REGISTERED COMPANY NUMBER: 08722309 (England and Wales) REGISTERED CHARITY NUMBER: 1154476
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 December 2021
for
Sandhurst Trust
Harlands Accountants (Newquay) Limited 35 High Cross Street St Austell Cornwall PL25 4AN
Sandhurst Trust
Contents of the Financial Statements for the Year Ended 31 December 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Cash Flow Statement | 7 |
| Notes to the Cash Flow Statement | 8 |
| Notes to the Financial Statements | 9 to 13 |
| Detailed Statement of Financial Activities | 14 |
Sandhurst Trust
Report of the Trustees for the Year Ended 31 December 2021
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 December 2021. 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 of the Charity
The Sandhurst Trust has two charitable objects:
Object 1: To promote the efficiency of the armed forces of the Crown and in particular the Royal Military Academy (RMA) Sandhurst in such charitable ways as the trustees from time to time think fit.
Object 2: To advance education and research in the fields of leadership and management and the training of effective managers and leaders in civil and military life.
Significant activities in the year and achievements
2021 saw the charity slowly recovering from restrictions due to the covid pandemic. The early part of the year saw all but one of the staff furloughed under the government scheme, remaining so until September. The Sandhurst Commandant finally permitted a resumption of events in September and the Trust was able to run several lucrative private events as clients returned to the site.
The Trust continues to be supported by the Patron, The King of Bahrain, with the annual grant of £70k paid. Furthermore, the grant in aid from the Chief of the General Staff was increased to £63k and both grants were fully utilised keeping the charity running and solvent. Reserves, which had been run down during the early part of the year, were re-established at a low level but with a plan to restore the cash reserve to £75k by the end of 2022. The flurry of events at the end of the year, and the reintroduction of leadership grants to the Cadets in December, enabled the disbursement to reach £83k an improvement on the £55k in 2020 but still down on the £107k in 2019.
Public benefit
The Royal Military Academy Sandhurst (RMAS) has an international reputation for the training of Army officers as leaders and managers. All Army officers take this training and subsequent military experience back into the civil arena at the end of their military career whether this is short or long. The Trust supports RMAS by providing prizes and leadership grants to enhance training activity and also provides leadership grants for members of the charity out in the Field Army.
During the year, the charity supported the Centre for Army Leadership with the provision of books for the leadership library and provided prizes in support of both RMAS and the Intermediate Command and Staff Course. The charity also supported two educational websites run by serving Army officers, the Army Leader and The Wavell Room.
During 2021 The Trust charitably disbursed £83k including 150 grants to Officer Cadets going on adventurous training expeditions. Furthermore, as the country emerged from the pandemic, eight grants were supplied to members taking their soldiers adventurous training. Welfare continued to be a major activity, with support to international cadets forced to remain at RMAS during the recesses, unable to return home due to covid restrictions. Grants to international cadets rose to £44k during the year (up from 24k in 2020). Furthermore, the collapse of the Afghan Government in August caused significant issues for the seven cadets still under training. The Trust stepped in to pay them for the two months until FCO funding became available. Additionally, several Afghan alumni were evacuated under Operation Pitting and The Trust provided assistance for them and their families as they settled in the UK and waited for state benefits to be processed. £7k of the £44k provided to international cadets was used in this way. At other far end of the scale, The Trust provided a wreath for the parents of an Officer Cadet who died in training in 2012 to lay at his memorial tree in the grounds.
Finally, The Trust supported Lucknow Platoon, which houses the cadets injured during training, and the continued provision of a hired golf buggy cuts down the amount of walking required on the large 660 acre site.
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Sandhurst Trust
Report of the Trustees for the Year Ended 31 December 2021
FINANCIAL REVIEW
Reserves policy
To meet its objects, The Trust has agreed a budgeting and reserves policy that enables it to make the appropriate allocation of funds while at the same time securing a sound financial basis for the future activities of the trust. The allocation of the funds and resources are agreed by the trustees in the overall light of the Trusts strategic needs.
The Trust holds several types of reserves. Some are restricted, meaning that they have been given for specific purposes or have conditions attached that means they can only be spent in a specific way.
Some reserves are in the form of designated funds that are put aside by the Trustees to represent fixed and other assets, which cannot be readily converted into cash.
