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2020-07-31-accounts

REGISTERED COMPANY NUMBER: 08143560 (England and Wales) REGISTERED CHARITY NUMBER: 1149454

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

FOR

VICTORIA CROSS TRUST (A COMPANY LIMITED BY GUARANTEE)

Reed Smith Associates Limited Copia House Great Cliffe Court Great Cliffe Road Barnsley South Yorkshire S75 3SP

VICTORIA CROSS TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Page
Report of the Trustees 1 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Statement of Financial Position 7 to 8
Notes to the Financial Statements 9 to 14
Detailed Statement of Financial Activities 15 to 16

VICTORIA CROSS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2020. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Victoria Cross is the highest military honour of the United Kingdom honours system. It is awarded for gallantry and valour "in the face of the enemy" to members of the British and Commonwealth servicemen and women. To date 1363 Victoria Crosses have been awarded since its creation in 1856.

Across the United Kingdom and the rest of the world, there are a large number of private graves and memorials to those awarded the Victoria Cross. A small number of these graves are cared for by the Commonwealth War Graves Commission because their remit only covers Victoria Cross recipients killed in action during either of the world wars.

All graves of Victoria Cross recipients who fought and died outside dates of these two conflicts are privately owned. A small number of these again are still cared for by their family, the rest lie forgotten, neglected and in some cases are now lost forever.

The Victoria Cross Trust (VCT) seeks to ensure that the final resting places of the Victoria Cross recipients remain tended and cared for respecting the wishes of families and communities alike. In addition, the charity also aims to educate the public in the stories behind the VC recipients and it is to fulfil these two objectives that the VCT was originally established in 2012.

Page 1

VICTORIA CROSS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

OBJECTIVES AND ACTIVITIES

Significant activities

Although still occupying the Ashworth Barracks museum in Doncaster as the main Headquarters, by the 1st August 2019 the VCT was operating under a completely new management structure with trustees overseeing directly all financial management on a day to day basis. Visitor numbers to the museum began to increase alongside new proposals for VC grave cleaning. The grave cleaning activity was prioritised during this time in order to return the VCT to its main charitable aims.

New cost saving initiatives at the museum were introduced alongside the sale of surplus military vehicles and artifacts and as a result financial crisis was averted. Innovative approaches during the autumn of 2019 also ensured the Ashworth Barracks museum ceased to become a financial drain on the charity and began to fulfil its original purpose of educating the public. Visitor numbers were increased through active promotional strategies and school visits were encouraged. The staff and volunteers introduced new outreach programmes and the museum was used to host a number of specialized fund-raising events. These events were highly successful and enabled the VCT to forecast financial stability extending into the 2021/22 financial year.

Despite this radical change in management and a new transparent approach disappointingly Doncaster Metropolitan Borough Council refused to support the efforts of the trustees and renew the lease on the site. The Council maintained the existing terms of the lease and demanded that the VCT vacate the Ashworth Barracks premises by June 2020. Despite numerous meetings with DMBC no alternative suitable premises were found in which to re-house the Ashworth Barracks museum. As a result of this position the VCT undertook a further review of its position in the autumn of 2019 in order to search for new opportunities. This led to the VCT seeking to identify partner organisations that had locations where artefacts and displays from the museum could be displayed on the VCT's behalf.

An unofficial partnership was formed early in 2020 with the Don Memorial War Museum based in Stockton-on-Tees. It became apparent that the objectives of the Don Memorial War Museum and those of the VCT were aligned and as a result the VCT established a number of specialist displays at this museum in order to continue with its objective of educating the public. The VCT also planned a small display at the National Emergency Museum based in Sheffield in order to further its educational ambition. From these locations the education of the public with regards to the history of the VC will continue with minimal costs to the VCT. The VCT will continue to retain ownership of artefacts and funds will be raised at these locations through the sale of retail merchandise. This position will allow the VCT to focus on grave cleaning as well as conducting local educational visits to schools and also presentations to targeted groups.

Having rehoused the main artifacts and displays the VCT had the additional challenge of finding new premises from which to locate its Head Office functions. After a detailed search of available premises the VCT secured a small industrial unit in Doncaster which was leased from March 2020. This resource will allow the VCT to grow the grave cleaning, restoration and retail activity. Once established in the new premises the VCT planned a number of fund-raising activities, including attendance at military rallys, the sale of VCT branded merchandise via a new website and the sale of VCT merchandise at the Don Memorial War Museum.

The plans for the VCT were severely interrupted by COVID 19 - rendering the team unable to undertake any grave cleaning and preventing attendance at fund raising events.This presented a significant challenge in its own right but also affected the VCT's ability to vacate the museum site and establish operations in the new premises. Despite the impact of COVID the VCT was able to clear the museum premises before lockdown was imposed in March 2020 which saw staff placed into furlough until June 2020.

The museum site was formally handed back to DMBC on 30th June 2020 with the charity taking up residence in the new Headquarters in Armthorpe Doncaster. The new accommodation enabled the VCT to introduce scaled down operations once lockdown began to ease. As an outside activity grave cleaning recommenced during the summer months and the trust was able to submit delayed accounts by the end of July 2020.

