**Company Registration Number: 07142012 (England & Wales) Registered Charity Number in England & Wales: 1134205 Registered Charity 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 2022**
## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY**
**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
||**Page**|
|---|---|
|Report of the Trustees|3|
|Report of the Independent Auditor|22|
|Consolidated statement of Financial Activities|26|
|Balance Sheet- Group and Charity|27|
|Consolidated Statement of Cash Flows|28|
|Notes to the Financial Statements|29|
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## **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 2022. 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 Late Majesty The Queen
## **Honorary Patron**
General Sir GK Messenger KCB DSO* OBE DL
## **Honorary Vice Patrons**
Mr KM Breslauer (appointed 30 November 2022) Mr RJ Wigley OStJ
## **Honorary President**
Lieutenant General RA Magowan CB CBE (resigned 25 November 2022) General G Jenkins CB OBE ADC (appointed 25 November 2022)
## **Trustees and Directors**
Mrs LR Fordham (Chair)
Mr NM Banks Mr ST Beet Mr KM Breslauer Mr I Cohen Mr P Deacon Brigadier (Retired) PR Denning OBE Mrs EC Gray Brigadier MA Jackson DSO Mr RTW Nast WO1 (CRSM) NA Ollive RM Mrs S Reed Mrs K Richardson OBE Mr AME Robinson Capt R Swarbrick RN (Retd) Mr TM Tripp Mr RJ Weaver
(appointed 12 September 2022)
(resigned 30 November 2022) (appointed 12 May 2022)
(appointed 12 September 2022) (appointed 10 February 2022) (appointed 30 November 2022)
(appointed 14 May 2022) (appointed 12 September 2022) (resigned 30 November 2022)
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
## **Member**
The Royal Navy and Royal Marines Charity
## **Company Secretary**
Brigadier (Retired) RAW Spencer CBE
**Chief Executive** Mr J Ball OBE
**Company Registration Number** 07142012 (England and Wales)
**Registered Charity Number** 1134205 (England and Wales) SC048185 (Scotland)
## **Registered Office**
Building 72 Commando Training Centre Royal Marines Lympstone Exmouth EX8 5AR
## **Auditor**
Moore Kingston Smith LLP, Chartered Accountants 6[th] Floor, 9 Appold Street, London, EC2A 9AP
**Investment Manager** Sarasin and Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU
## **Banker**
RBS Holts Military Banking 31-37 Victoria Rd Farnborough GU14 7NR
## **Legal Advisor**
Wilsons LLP Alexandra House St John’s St Salisbury SP1 2SB
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## **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 charity 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”. It is structured as follows:
- a. There is one restricted fund with the status of a subsidiary Charity:
The Royal Marines Benevolent Fund (Reg. Charity No. 1134205-1).
- b. There are 3 restricted Day’s Pay giving funds:
- (1) The Royal Marines Officers Trust Fund.
- (2) The Royal Marines Central Sergeants’ Mess Fund.
- (3) The Royal Marines Central Unit Institute Fund.
- c. There are as at time of signing eight other restricted funds:
- (1) The Royal Marines Cadet Fund.
- (2) The Royal Marines Sports Association.
- (3) The Armed Forces Covenant Fund Trust ‘Positive Pathways’ Fund (Norway).
- (4) The Armed Forces Covenant Fund Trust ‘Force For Change’ Fund.
- (5) The Armed Forces Covenant Fund Trust ‘One is Too Many’ Fund.
- (6) The Armed Forces Covenant Fund Trust ‘Sustaining Support’ Fund.
- (7) The National Lottery ‘Lifting the Lid’ Fund.
- (8) The Afghanistan Veterans’ Fund.
- d. There is one designated fund:
The Building 72 Fund (representing the Board’s underwriting of the project to rebuild the Charity’s registered address).
- e. There are two wholly owned trading companies, TRMC Enterprises Ltd (Company No. 10020682) established to enable building projects and Royal Marines Shop Ltd (Company No. 08015901) established as a merchandise outlet (acquired on 1 April 2019 on merger with the Royal Marines Association).
## **Governance**
The Charity is a subsidiary of the Royal Navy and Royal Marines Charity (RNRMC) which is incorporated in the United Kingdom (Company No.6047294) (Reg Charity No. 1117794) and Scotland (SC041898). The RNRMC is the Sole Member of RMA-The Royal Marines Charity and its Board has the right to nominate one of its Trustees to the Board, currently Mr Mark Robinson.
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
The Charity is governed by its Articles of Association last amended on 27 January 2022 (see below) and is subject to the requirements and the protection of both charity and company law.
Until January 2022 the Board of Trustees comprised two serving Royal Marines in an ex-officio status: the Deputy Commandant General Royal Marines and the Corps Regimental Sergeant Major (CRSM). A new Royal Navy operating model with a nominee of the Commandant General being appointed as a trustee, led to the amendment of the Articles of Association in January 2022 to discontinue the practice of the Deputy Commandant General being an ex-officio trustee; the CRSM remains an ex-officio trustee. One trustee is nominated by the Sole Member, the Royal Navy and Royal Marines Charity; two trustees are appointed by the membership; other elected Trustees are recruited for their competencies. The nominated and co-opted trustees serve for a term of three years and may be elected to serve two 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 former serving members of the Royal Marines, in order to reassure the beneficiary community of a necessary level of empathy and understanding. This imposes a limitation on the Board’s ability to reflect the wider diversity of UK and the current make up of the Board consists of two serving and four retired Royal Marines, with five non-Royal Marines (three women and two men) co-opted to bring an independent viewpoint.
The Commandant General Royal Marines is ex-officio Honorary President, currently General G Jenkins CB OBE ADC.
Four Board meetings were held during 2022.
In line with the RNRMC Group structure, the Charity has representation on two Group sub-committees and one Group trading subsidiary company, which are:
- The Investment Committee (IC), meeting twice yearly with the fund managers (trustee member Mr K Breslauer until his resignation on 30 November, yet to be replaced).
- The Finance, Risk and Audit Committee (FRAC), meeting twice yearly (trustee member Mr RJ Weaver, until his resignation on 30 November, when he was replaced by Mr NM Banks).
- RNRMC Enterprises Ltd, meeting four times a year (director Mr J Bal OBEl).
These three committees have delegated authority to scrutinise their respective areas and to make recommendations to the Board, particularly concerning the annual budget. RNRMCE Ltd has delegated decision making authority concerning Band Service fundraising events.
Six other sub-committees exist to ensure appropriate oversight over Charity functions and report to the Board: Fundraising & Communications; Health & Wellbeing; Membership; Amenities; Employment & Education and People (HR, remuneration, nominations and grievance/discipline). There are separate Boards for the subsidiary companies TRMC Enterprises Ltd and Royal Marines Shop Ltd.
Trustees are selected through consideration of applicants by the People Committee (acting as a nominations committee), which then makes recommendations to the Board. The induction process for any newly appointed trustee is to make all necessary declarations and undertake necessary checks, to meet with the Chief Executive and other charity staff as appropriate to explain the Charity’s strategy, policies and outputs, followed by meetings with the Chair and appropriate external induction training if they are new to charity trusteeship. New trustees receive a copy of the Articles of Association, all Board-level policies and previous annual accounts; they are briefed and trained so as to 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 any of its Trustees be they civilian or military, but refunds travel and incidental expenses if claimed.
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
## **Management and Administration**
As at year end, the Charity employed 36 full and part-time staff (an increase of 2 in year) principally based in two locations: the Commando Training Centre Royal Marines, Exmouth; and HMS Excellent, Whale Island, Portsmouth; and in smaller numbers at Royal Marines Barracks Stonehouse, Plymouth; at the office of Patron Capital Partners LLP, Piccadilly, London; and at Royal Marines Condor, Arbroath. 21 of the staff provide charitable delivery. The day-to-day control and administration of the Charity is delegated to the Chief Executive. The Charity has a pay ratio of 4:1 between the Chief Executive’s salary and the lowest paid full time employee. The sector average for a medium sized charity is 5:1.
The Trustees are responsible for setting the remuneration of the charity’s staff, which is intended to reward the skills, experience and competences required for particular roles. In setting remuneration, the Trustees also consider several additional factors including an individual’s geographical location, contribution, affordability and the remuneration offered by charities of a similar size.
## **BACKGROUND**
## **Our Beneficiaries**
As a Corps of around 5,500, the Royal Marines form only 4% of UK defence forces, but provide 47% of UK Special Forces personnel. As elite personnel, they are disproportionately exposed to danger, which in turn has had disproportionate consequences over the past 20 years.
From the Afghanistan and Iraq campaigns there are 155 disabled Royal Marines, including 30 amputees and two tetraplegics who require through-life care. 256 Royal Marines suffered life changing injuries and had their service cut short as a result, 180 of whom have exhibited signs of post-traumatic stress, in addition to hundreds who have developed complex post-traumatic stress disorder though not physically injured. These veterans require ongoing care and support.
From April 2022, following on from the Defence Integrated Review and as part of the Royal Navy’s transformation programme, Royal Marines have been permanently forward-based overseas in two Response Groups facing the UK’s most significant overseas threats in the Baltic/High North, and the Gulf/Far East. This new role perpetuates the Royal Marines’ high exposure to danger, increases the deployed footprint of the Corps along with the pressures that arise from service life on personnel and dependants.
The Corps Family is a community of approximately 100-120,000, 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 originally established as the Royal Marines Association in 1946, and so are uniquely placed to understand, respond and react, enabling Marines and their families to overcome their challenges.
## **Our Vision**
Offering lifelong support to the Royal Marines Family – Once a Royal Marine, always a Royal Marine.
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
## **Our Ethos**
We embrace the Commando Values - Excellence, Integrity, Self-Discipline and Humility, and the Commando Spirit – Courage, Determination, Unselfishness and Cheerfulness, in order to enable the Commando Mindset – first to understand, first to adapt and respond, first to overcome.
## **Our objectives and activities**
The Articles of Association of RMA – The Royal Marines Charity specify the following objects:
- a. To maintain and increase the efficiency of the Royal Marines, and to promote and preserve the esprit de corps, heritage, ethos and traditions of the Corps;
- b. To assist or benefit persons serving in or who have served in the Royal Marines or of such dependants, spouses, civil partners, widows, widowers, children (including adopted children) or immediate close family of such persons as may for the time being are in need of charitable assistance or benefit;
- c. To commemorate and remember those members of the Royal Marines who have lost their lives or suffered injury, or put themselves at risk of loss of life or injury, in service of the Crown and to encourage public 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 Mission**
Our support combines 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 appropriate source.
