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2022-12-31-accounts

Charity number: 1145688

Forces in Mind Trust

Report and financial statements For the year ended 31 December 2022

Forces in Mind Trust

Contents

For the year ended 31 December 2022

Reference and administrative details ........................................................................................... 1 Chair’s introductory report ......................................................................................................... 4 Directors’ annual report ............................................................................................................. 6 Protector’s annual report ........................................................................................................... 23 Independent auditor’s report .................................................................................................... 26 Statement of financial activities (incorporating an income and expenditure account) .................. 30 Balance sheet ........................................................................................................................... 31 Statement of cash flows ........................................................................................................... 32 Notes to the financial statements ............................................................................................. 33

Forces in Mind Trust

Reference and administrative details

For the year ended 31 December 2022

Charity number 1145688
Registered office Alexandra House
St Johns Street
Salisbury
SP1 2SB
Operational address Mountbarrow House
6-20 Elizabeth Street
London
SW1W 9RB
Country of England and Wales
registration
Trustee FIM Trustee Ltd
Principal staff Mike Ellicock Chief Executive (until June 2021)
Tom McBarnet Chief Executive (from June 2021)
Caroline Cooke Head of Policy
Rodrigo Voss Head of Operations & Governance
Clare Crookenden Grants & Programmes Manager
Bankers Barclays Bank UK PLC
1st Floor
27 Soho Square
London
W1D 3QR
Solicitors Wilsons Solicitors LLP
Alexandra House
St Johns Street
Salisbury
SP1 2SB

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Forces in Mind Trust

Reference and administrative details

For the year ended 31 December 2022

Auditor Price Bailey LLP Chartered Accountants Statutory Auditors 24 Old Bond Street London W1S 4AP Investment Manager Sarasin and Partners Juxon House 100 St. Paul’s Churchyard London EC4M 8BU

The Forces in Mind Trust has a single corporate Trustee, FIM Trustee Limited.

The Directors of FIM Trustee Limited during the period 1 January 2022 to 13 June 2023 were:

Chair H J R Pung Chair of the Board (resigned 14 December 2022)
Chair J Macleod CB CVO Chair of the Board (from 14 December 2022)
Director K Alpin Member of the Programmes Committee
Director A Bell Member of the Board (resigned 14 September
2022)
Director R S Campbell FCA Chair of the Finance and Investment Committee
(resigned 14 December 2022)
Director AVM Retd C Elliot Member of the Finance and Investment
CB CBE DL Committee (resigned 8 February 2023)
Director R P Harries Chair of the Programmes Committee
Director R Hornsby-Clifton Chair of the Finance and Investment Committee
(from 14 December 2022)
Director Maj Gen Retd T D Hyams Member of the Programmes Committee (from 14
CB OBE September 2022)
Director K McCullough Member of the Programmes Committee
Director D Mills Member of the Programmes Committee
Director Professor D Murphy Member of the Programmes Committee

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Forces in Mind Trust

Reference and administrative details

For the year ended 31 December 2022

Director Lt Gen Retd Sir N Pope Member of the Governance Committee
KCB CBE
Director A S D Reding Member of the Finance and Investment
Committee
Director and N J Roberts Member of the Governance Committee and
Deputy Chair Deputy Chair of Board
Director A C Ward Chair of the Governance Committee

The Trust's past Patron was the late Admiral of the Fleet Lord Boyce KG GCB OBE DL.

The Trust’s Honorary President is Air Vice-Marshal Retd A J Stables CBE.

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Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

Chair’s Foreword

Last year my predecessor reflected on a decade since the formation of the Trust and both the considerable changes to the environment and circumstances in which it operates. He also highlighted the notable achievements the Trust has made in pursuit of supporting successful and sustainable transition for the Armed Forces Community and their families out of Service life and into fulfilled civilian lives. Even in my short time leading the Trust, the complexity and challenges of the contemporary environment on those operating in the public and charity sectors in support of the Armed Forces Community are starkly evident. Demands for resources and support can outstrip capacity, limiting the ability of statutory providers to proactively recognise unique cohorts in their planning and potentially imparting more pressure on the third sector to bridge gaps. Whilst the majority of those leaving the Service manage transition well and go on to lead fulfilled and impactful lives, taking into their civilian worlds those characteristics that make the UK Service woman and man so respected worldwide, some find the transition more difficult and struggle. For those who may find departing from the Services more difficult, their needs can be complex and ensuring they do not fall between the cracks remains a challenge.

With such a well-established and to some eyes, large, military charity sector, the UK is arguably well-placed to extend support and benevolence to those most in need. Further, with the progress made over the last decade in recognising veterans and their needs in public service provision, and through the increasing influence of the Office for Veteran Affairs, there are fewer quarters where potential vulnerability arising from previous military service is not at least understood. Nevertheless, there remains substantial evidence of systemic problems that continue to be resolved through addressing symptoms as they present, rather than identifying and reducing systematic causes.

This need highlights the importance of the Trust continuing to leverage its independence in order to:

I therefore see the Trust’s role as a catalyser and collaborator in driving change, a cohering force for ideas, and as an independent and respected, evidentially based voice within the sector as important as ever.

Looking at the last year in more detail, 2022 was another significant year in the Trust’s life. Following our successful earlier investment in the first Centre back in 2017, we launched the new partnership with King’s College London and RAND, the next iteration of the Forces in Mind Trust

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Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

Research Centre. This highly accessible, free, authoritative, and comprehensive resource promises to be a real asset in understanding the Armed Forces Community and families, supporting Government resource planning, wider research and both media and public enquiry.

Further, we published new reports into the factors contributing to ‘negative transition’ of UK service personnel, the lived experience of returning to civilian life with physical injuries acquired in Service, health trends in the Scottish veteran’s community and their impact, new initiatives to identify and track the ex-Service person in the healthcare system and the progress of delivery on pledges after a decade of the Armed Forces Covenant. These are all examples of the span of the Trust’s work with each report making informed and targeted recommendations for the betterment of policy and service provision. As the Trust moves forward, we will continue to track the impact of our reports and ensure that our recommendations are seen by those helping to shape and transform the landscape for our ex-Service community.

2022 also saw the departure of Mike Ellicock after a relatively short ‘tour’ as the Trust’s Chief Executive and the appointment of Tom McBarnet, the Trust’s Deputy Chief Executive and Director of Programmes, in the role in an interim capacity. Tom has a wealth of knowledge and connections within the military charity sector, the public and private sector, and in government, and I am pleased to observe that both a change of CE and my arrival as the new Chair in December 2022 had little impact upon the running of our grant-making activity nor on the focus of Trust work. 2022 also saw the departure of Ross Campbell and Adrian Bell as long-standing directors who made significant contributions to the Trust’s achievements over many years. Nevertheless I have been delighted to be able to welcome Tim Hyams and Russell Hornsby-Clifton as new directors, both of whom I look forward to working with. We have also said farewell to Nicholas Lambert as one of our lay advisors who has also been generous of both his time and energy in supporting the Trust’s Finance and Investment Committee and his interest in our mission.

I must also note with sadness, that 2022 saw the sad passing of our Patron, Admiral of the Fleet, The Lord Boyce KG GCB OBE DL. Lord Boyce had been patron since the Trust’s founding and his passion for supporting veterans through the challenges of leaving Service was at the core of our mission. His insight and enthusiastic engagement with the Trust at Board and staff level was valued, always welcomed, and will be sorely missed.

So, although I have had only a short time as Chair, I have now experienced first-hand what I believed when I applied for the role. The Trust provides an invaluable role in this sector, a role that no other can, and whilst the landscape has changed significantly since the Trust was set up in 2011, the need for what the Trust brings has not. Our independence in approach, our ability to commission and support the generation of research which can transform policy generation and service delivery, and our ability to support others within the sector who can leverage the work that the Trust has generated, is as important now as it was in 2011. Of course, as a Trust, we must stay agile, and ensure we deliver the maximum impact from our activity and I see myself and my fellow directors as pivotal in ensuring that Forces in Mind Trust continues to be a force for good, that it

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leaves a lasting positive legacy and it continues to deliver on its purpose of enabling all ex-Service personnel and their families to make a successful and sustainable transition to civilian life.

As I close, I would like to thank the directors and the talented and professional staff at the Trust for all the work they have done to make Forces in Mind as influential and effective as it is, and for making my succession as Chair as seamless as possible. I would also like to recognise my predecessor Hans Pung for a thorough and generous handover, and for the tireless work he has done over the last 6 years as Chair. Work that has had so much positive impact for Service personnel and veterans and their families; the majority of whom will never know Hans or how he has personally contributed to the success of their transition. On mine, and their behalf, thank you Hans.

