Army Rugby Union Trust Annual Report and Financial Statements For the year ended 31 August 2023
Army Rugby Union Trust Legal and administrative information Trustaes Maj Gen JMI Bennett CBE Brig JP Cook OBE Maj M Wilding Mr D McDermid Mr A Leach Mr J Eyre Ms A Teasdale MrB WEFacer Andrew Geary Giles Malec Mr Wayne Burnard MBE Maj G E Stonebridge-smith MBE Chairman (Resigned 31105123) Chairman (New role 011061231 Director of Community Rugby Dirertor of Finance (Non-Trustee) Non-Executive Director of Narketing (Reslgned 31105123) Operations Manager ( Non-Tru5teè) Non-Executive Director of Community Rugby Nor¢-Executive Director of Commerce (Resigned 10102123) Director of Representative Rugby (Appointed 01109120221 Dlrertor of Marketing (Appointed 0110912022) Dirertor of Rugby Developrnent (Resigned 10102120231 Director of Rugby Development (Appointed 01106120231 Charlty number 1149105 Company number 08167993 Registered Mackenzie Building office FDX Lines Queens Avenue Aldershot Hampshire GUII 2LB Audltor DJH Audit Limite The Glades Festival Way Festival Park Stoke on Trent staffordshire STI 55Q
Army Rugby Union Trust Contents Page Trustee5' report Inéependent auditor's report statement of financial activities Statement of financial position io ststement of cash flows li Notes to the financlal statements 12-26
Army Rugby Union Trust Trustees, report (including directors, report and strategic report) For the year ended 31 August 2023 The trustees present thelr annual report and financial statements for the year ended 31 August 2023. The financlal statements have been prepared In accordance with the accountlng policies set out in note I to the financial statements and comply with the trust's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charitie5 preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective l January 2019). Objectives and actlvities The airn of the ARU is to promote and foster the game of Rugby Unlon In the Army and its civilian and military communities in accordance with the Law5 of the Game promulgated by World Rugby rules, regulations and byelaws issued by the Rugby Football Union (RFU). Nothing in this constltution shall authorise an appllcation of the property of the Charlty for the purpose5 which are llot charitable in accordar)ce with section 7 of the Charities and Trustee Investment {Scotland) Act 2D05 ènd section 2 of the Charities Act (Northern Irelandl 2008. To meet the airn the ARU shall pursue the following objectives.. General - Provide an infrastructure for Army Rugby such that no potential participant is denied the opportunity to playi coach or refewe at the highest level possible. Governance - The ARU NanagemeNt Board that is voted Into office by its members annually at the Annual Genera1 Meeting shall conduct the affairs of the Union in a financially and responsible way, so that It remains cornpliant with the Charity Cornmi5sion and Companies House laws and as detailed in the paragraphs below. Representative Rugby Select and maintain at Senior, Women's, Development Academy and Master's levels Fifteen and Sevens team, as appropriate and agreed, to represent the Army. To provide a standard of rugby that will develop and promote those with talent for higher honours. In addition, the ARU shall seek to support the vvork of the UKAF Rugby Football Club Committee. Community Rugby Organise 4nd run annuallyi for Army clubs in the UK, the ARU Premiershi and Championship leagues to provide a competitive element throughout the season irrespective of the ability of the participants; the rules of these competitions are reviewed and published annually on the appropriète page of the ARU web Site. Ln addition the ARU may approve or organise Other competitions which support the aim of the ARU, Includlng.. The Inter Corps League Tables, The Army Inter Corps Fifteens Champion5hipi and The Army Sevens Tournament. Coachlng Maintain a formal coaching structure to improve and thereafter sustain the standards throughout the Army and to provide a Structure for the advancement of coaches. Referees Maintain the Army Rugby Union Referees Society (ARURSI to improve and sustain the standards of refereeing in the Army. To facilltate the trainingi development and advancement of referees and to the appmpriote links with the UKAF Rugby Referee5 and other referee's societie5. Finance Maintain a sound financial base, thereby providing the best service to Rugby Union in the Army, within budget, and in accordance with the priorities agreed by the Management Board. Marketing and Engagement Market the AKU as a positive contributor to the 'lived experience, and the opportunities available to Army sports personnel who seek to cornpete and succeed at the highest level they can. Where we can, offer ARU representative fixtures to be used as Engagement Events to support the Army's INFORM and AThRACT. Relations with the RFU Malntèin a dose and binding relationship with the RFU, taking all appropriate measures to promote Army Rugby at national and international levels, and seeking opportunities to support the RFU'S community rugby initiative.