Our work is in areas which span whole service provision from cadets to bereaved dependants:
**Benevolence and Transition:** we provide intelligent, cost-effective and sustainable solutions combining professional guidance and services with effective grant-making, in co-operation with partner agencies, charities and business. This is funded by money we raise ourselves; we receive no Government funding.
**Amenities:** we deliver appropriate and sustainable financial support to 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 retention. Apart from support to families, this is funded by the voluntary donations of Royal Marines themselves or from historic reserves, rather than donations raised from the general public.
**Membership:** our membership (21,444 as at 31 December 2022, up 2,551 since 31 December 2021) is a focus for our preventative work, which we undertake to promote mental and physical wellbeing and to stave off charitable need and spend further down the line; this includes working through our 95 geographical and specialist branches to promote comradeship and mutual support. This is selfsupporting from member fundraising, donations and historic Association reserves.
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
## **PUBLIC BENEFIT**
We provide quantifiable and tangible benefits to Defence and by extension to the public, underpinning its support of the Military Covenant between the Nation and its Armed Forces:
- Our work is retention positive. It supports RM units, personnel and families, providing a better quality of life and facilities/opportunities which the taxpayer cannot fund, thereby communicating to them that their contribution is recognised and valued. Our funding addresses specific needs identified by the Royal Navy which are deemed essential but for which no public funding is available, such as in-barracks social facilities, pastoral support work, family centres and childcare which are known to have an impact on retention.
- Our work contributes to military efficiency through our funding of the Corps Human Performance Operating Capability, sport and adventure training. This improves physical and mental fitness, teamwork and cohesion, in addition to the improvement in morale and enhancement of retention.
- Our work improves the morale of the Royal Marines and its community through funding of activities such as unit functions and families’ 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 to give additional help to 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 courses of therapy to 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 to ensure that the funding and services provided to the Corps are those most needed through the serving perspective.
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘Public benefit: running a _’_ charity (PB2) .
The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
## **POLICIES**
All the charity’s board-level policies were reviewed in 2021-2.
## **Grant making policy**
Grants made by the Charity are made by the Trustees at their discretion and must be in accordance with the charitable purposes and objects of the Charity.
- a. They must be made only where public funding is unavailable.
- b. Each request or situation is considered on its own merits. Where situations have been previously considered (whether successful or not) any due diligence undertaken to reach an earlier decision is made available to the Trustees.
- c. Sufficient due diligence is carried out to ensure that the request or situation meets both the charitable purposes, and the priorities for support set out in this policy.
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
- d. During board meetings, trustees consider bids for funding exceeding £20,000 and decide which fit the Charity’s criteria.
- e. The CE and Deputy CE hold delegated authority to make grants of up to £20,000 and £10,000 respectively within pre-set budgets agreed by Trustees; the Director of Health and Wellbeing and Head of Grants RNRMC hold delegated authority to make grants of up to £5,000 from within approved pre-set budgets, with authority to seek to almonise (share) grants with funds from other agreed sources; the Employment and Health & Wellbeing staff (administering RM Benevolent Fund grants) each have delegations of either £3,500 or £2,500.
- f. Any extraordinary or urgent bids exceeding £20,000 falling outside these parameters may be considered by a quorum of at least three Trustees as and when they are received, out of committee.
- g. Trustees have indicated that need presenting from the wounded, injured and sick should be met first from the Benevolent Fund. It 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, but the trustees have agreed that they may be used for welfare purposes (which is permitted by their governing documents) on a case-by-case basis. The General Purpose Fund (originally established as the 1939 War Fund) may be used for any purpose within the Charity’s objects.
## **Fundraising policy**
The Trustees reviewed our fundraising policy during 2022 reflecting the advice of the Fundraising Regulator and need to assure our supporters and the wider public that we fundraise ethically and within the guidelines of the Charity Commission and the Fundraising Regulator’s key principles and behaviours for a fundraising organisation to be legal, honest, open and respectful.
Our approach to fundraising rests on positive supporter engagement in order to enable us to attract, steward and maintain support, but also to protect our reputation. A key element is the segmentation of supporters through our Customer Relationship Management database, so that supporters receive communications at appropriate frequencies. The charity only fundraises and promotes support to the charity from individuals and companies following explicit written (‘opt in’) consent. Trustees and staff are aware of the need to 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 (FR) and contributes to the FR levy on fundraising charities according to its income, adhering to the FR Code of Practice and to Charity Commission guidelines, particularly CC20 (Charity fundraising: a guide to trustee duties). 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 formal quarterly sub-committee meeting and quarterly board reporting, and oversight of volunteers by the Fundraising Manager, whose induction training includes the protection of vulnerable people. Failures to comply will be reported to the FR if they occur, as will complaints, for which there is a process to 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 (GDPR), particularly with regard to the use of personal data for fundraising purposes.
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**ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
## **ACHIEVEMENTS AND PERFORMANCE 2022**
## **Response to presented need**
We are confident that we have become increasingly effective in supporting the Corps Family: cases in 2022 were more complex, requiring multiple strands of support and enduring over longer periods.
|||**2018**||**2019**||**2020**||**2021**||**2022**||**% incr**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Individuals supported by grants||600||1058||810||633||678||7|
|Employment Assistance – discharged
RMs||256||319||298||479||647||35|
|Transition Support to Vulnerable Leavers||82||96||93||131||163||24|
|Veteran Mental Ill-health Cases||79||92||113||102||110||8|
|Addiction support||NA||43||60||89||79||-11|
|Armed Forces Compensation Tribunal
Case Support||97||117||203||198||162||-19|
|**Total Benevolence Cases supported**
**(includes other categories not**
**represented above)**||**1404**||**1662**||**1896**||**2794**||**2690**||**-4**|
## **Smart working - collaboration with partners**
We have worked increasingly closely with the NHS (OP Courage and the Veterans’ Trauma Network), the MOD Department for Community Mental Health, and Third Sector partners with whom we have agreed formal MOUs: the Royal Navy & Royal Marines Charity, Walking With The Wounded, Supporting Wounded Veterans, the White Ensign Association, the Special Boat Service Association, High Ground, Rock to Recovery and Bootnecks In2 Business. We collaborated regularly with Combat Stress, Zero Suicide Alliance, Help For Heroes, the Defence Medical and Welfare Service, Veterans’ First Point, Horseback UK, the Naval Families Federation and the Forces Employment Charity.
In our grant making we work in close partnership with SSAFA-The Armed Forces Charity, The Royal British Legion and Naval Service charities: the Royal Navy and Royal Marines Charity, Greenwich Hospital, the Royal Naval Benevolent Trust, the Naval Children’s Charity and the Royal Navy Officers’ Charity, with our USP being our holistic assessment of needs leading to complementary monetary and non-financial support.
We have assisted the wider Naval charities to develop a more holistic service through embedding a RNRMC Casework Manager and three Transition Support Guides within our staff, while we have advised the Royal Naval Association, the White Ensign Association and Support Our Paras (the Parachute Regiment and Airborne Forces Charity) in the development of their services to reflect those offered to our members and beneficiaries.
## **Presented need**
Our outputs are driven by need. We have monitored need systematically over the last 5 years and can evidence that after a period of steady rises it plateaued in 2022. However:
- the numbers of involuntarily discharged personnel supported with Employment advice rose steeply, principally due to our newly gained ability to engage with all recruit leavers;
- the numbers of vulnerable leavers supported in transition increased due to our having a transition support officer in place for Scotland and northern England, giving us more on the ground capacity to provide local support at the place of discharge;
- there was a small rise in need in the veteran mental health sphere since the classic gestation period for PTSD is 7-10 years, meaning that we have most likely reached the peak in presentation following the 10[th] anniversary of the most bitter fighting in Afghanistan.
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
The rising complexity of need has led to increased spend by the Charity, having to put in place the people, resources and processes necessary to provide the effective first call support appropriate for our community:
- The appointment of a Transition Support Officer for Scotland and the North of England, enabling early intervention to stave off later interventions and increased spend, creating a virtuous circle whereby the beneficiary does not need further intervention;
- The appointment of a Recovery Support Worker to support the Alcohol and Addiction Adviser, ensuring that the preventative education work is not pushed out by the need to support struggling individuals;
- The recruitment of a third Armed Forces Compensation Scheme advocacy officer to deal with a steep rise in new cases in the final quarter of the year.
## **Lifesaving support delivered**
Since establishment of the Royal Marines Charitable Trust Fund (one of our precursor charities) in 2008, over £26.9M has been given in grants towards recovery, quality of life and through life care. The Charity achieved expenditure in 2022 on grants payable of £1,984,560 (£1,307,674 in 2021).
## **Total grants 2022**
**----- Start of picture text -----**
Benevolence Sport Amenities
623,037 31%
1,134,987, 57%
226,536, 12%
**----- End of picture text -----**
The delivery of charitable support amounted to a further £1,434,200 giving a total of £3,418,760 of charitable delivery expenditure.
## **Increased numbers supported**
- Total number of beneficiaries supported by charitable interventions through year: 22,372 (2021: 22,342; 2020: 20,744; 2019: 16,092).
- Total number of beneficiaries in need supported through financial and non-financial benevolence: 2,690 individuals (excluding their dependants) (2021: 2,794; 2020: 1,896; 2019: 1,662; 2018:1,404).
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
## **Royal Marines Benevolent Fund Spend on Welfare Grants to Individuals 2016-22**
**Royal Marines Benevolent Fund breakdown of grants to individuals 2022**
- Total amount of amenities and sports/adventure training grants: £849,573 (as against £585,617 in 2021, £341,050 in 2020, £1,192,766 in 2019 and £1,011,557 in 2018, reflecting the return of Corps life and activities following the COVID 19 pandemic).
- Number of serving Royal Marines benefitting from amenities and sports grants: 10,552.
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
## **Support outputs and impact:**
- A record number of involuntarily discharged Royal Marines and vulnerable recruit leavers – 647 (2021: 479; 2020: 298; 2019: 319; 2018: 256) – were provided with employment advice; 69 received funding grants totalling £89,000; 41 were assisted into employment worth over £1.4M in added local employment value (the Government’s approved proxy value for one person being in employment for 12 months being £31,285); see the dedicated section on social value below.
- 162 War Pension and Armed Forces Compensation Scheme tribunal cases were supported.