Finally, I look forward with excitement to my tenure as Chair of Forces in Mind Trust, confident that that the organisation is well placed to continue to adapt to new challenges and build upon an already impressive legacy.

Jim Macleod CB CVO Chair, Forces in Mind Trust 31 January 2023

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Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

Introduction

The Directors of the Trustee (FIM Trustee Limited) present their Report, together with the audited financial statements of Forces in Mind Trust for the year ended 31 December 2022.

Reference and administrative information set out on pages 1 to 3 forms part of this report. The financial statements comply with current statutory requirements, the charity's trust deed and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP (2019) applicable to charities preparing their accounts in accordance with FRS 102.

The Directors would like to express their gratitude for the continued support and engagement of the Trust’s Protector, Alison Paines, whose report is included below.

Comment on Protector’s Report

The current Protector was appointed in December 2021 by the National Lottery Community Fund; her role and responsibilities are fully described in her Report. The Directors welcome, and are encouraged by, the comments contained in the Protector’s Report. The Protector’s attendance at Board and a selection of Committee meetings contributes positively to the Trust’s development, and the Board is grateful to her considered advice.

Objectives and activities

Purposes and aims

Forces in Mind Trust (FiMT, or the Trust) is a registered charity (Charity number: 1145688) which has as its charitable aims:

The prevention and relief of poverty, the protection of mental and physical health and the relief of sickness and need amongst serving and former serving members of the Armed Forces by means of the provision of mentoring, services, facilities and equipment to support their treatment, rehabilitation, resettlement, education, training and employment and thereby support their transition to civilian life;

and

The protection of the mental and physical health, and the relief of poverty of the families and dependants of serving and former serving members of the Armed Forces in all cases for the benefit of the public.

The Directors have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities and are confident that the Trust’s activities meet the Charity Commission’s

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Directors’ annual report

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requirements with regard to public benefit. In particular, the Directors considered how the planned activities will contribute to the aims and objectives that have been set. In its tenth year of full operation (and eleventh overall), FiMT has taken significant steps towards delivering the impact its Founder intended by continuing work using the strong foundations that were laid in the first half of its planned life.

The conceptually well-targeted grant-giving programme, supported by strategic influence activities, has remained at the core of the Trust’s activities, with an increasing emphasis on commissioning and co-creation versus responsive funding. In 2022, the Trust continued work on its programmatic approach that is characterized by greater coherence of funding, more proactive and impactful projects, and a more innovative use of the full range of Change Mechanisms focused on priority Programmes .

The Directors review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period.

In June 2022 the then Chief Executive, Mike Ellicock, resigned to pursue new professional challenges, and the Board was delighted that Tom McBarnet accepted the offer to become the Acting Chief Executive of the Trust from 20[th] June. Tom is extremely well placed to play this role, given his strong expertise and experience in leading FiMT’s programmatic activities as well as his deep knowledge and networks across the Armed Forces Charity sector and FiMT’s wider stakeholder base. The Board anticipates that Tom will remain in the Acting Chief Executive role until the point when they are able to make a permanent appointment. In the meantime the role of the Grants Manager (now Grants and Programmes Manager) was extended as a permanent adjustment in order to cover some of the responsibilities of the Director of Programmes, a role that has remained vacant since June.

Achievements and performance

The Trust’s main activities in the course of the year are described below. All charitable activities ultimately focus on ex-Service personnel and their families and are undertaken to further our charitable purposes for the public benefit.

Grants and Commissioning Plan

During the period, 20 grant awards were made (previous period 14), listed below. Other costs related to grants awarded totalling £84,933 (2021: £145,304) are also shown. Of these 20 awards, 18 (7) were for Knowledge and evidence, 1 (4) was for Influence and convening, and 1 (2) was for Capacity building, although in practice there is significant overlap between these categories.

Full details of amounts and types of grants can be found at Note 5 to the financial statements and on the Trust’s website (section ‘who we have helped’ http://www.fim-trust.org/who-we-havehelped/). Grants made in 2022 were:

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Directors’ annual report

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*Award made through the Mental Health Research Programme

The impact of these grant awards will mainly be felt in subsequent years. The impact of previous years’ grant awards, and also where appropriate those listed previously, is described in the following section on Impact and Influence.

Over the past decade, both through funding projects and influencing work, the Forces in Mind Trust team have significantly influenced policy and practice to support ex-Service personnel and their families to make a successful and sustainable transition. The Board agreed that the Trust’s

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Directors’ annual report

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activities will not be judged only through its self-imposed notional target of £2.1 million external spend, but by its impact.

The total value of the 2022 awards, less other costs related to grants awarded was £4.374 million (previous period £1.660 million), including the grant for the new FiMT Research Centre.

Total charitable expenditure for the year amounted to £5.290 million (previous period £2.614 million).

Oversight of our Programmatic Approach has been provided by a Programme Committee-led ‘deep dives’ process of which Housing, Employment, Health, and Finance were conducted through the course of the year. While stakeholder engagement in all programmes is a routine activity throughout the year, both in pursuit of our strategy and as a key enabling function in each programme area, a specific programme reference panel was held for the Finance Programme which focused on the Cost-of-Living crisis and implied tasks for the Trust.

Exemplifying the principle of commissioning work where the Trust saw the strongest opportunities for impact, FiMT awarded a grant (Improving life skills in the UK Armed Forces) to examine the current deficit of life skills within the Armed Forces Community, critically review and assess the existing evidence on life skills, and present options for what a successful life skills programme could look like for Service personnel and their families in the UK Armed Forces.

The most significant 2022 commissioning activity was the award of the new FiMT Research Centre grant agreement to the RAND and King’s College London consortium, an award valued at £2.5 million over 5 years. Directors are encouraged by the extent of work already carried out in the first few months of the new consortium. We also take this opportunity to thank the team at Anglia Ruskin University for their work during the first 5 years of the Centre and for their work on the transition to the new consortium being as smooth as possible.

Impact and Influence

Impact

The Trust has once again been influential in playing a key role developing policies and insightful recommendations that contributed to improvements in the lives of the Armed Forces Community. The Trust has continued to publish reports and make important findings and recommendations on public policy and service delivery, utilising virtual and online means to the fullest extent. Three particular areas of impact are worthy of note:

Mental Health Research Programme – the MHRP continued to generate a robust evidence base on the mental health needs of ex-Service personnel and their families and on effective and appropriate interventions to support those who require additional support for their mental health. The Trust has joint membership of NHS England’s Armed Forces Research Translation Group, the Contact Group’s Research Sub-Group, and sits on the Office for Veterans’ Affairs health research

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Forces in Mind Trust

Directors’ annual report

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priorities panel. Three significant reports emerged from the MHRP in 2022. The first, an evaluation of Drinks:Ration, a smartphone application aimed at reducing alcohol consumption in veterans who were formally seeking mental health support. The Ministry of Defence is currently piloting the app with serving personnel and it is publicly available as an NHS approved app. The second, a feasibility trial of the MeTVeT smartphone app, developed to help ex-Service personnel overcome barriers that prevent them from help-seeking and lastly, the Military Service Identification Tool to aid the identification of veterans in electronic health records within secondary healthcare. The Tool, which is now publicly available, was successfully trialled at South London and Maudsley NHS Foundation Trust.

The MHRP, and wider related Health Programme, continued and further extended its reach into key stakeholder group activity through their existing, and some newly acquired roles. These include Contact Group (a voluntary collaboration of national government departments and statutory, charity, professional and academic bodies who work collaboratively on issues of military mental health policy, treatment and research to improve the mental health of the UK military community) and Contact’s Research Sub-group (eg selecting a new independent Chair, a pivotal role to retain momentum on the achievements of this expert group); the MHRP Steering Group, a voluntary group representing statutory, non-statutory and academic sectors from across the devolved nations, who not only help assess mental health applications to FiMT, but also share their top concerns in veteran and wider mental health policy and services; the Office for Veterans Affairsfunded health research priority setting partnership with the James Lind Alliance, where lived experience, statutory and non-statutory representatives come together over 12 months to identify the top 10 veteran health research priorities; the Medical Advisory Committee, an independent group of medical, academic and associated experts that advises the Confederation of British Service Charities (Cobseo) on the health of UK veterans and the Service population, particularly matters affecting long term health; and the Armed Forces Research Translation Group, a newly formed group who aim to ensure latest findings make their way into front line health practice.