Army Rugby Union Trust Trustees. report (including directors. report and strategic report) (continued) For the year ended 31 August 2023 Injury and Safery Promote standard5 of ploy and discipllne such that all players and officials are placed at the least posslble risk, whilst ensuring that all participating teams are fully insured via the RFU insurance scheme. Reviews The Objectives of the ARU are reviewed by the Management Board, as required, and by the Council annually. If agreed, any recommended changes are to be announced at the Annual General Meeting. Agreed objectives baseé on paragraphs 3 and 4 above are to be promulgated to members of Union through the Annual Management Plan. Maintaining a diversified leaéer5hip approach the Army Rugby Union Charitable Trust maintains on course to continue the development of the strategic plan for the period 2022 - 2025 which has been modified, at it5 core will see the development of Military community rugby, further enhancing the charity's role and Significance in the local military garrison communitie5. Going forward we will do thls with a clear purpose.. To engage and inspire our rnilltary community through rugby" ConclusiDII The Army Rugby Unlon (ARV) trustees has considered the three year post Cgvld -19 financial recovery plan and the declining revenue from the Army v Navy ticket sales and considers the company will be able to meet its liabilities as they fall due over the coming 12 month, and hence these financial statements are prepared on a going concem basis. The ARU trustee5 acknowledge that their accounts are in a healthy state of affalrs however they will monitor the impact of éeclining revenue frorri ticket sales and or 5ponsorshlp on the attivltles of the ARU Charitable Trust. Strate9i¢ report The description under the heading5 "Achievements and performance and "Financial review" mÈet the company law reqU1MentS for the trustees to present a strategic report. Achlevements and perf0rn7ance Financial revlew The Trust witnessed an excess of income over expenditure for the year ended 31 August 2023 of £139,890. The Trust has wide powers of investment. The Director of Finance is restricted In the structure of the investment portfolio by policy decisions made from time to time by the Trustees at the quarterly tneetings, The overall investment policy is one of long-term capit61 growth to maintain the purchaslng power of the Trust. The Management Board continue to endorse a revised Reserves Strategy to grow the Trust's Reserves to cover one year's annual net operating Costs. The pollcy complies with SORP. The ARU is controlled and directed by the Management Board which should meet at least four times a year to monitor in year performance, to decide policy. The Managetnent Board endorses the Bnnual allocation of funds ppared by the Director of Finance following internal budget screenings to representative teams, comn)JNIty competitions and other charitable bodies as decided appropriate by the Board. The ARU Trust employs twD pensionable permanent staff the Director of Finance. and the Communications Officer. The full-time Chlef Operating Officer and Assistant Operations Officer are employed by the Army Sports Control Board, but they work dirertly for the ARU Nanagement Board. Rlsks are considered by the Management Board and the key risk5 remain the continuing success of the annual Army v Navy game and a loss of sponsorship. The reserve policy 15 designed to ensure that sufficient reserves are retained to CDver at least one year of operating costs.
Army Rugby Union Trust Trustees, report (including directors, report and strategic report) (continued) For the year ended 31 August 2023 Plon5 for future periods The management board remain focused on promL)ting and governing Rugby Union in the Army through the maintenance of stable Structures for the game that enable its successful development at all levels. This is to be achieved by increased leve15 of funding to the communlty area of the Trust. The management board endorsed pulicy of a balanced budget remain5 extant. structurei governance and management The ARU is a regulatory bodyi which Dn behalf of the President, direrts, controls, administers and promotes the sport of Rugby Football Union within the British Army. These powers are laid down in the constitution of the ARLI which are incorporated in Games and Sports of the Army. The objects of the ARU are reviewed by the Management Board and specific target5 and obJ"ectives are laid down in the Nanagement Plan, which is also comp3tible with the Rugby Football Unlon Management Plan as the governing body for the sport. The aim of the ARU is to promote and foster the game of Rugby Union In the Army and it5 local communities in accordance with the Laws of the Game promulgated by World Rugby and the rule5, regulations and byelaws Issued by the Rugby Football Union IRFU). The ARU Management Board is responsible for managing the affair5 of the Trust, determine policy and has full power over the use, dispositlon, and investment of ARU Funds. It meets at least four times per year nd each Director, as listed below, takes the lea¢ on their respectlve area. The Management Board con51St of the following appointrnents: Chairman Vice Chairman/RFU Council Member Director of Representative Rugby Director of Marketing Dlrector of Community Rvgby Director of Rugby Development Non-Executive Director of Finance Non-Executive Dirertor of Marketing Non-Executive Director of Operations Non-ExecutSve Director of Community Rugby In addition to the ARU Management Board, the ARU Council acts as a forum at which all elements of the game in the Army are represented. Affiliated clubs within the ARU are entitled to vote at the AGM. The by-laws of the ARU can only be added to, amended, or rescinded with the consent of at least two thlrd5 of member5 present at a General Neeting. New appointees, induction training 15 persDnalised to meet the requirement5 of the appointee: wlth the advent of amendments to the Trustees & Charities Acts, many serving personnel will have already receive training/attended courses relating to the Duties of Tnjstees as part of their professional development or have attended Trustee Training relating to other Charitable activitie5. The majority of the ARU officials are serving British Arrny personnEI, with the exception of the ARU secretariat. which is staffed by 4 permanent staff. the ARU Chief Operations Officer and Asslstant Operations Officer funded by the Army Sports Control Board, and the Director of Finance an Communications Officer funded by the charity. The majority of posts within the ARU are advertised on the ARU website invlting volunteers to be considered for Selection. all Management Boaré appointments are re-appointed at the AGM.