Graves Cleaned during the year: Pride VC (Bournemouth), Wyatt VC (Cadeby), (Straightened and cleaned) Lambert VC (Wardsend), Hughes VC, Edwards VC (Leeds), Costello VC (East Hadley, Kent)

Page 2

VICTORIA CROSS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

OBJECTIVES AND ACTIVITIES

Volunteers

The Trust has been very fortunate to have benefitted from the contributions of dedicated volunteers, without whom the cost of grave restoration and running the museum would be significantly higher.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

08143560 (England and Wales)

Registered Charity number

1149454

Registered office

Unit 3, Yorkshire Way Armthorpe Doncaster South Yorkshire DN3 3GW

Trustees

A Priestley (resigned 3/8/2019) D Ashworth (resigned 27/8/2020) B J Balliger T P Hazeltine (resigned 27/8/2020) K Lumley F A Adams C G Aston

Independent Examiner

Stuart Martin Reed Reed Smith Associates Limited Copia House Great Cliffe Court Great Cliffe Road Barnsley South Yorkshire S75 3SP

Bankers

National Westminster Bank plc 12 High Street Doncaster South Yorkshire DN1 1EJ

Page 3

VICTORIA CROSS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Victoria Cross Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 28 April 2021 and signed on its behalf by:

K Lumley - Trustee

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF VICTORIA CROSS TRUST

Independent examiner's report to the trustees of Victoria Cross Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Stuart Martin Reed Reed Smith Associates Limited Copia House Great Cliffe Court Great Cliffe Road Barnsley South Yorkshire S75 3SP

28 April 2021

Page 5

VICTORIA CROSS TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
12,352
Charitable activities
Restore and maintain Victoria Cross recipients
graves and educate the public about their lives and
deeds
27,657
Investment income
2
48
Other income
8,862
Total
48,919
EXPENDITURE ON
Raising funds
9,522
Charitable activities
Restore and maintain Victoria Cross recipients
graves and educate the public about their lives and
deeds
89,839
Total
99,361
NET INCOME/(EXPENDITURE)
(50,442)
RECONCILIATION OF FUNDS
Total funds brought forward
185,515
TOTAL FUNDS CARRIED FORWARD
135,073
Restricted
fund
£
-
-
-
-
-
-
-
-
-
2,021
2,021
31.7.20
Total
funds
£
12,352
27,657
48
8,862
48,919
9,522
89,839
99,361
(50,442)
187,536
137,094
31.7.19
Total
funds
£
17,042
49,147
12
1,035
67,236
20,014
108,495
128,509
(61,273)
248,809
187,536

The notes form part of these financial statements

Page 6

VICTORIA CROSS TRUST

STATEMENT OF FINANCIAL POSITION 31 JULY 2020

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
7
77,227
CURRENT ASSETS
Stocks
8
23,052
Debtors
9
7,698
Cash at bank and in hand
40,572
71,322
CREDITORS
Amounts falling due within one year
10
(13,476)
NET CURRENT ASSETS
57,846
TOTAL ASSETS LESS CURRENT
LIABILITIES
135,073
NET ASSETS
135,073
FUNDS
12
Unrestricted funds
Restricted funds
TOTAL FUNDS
Restricted
fund
£
-
-
-
2,021
2,021
-
2,021
2,021
2,021
31.7.20
Total
funds
£
77,227
23,052
7,698
42,593
73,343
(13,476)
59,867
137,094
137,094
135,073
2,021
137,094
31.7.19
Total
funds
£
160,819
27,837
164
10,648
38,649
(11,932)
26,717
187,536
187,536
185,515
2,021
187,536

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 7

VICTORIA CROSS TRUST

STATEMENT OF FINANCIAL POSITION - continued 31 JULY 2020

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 28 April 2021 and were signed on its behalf by:

K Lumley - Trustee

The notes form part of these financial statements

Page 8

VICTORIA CROSS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Museum catalogue - 5% on reducing balance Fixtures and fittings - 15% on reducing balance Motor vehicles - 25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

continued...

Page 9

VICTORIA CROSS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

2. INVESTMENT INCOME

INVESTMENT INCOME
31.7.20 31.7.19
£ £
Interest receivable 48 12
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
31.7.20 31.7.19
£ £
Depreciation - owned assets 35,828 19,399
Hire of plant and machinery 530 198
Surplus on disposal of fixed assets (8,862) -

3. NET INCOME/(EXPENDITURE)

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2020 nor for the year ended 31 July 2019.

Trustees' expenses

The charity trustees claimed expenses which related to travel and subsistence costs for attending trustee and management meetings. Mr A Priestley, a charity trustee, received payment for payroll services supplied to the charity in the amount of £16 (2019: £150).

5. STAFF COSTS

The average monthly number of employees during the year was as follows:

31.7.20 31.7.19
General manager 1 1
Museum and activities staff 1 4
2 5

No employees received emoluments in excess of £60,000.