A Decade of the Covenant – The Trust’s third iteration of the Our Community, Our Covenant reports, examining the impact of the Armed Forces Covenant in reducing disadvantage for the Armed Forces Community across the UK. The report, published in December, not only assessed the current delivery and impact of the Covenant, but provided a baseline for Government to measure the impact of the newly introduced Statutory Duty for specified bodies to have due regard for the principles of the Covenant when exercising certain statutory functions across health, housing, and education. The report also provided several resources to help local authorities and other organisations to assess and improve their delivery of the Covenant to ensure that no member of the Armed Forces Community is disadvantaged by their service.

Where are all the Veterans? – A highly successful project which resulted in a 218% increase in veteran registration at GP practices in North West England. Through the identification of low-cost and easily implemented initiatives, this project continues to have impact, increasing both veteran registration with GPs and GP practices becoming accredited as ‘veteran friendly’. This was a significant step in encouraging veterans to access health care and ensuring that they receive appropriate care and support when they do.

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Influence

In early 2022, the Office for Veterans’ Affairs (OVA) launched its Veterans’ Strategy Action Plan setting out the steps government will take from 2022-2024 towards its ambition of making the UK the best place in the world to be a veteran by 2028. Having been involved in the development of the Action Plan, it was pleasing to see several of the commitments align with our own policy goals and referral to a number of our projects. The Trust continued to work closely with the OVA throughout 2022, providing input and feedback on its Data and Research Framework and its strategy to measure progress against the 2028 outcomes. Our projects also continue to be influential with the No Homeless Veterans Campaign informing the government’s new initiative, Op FORTITUDE, which will see £8.5 million of funding for a bespoke veterans' homelessness pathway. The Trust’s work and its value on housing and monitoring Covenant delivery are also recorded in the government’s Statutory Guidance for the Delivery of the Armed Forces Covenant.

Last year also saw the publication of the Ministry of Defence’s UK Armed Forces Families Strategy 2022-32 which set out its commitment to ensuring that Armed Forces families are empowered to live rich and fulfilling lives and that their needs are recognised and supported. Two of the Trust’s reports, ‘Living in Our Shoes’ and ‘Lifting the Lid on Transition’ feature in the Strategy with the former’s recommendations providing the foundation for the accompanying action plan.

Much of the success of the Trust is achieved by influencing others to adopt policies and adapt service provision in accordance with evidence-based recommendations. Consequently, the Trust places a high premium on its network and its ability to reach into key decision makers. This requires continual external staff engagement. During the year, the Trust engaged at Ministerial levels in London, Cardiff and Edinburgh, and with the newly appointed Veterans Commissioners in Scotland and Wales.

In academia, the Trust once again played an important convening role through its support of the King’s College London annual Veterans’ Mental Health conference, a truly global and worldleading event where the Trust’s research projects formed the backbone of the programme.

A fuller description of the Trust’s impact, influence and engagement can be found in the 2022 - Impact Report http://www.fim trust.org/reports/

Beneficiaries of our services

The beneficiaries of the Trust’s services are serving and former members of the United Kingdom’s Armed Forces, and their families. The Trust’s strategy of achieving impact means that benefit is gained not by the direct provision of welfare, relief in need or other grants, but by influencing the shaping and development of the improvements made to the policy, support and preventative work provided by the public, private and voluntary sectors.

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Financial review

At the end of 2022 the Trust held total unrestricted charity funds of £15.377 million (2021: £23.098 million). Concerns about global market volatility remain largely due to effects of the Russian invasion of Ukraine, rising interest rates and inflation. The portfolio managed by Sarasin and Cazenove had lost £2.6m by March 2022.

This led the Board to once again halt the replenishment of ‘cash instruments’ required to maintain the Trust’s current level of activity and grant awarding for a 2-year period without drawing down from the medium-term investment portfolios (and thus selling when prices were low). At the close of 2022, a total of £3.359 million (2021: £6.026 million) was held by Sarasin in cash/cash instruments. This is in addition to the instant access bank account holdings, described in the subsequent section on Reserves.

Draw down from medium-term funds totalled £3.7 million (2021: £4 million), and this, combined with stock market losses, led to the value of the portfolio managed by Sarasin reducing by £6.35 million to £19.675million (2021: £26.032 million). As a result of drawdowns, investment income fell to £299.7k (2021: £364.6k). With the Trust required to have spent out by November 2031, the Directors are satisfied that the planned Grants and Commissioning Plan, incorporating costs associated with monitoring and evaluation, is currently set at an appropriate level and that the Trust’s other (ie non-grant awards) costs of £964k (2021: £942k) represent good value and reflect the Board’s strategic intent to invest in increasing the Trust’s impact. The Board is also aware that as FiMT approaches the end of its life, the proportion of grants expenditure versus staff resources will change significantly, with expenditure on grants reducing compared to staff/operational costs. This is justifiable as it is also recognised by the Board that most FiMT staff costs are directly associated to the delivery of FiMT’s objectives, rather than overheads.

In January 2022 the Finance and Investment Committee conducted a review of investment management, which recommended changes to the arrangements that had been in place. The work on ‘reconfiguring the endowment’ concluded in March 2022 with Sarasin being appointed as the Trust’s sole investment manager.

Principal risks and uncertainties

During the course of the year, the Directors considered the major risks to which the Trust is exposed and the systems that it has to mitigate them. The Directors concluded that there are appropriate policies, procedures and systems in place to deal with the identified risks, which have been captured and are routinely managed through a comprehensive Risk Register.

The Board has assessed that the major strategic risk to the Trust is that it fails to have delivered sufficient impact at the end of its 20-year life. It is controlling that risk by further implementing its programmatic approach, and by taking early steps to consult, identify and plan for when the current endowment is spent out.

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The Board has assessed that the major legal and regulatory compliance risk to the Trust is failure to keep abreast of regulatory changes. It is controlling that risk by a combination of advice and updates from professional advisers including Cobseo and other third sector organisations, and investing in the technical knowledge of the Board and staff, who undergo regular, relevant training. An internal Conformance Review Programme continues to identify and review conformance with policies following a risk-based approach.

The Board has assessed that the major operational risk to the Trust is staff turnover and/or unexpected absence resulting in under-staffing and loss of corporate knowledge. It is mitigating that risk by a short-term and targeted hiring to meet the immediate and enforced gaps in capacity and experience within the Executive Senior Leadership Team since June 2022, by appropriately enhancing the employment ‘offer’ and by investing in staff development and thus developing resilience and contingent capacity across the team.

The Board has assessed that the major financial risk to the Trust is that equity market volatility causes encashment of medium-term investments at low values in order to maintain planned expenditure. It has controlled the risk through its investment policy as described later, by proactive engagement with the Trust’s Investment manager, Sarasin, and by the membership of two lay advisers on the Finance and Investment Committee with investment expertise.

The Board has assessed that the major governance risk to the Trust is insufficient Board capacity or skills. It is controlling that risk by regularly reviewing the Board succession plan and its matrix of skills and experience.

Over the years, the main uncertainty faced by the Trust has been the level of grant and commission awards that will be made over the remainder of the Trust’s 20-year life. The Board is comfortable with the current level of spending, noting that the Trust has produced 10 years’ worth of credible research that could be exploited, and upon which, well-targeted Executive team activity could still deliver much impact in coming years. The Board agreed that the Trust’s activities should not be judged solely by how much money was spent but by its impact.

Investment policy

The current Investment Policy is based upon the ability to fund 24 months of operations and grant making at full planned rates without drawing down on medium-term investments. This equates to approximately £6m per annum. Following the ‘reconfiguration of the endowment’ exercise and the appointment of Sarasin as sole Investment Manager for at least the next 5 years, a new policy, in accordance with Charity Finance Group best practice, was developed. During 2022 there were two objectives for the Investment Manager:

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Directors’ annual report

For the year ended 31 December 2022

the change (previously CPI+3%) was to de-risk the portfolio, making the investments less exposed to equity markets, bringing less volatility and more predictability. Over the last 12-month period, return was negative at 8% (2021: 1.4%). Since inception, overall performance against target has been 3.5% from the portfolios managed by Sarasin.

The Trust’s Grants and Commissioning Plan and operating costs are funded both by investment income and cash withdrawal. This requires the Investment Manager to forecast investment income from (reducing) capital accurately and FiMT to give proper notice to Sarasin of projected cash withdrawals required in the following 12 months at least.