Army Rugby Union Trust Trustees. report (including directors. report and strategic report) (continued) For the year ended 31 August 2023 statement of trustees, responsibilities The trustees (who are also directors of Army Rugby Union Trust for the purposes of company law) are responsible for preparing the Tru5lee5' Annual Report {including the sttegiC Report) and the flnancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdorn Generally Accepted Accountlng Practice). Company law requires the tru5tee5 to prepare financial statements for each financial year, which give a trve and fair vtew of the state of affairs of the charitablp company and OF the incomin9 resources and application of resources, including the income and expenditure, of the tharitable company for that period. In preparin9 these financial statements, the trustee5 are required to.. select suitable accounting policies and then apply them tonslstently., observe the methods and principles in the Charities SORP 201S {FRS ID2},' ake judgements and estlmates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed. Subject to any material departures disclosed and explained in the financial statement5- and prepare the fi'nancial stotetnents on the goin9 toncern basis unless it is inappropriate to presume that the charitable cornpany will continue in operation. The rrustees are re5pon5ible for keeping adequaTr accountlng records that dlsclose with aSonable accuracy at any tlme the financial position of the charitable Company and enable thern to ensure that the financial statetnents comply with the Companies Act 2006. They are also responsible for safeguarding the a55et5 of the charitable company and hence for taking reasonable steps for the preventlon and detection or fraud and other irregularities. The trustees are resportslble for the maintenance and integrity of the corporate and flnancial Information included on the charitable companys website. Legislation in the United Kingdom governlng the preparatlDn and dissemination of financlal staternents Tllay differ from lÈgislatlon in other jurisdictions. Public benefit ststement The activities undertaken by the charity further the charlty's purposes for the public beneTIt. The tStee5 have had due regard to the Charity Commission's guidance on publlc benefit. Di5c105ure of informatlon to the auditors We, the directors of the company who held office at the date of approval of these Financial Statements a5 set out above each confirm, so far a5 we are aware, that.. there is no relevant audit information of which the cornpany's audltors are unaware. and we have taken all the step5 that we ought to have taken as dirertors in order to make our5elve5 aware ol any relevant audit information and to establish that the company's audilors are aware or that information. The trustees, report, including thE Strategic report, was approved by the Board of Truslees. IL lo IlbALLr 8rig JP Cook QBE Chalrman Date:
Army Rugby Union Trust Independent auditor's report To the Trustees of Army Rugby Unlon Trust Opinion We have audited the financial statements of Army Rugby Union Trust (the 'trust'l for the year enéed 31 August 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting fvamework that has been applied in their preparation is applicable law ¥nd United Kingdom AccoLJnting Standards, includlng Financial Reporttrng Standard 102 The Financial Reporting standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Prattice). In our opinion, the financial 5tatementS.' give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, for the year rhen ended. have been properly prepared in accordance with United Klngdom Generally Accepted Accovntlng Practice. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our auélt in accordance with International Standards on Audlting IUKI IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the trust in accordance with the ethical requirements that are relevant to Dur audit of the financial statements in the UK, including the FRC'S Ethical Stand6rd, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient an appropriatè to provide a basis for our opinion. Conclusions telatlng to golng concern In auditing the financial statements, we have concluded that the trustees, use of the golng concern basis of accounting in the preparation Df the financial statements Is appropriate. Based on the work we have perfomied, we have not identified any materlal uncertaintie5 relating to events or conditions that, indivldually or collectively, may cast significant doubt on the trust's ability to continue as a going concern for a perlod of at least twelve month5 from when the financial staternent5 are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. other Informatlon The Dther information comprises the information included in the annual report other than the financial statements and our auditor'5 report thereon. The trustee5 are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any fomi of assurance conclusion thereon. Our responsibility 15 to read the other information and, in doing so, consider whether the other Information is materially inconsistent with the financial statement5 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 thi5 gives rise to a material misstatement in the financial statements themselves. If, based on the work we have pèrformed, we conclude that there is a rnaterial misstatement of this other irbformBtion, we are required to report that fact. We have nothing to report in this regard.