- • 79 individual addiction cases were supported, 27 serving with a replacement cost of £3.375M if they had been discharged (since it costs a minimum of £125,000 to train a new recruit), and 52 veterans.
- • 126 new vulnerable leavers were supported by our Transition Support Officers.
- A slightly increased number of Veterans' Referral Plan mental health therapy cases were supported, 110 (2021: 102; 2020:113; 2019: 92; 2018: 79; 2017: 26).
- Funding of £110,000 was provided for the coaching of 168 battling mental ill-health by Rock to Recovery (2021: 168; 2020: 194; 2019: 193; 2018: 142).
- Partner organisations were supported by funding of £286K, benefitting 532 individuals alongside pastoral work at 5 units supported by funding of £45,000 to the Dame Agnes Weston Charity.
## **The Gordon Messenger Centre – enabling resilience in the Corps Family**
In 2020 the Charity completed a project to deliver a state of the art welfare and community facility at the heart of the Corps, the Gordon Messenger Centre for Resilience, which opened formally in September 2021. 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.
The Centre hosts welfare support, training, rehabilitation activities, briefings, employment workshops, community events for serving and veteran Royal Marines, family activities, a children’s creche, charity meetings, cadet activities and support to sporting events on the adjacent sports fields. This £2.8M project, which could not be funded by the MOD, was funded through grants and donations of £1.9M,
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
and £900K from Charity general funds. Further grants of just over £45K were made in 2022 to enhance the equipping of the Centre. A local steering group on which the Charity is represented will oversee use in accordance with the charitable objects of the Charity and will capture feedback to the Corps and trustees annually.
## **Created Social Value** :
Since 2018 the Charity has been capturing metrics using government approved Themes, Outcomes and Measures (TOMS) including calculations of added social value, with the assistance of the Social Value Portal. Government TOMS are concerned with jobs and skills, and societal and community development, to work out appropriate. There are 76 metrics captured monthly.
Areas where extra value was added were as follows:
- Family members supported through Association events;
- Veterans attending parades;
- Discharged RM assisted into full time employment;
- • Hours dedicated to supporting RMs into work by providing career mentoring, including mock interviews, CV advice, and careers guidance;
- Unpaid work experience provided by employer partnerships;
- Time dedicated to 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 2022 was £2,889,058.
This sum does not tell the whole story of what the Charity delivers, as it only captures value to wider society and not that delivered specifically to the military community. This incremental support to the serving Corps Family through funding of regimental life and evidenced retention resulting from the Charity’s interventions was worth a further £4,375,000.
Therefore, the total social value created in 2022 was worth £6,486,425, meaning that every £1 donated to the Charity was turned into £2.13 of charitable value created when set against charitable spend of £3,039,758.
## **FINANCIAL REVIEW**
The Trustees consider that expenditure has been within the Objects of the Charity during the reporting period. They consider that the Charity remains healthy and thus able to meet its future charitable obligations.
## **Income**
The Charity was again reliant on income from donations, grants, community fundraising initiatives and events, along with investments. Income generation was impacted by reduced investment income, the cost of living challenge in the second half of the year in regular donations giving and higher costs at fundraising events, but higher grants receipts and unsurpassed community fundraising income, along with a very successful Guildhall fundraising dinner meant that that the Charity surpassed the gross fundraising budget by over £418K:
- 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 (either Charity-organised initiatives or individuals undertaking their own initiatives) and legacies;
- Total gross Voluntary Income (i.e. fundraised) was £3.9M (2021: 3.53M; 2020: £2.4M);
- Investment income was £188K versus a budget of £303K, significantly reduced due to falling markets;
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## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
- Total gross income including trading and investment income was £419K ahead of budget at £4.5M.
- • The cost of raising funds within the charity increased to £2.2M from £1.9M in 2021, due to increased fundraising activity;
- Total Net income for the Charity (including grants received and after cost of raising funds) was £362K ahead of budget at £3.5M.
The Charity received services in kind valued at £145,579 from our parent charity RNRMC. This includes finance and amenity grants administration and some HR support. The Charity also received donated services from Patron Capital Partners LLP in the form of office facilities valued at £60K.
## **Investment policy and performance**
The Articles of Association authorise Trustees to make and hold investments using the funds of the Charity within current rules and regulations. The Charity’s investments are currently managed by Sarasin and Partners LLP.
The whole fund value of the Charity fell from £12.2M to £10.1M in year, primarily due to book losses in investment funds of £1.47M, plus a deficit of expenditure over income of £333K.
The oversight of the management of the Charity’s investments lies with a nominated trustee (Mr Keith Breslauer until his resignation on 30 November), and also with the Investment Committee (IC) of RNRMC, which is responsible for monitoring the performance of the investment managers in line with the investment strategy approved by the Board alongside RNRMC. The Board is grateful for the services of Mr Mark Fitzgerald, who acts as an independent adviser to the Board and on the IC.
## **Reserves Policy**
- a. The Charity hold reserves for the following reasons:
- In order to ensure that the Charity is able to meet unexpected and unbudgeted demands;
- In order to ensure the Charity’s short-long term sustainability in a context where it must generate its own income to cover costs;
- In order to ensure continuity of service to beneficiaries in the event of an unexpected decline in charitable income;
- In order to enable the Board to fund any required transformation of operating model.
- b. The particular context in which RMA-The Royal Marines Charity operates is conditioned 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 Corps and their consequence on the Charity’s beneficiaries cannot be planned for; their frequent and changing operational deployment pattern leads to disproportionate exposure to 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 at a time of need; hence reserves must be readily accessible.
- The beneficiary community, estimated to be in the region of 100-120,000 (serving and veterans with dependants), will remain relatively 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 to 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 charitable causes has become stronger.
- c. The reserves of the Charity must be flexible to meet these changing demands and calls on the Charity’s funds, which are held and applied for many different activities in line with its wide range of charitable objectives and strategic plans, arguably the widest of any military charity.
**17**
## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
- d. Whilst the total value of the reserves held in investments as at 31 December 2022 was £10.13M,
- £2.6M 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 to meet the needs of current beneficiaries, but also growing capital to ensure that the needs of future beneficiaries are met, in order that they remain a sustainable resource for the Corps for future generations;
- £1.2M is held in the restricted Royal Marines Benevolent Fund, which may only be applied to benevolence grants and support;
- £0.1M is also a restricted fund to be applied in grants supporting the activities of Royal Marines cadets;
- £1.5M is held in a designated fund with the intention of underwriting the rebuild of the Charity’s registered headquarters at the Commando Training Centre will begin be delivered in mid-2023;
- £4.8M is left as unrestricted funds, however of this £3.5M 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 its objectives.
- e. Therefore, the free reserves held as investments of the charity are £1.3M, which equates to 2-3 months of expenditure to provide for grants, services and the administration of the Charity. This is supplemented by cash holdings which normally allow for at least another 2 months of expenditure.
## **RISK MANAGEMENT**
The Charity Trustees have considered the major risks to which the Charity is exposed and review those risks and the established systems and procedures to manage those risks through oversight of a risk register at each Trustee meeting. This register is directly linked to the delivery programme in order to ensure that risks which cannot be removed are mitigated against through the operations of the Charity’s staff. A three-stage line of defence assurance system is in place, based on the regular checks of staff, the oversight of trustees, and the annual interrogation of the appointed auditor.
Principal risks identified as at 31 December 2022 were:
|**Risk**|**Mitigation**|
|---|---|
|**Financial**which includes:
•
Not meeting our Voluntary Income targets;
•
Poor Corporate and Major Donor support;
•
Loss or reduction of funding streams.
**These risks would reduce our capacity to deliver**
**our strategy.**|•
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 statutory grants. In particular we have
developed a corporate engagement strategy
which seeks to sell training and experiences
rather than rely on donations.
•
We are further developing measurement of
social
and
local
economic
value
to
demonstrate impact to donors, and our
communications function in order better to
promote case studies.
•
We have a systematic approach to budget
setting and financial planning with detailed
monthly sequencing and monitoring during
the year, with monthly cashflow projections
and quarterly forecasts used to mitigate any
budget/income pressures that arise during
the year.|
**18**
## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
||•
We regularly review our investment strategy
and its performance managed by appointed
external fund managers.
•
The Board has adopted a policy of holding
between 5 and 6 months of expenditure in
cash
reserves,
increased
from
2-3
previously.|
|---|---|
|**Governance**which includes:
•
Lack of compliance with legal and regulatory
requirements;
•
Breach of data and/or IT breach by external
agents;
•
Lack of impact/outcome evidence which may lead
to sub-optimal block grant making.
**These risks will impact our operational delivery**
**and increase regulatory scrutiny, both of which**
**will impact our ability to deliver our objectives.**|•
A Chair-led comprehensive governance
review was completed in 2021, identifying
areas of improvement for governance, skills
gaps and trustee succession planning.
•
We have reviewed all Charity policies and
ensured that all required Board level policies
have been refreshed for 2023.
•
We are registered with the Fundraising
Regulator to evidence our compliance with
the Charities Act 2016 and comply with
regulations; no complaints were received in
2022.
•
We benefit from the extensive cyber
protection provided by our internet provider.
•
We have developed improved methods of
monitoring the impact of grants made to
individuals
and
organisations,
including
ensuring safeguarding protocols are in place
with those we fund.|
|**Reputational**which includes:
•
Poor or harmful charitable delivery.
•
Lack of control of membership branches and
individual members.
•
Lack of control of funded organisations’ activities;
**These risks would impact our reputation which is**
**absolutely essential to keep key stakeholders,**
**funders and beneficiaries positively engaged in**
**assisting us delivering our outcomes.**|•
Welfare staff and volunteers have received
revised training and are subject to a rigorous
safeguarding policy.
•
We are developing a PR function which will
give the capability to respond to reputational
challenge, with direct links into Navy Media.
•
Our branch and membership byelaws are
subject
to
close
oversight
from
the
Membership Committee.
•
We expect regular reports to the Board of
Trustees
from
through
year
funded
organisations and implement MOUs where
appropriate.|
|**People**which includes:
•
Inability to recruit and retain people with the
required skills and expertise;
•
Appropriate training and safeguarding for all staff;
•
Burnout due to increased demand for support.
**These risks would reduce our effectiveness to**
**deliver our objectives, reducing our impact.**|•
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 to whole staff training as
appropriate, and individual education and
learning needs being addressed.
•
We have built extra staffing resource to face
increased demand and review quarterly.
•
We have introduced an Employee Assistance
Programme and regularly consider staff
workloads, promoting positive mental health
and work-life balance.