Reserves policy and going concern

The Trust’s reserves policy is to maintain between 6 and 24 months of operating costs, covering committed grant payments and future grant-making at the full strategically planned rates, in a combination of an instant access bank account and short-term funds held by the Investment Manager as cash/cash instruments to ensure FiMT’s ability to fulfil its Grants and Commissioning Plan. The balance of the funds is held by the Investment Manager in medium-term portfolios in accordance with the Investment Policy. The Directors consider that there are no material uncertainties about the Trust's ability to continue as a going concern.

Cash held in the instant access bank account is calculated so as to meet monthly cash flow forecasts and can be replenished at 24 hours’ notice from the Investment Manager’ cash/cash instruments. On 31 December 2022, cash flow for January/February 2023 was forecast to be £502k and instant access bank account holdings were £740k (31 December 2021 - £936k)

The Directors do not consider that there are any sources of reasonable uncertainty at the reporting date that have a significant risk of causing a material adjustment to the amounts of assets and liabilities carried within the next reporting period. Directors are aware that there are net current liabilities, but this is principally due to timing and the fact that liabilities are recognised in full for the following 12 months. There is no corresponding income recognised. In addition, the Trust has significant resources available in fixed asset investments which can be drawn down as required to fund working capital.

Plans for the future

The Trust held an in-person Annual Strategy Review (Awayday) in early February 2022 to review and discuss where the Trust could potentially achieve most impact in the coming 3-5 years. Discussion covered a proposed strategic framework for supporting transition under which the Trust would seek to operate. However, with no support for a radical change of direction, the Trust stayed true to its existing Strategy which had introduced the programmatic approach focused on Outcomes and Enablers as a way of increasing impact. However, following the Chair’s succession and churn in some directors and the CE post, early 2023 saw another strategy awayday to focus on and review the Trust’s mission and strategy for achieving impact.

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Notwithstanding, in the Autumn 2022, the Board considered the 2023 Business Plan and outline budget, endorsing a continued focus on delivering upon the Research Centre project and provision of appropriate high-level support in achieving its aims, including Trust support and engagement in the combined Research Centre and KCMHR conference scheduled for March 2023. Future plans also include maintaining the Trust commitment to supporting its Mental Health Research Programme; development of two large commissions for a new Transition Mapping Study and a further Our Community, Our Covenant report as well as work to review Census 2022 veteran data and analysis of demographics of need and provision of support. Plans will also ensure sufficient flexibility to be able to entertain continued funding of reactive grant applications, co-created to ensure a good fit with existing programme priorities.

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Structure, governance and management

Forces in Mind Trust is an unincorporated charity registered as a charity on 31 January 2012. The Forces in Mind Trust was established under a sole corporate trustee, FIM Trustee Limited (Trustee), on 21 November 2011 and the Trust Deed was agreed between BIG (the Founder) and Trustee on 28 November 2011. BIG is now known as the National Lottery Community Fund.

All Directors give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Notes 4 and 7 to the accounts.

The Board meets quarterly. The Protector of the Trust also attends Board meetings. The Board has three sub-committees, and has approved Terms of Reference and appointments for each. The Governance (bi-annually) and the Finance and Investment (quarterly) Committees meet regularly to review relevant issues, and to monitor the work of, and provide advice to, the Executive Team. The Programmes Committee assesses and awards grants and commissions to applicants, advises on aspects of the Trust’s influence planning and activity, and also supports the Executive Team as required in this activity. The Programmes Committee may authorise the award of grants for projects up to an agreed limit. Applications for grants outside this envelope or above the project limit, or which the Programmes Committee believes should be seen by the Board, must be assessed first by the Committee and recommendations made to the Board accordingly. All three committees provide a written report to each Board meeting.

Throughout 2022, the Trust continued its Mental Health Research Programme, constituted by a Steering Group under the remunerated chairmanship of the Chief Executive of the Centre for Mental Health. The Steering Group provides expert advice to the Programmes Committee and to the Executive Team, but has no grant awarding authority. One Director also sits in attendance at Steering Group meetings.

Even though the Forces in Mind Trust Research Centre (the Centre) is an entirely separate entity, the Board has nominated a Research Centre Strategic Advisor (RCSA), a former FiMT Director who has relevant skills and experience to assist the Board with strategic oversight and higher-level management of the Centre. The Centre’s Governance Board submits a formal quarterly report to the Board, and briefs the Board in person biannually. The Centre is advised by an Expert Advisory Board.

The Governance Committee instigated a formal governance review using Digi-Boards, a widely used tool that follows the principles of the Charity Governance Code. The responses to this review indicated that the Trust is perceived to be a ‘Quite Well’ run charity, and was commended for undertaking a governance review. At the same time, results showed that when looking at the individual principles of the Charity Governance Code there are improvements that can be made, and undertaking the Digi-Board governance review at this juncture was seen as an ideal opportunity to reflect on learning from past issues and focusing on future direction to have the maximum impact for the charity’s beneficiaries.

17

Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

To progress work on Equality, Diversity and Inclusion (EDI), the Board reconfirmed that it is the Trust’s mission to identify and increase understanding of the range of needs of ex-Service personnel and their families, and to ensure that an equitable and inclusive approach is built into both our own decision-making on funding and commissioning, and into our policy influencing activity. The process and rigour applied to developing grant applications and commissions, and to generating research evidence ensures that the full breadth of diversity within the ex-Service community is already considered and reflected in much of our work, and one of the grants awarded during 2022 has a focus on the specific issues of identity and discrimination of Service leavers and their families.

EDI in the context of staff and Board composition was also considered in 2022, and to this end recruitment campaigns for both new Directors and staff members were open and widely advertised. EDI issues receive regular review and it remains a standing item on the GC’s agenda.

Since the introduction of a hybrid working policy the Executive Team remains working both remotely and from the Trust’s offices in London. Even though Directors believe that retaining the sub-lease within Mountbarrow House represent the most cost-effective option, the existing arrangements are reviewed regularly.

In December 2022 the Board agreed that the Trust would sign up to the Funders Commitment to Climate Change (FCCC), becoming the 100[th] funder to do so. The FCCC recognises that charitable trusts and foundations, such as Forces in Mind Trust, have a crucial role to fulfil in the united effort to mitigate and adapt to the impact of climate change. Across our investments, grant making and operations there may be multiple opportunities to contribute to the prevention and mitigation of the climate emergency. The impact potential here is expansive due to our unique and privileged position as an influential funder working within a large network. A policy statement and an action plan are currently being developed, and a member of staff has been appointed as the lead on this.

The Directors have delegated day-to-day running of the Trust to the Chief Executive (Acting), Tom McBarnet.

Appointment of Directors

At the start of the reporting period, the Board had 13 Directors, comprising the Chair (an independent Director), 5 Directors who were nominated by Cobseo, and 7 other independent Directors who ensure a wide range of skills and knowledge, listed previously. Three Directors stood down and four were recruited during this period, including a new Chair. At the start of 2023, the Board held one vacancy (for an independent nominee). Directors continue to aim at a Board size of 12 to 13 (up to 5 Cobseo and 8 independent), consistent with Charity Governance Code best practice, and will use the remaining vacancy when appropriate to develop future members and improve diversity.

18

Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

The Trust recognises and embraces the benefits of having an inclusive organisation that makes good use of differences between Directors, staff and external partners. In this context, FiMT recognises such differences can include gender, race, national and ethnic origin, colour, religion, age, sexual orientation, marital and family status, and physical or mental disabilities, as well as differences in political and other beliefs. The Trust ensures that all individuals are provided with equal opportunities and seeks positively to create opportunities for those groups that may be disadvantaged.

Director induction and training

New Directors (four this year) receive induction briefings from the Board and the Chief Executive in accordance with a continuously reviewed programme. Depending upon a new Director’s experience, access to legal, trust and military expert briefings are also arranged as required. The Trust meets the full costs of such attendances. Departing Directors (three in 2022) conduct ‘exit’ interviews with the Board Chair and Chief Executive.

Current Directors are offered attendance at a range of professional development events throughout the year, for which the Trust will pay. In particular, NCVO, ACEVO, ACF, Legal Adviser and Investment manager programmes are highlighted to Directors in the Trust’s monthly Newsletter.

The Board reviews its own performance and that of individual Directors, including the Chair (please note reference to the DigiBoard self-assessment exercise above). All Directors conduct an annual one-to-one discussion with the Board Chair. The Deputy Chair in turn discusses the Chair’s needs. In addition, Directors are strongly encouraged to attend Committees of which they are not members, including the Mental Health Research Programme Steering Group, and it is expected that all Directors will attend a Programmes Committee meeting at least once during each term of office (3 years maximum).