6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Total
fund fund funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 17,042 - 17,042
Charitable activities
Restore and maintain Victoria Cross recipients
graves and educate the public about their lives
and deeds 49,147 - 49,147
Investment income 12 - 12
Other income 1,035 - 1,035

continued...

Page 10

VICTORIA CROSS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

6.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
fund
fund
£
£
Total
67,236
-
EXPENDITURE ON
Raising funds
20,014
-
Charitable activities
Restore and maintain Victoria Cross recipients
graves and educate the public about their lives
and deeds
108,495
-
Total
128,509
-
NET INCOME/(EXPENDITURE)
(61,273)
-
RECONCILIATION OF FUNDS
Total funds brought forward
246,788
2,021
TOTAL FUNDS CARRIED FORWARD
185,515
2,021
7.
TANGIBLE FIXED ASSETS
Fixtures
Museum
and
Motor
catalogue
fittings
vehicles
£
£
£
COST
At 1 August 2019
163,817
41,320
12,300
Disposals
(83,335)
(11,629)
(12,300)
At 31 July 2020
80,482
29,691
-
DEPRECIATION
At 1 August 2019
30,763
18,419
7,436
Charge for year
29,263
6,565
-
Eliminated on disposal
(42,010)
(10,054)
(7,436)
At 31 July 2020
18,016
14,930
-
NET BOOK VALUE
At 31 July 2020
62,466
14,761
-
At 31 July 2019
133,054
22,901
4,864
Total
funds
£
67,236
20,014
108,495
128,509
(61,273)
248,809
187,536
Totals
£
217,437
(107,264)
110,173
56,618
35,828
(59,500)
32,946
77,227
160,819

continued...

Page 11

VICTORIA CROSS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

8.
STOCKS
Stocks
9.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Prepayments and other debtors
10.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other taxation and social security
Accruals and other creditors
11.
LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
Within one year
Between one and five years
12.
MOVEMENT IN FUNDS
At 1.8.19
£
Unrestricted funds
General fund
185,515
Restricted funds
Restricted Funds
2,021
TOTAL FUNDS
187,536
31.7.20
£
23,052
31.7.20
£
7,698
31.7.20
£
6,109
7,367
13,476
31.7.20
£
10,957
17,349
28,306
Net
movement
in funds
£
(50,442)
-
(50,442)
31.7.19
£
27,837
31.7.19
£
164
31.7.19
£
7,130
4,802
11,932
31.7.19
£
-
-
-
At
31.7.20
£
135,073
2,021
137,094

continued...

Page 12

VICTORIA CROSS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

12. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Restricted Funds
TOTAL FUNDS
Incoming
resources
£
48,919
48,919
At 1.8.18
£
246,788
2,021
248,809
Resources
Movement
expended
in funds
£
£
(99,361)
(50,442)
(99,361)
(50,442)
Net
movement
At
in funds
31.7.19
£
£
(61,273)
185,515
-
2,021
(61,273)
187,536

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
67,236
67,236
Resources
Movement
expended
in funds
£
£
(128,509)
(61,273)
(128,509)
(61,273)

continued...

Page 13

VICTORIA CROSS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

12. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Restricted Funds
TOTAL FUNDS
At 1.8.18
£
246,788
2,021
248,809
Net
movement
in funds
£
(111,715)
-
(111,715)
At
31.7.20
£
135,073
2,021
137,094

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 116,155 (227,870) (111,715)
TOTAL FUNDS 116,155 (227,870) (111,715)

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 July 2020.

Page 14

VICTORIA CROSS TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

31.7.20 31.7.19
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 10,010 17,042
Grants 2,342 -
12,352 17,042
Investment income
Interest receivable 48 12
Charitable activities
Sales 27,657 49,147
Other income
Gain on sale of tangible fixed assets 8,862 -
Rates rebate - 762
Rent of equipment - 273
8,862 1,035
Total incoming resources 48,919 67,236
EXPENDITURE
Other trading activities
Purchases 9,522 20,014
Charitable activities
Wages and national insurance 20,276 61,779
Rent of equipment 530 198
Rent and rates 5,833 2,106
Light and heat 4,469 6,553
Telephone and internet 4,376 5,617
Office expenses and stationery 252 295
Advertising and promotion 657 891
Cleaning and sundry expenses 598 490
Insurance 1,514 1,228
Repairs and maintenance 144 579
Motor expenses and travelling 2,871 5,356
Subscriptions 72 614
Professional fees 9,107 2,283
Events and projects - 133
Militaria - 57
Donations 600 -
Haulage 800 -
Carried forward 52,099 88,179

This page does not form part of the statutory financial statements

Page 15

VICTORIA CROSS TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

31.7.20 31.7.19
£ £
Charitable activities
Brought forward 52,099 88,179
Auction charges 447 -
Late filing penalty 400 -
Depreciation 35,828 19,399
Bank charges 1,065 917
89,839 108,495
Total resources expended 99,361 128,509
Net expenditure (50,442) (61,273)

This page does not form part of the statutory financial statements

Page 16