•
We have introduced a pay banding system to
encourage loyalty from staff who receive a
satisfactory annual appraisal report.|
**19**
## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
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 Committees and other specialist advisors, all of whom have a depth of relevant experience.
## **FUTURE PLANS**
## **Strategy and Programme 2023-24**
In 2021 the Trustees conducted a strategic review across every aspect of the Charity’s delivery, resulting in timetabled new delivery and delivery improvements against measurable outcomes to be achieved by the end of 2024.
We are following a 3-year budgeted delivery programme with associated risk register based on the revised strategies, delivered by the staff but with regular reporting oversight from the sub-committees allied to the Charity’s functional teams, which in turn 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 effective (efficient and achieving maximum impact). The programme ensures the following strategic objectives will be secured:
1. We will enable those we serve to live by the Commando Mindset (restoring, maintaining and enhancing independence, dignity and effectiveness) through financial and non-monetary support;
2. We will promote and sustain the Royal Marines brand and esprit de corps;
3. We will increase and achieve a representative membership mix of the Corps Family and supporters, in order that the Charity and Association become the heart of the Corps Family.
In particular, the Charity has the following desired operational outcomes by the end of 2024:
1. To be the natural and trusted first point of contact for the Corps Family when in need of assistance; 2. To offer active and effective support to Commando Forces;
3. To be the leading UK regimental charity championing our members and enabling collaboration between major tri-service associations;
4. To number 24,000 members with a younger demographic;
5. To have an enhanced geographical footprint across the devolved nations and northern England;
6. To have better trained and enabled volunteers;
7. To enable a fully developed PR function;
8. To secure an annual net income £4M (currently £3.4M) including sustainable Major Donor and Corporate Income.
The Executive is co-operating with the wider Naval charity sector to identify:
- likely demographic and actuarial changes of the beneficiary community in the next 5-10 years;
- • the revised operational commitments of the Royal Marines;
- other accepted trends in the serving and veteran military population of the UK, with the opportunities and challenges that will be presented;
- in order to ensure appropriate and effective support.
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.
Budgeted spend to deliver necessary support in 2023 has led to the trustees approving a deficit budget of (£908,000). There are sufficient free reserves for 4-5 months of expenditure as at the time of signing, but if fundraising and other income-generating activities are not able to continue normally, the trustees will need to liquidate investments which are intended to be held for the long term in order to generate a recurring income stream for beneficiaries. Cashflow is monitored monthly, looking forward 12 months. Based on the revised forecasts the Trustees are satisfied that there is a reasonable expectation that
**20**
## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
## **ACKNOWLEDGEMENTS**
The Board wishes to place on record its gratitude to all those who have contributed to the fundraising progress of the Charity and its outputs in 2022, in particular:
- Our principal corporate partner Patron Capital Advisers LLP and its Managing Director (our Vice Patron who has served a maximum three terms as a trustee) Mr Keith Breslauer, who have enabled the generation of further income by bringing in substantial support from other corporates and individuals, alongside giving support to individual Royal Marines seeking employment or training, whilst also providing meeting rooms, an office space and secretarial assistance free of charge;
- The CHAMP Trust with Patrick and Anna Edwardson, Peak Scientific with June and Robin MacGeachy, Olympian Homes with Mark Slatter, and Ondra Partners with Michael Tory who have continued to provide significant donations and support;
- The Armed Forces Covenant Fund Trust and National Lottery Fund, which have provided substantial support to the Charity’s work in year.
- Other individuals who have provided substantial donations are too numerous to mention in full, but particular thanks must go to supporting organisations – the _Globe & Laurel_ magazine which has provided a further substantial donation, the Royal Marines Band Service, the Royal Marines Sports Association, Commando Training Centre Royal Marines, and all regular and reserve units of the Corps who supported the successful Falklands 40 and Commando 80 campaigns along with auction prizes for fundraising dinners; and to the tireless army of community fundraisers, most of whom are members of our Association.
The Board wishes to thank the RNRMC for its substantial back-office support provided pro bono during the year, alongside its significant £200,000 grant towards veteran benevolence support. The Trustees also thank other independent charities and organisations with which it works closely: NHS Op COURAGE, the Veterans’ Trauma Network, Northumbria and Chester Universities, 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 Service Association, the White Ensign Association, Aggie Weston’s, Walking With the Wounded, Supporting Wounded Veterans, Combat Stress, Help For Heroes, Bootnecks in2 Business and Rock to Recovery.
## **Statement of Trustees’ Responsibilities**
The trustees (who are also the directors of RMA-The Royal Marines Charity for the purposes of company law) 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 to prepare financial 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 statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- comply with applicable accounting standards, including FRS 102, subject to any material departures disclosed and explained in the financial statements;
- state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements;
- 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 charitable company will continue in business.
**21**
## **ROYAL MARINES ASSOCIATION - THE ROYAL MARINES CHARITY REPORT OF THE TRUSTEES**
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 as amended by The Charities Accounts (Scotland) Amendment (No. 2) 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 trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to 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 10 May 2023 and signed on their behalf by
...............................................................
**Mrs LR Fordham (Chair)**
**22**
## **REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY**
## **Opinion**
We have audited the financial statements of The Royal Marines Charity for the year ended 31 December 2022 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance 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 state of the group’s and the parent charitable company’s affairs as at 31 December 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
**23**
## **REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- • the trustees’ annual report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion:
- the parent charitable 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 trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies 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 pages 20-21 the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) 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 to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
**24**
## **REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY**
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business 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.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to 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 to the charitable company and considered that the most significant are the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the
**25**
## **REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY**
Charities Accounts (Scotland) Regulations 2006 (as 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 of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it 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 to 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.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **Use of this 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 to the charity’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) 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 state to the charitable company’s members and trustees those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body for our audit work, for this report, or for the opinion we have formed.
James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP Chartered Accountants Statutory Auditors 6[th] Floor 9 Appold Street London EC2A 2AP Date: …………….
Moore Kingston Smith LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
**26**
## **RMA THE ROYAL MARINES CHARITY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022**
|||||**Total**|**Total**|
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Funds**|**Funds**|
|||**Funds**|**Funds**|**2022**|**2021**|
||**Note**|**£**|**£**|**£**|**£**|
|**INCOME & ENDOWMENTS**||||||
|Donations and legacies|4|2,922,472|979,392|3,901,864|3,525,914|
|Other trading activities||613,485|-|613,485|532,100|
|Investment income|5|112,338|75,775|188,113|211,237|
|||───────|───────|───────|───────|
|||3,648,295|1,055,167|4,703,462|4,269,251|
|Charitable activities|6|23,050|
627,654|650,704|341,828|
|Other income||19,216|9,150|28,366|2,726|
|||───────|───────|───────|───────|
|**Total operating income**||3,690,561|1,691,971|5,382,532|4,613,805|
|||═══════|═══════|═══════|═══════|
|**EXPENDITURE**||||||
|**Raising funds**||||||
|Investment management fees||56,018|37,673|93,691|98,284|
|Fundraising costs||2,103,502|14,881|2,118,383|1,812,808|
|||──────|──────|──────|──────|
|Total cost of raising funds||2,159,520|52,554|2,212,074|1,911,092|
|**Charitable activities**||||||
|Benevolence (Through life)||400,419|1,371,575|1,771,994|1,185,586|
|Amenities (Quality of life)||386,724|767,775|1,154,499|864,620|
|Sport (Fit for life)||139,612|352,655|492,267|372,955|
|||──────|──────|──────|──────|
|Total charitable expenditure|7|926,755|2,492,005|3,418,760|2,423,161|
|||──────|──────|──────|──────|
|**Total operating expenditure**||3,086,275|2,544,559|5,630,834|4,334,253|
|||══════|══════|══════|══════|
|**Net operating income/(expenditure)**||604,286|(852,588)|(248,302)|
279,552|
|**Net gains/(losses) on investment**||||||
|**assets**|17|(866,834)|(601,599)|(1,468,433)|
1,173,195|
|||───────|**─**───────|───────|───────|
|**Net (expenditure)/income**||(262,548)|(1,454,187)|(1,716,735)|1,452,747|
|Gross transfers between funds|22|142|
(142)|
-|
-|
|||───────|**─**───────|───────|───────|
|**Net movement in funds**||(262,406)|(1,454,329)|(1,716,735)|1,452,747|
|Total funds brought forward|22|9,621,833|5,200,468|14,822,301|13,369,554|
|||───────|───────|───────|───────|
|**Total funds carried forward**|22|9,359,427|3,746,139|13,105,566|14,822,301|
|||═══════|═══════|═══════|═══════|
The charity has no recognised gains or losses for the year other than as detailed above.
The net movements in the charity’s funds for the year arise from the charity’s continuing activities.
The notes on pages 29 to 46 form part of these accounts.
**27**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY BALANCE SHEET- GROUP AND CHARITY AS AT 31 DECEMBER 2022**
|||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|---|
|||**2022**|**2021**|**2022**|**2021**|
||Note|**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Intangible assets|15|263,561|225,539|263,561|225,539|
|Tangible assets|16|620,012|538,733|617,325|534,979|
|Investments|17|10,126,123|12,178,062|10,126,223|12,178,162|
|||────────|────────|────────|────────|
|||11,009,696|12,942,334|11,007,109|12,938,680|
|**Current assets**||||||
|Stock|18|196,041|229,884|62,724|60,941|
|Debtors|19|601,020|399,416|578,898|365,654|
|Cash at bank and in hand||1,900,305|1,869,723|1,776,220|1,748,618|
|||────────|────────|────────|────────|
|||2,697,366|2,499,023|2,417,842|2,175,213|
|**Liabilities**||||||
|Creditors falling due within one year|20|(576,596)|(584,989)|(516,884)|(463,472)|
|||────────|────────|────────|────────|
|**Net current assets**||2,120,770|1,914,034|1,900,958|1,711,741|
|||═══════|═══════|═══════|═══════|
|**Total assets less current liabilities**||13,130,466|14,856,368|12,908,067|14,650,421|
|**Creditors falling due in more**||||||
|**than one year**|21|(24,900)|(34,067)|-|-|
|||────────|────────|────────|────────|
|**Net assets**||13,105,566|14,822,301|12,908,067|14,650,421|
|||═══════|═══════|═══════|═══════|
|**Accumulated funds**||||||
|Restricted funds|22|3,746,139|5,200,468|3,746,139|5,200,468|
|Unrestricted funds|22|9,359,427|9,621,833|9,161,928|9,449,953|
|||────────|────────|────────|────────|
|**Total accumulated funds**||13,105,566|14,822,301|12,908,067|14,650,421|
|||═══════|═══════|═══════|═══════|
Company registration number: 07142012
The charitable company has taken advantage of the small companies’ exemption.