Army Rugby Union Trust Independent auditor's report (continued) To the Trustees of Army Rugby Union Trust Matters on which we are required to report by exceptign We have nothing to report in respect of the following rnatter5 in relation to which the Charities (Accounts and Reports) Regulations 2008 require u5 to report to you if, in our opinion.. the informatlon given in the financial Statements 15 inconsistent in any material respett wlth the trustees, report; or sufficient accounting records have Aot been kept. or the financial statements are not in agreement with the accounting records. or we have not recelved all the infomiation and explanations we require for our audit. Responsibilitles of tru5tee5 As explained more fully in the statement of trustee5' responsibilities, the trustees, who are also the directors of the trust for the purpose LTrf company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from materièl mlsstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the trust's ability to continue as a going concem, discloslng, as applicable, matters related to going concern and using the golng concem basls of accounting unless the trustee5 either intend to liquiéate the charitable company or to cease operations, or have no reallstic alternative but to do $0. Audltor's responsibilities for the audlt of the finaTh¢lal statements We have been appointed as auditor under section 144 of the Charities Act 2011 and repert In accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial 5tstements as a whole arè free from materlal misstatement, whether due to fraud or error, and to Issue an auditor's report that Include5 our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK} wi51 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. The extent to which our procedures aw capable of derectlng Irregularitie5, indudlng fraud, is detailed below. Our approach to identifying and assessing the ri5k5 of material misstatement in respert of irregularities, including fraud and non-compliance with laws and regulations, was as follow5.. the engagement partner ensured that thè engagement team collectively had the appropriate competence, capabilities and ski115 to identify or recognise non-compliance with applicable laws and regulation5,' we identified the law5 and regulations applicable to the charity through discussions with trustees and other management, and from our commercièl knowledge and experience of the company- we assessed the extent of compliance with the laws and regulations identified above through making enqulries of management and inspecting legal correspondence. and Sdentified laws and regulations were Communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit
Army Rugby Union Trust Independent auditor's report (continued) To the Trustees of Army Rugby Unlon Trust We assessed the susceptibility of the company's financial statements to material mlsstatement, incluéing obtainlng an understanding of how fraud might occur, by.. making enqulries of management as to where they CL)nsidered there was susceptibility to fraud, their knowleége of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-co¥npllance with laws and regulation5. To address the risk of fraud throLJgh mènaoement bias and override of contro15, we.. performed analytical procedures to identify any unusual or unexpected relationships,. tested journal entries to identify unusual transactions,. and assessed whether judgernents and assumption5 made in determinlng the accounting estimates were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which Sncluded, but were not limited to.. agreeing financial statement disclosure5 to underlying supportlng documentatlon; reading the minutes of meetings of thDse charged with governance; enqLJiring of managernent as to actual and potential litigation and claim5; and reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the charity'5 legal advisors. There are inherent limitations in our audlt procedures described above. The more removed that law5 and regulations are from flnanclal transactigns, the less likely it 15 that we would become aware of non- compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustee5 and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud Can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Flnanclal Reporting Council's website at.. https://www.frc.C*rg.uVauditorgresponsibilitie5. This description forms part of our auditor's report.
Army Rugby Union Trust Independent auditor's report (continued) To the Trustees of Army Rugby Union Trust Use of our report This report is made solely to the charity's trustees, as a bgdy, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work ha5 been undertaken so that we might state to the charity's trustees those matters we are required to State to them in an auditorfs report and for no other purpose. To the fullest extrent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the tharlty's trustees as a bodyi for our audit work, for this report, or for the opinion5 we have formed. Gary Nell Chadwick FCCA (Senior Statutory Audltor) for and oti behalf of DJH Audit Llmited Accountants statutory Auditor The Glades Festival Way Festiva5 Park stoke on Trent Stsffordshire STI 5SQ
Army Rugby Union Trust statement of financial activities includlng income and expenditure account For the year ended 31 August 2023 Unrestricted Restrlcted funds funds 2023 2023 Total Unrestrlcted R•strlcted funds funds 2022 2022 Total 2023 2022 Notes wments Inco nde Donations and sponsorship Charitab5e activities Other trading activities Investments other income 272.882 820,639 3,651 18,575 19,493 272,882 820,639 3,65L 18,575 19,493 224,856 878,838 28,558 2,768 224,856 878,838 18,558 2,768 Totsl Income 1,135,240 1,135,240 1,135,020 1,135.020 en Raising funds 99,537 99,537 100.570 100,570 Charitable activitie5 887,691 6,662 894,353 674,690 2.776 677,466 Total expenditure 987.228 6.662 993,890 775,260 2,776 778,036 Net gains1(Iossesl on investments 15 11,4601 11,4601 13.6931 13,6931 Net movement in funds 146,552 (6,6621 L39,890 356,067 {2,7761 353,291 Fund balances at i September 2022 1,713,881 142,166 1,856,047 1,357.814 144,942 1,502,756 Fund balances at 31 August 2023 1,860,433 135,504 1,995,937 1,713,881 142,166 1,856,047 The Statement of financial activities incluées all gains and losses recognis& in the year. All income and expenditure derive from continuing activities. The statement of financial activities a150 complies with the requirements for an income and expenditure account under the Companies Act 2006.