External evaluation of collective Board performance was not considered necessary this year; the presence of the Protector at all Board meetings provided adequate independent review.

Related parties and relationships with other organisations

The Trust has in place robust procedures for handling conflicts of interest. In particular, Directors and staff with a conflict of interest are not present when discussions are held and funding decisions are made in relation to that interest. The Trust maintains a full register of interests, which is brought to Directors’ attention at every meeting, and is also available on the Trust’s website.

ABF - The Soldiers' Charity

The Chief Executive of ABF - The Soldiers' Charity is also a Director of FIM Trustee Limited. FiMT has a lease with ABF - The Soldiers' Charity for room hire and premises services provided at

19

Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

Mountbarrow House. Rent and service charges in respect of this lease for the year to 31 December 2022 were £ 88,938 (2021: £77,370) and pass-through cost for postal and other services was £7,772 (2021: £7,717). Rent and services remain substantially below market rate and ABF - The Soldiers’ Charity continues to act in the Trust’s interests in its dealings with the Landlord, Grosvenor Estates.

Barclays Bank UK PLC

An employee of Barclays Bank UK PLC is also a Director of FIM Trustee Limited. At the year end, £226 (2021: £226) was paid for banking services to Barclays Bank UK PLC and Barclaycard.

Cobseo

The Executive Chair of Cobseo is also a Director of FIM Trustee Limited. Up to 5 members of the Board of Directors of FIM Trustee Limited are nominated by Cobseo and appointed by FiMT. There was one direct transaction between FiMT and Cobseo during the period. At the year end, £170 (2021: £570) membership fee was paid on behalf of FiMT. During the period, Cobseo’s Housing Cluster was awarded an additional £1,404 grant for the project ‘No Homeless Veterans’, coordinated by the Sir Oswald Stoll Foundation, and an additional £46,946.74 for the project ‘Roadmap to End Veterans Homelessness’, coordinated by Riverside; both are described under Note 5 to the Financial Statements. Payments to Chairman of Cobseo were exclusively for personal expenses associated with his role as a Director of FIM Trustee Limited, and are included within Note 7 to the financial statements.

King’s College London - King’s Centre for Military Health Research

An Honorary Professor of King’s Centre for Military Health Research (KCMHR), which is a part of King’s College London (KCL), is also a Director of FIM Trustee Limited. During the period, FiMT awarded five research contracts totalling £881,555 (2021: £250,000) to King’s College London, as described under Note 5 to the Financial Statements. During the year the consortium Rand Europe/Kings College London was also awarded a grant to run the FiMT Research Centre (£2.5 million) until 2027, and King’s College London was a partner in another project awarded to Rand Europe £149,900).

RAND Europe

The President (Chief Executive) of RAND Europe was also a Director of FIM Trustee Limited until December 2022. One award of £149,900 (2021: £221,483) was granted to Rand Europe. An additional grant (£4,398) was also awarded to the collaboration Shared Intelligence/RAND Europe/Meri Mayhew Consulting, as described under Note 5 to the Financial Statements. During the year the consortium Rand Europe/Kings College London was also awarded a grant to run the FiMT Research Centre (£2.5 million) until 2027.

20

Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

The Poppy Factory

The former Chief Executive of the Poppy Factory is also a Director of FIM Trustee Limited. No awards were granted to The Poppy Factory during the period, but it is a current FiMT grant holder.

Remuneration policy for key management personnel

In March 2016 (formally reviewed during 2021), the Board adopted a formal remuneration policy based upon an incremental salary scale, benchmarked annually using a leading market provider (currently Croner Reward) to cover cost-of-living and market comparators. The Governance Committee recommends to the Board the appropriate award for the forthcoming tax year. In March 2022, the Board accepted the Governance Committee’s recommendations, all of which met the Policy requirements.

In addition to the annual salary review, the Trust also considers other employee benefits, where it is guided by sector comparators. All staff receive death-in-service insurance, and can take advantage of a cycle-to-work scheme and season ticket loan. The annual health screening once again took place in 2022; in addition, all employees still have access to an employee assistance programme and confidential employee hotline. Annual leave at 30 days (plus bank holidays) is above sector average, and the Trust offers flexible working and ‘time off in lieu’. The Board uses all these factors to encourage retention, which remains high.

Forces in Mind Trust does not undertake any fundraising activities, either directly or using an agency. As such, we do not currently subscribe to a fundraising code or regulation. We are not aware of any failures, during the year ended 31 December 2022 (2021 : none), by the charity of any person acting on its behalf, to comply with our fundraising standards, nor did we receive any complaints about fundraising activity.

Our staff have been provided with training on how to protect vulnerable people and other members of the public from behaviour which is an unreasonable intrusion on a person’s privacy; or which is unreasonably persistent and places undue pressure on a person to give money or other property.

21

Forces in Mind Trust

Directors’ annual report

For the year ended 31 December 2022

Statement of responsibilities of the Directors

The Directors are responsible for preparing the Directors’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors’ report has been approved by the Directors on 13 June 2023 and signed on their behalf by:

J N Macleod Chair of the Board

T F McBarnet Chief Executive

22

Forces in Mind Trust

Protector’s report

For the year ended 31 December 2022

Report of the Protector for the year ended 31 December 2022

Background

I was appointed by the National Lottery Community Fund (the 'Fund'), after an open recruitment process, as the Protector of the Forces in Mind Trust ('FIMT' or the 'Trust') in December 2021 for a 5 year term, succeeding Simon Martin who had served in this post for the preceding 10 years.

The Trust Deed dated 28 November 2011 which established FiMT requires the Protector to prepare a statement for publication by FiMT's corporate Trustee (FIM Trustee Limited) in its annual report, explaining the Protector’s function, how the function has been exercised and, if appropriate, identifying any areas of administration which require improvement and steps to be taken by the Trustee to effect such improvement. This report covers my period in office up to 31 December 2022.

Protector’s Function

The functions of the Protector are to ensure that the Trustee administers the Trust properly and to protect the Trust property. The principal objects of the Trust are set out elsewhere in this document. The Trust property consists of a portfolio of investments and cash derived from an original settlement on the Trust by the Fund of £35 million. If necessary, the Protector must report matters of serious concern to the Fund or to the Charity Commission. The Protector therefore has a “watch-dog” role and must monitor the Trustee and prevent it from abusing its powers or breaching its duties. More positively, the Protector must seek to ensure, as far as possible, that the Trust is administered in accordance with the terms of the Trust Deed and give or withhold consent or approval to the exercise of certain powers by the Trustee.

How I have discharged the Protector’s function

I attended four board meetings held during the period 1 December 2021– 31 December 2022. I also joined the Board strategy away day which took place in February 2022. In addition, I had several meetings with, and spoke to, the Chair, other trustees and the Chief Executive of the Trust, as required, during the period under review.

I also commented on various aspects of the governance and operation of the Trust during the period. I was not requested to consider or approve any changes to the constitution of the Trust.

Governance and Management of the Trust

I am satisfied that the Trust was administered in accordance with the terms of the Trust Deed in the period from December 2021- December 2022.

During this period there were various changes of director on the board of the Trustee:

23

Forces in Mind Trust

Protector’s report

For the year ended 31 December 2022

explore other opportunities and the other, the Chair, at the end of his term; they were replaced by new appointees who were identified in open recruitment processes.

I am satisfied that there were no factors relating to these resignations that have an impact on the operation or governance of the Trust, and that the selection processes were aimed at recruiting suitably skilled directors for the board.

There are currently 13 trustees in post, 5 of whom were nominated by Cobseo. This ratio preserves an appropriate balance between the independent and Cobseo nominated directors, whilst ensuring that the Trust benefits from the knowledge and sector expertise of those associated with Cobseo and its member charities.

Covid lockdown and social distancing restrictions having been relaxed by the time I took up my post, I am pleased to be able to report that, although two Governance Committee meetings were held online, and one board meeting had to be held online because of train strikes, most full board and committee meetings during the period were attended in person. This enables a better quality of constructive debate and challenge, as well as building better board cohesion.

From what I have seen, there appears to be a proper division between the strategy setting, oversight and monitoring role of the board and the day-to-day responsibilities of the executive team. There was also an appropriate delegation of authority and workload from the full Board to the three functioning committees of the Board - the Finance and Investment Committee, the Programmes Committee and the Governance Committee – all of which meet regularly. Reports from each of the Committees are presented at each Board meeting.