The financial statements and the notes on pages 29 to 46 were approved by the trustees on ……………………. and signed on their behalf by:
...............................................................
**Mrs LR Fordham (Chairman)**
**28**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022**
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|**Cash flow/(outflow) from operating activities**|||
|Net cash (used in) operating activities|(528,472)|(249,658)|
||═══════|═══════|
|**Cash flows from investing activities**|||
|Investment income and interest received|188,113|211,237|
|Proceeds from disposal of fixed asset investments|||
|excluding endowment funds|7,205,274|12,179,821|
|Acquisition of fixed asset investments excluding|||
|endowment funds|(6,621,768)|(12,098,595)|
|Payments to acquire tangible fixed assets|(107,227)|(5,068)|
|Payments to acquire intangible fixed assets|(96,171)|(150,343)|
||────────|────────|
||568,221|137,052|
||═══════|═══════|
|**Cash (outflow)/inflow from financing activities**|||
|Bank loan (paid)/received|(9,167)|(5,933)|
|**Net (decrease)/increase in cash and cash equivalents**|30,582|(118,539)|
|Cash and cash equivalents at beginning of year|1,869,723|1,988,262|
||───────|────────|
|**Cash and cash equivalents at end of year**|1,900,305|1,869,723|
||═══════|═══════|
|**Reconciliation of net income/ (expenditure) to net cash flow**|**from operating activities**||
||**2022**|**2021**|
||**£**|**£**|
|**Net income/(expenditure)**|(1,716,735)|1,452,747|
|**Adjustments for:**|||
|Depreciation charge|25,948|23,637|
|Amortisation charge|58,149|32,566|
|Net (gains)/losses on investments|1,468,433|(1,173,195)|
|Investment income|(188,113)|(211,237)|
|(Increase) in stock|33,843|(34,881)|
|(Increase)/decrease in debtors|(201,604)|(84,547)|
|(Decrease) in creditors|(8,393)|(254,748)|
||────────|────────|
|**Net cash (used in) operating activities**|(528,472)|(249,658)|
||═══════|══════|
**29**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. ACCOUNTING POLICIES**
## **a) Basis of preparation**
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company and its subsidiaries are a public benefit group for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with 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 (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 (Scotland) 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 to the nearest pound.
The principal accounting policies adopted in the preparation of the financial statements are set out below.
## **b) Going concern**
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions, that might cast significant doubt 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 statements. 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 trustees 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 to adopt the going concern basis in preparing its financial statements.
## **c) Group financial statements**
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 afforded by section 408 of the Companies Act 2006.
## **d) Income**
All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Legacies are recognised following probate and once there is sufficient evidence that receipt is probable and the amount of the legacy receivable can be measured reliability. Where entitlement to a legacy exits but there is uncertainty as to its receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for income recognition are met.
Income is deferred when the donor attaches conditions outside the charity's own control or specifies that the resources are to be used in a future accounting period.
Investment income is received net of investment management fees but 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 to compensate. This includes £nil (2021: £2,726) of Government assistance under the Coronavirus Job Retention Scheme (CJRS) relating to staff who were furloughed due to Covid-19.
**30**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **e) Volunteers and donated services and facilities**
The value of services provided by volunteers is not incorporated into these financial statements.
Where services are provided to the charity as a donation that would normally be purchased, this contribution is included in the financial statements at an estimate based on the value of the contribution to the charity.
## **f) Expenditure**
Liabilities are recognised once there is a legal or constructive 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 to 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 attaching to the grant is outside of the control of the Charity.
## **g) Irrecoverable VAT**
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
## **h) Allocation 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 to charitable activities have been apportioned between activities.
## **i) Cost of raising funds**
The cost of raising funds consists of investment management fees and fundraising costs including an apportionment of overhead and support costs.
## **j) Charitable activities**
Costs of charitable activities include grants payable and other costs directly associated with providing sports, amenities, prizes and awards, dependants grants or benevolence to beneficiaries and an apportionment of overhead and support costs.
## **k) Governance costs**
Governance costs comprise all costs involving the public accountability and running of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit, legal fees and trustee meeting expenses together with an apportionment of overhead and support costs.
## **l) Pension costs and other post-retirement benefits**
The charity operates a defined contribution 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 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the
**31**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 19 and 20 for the debtor and creditor notes.
## **n) Stock**
Stock is stated at the lower of cost and net realisable value.
## **o) Tangible fixed assets**
Individual fixed assets costing £500 or more are capitalised at cost.
Tangible fixed assets are depreciated on a straight line basis over their estimated useful economic lives as follows:
|Computer and office equipment|-|over 3 years straight line|
|---|---|---|
|Freehold property|-|over 50 years straight line|
|Leasehold property|-|over the life of the lease|
## **p) Intangible fixed 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
At the end of each reporting period, the residual values and useful lives of assets 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 impairment.
## **q) Investments**
Investments are stated at market value inclusive of accrued income as at the balance sheet date. The Statement of Financial Activities includes the net 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 to 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 discretion, have created a fund for a specific purpose.
## **s) Heritage assets**
The Charity is the owner of a collection of Paintings, Silverware and other items which have largely been donated to the Charity over many years. 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 Secretariat and may be used for dinners and other special occasions. Although items in the collection may have heritage qualities due to their age, value and unique associations, they do not fall within the definition of heritage assets under the SORP The collection is considered irreplaceable and as such it is not possible to attribute a reliable cost or value to it. Accordingly no value is attributed to these assets in the financial statements.
**32**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **t) Critical accounting estimates 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 adjustment in the next financial year.
## **2. 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 event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
## **3. FINANCIAL ACTIVITIES OF THE CHARITY**
The financial activities shown in the consolidated statement includes those of RMA-TRMC and its wholly owned trading subsidiaries TRMC Enterprises Limited and Royal Marines Shop Limited.
A summary of the financial activities undertaken by the RMA-TRMC is set out below:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Total income|4,774,495|4,119,516|
|Expenditure on charitable activities|(1,864,086)|(2,235,639)|
|Expenditure on raising funds|(3,184,330)|(1,597,605)|
||────────|────────|
||(273,921)|286,272|
|Net investment gains/(losses) 17|(1,468,433)|1,173,195|
||────────|────────|
|Net income/(expenditure)|(1,742,354)|1,459,467|
|Total funds brought forward|14,650,421|13,190,954|
||────────|────────|
|Total funds carried forward|12,908,067|14,650,421|
||═══════|═══════|
|Represented by:|||
|Restricted funds 22|3,746,139|5,200,468|
|Unrestricted funds 22|9,161,928|9,449,953|
||───────|───────|
||12,908,067|14,650,421|
||═══════|═══════|
**33**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **4. VOLUNTARY INCOME**
|||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|