Army Rugby Union Trust statement of financial position As at 31 August 2023 2023 2022 Note$ Flxed assets Tangible assets Investment5 16 17 295,535 363,990 310.733 358.773 659,525 669,506 Current assets Stocks Debtors Cash at bank and in hand 19 20 iio 1,077 24,106 1,192,000 3,488 1,385,674 1,389,272 1,217,183 Creditor5: amounts falling due within one year 21 152.860) 130,642) Net current assets 1.336.412 1,185,541 Total a55ets less current liabilities 1,995,937 1,856.047 Income funds Restricted funds Unrestricted funds Designated funds General unrestricted fullds 23 135,504 142,166 24 1,150,000 7LO,433 950,000 763,881 1,860,433 1,713,881 1.995,937 1,856,047 The company is entitled to the exemption from the audit requirement contained in sectlon 477 of the CDrnpanies Act 2006, for the year ende¢J 31 August 2023, although an audit has been carried out under section 144 of the Charities Act 2011. The dirertors acknowledge their responsibilities for complyino with the requirements of the Companies Act 2006 with respect to accounting record5 and the preparation of financial statements. These financial statements have been prepared in accordance with the provisions appllcable to companles subject to the small companies regime. statements were approved by the Trvstees on Brig JP Cook OBE Chalrman Company registration number 08167993 io
Army Rugby Union Trust statement of cash flows For the year ended 31 August 2023 2023 2022 Notes Cash flows from operating actlvities Cash generated frDm operatioris 28 181,778 336.486 Lnvesting actlvities Purchase of tangible fixed assets Investment income received 1811 2.768 11,896 Net cash generated from investing actlvltles 11.896 2.687 Net cash used in financing artlvlties Net Increase in cash and cash equivalents 193,674 339,173 Cash and tash equivalents at beginning of year 1,192,000 852,827 Cash and cash equivalents at end of year 1,385,674 1.192,000 li
Army Rugby Union Trust Notes to the financial statements For the year ended 31 August 2023 Accountlng pollcles Charity Informatlon Army Rugby Unbon Trust 15 a company, limited by guarantee In the United Kingdom. In the event of the charity being wound Upi the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the reoistered office is given in the charity information on page l of these financial statements. The nature of the charity's operations and principal activities are described in the Trustee's Report. 1.1 Accuunting conventiot) The financial statements have been prepared in accordance with the trust's [governing documErit], the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I"FRS 102-1 and the Charitles 50RP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial RepDrting Standard applicable in the UK and Republic of Irelané (FRS 102)" leffertive l January 2019)- The trust is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared In sterlings which is the functional cUencY of the trust. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost conventlon, Emodified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The prlncipal accounting pollcies adopted are set out below. 1.2 Going concern At the time of approving the financial statements, the trustee5 have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting In preparing the financlal statements. 1.3 Charitable funds Unrestricted funds are avallable for use at the discretion of the trustees in furthernnce of their charitable objectives. Restricted funds are 5ubjert to Specific conditions by donors as t¢ how they may be used. The purposes and uses of the restricted fLJnds are set out in the notes to the financial statements. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use Df each designated fvnd is set out in the notes to the financial statements. 1.4 Incgmc All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity Is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, an¢J it is probable that the income will be received. For donations to be recognised the charity will have been notified of the arnounts and the settlement date ill writing. If there are conditions attached to the donation and this requires è level of performance before entstlement can be obtained, then incorne is deferred until those conditions are fully met or the fulfilrnent of those conditions 15 Wlthin the control of the charity and it is probable that they will be fulfilled. 12
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 Accounting policies (Continued) Donated faclllties and donated professional services are recognised in income at thelr falr value when their economic benefit is probable, it can be measured reliably. and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be wllling to pay in the open market for such facilities and services. A correspondlng amount is recognisetl in expenditure. Where practicable, gifts in kind donated for distribution to the benefidaries of the charity are included in stock and donations in the financl31 statements upon receipt. If it Is impracticable to assess the fair value at recelpt or if the costs tD undertake such a valuation Outweigh any benefSts, then the fair value is recognised as a component of donations when it 15 distributed, and an equivalent amount recognised as charitable expenditure. Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is prncticable upon receipt it is recognised in stock and 'lncome frDm other trading activities,. Upon sale, the value of the stock is charged against 'lncome from othèr trading activitie5, and the proceeds are CogniSed as 'lncome from other trading activities.. Where it is imprarticable to fair value the items due to the volume of low value items they are not recognised In the financial statements until they are sold. This income is recognised within 'IncoMe from other trading activlties,. Ixed asset gifts in klnd are recogni5ed when receivable and are included at fair value. They are not deferred over the Ilfe of the asset. Income from government and other grants are recognised at fair value when the charity has entitlement after 3ny performance conditions have been met, it is probable that the income will be rèceived, and the arnount can be measured reliably. If entltlement is not met, then these amDunt5 are deferred. Income from charitable activitiès represents income generated from the 'Army vs Navy" match. Investment income is earned through holding assets for investment purposes. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme wbth asonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established. 1.5 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that è transfer of economic benefits will be requireé in settlement, and the amount of the obligation be measured rellablv. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs nd shared costs, including SLJPPOrt costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis con51Stent with the use of resources. Central staff costs are allocated on the basi5 of time spent, and depreclation charge5 are allocated on the portion Df the asset's use, 13
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 Accounting policies {Continued) 1.6 TonySble fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impaiment losses. Depreciation is recognised so as to write off the cost or valuation of a55ets less their resldual values over their useful lives on the following bases.. Leasehold land and buildings Fixtures and fittings Computers 25 years straight line 25Vo Straight line 25Wo Straight line The gain or loss arlsing on the disposal of an asset is determined as the difference between the Sale proceeds and the carrying value of the asset, and is recogni5ed in the statement of financial ctlvlties. The Trustees have reconsidered the useful life of leèsehold land and bulldlngs from 60 years to 25 years. 1.7 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Change5 in fair value are recognised in net income/(expenditurel for the year. Transaction costs are expensed as incurred. 1.8 Impairment of fixed assets At eèch reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there 1s any indication that those assEts have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset 15 estimated in order to determine the extent of the irnpalrment loss lif any). 1.9 Stock5 stocks are stated at the lower of cost and estlmated selling price less costs to complete and sell. Cost comprises dirert materia15 and, where applicable, direct labour costs and those overhèads that have been incurred in bringing the stocks to their present location and condition. Etems held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated cgsts of completion and costs to be incurred in marketingi selling and distributlcln. 1.10 Cash and cash equivalents Cash and cash equivalents include cash In han¢J, deposits held at tall with banks, other short-term liquid investments with originèl maturities of three month5 or less. and bank overdrafts. Bank Dverdrafts are shown within borrowing5 in current liabilities. 14
Army Rugby Union Trust Notes to the flnancial statements (continued) For the year ended 31 August 2023 Accounting policie5 (Continued) 1.11 Financial instruments The trLJSt has elected to apply the provlsions of Section 11 'Basic Financial Instruments. and Section 12 '0ther Financial Instruments 155ues' of FRS 102 to all of its financial instrurnents. Financlal instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument. Financial assets and liabilitie5 are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recogniséé amounts and there is an intention to settle on a net basi5 or to realise the asset and settle the liability simultaneously. Basic financlal assets Basic financial assets, which inclu¢Je debtors and cash and bank balances, are inltially measured at transaction prfce includino transaction costs and are subsequently carried at amortised cost Using the effective interest method unless the arrangement constitute5 a financing transaction, where the trdnsaction is measured at the present value Df the future receipts discounted at a market rate Df interest. Financial assets classified as receivable within one year are not amortised. Baslc financial IlabiliTties Basic financial liabilities, including creditors and bank loans are initia15y recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments di5COUnted at a market rate of interest. Financial liabilitie5 classified as payable within one year are not amort15ed. Debt instruments are subsequently tarrled at amortised cost, using the effectlve interest rate method. Trade creditors are obligations to pay for goods or services that have been acqulred In the ordinary course of operations from suppliers. Amounts payable are classified as current liabilitie5 if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognltion of financial liabllltles Financial liabi5ities are derectsgnised when the trust's contractual obligations expire or are discharged or cancelled. 