The Executive Team

As noted in the Trustee's report, the Trust's CEO, Mike Ellicock, who had been appointed in December 2020 and taken over full leadership 6 months later (on the retirement of the first CEO, Ray Lock), decided to leave the Trust during 2022 to pursue new professional challenges; he was replaced in June 2022 by Tom McBarnet as Acting CEO. As Tom was already an established and respected member of the Trust's Executive, this transition, which might have been disruptive, was smoothly achieved, with continuity of endeavour and support from the other members of the Executive.

Trust Research Centre

My predecessor commented in his report last year on the tender process relating to FiMT Research Centre (formerly based at Anglia Ruskin University) which resulted in a consortium of RAND Europe and the King’s Centre for Military Health Research being selected as preferred bidders, subject to satisfactory negotiation of a research centre grant agreement. Those negotiations took place during the period to which this report relates, resulting in confirmation of the award (as described in the Trustee's report). Two of the directors (including the then Chair) had a conflict of interest, as they were each, respectively, connected with one of the bidders; I am satisfied that correct

24

Forces in Mind Trust

Protector’s report

For the year ended 31 December 2022

processes were followed in decision-making as regards the Research Centre, with the two directors in question having no influence and playing no part in the board's deliberations.

2023 Strategy Review

I note with approval the proposal to hold in February 2023 a review both of the board's own effectiveness and of the Trust’s vision and mission for its remaining 8 years and its strategy for the next 2-3 years. This is timely, given the recent changes in board and executive leadership and given where the Trust is in its anticipated lifecycle. I look forward to continuing to work with the Trust through 2023 as it seeks to achieve its purposes, translating strategy into impact most effectively.

Alison Paines Protector – Forces in Mind Trust (December 2021 – 31 December 2022) February 2023

25

Independent auditor’s report

To the trustee of

Forces in Mind Trust

Opinion

We have audited the financial statements of Forces In Mind Trust (the ‘charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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 trustee’s annual report, other than the financial statements and our auditor’s report thereon. The trustee is responsible for the other information contained within the annual report. 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.

26

Independent auditor’s report

To the trustee of

Forces in Mind Trust

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the Trustee

As explained more fully in the trustee’s responsibilities statement, the trustee is 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 trustee determines 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 trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

27

Independent auditor’s report

To the trustee of

Forces in Mind Trust

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: We gained an understanding of the legal and regulatory framework applicable to the Charity and the sector in which it operates and considered the risk of the Charity not complying with the relevant laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements, including financial reporting, and tax legislation. In relation to the operations of the Charity this included compliance with the Charities Act 2011 and SORP 2019.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified.

These included the following:

To address the risk of management override of controls, we reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness. We also assessed management bias in relation to the accounting policies adopted and in determining significant accounting estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-auditof-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for.This description forms part of our auditor’s report.

28

Independent auditor’s report

To the trustee of

Forces in Mind Trust

Use of our report

This report is made solely to the charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Price Bailey LLP Chartered Accountants

Statutory Auditors 24 Old Bond Street

London W1S 4AP Date

Price Bailey LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

29

Forces in Mind Trust

Statement of financial activities

For the year ended 31 December 2022

For theyear ended 31 December 2022 For theyear ended 31 December 2022
Endowment
Note
£
Income from:
3
299,694
299,694
-
-
-
-
-
4
-
299,694
12
(2,607,896)
6
(2,308,202)
17
(5,412,520)
(7,720,722)
Reconciliation of funds:
23,097,511
17
15,376,789
Total funds brought forward
Total funds carried forward
Transfers between funds
Net movement in funds
Raising funds
Net income / (expenditure)
Total expenditure
Charitable activities
Knowledge and Evidence
Net gains on investments
Net income / (expenditure) before net gains on
investments
Influence and Convening
Capacity Building
Collaboration and Leadership
Investments
Total income
Expenditure on:		 Unrestricted
£
-		 2022
Total
£
299,694		 2021
Total
£
364,559
299,694 - 299,694 364,559
-
-
-
-
-		 122,510
5,115,336
(26,031)
100,841
99,864		 122,510
5,115,336
(26,031)
100,841
99,864		 133,277
1,647,635
403,008
397,186
166,409
- 5,412,520 5,412,520 2,747,515
299,694
(2,607,896)		 (5,412,520)
-		 (5,112,826)
(2,607,896)		 (2,382,956)
1,803,785
(2,308,202)
(5,412,520)		 (5,412,520)
5,412,520		 (7,720,722)
-		 (579,171)
-
(7,720,722)
23,097,511		 -
-		 (7,720,722)
23,097,511		 (579,171)
23,676,681
15,376,789 - 15,376,789 23,097,511

The negative balances showing for collaboration and leadsership have arisen as a result of funds awarded in previous years having been returned to us in the year to 31 December 2022.

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 17 to the financial statements.

30

Forces in Mind Trust

Balance sheet

As at December 2022

As at December 2022
Note
Fixed assets:
11
12
Current assets:
13
Liabilities:
14
15
16
Unrestricted general funds
17
Total charity funds
Total assets less current liabilities
The funds of the charity:
Total net assets
Creditors: amounts falling due within one year
Net current liabilities
Creditors: amounts falling due after one year
Investments
Cash at bank and in hand
Tangible assets
Debtors
Endowment funds		 £
21,837
740,424		 2022
£
-
19,674,702		 21,795
935,746		 2021
£
-
26,032,467
19,674,702
(1,718,332)		 26,032,467
(1,912,196)
762,261
(2,480,593)		 957,541
(2,869,737)
17,956,370
(2,579,581)		 24,120,271
(1,022,760)
15,376,789 23,097,511
15,376,789
-		 23,097,511
-
15,376,789 23,097,511

Approved by the trustee on 13 June 2023 and signed on their behalf by

J M Macleod T F McBarnet Chairman of the Board Chief Executive

31

Forces in Mind Trust

Statement of cash flows

For the year ended 31 December 2022

Forthe yearended 31 December 2022
Note
Net expenditure for the reporting period
(as per the statement of financial activities)
Dividends, interest and rent from investments
3
(Gains)/losses on investments
(Increase) in debtors
(Decrease)/increase in creditors
Cash movement within investment portfolio
Proceeds from sale of investments
Purchase of investments
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net cash provided by investing activities
Net cash (used in) operating activities
Cash flows from investing activities:
Dividends and interest from investments
Depreciation of fixed assets		 £
£
(7,720,722)
(299,694)
2,607,896
(42)
1,167,677
(4,244,885)
299,694
-
4,766,825
(4,351,763)
3,334,807
4,049,563
(195,322)
935,746
740,424
2022		 £
£
(579,170)
(364,559)
(1,803,785)
(3)
(1,189,567)
(3,937,084)
364,559
1,440
10,212,294
(4,688,949)
(1,493,562)
4,395,782
458,698
477,048
935,746
2021
299,694
-
4,766,825
(4,351,763)
3,334,807		 364,559
1,440
10,212,294
(4,688,949)
(1,493,562)
740,424 935,746

32

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

1 Accounting policies

a) Statutory information

Forces in Mind Trust is an unincorporated charity, registered with the Charity Commission in England and Wales.

The registered office address is Mountbarrow House, 6-20 Elizabeth Street, London, SW1W 9RB.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements are prepared in pounds sterling and are rounded to the nearest pound.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going Key judgements that the charity has made which have a significant effect on the accounts include estimating the liability from multi-year grant commitments.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

f) Interest and dividends receivable

Interest on funds held on deposit and dividends are included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

33

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

g) Fund accounting

The expendable endowment fund provided by the Big Lottery Fund will be used over a 20 year period to support the charitable activities of the Trust. In accordance with the Trust Deed, the whole of the Trust Fund and Income will have been applied in furtherance of the charitable objectives by 28 November 2031. Transfers are made from the endowment fund to cover expenditure incurred during the year by the Trust

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

h) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Knowledge and Evidence 41.0%
Collaboration and Leadership 10.0%
Influence and Convening 10.0%
Capacity Building 4.0%
Cost of raising funds 10.0%
Governance costs 25.0%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with the constitutional and statutory requirements and include any costs associated with the strategic management of the charity's activities.

