailing Association Corps ya¢hl running costs fund Cash 1£ 1,1391 RMA Concert Band Ensembles Moneys collected from virtual branch actlvlty Cash 1£ 7471 Homeport Magazin$ Funds lo be used lo pay for RMA entries in Naval Families Federation Magazine Cash £ 3,662 3,920 43 ROYAL MARINES ASSOCIATION-THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 21. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR Group 2020 Group 2019 Charity 2020 Charity 2019 Bank loan 45,000 45,000 During the year the subsidiary company, TRMC Enterprises Limited, obtained a bank loan from Lloyds Bank plc under the Governments Coronavirus Bounce Back L08n scheme. Interest is payable at 2.5&/0 from July 2021 and the loan is repayable by June 2026. The amount due in more than five years is £5,000. 22. ANALYSIS OF CHARITABLE FUNDS Analysls of unr¢8trlcted fund movaments Balance at 01.01.2020 Incominy re8ourcas Resources expended Inv8Stment Balance at Transfers gain51llossesl 31.12.2020 TRMC general funds LIBOR Fund RMA Investment Fund Nation81 Museum of the Royal Navy 6.671,688 537,423 1,815,694 1,000,000 1,667,179 14,098,203) 1.486,670 {527,4231 13.3131 {280,2381 5,447,098 173,584 {381,0441 {48,1461 1,556.775 1,000.000 Charity total 10,024.805 1,840,763 14.479,2471 945,934 1328.3841 8.003,871 Subsldiarlès Royal Marines Shop Limlted TRMC Enterprise8 Limited 139.376 460,499 1419,7701 11,5051 180,105 11,5D51 Group Total 10,164,181 2,301,262 {4,900,522 945,934 {328,3841 8,182,471 The LIBOR Fund was designated by the Iruslees in 2014 following a grant award from HM Treasury, without any restrictions. The Trustees designated this for use in projects supporting childcare. It was applied to a number of projeGts from 2015, Culminating in the construction of the Gordon Messenger Centre, which includes a dedicated creche space. The fund is now exhausted. The RMA Fund represents the historic investments reserve of the Royal Marines Association, which became part of RMA-TRMC in 2019. of which £500,000 is designated for membership use, the remainder unreslricled following decision by the Membership sub-committee of the Board in March 2020 The National Museum of the Royal Navy Fund has been designated by the Trustees towards the cost ofthe new Royal Marines Museum. 44 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 22. ANALYSIS OF CHARITABLE FUNDS Icontlnu•dl Analysls of restrictèd fund mov6m•nts Balance at 01.01.2020 Incomlng re80urces Resources expended Investment Balance at Transfgr8 galnslllos8esl 31.12.2020 Charity RM Benèvolent Fund RM Cadet Fund RM Officers, Trust Fund RM Central Sergeants, Mess Fund RM Central Unil Institute Fund CTCFC Homeport Magazine RMSA The Armèd forces Covenant Fund Trusl-Positive Pathways The Armed forces Covenant Fund Tru81-FFC 2.376,874 132,844 1,069,470 501.499 2,859 148,173 11,169,618) 18331 133,8341 1171,1451 15,9771 ISO,9111 1,537,610 128,893 1.121,116 111,7821 938.315 1,291,058 832,70S 3.687 161,178 291,192 113.018 1107,8631 197,3371 13,4771 129,455) 1155,1321 1942,2461 13,6871 263,970 {47,7721 ISY.8611 914.403 1.271,918 6,024 1109.1011 160,893 33,250 33.250 19.000 19,000 6,644,951 1.276,193 11,522.Q631 {878.332} 1333,6661 5.187,083 Subsldlarias Royal Marines Sports Association 67.802 167,6021 Group Total 6,712.553 1.276,193 11.522.063) 1945,9341 1333.8661 13,530,485 RM Benevolent Fund is a restricted fund amalgamated from a range from Royal Marine$ specific funds designed lo support Serving. Veterans and their dependanls. RM Cadet Fund is a restricted fund whi¢h generates a small amount of investment income lo support RM Cadets with various amenity bids. RM Officers, Trust Fund 15 a restricted fund lo support Royal Marines Officers in providing grants for Sports, Functions and Amenity bids. RM Central Sergeants, Mess Fund is a reslricled fund to support Royal Marines Seniors in providing grants for Sports, Functions and Amenity bids. RM Central Unit Inslitule, Fund is a reslricled fund to support Royal Marines Juniors in providing grants for Sports, Functions and Amenity bids. RM Support Network is the rebranded TRiM4Veterans fund which is a reslricled fund to support the RMA Welfare team in providing volunteer support to Serving and Veteran Royal Marines through signposting and other support services. CTCFC Commando Training Centre Family Centre is a restricted fund for donations collected lo support the building of a capital project at CTCRM. Lympstone. In the year the building was disposed of to the MOD under a 30 year lease. See note 16. Magazine is a restricted fund for the inclusion of RMA news in the Naval Families Federation's Homeport magazine. This is no longer undertaken. The AFCFT Positive Pathways is a restricted fund provided lo enable a group respite trip lo Non￿aY for injured beneficiaries and their irnmediate families. The AFCFT Force For Change is a restricted fund provided to fund the expenses of volunteer welfare assistant from branches in the Northern Region of RMA supporting beneficiaries in the north of England. ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 22. ANALYSIS OF CHARITABLE FUNDS Icontinuedl Analysls of fund movements- prior year Analysi8 Of unr•strlcied fund movements Balance at 01.01.2019 Incomlng resources Resources expended Investment Balancè at Transfers galnslllossesl 31.12.2019 TRMC general funds LIBOR Fund RMA National Museum of the Royal Navy 5,580,154 536.084 3.657,316 1,339 2.437,104 {1,915.4621 11,000,000) 349,860 6,671,688 537,423 1,815,e94 1,000,000 1677.4771 146.067 1,000,00 Charlty total 6,116.238 6,005,759 12,592,939) 495.747 10.024,805 Subsldlarles Royal Marines Shop Limited TRMC Enterprises Limited 562,168 1422,7921 139,376 Group Total 6,116,238 6,567,927 {3,015.7311 279,983 495,747 10,164.181 Analys1¥ of r•strlcted fund movgmgnts Balance at 01.01.2019 Incoming resources Rèsources gxp&nd8d Investmenl Balance at Transfers gainslllos¥esl 31.12.2019 harity RM Benevolence Fund RM Cadet Fund RM Officers, Trust Fund RM CÈntral Sergeants. Mess Fund RM Central Unil Institute Fund CTCFC RMA M898zine 3,354.992 121.442 997.720 372,403 4,066 158,647 11.589.807} 11.2171 1159.7401 239,286 2,376.874 8,553 132.844 72,843 1,069,470 872,552 1,146,979 757,440 174,171 302,555 109,099 3,687 1175,9571 1167,0581 133,8341 67,549 82.788 938.315 1,291,056 832,705 3.687 174.208) 7,251,125 1,124,628 12,127,613) 174,2081 471,019 6,644.951 Subsidiaries Royal Maiin9s Sports Association 443.256 213.280 1663,1421 74,208 67.602 Group Total 7,694,381 1,337,908 {2,790.7551 471,019 6,712.553 46 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 23. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS Unrestricted Funds 2020 Restricted Funds 2020 Total 2020 Intangible fixed assets Tangible fixed assets Fixed asset investments Cash at bank and in hand Other nel current assetsllliabilitiesl Other net ctjrrent asselsllliabilitiesl 107,762 557,302 6,537,168 1,206,095 {180,8561 145,0001 107,762 557,302 11,086,093 1,988,262 {324,8651 145,0001 4,548,925 782,167 1144,0091 8,182,471 5,187,083 13,369,554 23. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS Unrestricted Funds 2019 Restricted Funds 2019 Total 2019 Tangible fixed assets Fixed asset investments Cash at bank and in hand Other net current asselsl{liabilitie$) 751.741 7,400,491 1.998,337 13,612 1,660,736 5,680,610 1289,9981 {338.7951 2,412,477 13,081,101 1,708,339 1325,1831 10,164,181 6,712,553 16,876,734 24. ULTIMATE CONTROLLING PARTY During the year the charitable company and group was under the control of Royal Navy and Royal Marines Charity la registered charity incorporated in England and Wales, registered company number 6047294, registered charity number 1117794 and also a registered Charity in Scotland, charity number SC0418981. The ultimate controlling party is also the Royal Navy and Royal Marines Charity- Copies of the Royal Navy and Royal Marines Charity consolidated financial can be obtained from Building 29, HMS Excellent, Whale Island, Portsmouth. P02 8ER. 25. RELATED PARTY TRANSACTIONS During the year trustees donated £22,500 {2019.' £44,316) to the charity. The charity also received a £27,000 12019.. £80,000) donation from the Globe and Laurel magazine, an organisalion with common trustees. During the year the charity made a grant lo its now de-reglstered subsidiary, The Royal Marines Sports Association, of £nil12019'. £74,208}. During the year The Royal Navy and Royal Marines Charity, the ultimate controlling party, charyed the charity £nil12019.. £50,000) in respect of management and adminislralion services. The charity reGeived grants from The Royal Navy and Royal Marines Charity of £160,157, {2019'. £230,225). During the year the charity purchased merchandise tolalling £nil12019.' £15,542) from Royal Marines Shop Limited and also paid the company for fulfilment charges for the sale of gin lolalling £nil12019.' £8,993). 47 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 26. SUBSIDIARIES- Royal Marlnes Shop Limited The charity became the sole shareholder of Royal Marines Shop Limited on 1 April 2019 and accordingly on that date the company became a subsidiary of the group. The following is an extract of the financial $18tements of Royal Marines Shop Limited for the year ended 31 December 2020.. 2019 2020 Income Expenditure 441,200 1382,5131 594.331 1557,548) Nel movement in funds 58,687 36.783 2020 2019 Fixed as$els Current assets 3,336 259,659 182,8901 2,042 179,130 159,7541 Net assets 180,105 121,418 26. SUBSIDIARIES-TRMCE The following is an extract of the financi81 statements of TRMC Enterprises Limited for the period ended 31 December 2020.. 2020 2019 Income Expenditure 739,544 1,484,605 (741.0501 11,484,605) Net movement in funds 11,506) 2020 2019 Current assets Liabilities 291,748 1293,2531 160,509 1160,5081 Net assets 11,5051 Net assets {1,5051 48 ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 27. NET DEBT 1 January 2020 Cash flows 31 Decernbgr 2020 2020 Cash al bank Bank loan 1.708,339 279,924 (45,0001 1,988,263 {45,0001 1,708,339 234,924 1,943,263 CAPITAL COMMITMENTS At the balance sheet dale the group and charity had capital commitments of £nil12019.' £480.780}