1.12 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee'5 services are received. Termination benefits are r@cognised immediately as an expense when the trust 15 demonstrably ctsmmitted to terminate the employment of an employee or to provide termination benefits. 1.13 Retirement beneflts Payments to defined contribution retirement benefit schemes are charged as an expense as they fèll due. 15
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 Critical accounting estlmates and judgements In the appllcation of the trust's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and a550ciated assumptions are based on historical experience and other factors that are considered to be relevant. Actual result5 may éiffer from these estimates. The estlmates and undedying a5sun)ptions are revlewed on an ongoing basis. Revisions to accounting estimates are recognlsed in the period in which the estimate is revised where the revislon affects only that period, or in the period of the revision and future periods where the revision affects both current and future period5. Donatlons and sponsorship Unrestrlcted Unrestrricted funds funds 2023 2022 Donations and gifts 272,882 224,856 Donation5 and gifts MITIE Rugby Football Union Attivision DXC SAAB Defence Gifted assets LEIDOS Galvio Veolla KBR (UK) Ltd other 60.000 22,382 17,500 22,500 20,000 32,000 18,133 17,500 22,500 6,009 Is.000 15,000 6,000 15,000 15,000 62,723 15,000 15,000 15,000 85,500 272.882 224,856 16
Army Rugby Union Trust Notes to the financial statements (contlnued) For the year ended 31 August 2023 Charitable artivities 2023 2Q22 Sporting events Prize money Affiliation fees other income 8L5,589 873.769 1,200 3,800 69 4,150 990 820.639 878,838 Other tradlng activities Unrestrlcted Unrestricted funds funds 2023 2022 Shop in¢ome 3,651 28,558 Investments unrèstrlrtéd Un$Cted funds funds 2023 2022 Income fmm listed investments Iniome from unlisted investments Interest receivable 2,366 6,678 9,531 2,212 sss 18,575 2,768 17
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 other income Unrestrlcted funds Total 2023 2022 Royalties 19,493 Ralsing funds Unrestrlcted Unrestricted nds funds 2023 2022 Fu Hospitality Advertising 2,710 96,827 42,118 58,452 Fundraising and publicity 99,537 100,570 99.537 100,570 18
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 Charitable actlvities Charitable Charltable activlties •ctlvltles 2022 2023 Depreciation and impairment Sporting events Management Grounds and infrastrurture Clothing formal Tralnlng equlpment Medlcal Presentations Accomodation Messing and subslstence Management training Vehicle leasing Vehicle running costs Travel 15,200 339,423 6,680 289.115 1.496 7,205 2,600 2,301 61.600 6.800 1,206 4,348 7,562 12,374 1,326 2,687 1.271 772 11,338 5,185 3,395 7,633 600 2.687 2,347 1.267 456.870 341.548 Grant funding of activities (see note 10) 310,492 214,833 Share of support C05ts15ee note 111 Share of governance costs (see note 11) 107,854 19,137 109.587 11.498 894,353 677,466 Analy515 by fund Unrestricted fuThds Restricted fLJnds 887,691 6,662 674,690 2,776 894.353 677.466 19
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 10 Grants payable Charitable Charitable activlties activities 2022 2023 Grants to institution5 (7 grants).. Academy annual grant Senior XV annual grant Sevens annual grant Veterans annual grant Womens's annual grant ARU Referees society grant Corps annual grant Community annual grrant Team glft in kind 17,828 99,259 34.251 31,354 83.102 6,808 12,161 62,265 20,229 17,757 44,849 6.000 5.544 31,028 15,000 37,890 310,492 214,833 11 Support cost5 Support Governance 2023 Support Governance CDsts ¢05ts 2022 Staff c05tS Postage and Stationery Media costs Telephone Webslte Insurance Bank charges Elettricity Computer and software Mi5cellaneoLts purchases 87,160 2,492 ii,iio 837 87,160 2,492 IL,LIO 837 88,721 I,ioÈ 10,536 3.198 1.288 907 88,721 1.108 10,536 3,198 1,288 907 3S 1.4Q7 2,263 35 1,4D7 2,263 35 35 471 471 374 374 1,943 1,943 2,898 2,898 136 136 522 522 Legal and professional 19,137 19,137 11,498 11,498 107,854 19,137 126,991 109,587 11,498 121.085 Analysed between Charitable activities L07,854 19,137 L26.99L 109,587 11,498 121,085 20-
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 12 Auditor's remuneratlon Fee5 payable to the trust's audltor and associates: 2023 2022 Audit of the trust's annual accounts 15,000 9.500 Other servlces to the group Audit of the trust's subsidiaries 3,500 Total audit fees L5,OQO 13,000 13 Trustees None of the trustee5 (or any persons connected with them) received any remuneration during the year, but 2 of them were reimbursed a total of £478 travelling expenses (2022- 2 were reimburse £624). 14 Employees The average rnonthly number of employees during the year was: 2023 Number 2022 Number Administrative Employment costs 2023 2022 Wages ar)d salaries Social security costs Other pension costs 69,890 7,516 9.754 70,674 7,564 10.483 87.160 88.721 There were no employees whose annual remuneration was more than £60,000. 15 Net gains/(losses) on investrnents Unrestrlcted Unrestrfcted fund5 funds 2023 2022 Revaluation of investments 11,4601 13,6931 21