34

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

Grants payable are charged to the Statement of Financial Activities in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Multi-year grants are fully accounted for in the year the grant is approved. Payments falling due in later years are provided for as a liability on the balance sheet. This reflects the Trust's experience that only in exceptional circumstance are approved grants subsquently not paid.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £5,000, including VAT. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. Software is assumed to have a useful economic life of five years and depreciated on that basis on a straight line basis. Assets not yet in use but which are expected to be utilised in future at held at cost until they are brought into use.

m) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

35

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

1 Accounting policies (continued)

n) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

r) Pensions

The charity makes payments to defined contribution pension schemes on behalf of employees. The assets of the schemes are held separately from those of the charitable company in independently administered funds. The pension cost charge represents contributions payable to the funds during the year. The charity has no liability under the schemes other than the payment of those contributions.

36

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

Detailed comparatives for the statements of financial activities
Income from investments
Bank interest
Income from investments
Transfers between funds
Total funds brought forward
Investments
Total income
Income from:
Charitable activities
Total expenditure
Net income / expenditure before gains on investments
Net gains on investments
Net income / expenditure
Expenditure on:
Raising funds
Net movement in funds
Total funds carried forward		 Endowment
£
364,559		 Unrestricted
£
-		 2021
Total
£
364,559
364,559 - 364,559
-
-		 133,276
2,614,239		 133,276
2,614,239
- 2,747,514 2,747,514
364,559
1,803,785		 (2,747,514)
-		 (2,382,955)
1,803,785
2,168,344
(2,747,514)		 (2,747,514)
2,747,514		 (579,170)
-
(579,170)
23,676,681		 -
-		 (579,170)
23,676,681
23,097,511 - 23,097,511
2022
Total
£
299,353
341		 2021
Total
£
364,489
70
299,694 364,559

All income from investments is allocated to endowment funds.

37

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

Forthe yearended 31 December 2022
4a
Staff costs (Note 7)
Recruitment costs
Travel and subsistence
Grants payable (Note 5)
Investment manager's fees
Advisors' fees and expenses
Auditors' remuneration
Premises costs
Legal and professional fees
Marketing and communications
Directors' expenses
Office costs
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021
Analysis of expenditure (current year)		 Cost of raising
funds
£
48,050
18,539		 Charitable activities Governance
costs
£
142,148
2,039
15,600
10,010
3,348
2,188		 Support
costs
£
102,774
26,713
88,938
48
31,550		 2022
Total
£
667,362
26,713
18,295
4,433,235
18,539
15,600
10,010
88,938
96,694
3,348
2,236
31,550		 2021
Total
£
663,884
10,299
16,905
1,805,818
31,720
15,000
8,760
77,722
68,949
-
772
47,686
Knowledge and
Evidence
£
362,027
15,719
4,286,852
93,501		 Collaboration
and Leadership
£
(1,842)
(80)
(21,815)
(476)		 Influence and
Convening
£
7,137
310
84,508
1,844		 Capacity
Building
£
7,068
307
83,690
1,825
66,589
25,002
30,919		 4,758,099
157,149
200,088		 (24,213)
(800)
(1,018)		 93,799
3,098
3,944		 92,890
3,068
3,906		 175,333
62,506
(237,839)		 250,023
(250,023)
-		 5,412,520
-
-		 2,747,515
-
-
122,510 5,115,336 (26,031) 100,841 99,864 - - 5,412,520 2,747,515
133,276 1,647,636 403,008 397,186 166,409 - -

The negative balances showing for collaboration and leadsership have arisen as a result of funds awarded in previous years having been returned to us in the year to 31 December 2022.

38

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

For theyear ended 31 December 2022
4b
Staff costs (Note 7)
Recruitment costs
Travel and subsistence
Grants payable (Note 5)
Investment manager's fees
Advisors' fees and expenses
Auditors' remuneration
Premises costs
Legal and professional fees
Directors' expenses
Office costs
Support costs
Governance costs
Total expenditure 2021
Analysis of expenditure (prior year)		 Cost of raising
funds
£
47,800
-
-
-
31,720
-
-
-
-
-
-		 Charitable activities Governance
costs
£
141,407
-
5,045
-
-
15,000
8,760
-
-
772
-		 Support
costs
£
102,238
10,299
-
-
-
-
-
77,722
-
-
47,686		 2021
Total
£
663,884
10,299
16,905
1,805,818
31,720
15,000
8,760
77,722
68,949
772
47,686
Knowledge and
Evidence
£
234,731
-
7,475
1,138,125
-
-
-
-
43,455
-
-		 Collaboration
and Leadership
£
57,415
-
1,828
278,383
-
-
-
-
10,629
-
-		 Influence and
Convening
56,585
-
1,802
274,361
-
-
-
-
10,476
-
-
343,224
23,498
30,464
397,186		 Capacity
Building
£
23,708
-
755
114,949
-
-
-
-
4,389
-
-
79,520
23,795
29,961		 1,423,786
97,478
126,372		 348,255
23,843
30,910		 143,801
9,845
12,763		 170,984
59,486
(230,470)		 237,945
(237,945)
-		 2,747,515
-
-
133,276 1,647,636 403,008 166,409 - - 2,747,515

39

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

Grant making
Charitable Activity
Capacity Building
Capacity Building
Collaboration and Leadership
Collaboration and Leadership
Collaboration and Leadership
Collaboration and Leadership
Knowledge and Evidence
Influence and Convening
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Sub-total carried forward
Veterans Work: The Podcasts. Deloitte. CE Award
Total creditors at the end of the year
Costs related to monitoring and evaluation of grants awarded
Grants paid
Creditors at the start of the year
Pioneer Programme – MDMA-Assisted Psychotherapy Research for
treatment-resistant PTSD. Supporting Wounded Veterans and King’s
College London
Developing Peer Support for Families of Veterans with Substance
Use Problems. University of York
Contact Group Operational Resources Years 2022-2024.
Windsor Leadership Programmes, Windsor Leadership Trust
Creditors due in over one year (Note 15)
Triggers of help seeking for alcohol problems in ex-serving
personnel: the roles of recognition and mental health comorbidity.
University of Liverpool
Soldiering On Awards 2021. X Forces. CE Award
Changing our Approach to Veterans’ Employment through Trade
Associations and Membership Bodies. X-Forces
Chamber Military Network. Black Country Chambers of Commerce
Non-UK Personnel, Veterans and Families. Anglia Ruskin University
Non-UK Personnel, Veterans and Families. Anglia Ruskin University.
Additional Award
Understanding the impact of serving within the UK Armed Forces for
the Indian and West Indian veteran populations. University of
Chester
Armed Forces Charities Expanding Knowledge and Evidence, 2021-
2023. Directory of Social Change
Mental health and its relationship with unemployment and
disability benefits among UK veterans. King's Centre for Military
Health Research
No Homeless Veterans. Stoll on behalf of the Cobseo Housing
Cluster
RCT of modular motion-assisted memory desensitisation &
reconsolidation (3MDR) for treatment resistant PTSD. Cardiff
University
Grants awarded in the year:
Total creditors at the end of the year
Grants awarded in the year (Note 4 and detailed below)
Creditors due within one year (Note 14)
Ex-Service personnel in the Criminal Justice System in England,
Wales and Scotland. Nacro in partnership with the Institute of Public
Safety, Crime and Justice (IPSCJ) and the Institute for Social
Innovation and Impact (ISII) at the University of Northampton
Our Community, Our Covenant 3: Examining the impact of the
Armed Forces Covenant. Shared Intelligence in partnership with
RAND Europe and Meri Mayhew		 2022
£
3,850,361
4,348,727
84,508
(3,289,246)		 2021
£
5,000,134
1,660,514
145,304
(2,955,591)
4,994,350 3,850,361
2,414,769
2,579,581		 2,827,601
1,022,760
4,994,350 3,850,361
2022
£
1,404
149,900
56,338
4,398
38,368		 2021
£
91,955
22,994
25,000
18,000
42,383
193,000
(7,569)
129,057
145,997
271,191
244,106
221,484
4,000
162,894
250,000
(2,032)
(962)
(23,645)
250,408 1,787,853