|||**2022**|**2022**|**2022**|
|||£|£|£|
||Donations|2,808,143|253,870|3,062,013|
||Subscriptions|-|525,222|525,222|
||Legacies|114,329|200,300|314,629|
|||──────|──────|──────|
|||2,922,472|979,392|3,901,864|
|||═══════|═══════|══════|
|||**Unrestricted**|**Restricted**|**Total**|
|||**Funds**|**Funds**|**Funds**|
|||**2021**|**2021**|**2021**|
|||£|£|£|
||Donations|2,500,030|158,970|2,659,000|
||Subscriptions|-|532,985|532,985|
||Legacies|126,074|207,855|333,929|
|||──────|──────|──────|
|||2,626,104|899,810|3,525,914|
|||═══════|═══════|══════|
|**5.**|**INVESTMENT INCOME**||||
|||**Unrestricted**|**Restricted**|**Total**|
|||**Funds**|**Funds**|**Funds**|
|||**2022**|**2022**|**2022**|
|||£|£|£|
||Dividends – United Kingdom equities|22,660|15,652|38,312|
||Dividends – Non-UK equities|53,601|36,841|90,442|
||Fixed Interest - UK|14,474|10,042|24,516|
||Property Fund|9,578|6,592|16,170|
||Unit Trust|
6,273|
4,350|
10,623|
||Other|1,652|1,014|2,666|
||Interest on cash deposits|2,036|1,284|3,320|
||Bank interest|2,064|-|2,064|
|||───────|───────|───────|
|||112,338|75,775|188,113|
|||══════|══════|══════|
|||**Unrestricted**|**Restricted**|**Total**|
|||**Funds**|**Funds**|**Funds**|
|||**2021**|**2021**|**2021**|
|||£|£|£|
||Dividends – United Kingdom equities|54,591|35,335|89,926|
||Dividends – Non-UK equities|22,868|17,162|40,030|
||Fixed Interest - UK|4,263|2,962|7,225|
||Property Fund|21,931|17,297|39,228|
||Unit Trust|16,916|15,819|32,735|
||Other|
1,177|
767|1,944|
||Interest on cash deposits|-|149|149|
|||───────|───────|───────|
|||121,746|89,491|211,237|
|||══════|══════|══════|
**34**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **6. INCOME FROM CHARITABLE ACTIVITIES**
|||**Unrestricted**|**Unrestricted**|**Restricted**|**Total**||
|---|---|---|---|---|---|---|
||||**Funds**|**Funds**|**Funds**||
||||**2022**|**2022**|**2022**||
||||£|£|£||
||Other grants received||23,050|627,654|650,704||
||||══════|══════|══════||
|||**Unrestricted**||**Restricted**|**Total**||
||||**Funds**|**Funds**|**Funds**||
||||**2021**|**2021**|**2021**||
||||£|£|£||
||Other grants received||-|341,828|341,828||
||||══════|══════|══════||
|**7.**|**ANALYSIS OF CHARITABLE EXPENDITURE**||||||
||||**Other**|**Support**|||
|||**Grants**|
**Direct**|**Costs**|**Total**||
|||**Payable**|
**Costs**|**(see note 10)**|
**2022**||
|||**£**|
**£**|**£**|**£**||
||Fit for life pathway|226,536|
-|265,731|
492,267||
||Quality of life pathway|623,037|
-|531,462|1,154,499||
||Through life pathway|1,134,987|
105,545|
531,462|1,771,994||
|||───────|───────|───────|───────||
|||1,984,560|
105,545|
1,328,655|3,418,760||
|||══════|
══════|══════|══════||
||||**Other**|**Support**|||
|||**Grants**|
**Direct**|**Costs**|**Total**||
|||**Payable**|
**Costs**|**(see note 10)**|
**2021**||
|||**£**|
**£**|**£**|**£**||
||Fit for life pathway|155,636|
-|217,319|372,955||
||Quality of life pathway|429,981|
-|434,639|864,620||
||Through life pathway|722,057|
28,890|434,639|1,185,586||
|||───────|───────|───────|───────||
|||1,307,674|
28,890|1,086,597|2,423,161||
|||══════|
══════|══════|══════||
|**8.**|**ANALYSIS OF GRANTS PAYABLE**||||||
||||**Grants to**|**Grants to**|**Total**|**Total**|
||||**institutions**|**individuals**|**2022**|**2021**|
||||**£**|**£**|**£**|**£**|
||Fit for life pathway||-|226,536|
226,536|155,636|
||Quality of life pathway||456,663|
166,374|
623,037|429,981|
||Through life pathway||333,392|
801,595|1,134,987|722,057|
||||───────|───────|───────|───────|
||**Total**||790,055|1,194,505|1,984,560|1,307,674|
||||══════|══════|══════|══════|
**35**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
Analysis of institutions receiving grants:
||**2022**|
|---|---|
|Rock 2 Recovery CIC|117,700|
|Globe & Laurel|84,235|
|RMA Highlands Branch|83,480|
|The Royal Marines Charity Enterprise|67,544|
|Gordon Messenger Centre|47,975|
|Dame Agnes Weston's|47,144|
|HorseBack UK|27,000|
|Walking With The Wounded|23,633|
|Office of the Commandant General Royal Marines|21,616|
|Hasler Recovery Centre|19,148|
|Wilderness Solutions|13,975|
|Climb to Recovery|13,730|
|RMA Deal Branch|12,611|
|40 Commando Royal Marines|12,410|
|45 Commando Royal Marines|12,000|
|Commando Training Centre Royal Marines|7,839|
|RMA Portsmouth Branch|7,683|
|Lympstone Parish Council|7,500|
|Bike Tours for the Wounded|5,985|
|Cockleshell Endeavour|5,000|
|Expedition 5|5,000|
|Organisations < £5k|146,847|
||──────|
||790,055|
||═════|
## **9. ANALYSIS OF DIRECT GOVERNANCE COSTS**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**Funds**|**Funds**|**Funds**|
||**2022**|**2022**|**2022**|
||**£**|**£**|**£**|
|Auditor’s remuneration|31,778|-|31,778|
|Legal fees|13,955|-|13,955|
|Trustees’ expenses|6,253|-|6,253|
|Meeting expenses|3,642|-|3,642|
|Other governance costs|2,796|-|2,796|
||───────|───────|───────|
||58,424|-|58,424|
||══════|══════|══════|
||**Unrestricted**|**Restricted**|**Total**|
||**Funds**|**Funds**|**Funds**|
||**2021**|**2021**|**2021**|
||**£**|**£**|**£**|
|Auditor’s remuneration|24,101|-|24,101|
|Legal fees|26,888|-|26,888|
|Trustees’ expenses|4,034|-|4,034|
|Meeting expenses|1,091|-|1,091|
|Other governance costs|2,923|-|2,923|
||───────|───────|───────|
||59,037|-|59,037|
||══════|══════|══════|
**36**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **10. ALLOCATION OF SUPPORT COSTS AND OVERHEADS**
||**Cost of**||||||
|---|---|---|---|---|---|---|
||**Raising**|**Charitable**||**Total**|||
||**Funds**|**Activities**|**Governance**|**Allocated**|||
||**2022**|**2022**|**2022**|**2022**|||
|**Cost type**|**£**|**£**|**£**|**£**||**Basis**|
|Staff costs|639,454|983,604|59,922|1,682,980||Usage|
|Office and administration costs|228,702|228,702|114,351|571,755||Usage|
|Fundraising expenses|1,133,878|-|-|1,133,878||Usage|
|Investment management fees|93,691|-|-|93,691||Usage|
||───────|───────|───────|───────|||
||2,095,725|1,212,306|174,273|3,482,304|||
|Direct governance costs (see note 9)|-|-|58,424|58,424|||
||───────|───────|───────|───────|||
||2,095,725|1,212,306|232,697|3,540,728|||
|Allocation of governance support costs|116,348|116,349|(232,697)|
-|||
||───────|───────|───────|───────|||
||2,212,073|1,328,655|-
|3,540,728|||
||═══════|═══════|═══════|═══════|||
||**Cost of**||||||
||**Raising**|**Charitable**||**Total**|||
||**Funds**|**Activities**|**Governance**|**Allocated**|||
||**2021**|**2021**|**2021**|**2021**|||
|**Cost type**|**£**|**£**|**£**|**£**||**Basis**|
|Staff costs|579,751|841,600|58,091|1,479,442||Usage|
|Office and administration costs|149,146|149,146|74,573|372,865||Usage|
|Fundraising expenses|988,061|-|-|988,061||Usage|
|Investment management fees|98,284|-|-|98,284||Usage|
||───────|───────|───────|───────|||
||1,815,242|990,746|132,664|2,938,652|||
|Direct governance costs (see note 9)|-|-|59,037|59,037|-||
||───────|───────|───────|───────|||
||1,815,242|990,746|191,701|2,997,689|||
|Allocation of governance support costs|95,850|95,851|(191,701)|
-|||
||───────|───────|───────|───────|||
||1,911,092|1,086,597|-|2,997,689|||
||═══════|═══════|═══════|═══════|||
|**11.**|**STAFF COSTS**|**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
||Salaries and wages|1,443,413|1,265,084|
||Social security costs|155,310|133,657|
||Pension costs|84,257|80,701|
|||───────|───────|
|||1,682,980|1,479,442|
|||══════|══════|
||Four employees earned £60,000-£70,000 in the year (2021: four).|||
||One employee earned £70,000-£80,000 in the year (2021:nil)|||
||No employee earned £80,000-£90,000 in the year (2021: One employee).|||
||One employee earned £90,000-£100,000 in the year (2021: nil)|||
No trustee received emoluments (2021: none). Fourteen trustees (2021: eight) received reimbursed travel and subsistence expenses totalling £6,433 (2021: £4,033).
**37**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **STAFF NUMBERS**
The average number of staff employed was 31 (2021: 31 staff) and the average number of full-time equivalent employees (including casual and part time staff) during the year was as follows:
|||**2022**|
**2021**|
|---|---|---|---|
|||**Number**|**Number**|
||Support|31|31|
|||═════|═════|
|**12.**|**MOVEMENT IN NET FUNDS FOR THE PERIOD**|||
|||**2022**|**2021**|
||Movement in net funds is stated after charging/(crediting):|**£**|**£**|
||Auditor’s remuneration (excluding irrecoverable VAT):|||
||- Statutory audit (current year)|22,308|19,060|
||- Taxation|-|-|
||- Other|9,470|5,041|
||Amortisation|-|32,566|
||Depreciation – owned assets|25,948|23,637|
|||═════|═════|
## **13** . **TRUSTEES AND KEY MANAGEMENT PERONNEL**
Key management personnel include the Trustees, Chief Executive (and senior staff reporting directly to the chief executive). The total employee benefits of the charity's key management personnel were £642,603 (2021: £597,705).
## **14. TAXATION**
The company is a registered charity and no provision is considered necessary for taxation.