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 16 Tangible fixed assets Leasehold Vlxtures and land fittlnys bulldlngs computers Total Cost At I September 2022 364,435 59,661 2,491 426,587 At 31 August 2023 364,435 59,661 2,49L 426,587 Depreciation and impairment At I September 2022 Depreciation charged in the year 54,431 14,577 59,661 1,760 623 115,852 15,200 At 31 August 2023 69,008 59,661 2,383 131,052 Carrying aTnount At 31 August 2023 295,427 108 295,53S At 31 August 2022 310,002 731 31D,733 17 Fixed asset investments Llsted Unlisted other Investments investments Investments Total Cost or valuation At I September 2022 Valuation changes Impairment 178,955 11,460) 179,817 6,678 358,773 5,218 At 31 August 2023 177,495 186,495 363,99Q Carrying amount At 31 August 2023 177.495 186,495 363,990 At 31 August 2022 178,955 179,817 358,773 2023 2022 other inve5tment5 comprise: Notes Investments in subsidiaries 22-
Army Rugby Union Trust Notes to the financlal statements (continued) For the year ended 31 August 2023 17 Flxed asset investments (Continued) Holdlngs In excess of 5Q/o of fund value 2023 2022 Investments at fair value cownprise.. M&G Charifund Ilncomel M&G Charifund (Accumulated) UST COIF 38,929 138,565 186,495 41,053 137,902 179,817 363,9B9 358,772 Listed investments included above.. 2023 2022 Listed investments carrying amount 185,035 178,955 18 Financial instruments 2023 2022 Carrying amount of flnanclal assets Instruments measured at fair value through profit or1055 L77,495 178,955 19 Stocks 2023 2022 Finlshed goods and goods for resale 1,077 20 Debtors 2023 2022 Amounts falling due within one year: Amgunts owed by subsidiary undertakings Prepayments and accrued income 21,558 2,548 3,488 3,488 24,106 23-
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 21 Creditors: amounts falling due within one year 2023 2022 other creéltors Accruals and deferred income 11.881 40,979 18,108 12,534 52,860 30,642 Deferred income includes £35,000 in respect of sponsorship Income relating to next year. 22 Retirement beneflt schemes Defined contributiDII 5¢hemes The trust operates a defined contribution pension scheme for all qualifying ernployee5. The assets of the scheme are held separately from those of the trust in an independently administered fund. The charge to profit or loss in re5pett of defined contribution schemes was £9,754 (2022 - £10,483). 23 Restrlcted funds The incorne funds of the charity include restricted fvnds E()PrIsing the following unexpended balances of donations and grants held on trust for specific purposes.. Balance at I September 2021 Resources Balance at expended I September 2022 Resaurces Èxpended Balance at 31 August 2023 Pmperty ènd equipment fund 144,942 12,776) 142.166 16.662) 135,504 24-
Army Rugby Union Trust Notes to the financial statements (continued) For the year ended 31 August 2023 24 Designated fund5 The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purpose5: BalanrE at I SeptembEr 2021 Tran$fers Balance at I September 2022 TMnsfer8 Balance at 31 August 2023 Minimum capital fund Mens tour fund Womens tour fund Seven5 tour fund Capital fund 650,000 ioo,ooo 50,OOD 150,000 800,000 loo,000 800,000 loo.000 loo,000 loo,000 50,000 loo,000 loo,000 so.000 800,000 150,000 950,000 200,000 1.150.000 25 Analysi5 of net assets between lunds Unrestrlcted Restricted funds funds Tot•1 Unrestrocted Restricted funds funds 2022 2022 Total 2023 2023 2023 2022 Fund balances at 31 August 2023 are represented by.. Tangible assets Investment5 Current asset51(liabilities) 160,031 363,990 135,504 295.535 363,990 168.567 358,773 142,166 310,733 358.773 1,336,412 1,336.412 1.186,541 1,185.541 1.860,433 135,SD4 1,995,937 1,713.8BI 142.166 1,856,047 26 Operating lease commitments At the reporting end date the trust had outstanding commitments for future minimum le05e payments under non-cancellable operating leases, which fall éue as follows.. 2023 2Q22 Within one year Between two and five years 448 2,687 448 448 3,135 25-
Army Rugby Union Trust Notes to the financial statements (contlnued) For the year ended 31 August 2023 27 Related party transactlon5 There were no disclosable related party transactions during the year12022 - none). 28 Cash generated from operations 2023 2022 Surplus for the year 139,890 353,291 Adjustments for: Investment income recognised in statement of financial activities Fair value gains and 1055es on investments Depreoation and impalrment of tangible fixed assets 118,575) 1,460 15,200 12,7681 3,693 6,680 Movements in working caplt31'. Decrease in stocks Decreasellincreasel in debtors Increa5e/ldecrea5el Sn creditors 967 2,792 12D.4831 16,7191 20,618 22,218 Cash generated frorn operation5 ISl.778 336,486 29 Analysis of changes in net funds The trust had no debt during the year. 26