40

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

Forthe yearended 31 December 2022
5
Charitable Activity
Sub-total brought forward
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Influence and Convening
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Capacity Building
Knowledge and Evidence
Knowledge and Evidence
Knowledge and Evidence
Collaboration and Leadership
Collaboration and Leadership
Sub-total - grant awards
Total costs of grant making
Grant making (continued)
Mental Health and Treatment Needs of UK ex-Serving personnel.
King's Centre for Military Health Research
Understanding the psychosocial determinants of psychological
health and wellbeing for veteran families in the UK. Queen’s
University Belfast.
Influences on alcohol consumption among partners of UK military
personnel/veterans, King’s College London
Grants awarded in the year:
The Poppy Factory IPS Pilot for Wounded, Injured and Sick Veterans.
The Poppy Factory
Other costs related to grants awarded
Knowledge and Evidence
University of Sunderland
Clore Social Leadership
A Roadmap to ensure achievement of No Homeless Veterans. The
Riverside Group Limited on behalf of the Cobseo Housing Cluster
Exploring veterans physical and mental health needs: the use of the
Clinical Practice Research Datalink, King’s College London
A Comparative Study: Common Mental Health Disorders in the
Veteran & Non-Veteran Populations. Chester Uni
Examining and mapping the support needs of female veterans in
the UK. King's College London
Exploring Suicidality in Northern Ireland's Veterans. Queen's
University Belfast
FiMT Research Centre
Improving life skills in the UK Armed Forces. QinetiQ
Mental health and wellbeing of UK Gurkha veterans. King's College
London
The Experiences and Support Needs of Veterans Living with
Dementia in their Own Homes. University of Manchester
Understanding The Patterns Of Serious Offending Among ex-
Service Personnel. Probation Institute. Additional Award.
Phase 2 Feasibility Pilot RCT for Restore & Rebuild (R&R): A
Psychological Treatment for Moral Injury. King's*
Pride in Veterans Standard (PiVS) - Early Intervention for LGBT+
Veterans. Fighting with Pride
SCiP Alliance Funders’ Forum – Support for service children a
proposed scoping report. Directory of Social Change
Household Survey 2021. The Royal British Legion.		 2022
£
250,408
28,761
46,947
110,987
220,066
130,659
164,050
2,500,000
174,127
96,755
152,058
261,941
83,690
49,762
102,561
2,116
(2,941)
(23,645)		 2021
£
1,787,853
(21,000)
(6,339)
(100,000)
-
4,348,302
84,933		 1,660,514
145,304
4,433,235 1,805,818

41

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

Net income/(expenditure) for the year
2022 2021
This is stated after charging / crediting: £ £
Depreciation - 1,440
Auditor's remuneration (excluding VAT):

Audit		 9,250 7,650
Advisor's fees and expenses (Protector) 15,600 15,000
Operating lease rentals

Property		 19,799 77,722
Staff costs were as follows:
Death in Service benefit
Other Staff costs
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2022
£
565,626
58,369
37,261
2,696
3,410		 2021
£
567,344
57,912
30,986
4,723
2,919
667,362 663,884

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2022 2021
No. No.
£70,000 - £79,999 - 1
£90,000 - £99,999 1 2

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £140,832 (2021: £122,783).

The charity directors were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No charity director received payment for professional or other services supplied to the charity (2021: £nil).

Directors' expenses represents the payment or reimbursement of travel and subsistence costs totalling £2,236 (2021: £772) incurred by 3 (2021: 3) members relating to attendance at meetings of the directors.

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

The average number of employees (head count based on number of staff employed) during the year was as follows:
Governance
Raising funds - investment management
Capacity Building
Influence and Convening
Collaboration and Leadership
Knowledge and Evidence		 2022
No.
0.9
2.5
6.3
-
0.1
-		 2021
No.
1.0
2.7
4.4
1.0
1.0
0.4
9.8 10.5

42

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

9 Related party transactions

The value of the related party transactions is £3,679.61k (2021: £742.65k). Full details of this figure is given on pages 19-20 of the Directors' Annual Report.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11 Tangible fixed assets

Tangible fixed assets
At the start of the year
At the start of the year
At the end of the year
At the start of the year
At the end of the year
Net book value
At the end of the year
Cost
Depreciation
Charge for the year
Additions in year		 Software
£
14,400
-		 Total
£
14,400
-
14,400 14,400
14,400
-		 14,400
-
14,400 14,400
- -
- -

The above asset relates to a CRM system that was purchased in 2014. This was brought into use in July 2016 and was depreciated over 5 years. It is used solely for charitable purposes.

43

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

Forthe yearended 31 December 2022
12
Investments comprise:
Equities
13
Prepayments
Fair value at the end of the year
Non UK Shares listed on the London Stock Exchange
Alternative Assets
Hedge Funds
Cash held by investment broker pending reinvestment
Debtors
Cycle to work scheme and season ticket loans
Fixed Interest Bonds
UK Shares listed on the London Stock Exchange
Property Funds & Trusts
Disposal proceeds
Listed investments
Fair value at the start of the year
Additions at cost
Net gains on change in fair value
Liquid Funds		 2022
£
20,006,030
4,351,763
(4,766,825)
(2,607,896)		 2021
£
23,725,590
4,688,949
(10,212,294)
1,803,785
16,983,072
2,691,630		 20,006,030
6,026,437
19,674,702 26,032,467
2022
£
3,539,017
9,302,889
921,273
1,497,852
4,413,671		 2021
£
2,862,269
1,603,888
11,224,910
431,876
1,106,960
1,895,142
6,907,422
19,674,702 26,032,467
2022
£
21,837		 2021
£
21,662
133
21,837 21,795

With the exception of listed investments, all of the charity’s financial instruments, both assets and liabilities, are measured at amortised cost. The carrying values of these are shown above and also in note 14 and 15 below.

Creditors: amounts falling due within one year
Grants payable (Note 5)
Other creditors
Trade creditors
Taxation and social security
Accruals		 2022
£
20,940
15,801
24,000
2,414,769
5,083		 2021
£
9,541
19,318
7,570
2,827,601
5,707
2,480,593 2,869,737

44

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

15 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
Grants are paid in line with agreed timetables and are payable:
In less than one year
Between one and five years
Grants payable (Note 5)		 2022
£
2,579,581		 2021
£
1,022,760
2,414,769
2,579,581		 2,827,601
1,022,760
4,994,350 3,850,361

16a Analysis of net assets between funds (current year)

Long term liabilities
Investments
Net current liabilities
Net assets at the end of the year
Tangible fixed assets		 Endowment
funds
£
-
19,674,702
(1,718,332)
(2,579,581)		 General funds
£
-
-
-
-		 Total funds
£
-
19,674,702
(1,718,332)
(2,579,581)
15,376,789 - 15,376,789

16b Analysis of net assets between funds (prior year)

Analysis of net assets between funds (prior year)
Endowment
funds General funds Total funds
£ £ £
Tangible fixed assets - - -
Investments 26,032,467 - 26,032,467
Net current liabilities (1,912,196) - (1,912,196)
Long term liabilities (1,022,760) - (1,022,760)
Net assets at the end of the year 23,097,511 - 23,097,511

45

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

17a Movements in funds (current year)

Total endowment funds
General funds
Endowment funds
Unrestricted funds:
Total funds
Total unrestricted funds		 At 1 January
2022
£
23,097,511		 Income &
gains
£
(2,308,202)		 Expenditure
& losses
£
-		 Transfers
£
(5,412,520)		 At 31
December
2022
£
15,376,789
23,097,511 (2,308,202) - (5,412,520) 15,376,789
- - (5,412,520) 5,412,520 -
- - (5,412,520) 5,412,520 -
23,097,511 (2,308,202) (5,412,520) - 15,376,789

17b Movements in funds (prior year)

Total endowment funds
General funds
Endowment funds
Total funds
Unrestricted funds:
Total unrestricted funds		 At 1 January
2021
£
23,676,681		 Income &
gains
£
2,168,344		 Expenditure
& losses
£
-		 Transfers
£
(2,747,514)		 At 31
December
2021
£
23,097,511
23,676,681 2,168,344 - (2,747,514) 23,097,511
- - (2,747,514) 2,747,514 -
- - (2,747,514) 2,747,514 -
23,676,681 2,168,344 (2,747,514) - 23,097,511

Purposes of endowment funds

The expendable endowment fund provided by the Big Lottery Fund will be used over a 20 year period to support the charitable activities of the Trust. In accordance with the Trust Deed, the whole of the Trust Fund and Income will have been applied in furtherance of the charitable objects by 28 November 2031.

46

Forces in Mind Trust

Notes to the financial statements

For the year ended 31 December 2022

18 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

periods
Less than one year 2022
2021
£
£
13,070
7,721
13,070
7,721
Property
13,070 7,721

19 Corporate Trustee

Forces in Mind Trust is managed by a sole corporate trustee which is FIM Trustee Limited, registered company no. 07855145. Forces in Mind Trust is used to disburse funds for charitable purposes or activties. All activities take place within the Trust and are directed by the Trustee, FIM Trustee Limited.

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