## **15. INTANGIBLE FIXED ASSETS (Charity and Group)**
||**Software**|**Total**|
|---|---|---|
|**Cost or valuation**|**£**|**£**|
|As at 1 January 2022|258,105|259,105|
|Additions|96,171|150,343|
||───────|───────|
|As at 31 December 2022|354,276|258,105|
||══════|══════|
|**Amortisation**|||
|As at 1 January 2022|32,566|32,566|
|Charge for the year|58,149|58,149|
||58,149|58,149|
||───────|───────|
|As at 31 December 2022|90,715|90,715|
||══════|══════|
|**Net book value**|||
|As at 31 December 2022|263,561|263,561|
||══════|══════|
|As at 31 December 2021|258,105|258,105|
||══════|══════|
**38**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **16 TANGIBLE FIXED ASSETS (Group)**
||**Leasehold**|**Freehold**|**Office and**|**Motor**|**Total**|
|---|---|---|---|---|---|
||**Improvements**|**property**|**computer**|**vehicles**||
||||**equipment**|||
||**£**|**£**|**£**|**£**|**£**|
|**Cost or valuation**||||||
|As at 1 January 2022|9,871|550,000|117,189|-|677,060|
|Additions|-|81,976|2,155|23,096|107,227|
||──────|──────|──────|──────|──────|
|As at 31 December|9,871|631,976|119,344|23,096|784,287|
|2022||||||
||══════|══════|══════|══════|══════|
|**Depreciation**||||||
|As at 1 January 2022|2,221|30,250|105,856|-|138,327|
|Charge for the year|987|11,661|6,851|6,449|25,948|
||──────|──────|──────|──────|──────|
|As at 31 December|3,208|41,911|112,707|6,449|164,275|
|2022||||||
||══════|══════|══════|══════|══════|
|**Net book value**||||||
|As at 31 December|6,663|590,065|6,637|16,647|620,012|
|2022||||||
||══════|══════|══════|══════|══════|
|As at 31 December|7,650|519,750|11,333|-|538,733|
|2021||||||
||══════|══════|══════|══════|══════|
|**LE FIXED ASSETS**|**(Charity)**|||||
||**Leasehold**|**Freehold**|**Office and**|**Motor**|**Total**|
||**Improvements**|**property**|**computer**|**vehicles**||
||||**equipment**|||
||**£**|**£**|**£**|**£**|**£**|
|**Cost or valuation**||||||
|As at 1 January 2022|9,871|550,000|110,623|-|670,494|
|Additions|-|81,976|2,155|23,096|107,227|
||──────|──────|──────|──────|──────|
|As at 31 December|9,871|631,976|112,778|23,096|777,721|
|2022||||||
||══════|══════|══════|══════|══════|
|**Depreciation**||||||
|As at 1 January 2022|2,221|30,250|103,044|-|135,515|
|Charge for the year|987|11,661|5,784|6,449|24,881|
||──────|──────|──────|──────|──────|
|As at 31 December|3,208|41,911|108,828|6,449|160,396|
|2022||||||
||══════|══════|══════|══════|══════|
|**Net book value**||||||
|As at 31 December|6,663|590,065|3,950|16,647|617,325|
|2022||||||
||══════|══════|══════|══════|══════|
|As at 31 December|7,650|519,750|7,579|-|534,979|
|2021||||||
||══════|══════|══════|══════|══════|
## **TANGIBLE FIXED ASSETS (Charity)**
**39**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**17.**|**FIXED ASSET INVESTMENTS**|||||
|---|---|---|---|---|---|
|||**Group**|**Group**|**Charity**|**Charity**|
|||**2022**|**2021**|**2022**|**2021**|
||Movements in fixed asset investments|**£**|**£**|**£**|**£**|
||Market value brought forward|12,178,062|11,086,093|12,178,162|11,086,193|
||Additions at cost|6,621,768|12,098,595|6,621,768|12,098,595|
||Disposals at carrying value|(7,205,274)|(12,179,821)|(7,205,274)|(12,179,821)|
||Net gain/(loss) on revaluation|(1,468,433)|
1,173,195|(1,468,433)|
1,173,195|
|||────────|────────|────────|────────|
||Market value carried forward|10,126,123|12,178,062|10,126,223|12,178,162|
|||═══════|═══════|═══════|═══════|
||Analysis of market value of investments by type:|||||
||Unlisted – RM Shop Limited|-|-|100|100|
||Equities|6,760,056|8,786,875|6,760,156|8,786,975|
||Bonds|1,086,097|1,011,838|1,086,097|1,011,838|
||Alternative investments|1,520,796|2,079,033|1,520,796|2,079,033|
||Cash|759,174|300,316|759,174|300,316|
|||────────|────────|────────|────────|
|||10,126,123|12,178,062|10,126,323|12,178,262|
|||═══════|═══════|═══════|═══════|
||Analysis of market value of investments between those held within and outside|||the United Kingdom:||
||Within the United Kingdom|3,149,225|2,959,270|3,149,325|2,959,370|
||Outside the United Kingdom|6,976,898|9,218,792|6,976,898|9,218,792|
|||────────|────────|────────|────────|
|||10,126,123|12,178,062|10,126,223|12,178,162|
|||═══════|═══════|═══════|═══════|
|**18.**|**STOCK**|**Group**|**Group**|**Charity**|**Charity**|
|||**2022**|**2021**|**2022**|**2021**|
|||**£**|**£**|**£**|**£**|
||Wine and ports|59,740|64,347|59,740|58,016|
||Armada dishes|2,984|2,925|2,984|2,925|
||Merchandise|133,317|162,612|-|-|
|||────────|────────|────────|────────|
|||196,041|229,884|62,724|60,941|
|||═══════|═══════|═══════|═══════|
|**19.**|**DEBTORS**|**Group**|**Group**|**Charity**|**Charity**|
|||**2022**|**2021**|**2022**|**2021**|
|||**£**|**£**|**£**|**£**|
||Other debtors|205,373|82,325|183,251|48,563|
||Prepayments and accrued income|365,221|317,091|365,221|317,091|
||Due from group entity|30,426|-|30,426|
-|
|||────────|────────|────────|────────|
|||601,020|399,416|578,898|365,654|
|||═══════|═══════|═══════|═══════|
**40**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **20. CREDITORS:**
## **AMOUNTS FALLING DUE WITHIN ONE YEAR**
||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2022**|**2021**|**2022**|**2021**|
||**£**|**£**|**£**|**£**|
|Loan|10,000|10,000|-|-|
|Grants payable|68,066|47,256|68,066|47,256|
|Almonised grants payable|5,507|5,507|5,507|5,507|
|Trade creditors|96,173|80,295|81,509|14,281|
|Taxation and social security|65,306|51,935|39,790|35,119|
|Accruals|163,105|211,270|120,243|176,257|
|Other creditors|158,252|168,975|143,983|151,719|
|Due to group entities|10,187|9,751|
57,786|33,333|
||────────|────────|────────|────────|
||576,596|584,989|516,884|463,472|
||═══════|═══════|═══════|═══════|
## **Custodian funds**
The RMA-TRMC holds custodian funds on behalf of RMA Branches and other RM Trusts. These amounts are included within creditors above.
|**Entity**|**Principal Object**|**Held**|**2022 £**|**2021 £**|
|---|---|---|---|---|
|Fisher House|Residue of fundraising for sponsorship bedroom
suite in Fisher House|Cash|£ 563|£ 563|
|Commando Cops|Funds donated 2009-13 for sporting activity for
injured veterans|Cash|£ -|£ 2,937|
|Frankton Memorial|Maintenance of memorial at former RM Barracks
Eastney|Cash|£ 2,390|£ 2,390|
|45 Woodlands Trust|Maintenance of a Memorial Garden at RM Condor|Cash|£ -|(£ 8)|
|42 Commando
Memorial Garden|Maintenance of a Memorial Garden at Bickleigh|Cash|£ 11,842|£ 11,842|
|Adam’s Hoofing Hut|Beach Hut at Christchurch|Cash|£ 17,526|£ 21,085|
|Help4Heroes Training|Held for training and business set-up for former
Marines|Cash|£ -|£ 15,078|
|Homeport Magazine|Funds to be used to pay for RMA entries in Naval
Families Federation Magazine|Cash|£ 3,920|£ 3,920|
|Local Branch
Donations|Monies collected centrally for RMA branches which
do not have their own custodian funds|Cash|£ 1,107|£ 20,253|
|RMA Rugby Branch|Branch of RMA-TRMC|Cash|£ 4,074|£ 18,983|
|RMA Concert Band|Branch of RMA-TRMC|Cash|£ 41,490|£ 49,590|
|RMA Gig Club|Branch of RMA-TRMC|Cash|£ 6,761|£ 4,289|
|RMA PT Branch|Branch of RMA-TRMC|Cash|£ 350|£ 350|
|RMA Signals Branch|Branch of RMA-TRMC|Cash|£ 20|£ 20|
|RMA Shotgun Branch|Branch of RMA-TRMC|Cash|£ 10|£ 10|
**41**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|RMA Arts Society
Branch|Branch of RMA-TRMC|Cash|£ 26|£ 26|
|---|---|---|---|---|
|RMA Carlisle &
District Branch|Branch of RMA|Cash|£ 360|£ 360|
|RMA Sheffield Branch|Branch of RMA|Cash|£ 215|£ 50|
|Families branch|Branch of RMA-TRMC|Cash|£ 295|£ -|
|Chelmsford|Branch of RMA-TRMC|Cash|£261|£-|
|Membership
Committee|Sub-Committee of RMA-TRMC|Cash|£22,088|£-|
|Northern Region|Branch of RMA-TRMC|Cash|£2,000|£-|
|North East Essex|Branch of RMA-TRMC|Cash|£3,970|£-|
|RMA Romford|Branch of RMA-TRMC|Cash|£4,448|£-|
|RMA Tavistock|Branch of RMA-TRMC|Cash|£30|£-|
|Scotland & NI Region|Regional Committee of RMA-TRMC|Cash|£1,850|£-|
|NI|Branch of RMA-TRMC|Cash|£2,450|£-|
|South and East
Region|Regional Commitee of RMA-TRMC|Cash|£1,807|£-|
|South West Region|Regional Committee of RMA-TRMC|Cash|£2,000|£-|
|Test Valley|Branch of RMA-TRMC|Cash|£427|£-|
|Bude|Branch of RMA-TRMC|Cash|£592|£-|
|Doncaster|Branch of RMA-TRMC|Cash|£5,699|£-|
|Wolverhampton|Branch of RMA-TRMC|Cash|£703|£-|
|Glasgow|Branch of RMA-TRMC|Cash|£2,236|£-|
|Fijian Commando
Brothers|Branch of RMA-TRMC|Cash|£50|£-|
|RM Sports
Association|Restricted Fund of RMA-TRMC|Cash|£2,503|£-|
**42**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **21. CREDITORS:**
## **AMOUNTS FALLING DUE IN MORE THAN ONE YEAR**
||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2022**|**2021**|**2022**|**2021**|
||**£**|**£**|**£**|**£**|
|Bank loan|24,900|34,067|-|-|
||────────|────────|────────|────────|
||24,900|34,067|-|- -|
||═══════|═══════|═══════|═══════|
During the year the subsidiary company, TRMC Enterprises Limited, obtained a bank loan from Lloyds Bank plc under the Governments Coronavirus Bounce Back Loan scheme. Interest is payable at 2.5% 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**
## **Analysis of unrestricted fund movements**
||**Balance at**|**Incoming**|**Resources**||**Investment**|**Balance at**|
|---|---|---|---|---|---|---|
||**01.01.2022**|**resources**|**expended**|**Transfers**|**gains/(losses)**|**31.12.2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|TRMC general funds|7,749,000|2,869,596|(1,962,409)|(358,920)|(866,834)|7,430,432|
|RMA Investment Fund|700,953|207,481|(541,448)|(135,490)|-|231,496|
|National Museum of the Royal Navy|1,000,000|-|-|(1,000,000)|-|-|
|Building 72 Fund|-|-|-|1,500,000|-|1,500,000|
||──────|───────|──────|──────|──────|──────|
|**Charity total**|9,449,953|3,077,077|(2,503,857)|5,590|(866,834)|9,161,928|
||═════|══════|═════|═════|═════|═════|
|**Subsidiaries**|||||||
|Royal Marines Shop Limited|166,432|496,484|(495,844)|-|-|167,072|
|TRMC Enterprises Limited|5,448|117,001|(86,574)|(5,448)|
-|30,427|
||───────|──────|─────|──────|──────|──────|
|**Group Total**|9,621,833|3,690,561|(3,086,275)|142|(866,834)|9,359,427|
||══════|═════|═════|═════|═════|══════|
The RMA Investment Fund represents the remaining historic investments reserve of the Royal Marines Association, which became part of RMA-TRMC in 2019, of which £500,000 was designated for membership use, the remainder unrestricted following a decision by the Membership sub-committee of the Board in March 2020. In November 2022 this remaining £500,000 was designated towards the project to rebuild the Charity’s central office at the Commando Training Centre, Lympstone.
The Building 72 Fund was re-designated by the Board in November 2022 to underwrite the central office rebuild project following the continued lack of progress towards the cost of a new Royal Marines Museum, for which the Fund had originally been designated.
**43**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **22. ANALYSIS OF CHARITABLE FUNDS (continued)**
## **Analysis of restricted fund movements**
||**Balance at**|**Incoming**|**Resources**||**Investment**|**Balance at**|
|---|---|---|---|---|---|---|
||**01.01.2022**|**resources**|**expended**|**Transfers**|**gains/(losses)**|**31.12.2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Fund**|||||||
|RM Benevolent Fund|1,153,650|573,826|(1,440,321)|(170)|
(229,838)|57,147|
|RM Cadet Fund|140,943|1,744|(887)|(12)|
(13,724)|128,064|
|RM Officers’ Trust Fund|1,245,919|148,026|(176,314)|(11,584)|
(116,885)|1,089,162|
|RM Central Sergeants’|||||||
|Mess Fund|979,968|134,148|(203,160)|(29,298)|
(108,313)|773,345|
|RM Central Unit Institute Fund|1,462,769|290,725|(186,535)|(151,000)|
(132,839)|1,283,120|
|RMSA|144,155|34,488|(226,536)|191,613|-|143,720|
|The Armed Forces Covenant|||||||
|Fund Trust- OTMS|33,932|122,626|(134,177)|-|-|22,381|
|The Armed Forces Covenant|||||||
|Fund Trust- SS|30,604|52,452|(44,938)|-|-|38,118|
|The Armed Forces Covenant|||||||
|Fund Trust -Positive Pathways|(2,059)|1,750|-|309|-|-|
|The Armed Forces Covenant|||||||
|Fund Trust -FFC|10,587|-|(6,639)|-|-|3,948|
|Gordon Messenger Centre||50,298|(47,975)|-|-|2,323|
|National Lifting the Lid Grant|-|80,000|(53,334)|-|-|26,666|
|T & M CLODE Donation|-|10,000|(10,000)|-|-|-|
|AFGHAN Veterans Fund|-|141,888|(13,743)|-|-|128,145|
|TRMC Building 72|-|50,000|-|-|-|50,000|
||───────|──────|─────|──────|──────|───────|
||5,200,468|1,691,971|(2,544,559)|(142)|
(601,599)|3,746,139|
||───────|──────|─────|──────|──────|──────|
|**Group Total**|14,822,301|5,382,532|(5,630,834)|-|(1,468,433)|13,105,566|
||══════|═════|═════|═════|═════|══════|
RM Benevolent Fund is a restricted fund amalgamated from a range from Royal Marines specific funds designed to support Serving, Veterans and their dependants.
RM Cadet Fund is a restricted fund which generates a small amount of investment income to support RM Cadets with various amenity bids.
RM Officers’ Trust Fund is a restricted fund to support Royal Marines Officers in providing grants for Sports, Functions and Amenity bids.
RM Central Sergeants’ Mess Fund is a restricted fund to support Royal Marines Seniors in providing grants for Sports, Functions and Amenity bids.
RM Central Unit Institute’ Fund is a restricted fund to support Royal Marines Juniors in providing grants for Sports, Functions and Amenity bids.
The AFCFT One is Too Many is a restricted fund provided to enable suicide prevention and the promotion of positive mental health UK-wide.
The AFCFT Sustaining Support is a restricted fund provided to fund mental health therapy and positive mental health promotion in Scotland.
The AFCFT Positive Pathways is a restricted fund provided to enable a group respite trip to Norway for injured beneficiaries and their immediate 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.
**44**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **22. ANALYSIS OF CHARITABLE FUNDS (continued)**
**Analysis of fund movements – prior year**
## **Analysis of unrestricted fund movements**
|||**Balance at**|**Incoming**|**Resources**||**Investment**|**Balance at**|
|---|---|---|---|---|---|---|---|
|||**01.01.2021**|**resources**|**expended**|**Transfers**|**gains/(losses)**|**31.12.2021**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
|TRMC general funds||5,447,096|2,702,753|(1,661,259)|710,334|550,076|7,749,000|
|RMA|Investment Fund|1,556,775|62,015|(368,591)|(690,334)|141,088|700,953|
|National Museum of the Royal Navy||1,000,000|-|-|-|-|1,000,000|
|||──────|───────|──────|──────|──────|──────|
|**Charity total**||8,003,871|2,764,768|(2,029,850)|20,000|691,164|9,449,953|
|||═════|══════|═════|═════|═════|═════|
|**Subsidiaries**||||||||
|Royal|Marines Shop Limited|180,105|465,934|(459,607)|(20,000)|
-|166,432|
|TRMC Enterprises Limited||(1,505)|48,355|(41,402)|-|-|5,448|
|||───────|──────|─────|──────|──────|──────|
|**Group Total**||8,182,471|3,279,057|(2,530,859)|-|691,164|9,621,833|
|||══════|═════|═════|═════|═════|══════|
|**nalys**|**is of restricted fund movements**|||||||
|||**Balance at**|**Incoming**|**Resources**||**Investment**|**Balance at**|
|||**01.01.2021**|**resources**|**expended**|**Transfers**|**gains/(losses)**|**31.12.2021**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
|**Fund**||||||||
||RM Benevolent Fund|1,537,610|554,141|(1,122,323)|-|184,222|1,153,650|
||RM Cadet Fund|128,893|2,066|(1,009)|-|10,993|140,943|
||RM Officers’ Trust Fund|1,121,116|143,422|(105,214)|(7,037)|
93,632|1,245,919|
||RM Central Sergeants’|||||||
||Mess Fund|914,403|148,804|(152,416)|(17,592)|
86,769|979,968|
||RM Central Unit Institute Fund|1,271,918|294,616|(117,530)|(92,650)|
106,415|1,462,769|
||RMSA|160,893|21,619|(155,636)|117,279|-|144,155|
||The Armed Forces Covenant|||||||
||Fund Trust- OITM|-|122,624|(88,692)|-|-|33,932|
||The Armed Forces Covenant|||||||
||Fund Trust- SS|-|47,456|(16,852)|-|-|30,604|
||The Armed Forces Covenant|||||||
||Fund Trust -Positive Pathways|33,250|-|(35,309)|-|-|(2,059)|
||The Armed Forces Covenant|||||||
||Fund Trust -FFC|19,000|-|(8,413)|-|-|10,587|
|||───────|──────|─────|──────|──────|───────|
|||5,187,083|1,334,748|(1,803,394)|-|482,031|5,200,468|
|||───────|──────|─────|──────|──────|──────|
|**Group Total**||13,530,465|4,613,805|(4,334,253)|-|1,173,195|14,822,301|
|||══════|═════|═════|═════|═════|══════|
## **Analysis of restricted fund movements**
**45**
**ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **23. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS**
||**Unrestricted**|**Restricted**||
|---|---|---|---|
||**Funds**|**Funds**|**Total**|
||**2022**|**2022**|**2022**|
||**£**|**£**|**£**|
|Intangible fixed assets|263,561|-|263,561|
|Tangible fixed assets|620,012|-|620,012|
|Fixed asset investments|6,273,542|3,852,581|10,126,123|
|Cash at bank and in hand|1,893,710|6,595|1,900,305|
|Other net current assets/(liabilities)|333,502|(113,037)|220,465|
|Long term loan|(24,900)||(24,900)|
||────────|────────|────────|
||9,359,427|3,746,139|13,105,566|
||═══════|═══════|═══════|
||**Unrestricted**|**Restricted**||
|---|---|---|---|
||**Funds**|**Funds**|**Total**|
||**2021**|**2021**|**2021**|
||**£**|**£**|**£**|
|Intangible fixed assets|225,539|-|225,539|
|Tangible fixed assets|538,733|-|538,733|
|Fixed asset investments|7,184,927|4,993,135|12,178,062|
|Cash at bank and in hand|1,520,761|348,962|1,869,723|
|Other net current assets/(liabilities)|185,940|(141,629)|44,311|
|Long term loan|(34,067)||(34,067)|
||────────|────────|────────|
||9,621,833|5,200,468|14,822,301|
||═══════|═══════|═══════|
## **24. ULTIMATE CONTROLLING PARTY**
During the year the charitable company was under the control of Royal Navy and Royal Marines Charity (a registered charity incorporated in England and Wales, registered company number 6047294, registered charity number 1117794 and also a registered charity in Scotland, charity number SC041898).
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, PO2 8ER.
Advantage is taken of the FRS 102 exemption permitting intra group transactions not to be disclosed.
## **25. RELATED PARTY TRANSACTIONS**
During the year trustees donated £22,425 (2021: £37,797) to the charity. The charity also received a £55,000 (2021: £109,000) donation from the Globe and Laurel magazine, an organisation with common trustees and paid out £84,235 (2021: £84,126) in the form of grants.
The charity received grants from The Royal Navy and Royal Marines Charity of £351,888 (2021: £126,948).
Included in the accounts is £60,281 recognised as a gift in kind relating to rent not charged for office space. The office concerned relates to a company with a common trustee/director.
**46**
## **ROYAL MARINES ASSOCIATION- THE ROYAL MARINES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **26. SUBSIDIARIES- Royal Marines Shop Limited**
ended 31 December 2022:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Income|496,484|441,105|
|Expenditure|(487,637)|(434,778)|
||───────|────────|
|Profit for year|8,847|6,327|
|Gift-aid payment to RMA-TRMC||(20,000)|
||───────|────────|
|Net movement in funds|8,847|(13,673)|
||═══════|═══════|
||**2022**|**2021**|
||**£**|**£**|
|Fixed assets|2,688|3,755|
|Current assets|222,837|272,960|
|Liabilities|(58,453)|(110,283)|
||────────|────────|
|Net assets|167,072|166,432|
||═══════|═══════|
## **26. SUBSIDIARIES - TRMCE**
The following is an extract of the financial statements of TRMC Enterprises Limited for the period ended 31 December 2022:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Income|262,086|211,503|
|Expenditure|(231,659)|(204,550)|
||───────|───────|
|Net movement in funds|30,427|6,953|
||═══════|═══════|
||**2022**|**2021**|
||**£**|**£**|
|Current assets|104,184|74,331|
|Liabilities|(73,756)|(68,883)|
||───────|───────|
|Net assets|30,428|5,448|
||═══════|═══════|
## **27. NET DEBT**
||**1 January**|**Cash flows**|**31 December**|
|---|---|---|---|
||**2022**|**2022**|**2022**|
||**£**|**£**|**£**|
|Cash at bank|1,869,723|30,582|1,900,305|
|Bank loan|(44,067)|9,167|(34,900)|
||────────|────────|────────|
||1,825,656|39,749|1,865,405|
||═══════|═══════|═══════|