Finally, The Trust holds general funds or free reserves for three principal reasons:
i. To supply working capital to enable the Trust to manage fluctuations in its cash-flow
ii. To enable the trust to invest in other operations that complement the objectives of the trust iii. To provide protection in the case of any unforeseen costs or to enable an orderly winding up of the Trust
The reserves policy adopted by the trustees has established, at the current levels of activity, the target range for the free reserves is between £100,000 and £150,000. Total reserves at the end of the financial year were £224,581 (2021: £150,541), which is within the range that the Trustees feel are necessary to protect for any of the events set out above.
Going concern
Since the Balance Sheet date of 31 December 2019, the Trust, in line with all other charities, commercial businesses and general lives, has been adversely impacted by the global COVID-19 pandemic, including cancellation of virtually all events and external activities after March 2020. The Trustees have taken advantage of Governmental support measures, including 'furlough' scheme claims, and have cut other costs where possible; fortunately, the Trust continues to benefit from regular donations and grants to maintain income such that the Trustees consider that the Trust can continue as a going concern for the foreseeable future - the Trustees will continue to keep the financial position of the charity under regular review.
STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution
In accordance with the decision taken by the Trustees during 2013, in consultation with the Charities Commission and with appropriate legal advice, The Sandhurst Trust (Charity number 1154476; Company number 08722309) was launched with effect from 1 Jan 2014. All assets and liabilities of the Sandhurst Foundation were transferred to the Sandhurst Trust as a result of a Transfer Agreement between the trustees of each organisation (and with the authority of the Charities Commission). Sandhurst Trust is a company limited by guarantee and governed by its memorandum and articles of association. Consequently, the Sandhurst Foundation has been removed from the Register of Charities.
Methods of appointing trustees
There are three ex officio trustees: The Commandant, the Assistant Commandant and the Director of Studies of the Royal Military Academy Sandhurst. Other Trustees, between 3 and 9, are co-opted.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
08722309 (England and Wales)
Registered Charity number
1154476
Registered office
Old College The Royal Military Academy Sandhurst Camberley Surrey GU15 4PQ
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Sandhurst Trust
Report of the Trustees for the Year Ended 31 December 2021
Trustees
Trustees of the Sandhurst Trust during the year 2021 were: Major General D F Capps CBE (ex officio and Chairman - from 01 April 2020) Lieutenant General (Retired) Sir Simon Mayall KBE CB Brigadier J S A Carr-Smith (ex officio) - resigned 15 November 2021 Brigadier (Retired) I N A Thomas OBE (ex officio) Mr R C R Anderson Lieutenant Colonel S W Bartlett QVRM TD Mr W R W Gornall-King Ms J A D James Mr S Taylor Mr T R Sherwood Mr P R J Smith Colonel R N Alston - appointed 1 August 2022 R Tanna - appointed 1 June 2022
Independent Examiner
Deborah Edwards BA (Hons) FCA Harlands Accountants (Newquay) Limited 35 High Cross Street St Austell Cornwall PL25 4AN Approved by order of the board of trustees on ............................................. and signed on its behalf by:
........................................................................... Mr T R Sherwood - Trustee
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Independent Examiner's Report to the Trustees of Sandhurst Trust
Independent examiner's report to the trustees of Sandhurst Trust ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021.
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
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of BA (Hons) FCA which is one of the listed bodies.
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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
Deborah Edwards BA (Hons) FCA Harlands Accountants (Newquay) Limited 35 High Cross Street St Austell Cornwall PL25 4AN
Date: .............................................
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Sandhurst Trust
Statement of Financial Activities for the Year Ended 31 December 2021
| Statement of Financial Activities for the Year Ended 31 December 2021 |
|||
|---|---|---|---|
| 31.12.21 | 31.12.20 | ||
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 2 | 578,514 | 393,397 |
| Investment income | 3 | 15 | - |
| Total | 578,529 | 393,397 | |
| EXPENDITURE ON | |||
| Raising funds | 4 | 307,071 | 138,305 |
| Other | 196,918 | 208,633 | |
| Total | 503,989 | 346,938 | |
| NET INCOME | 74,540 | 46,459 | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 150,041 | 103,582 | |
| TOTAL FUNDS CARRIED FORWARD | **224,581 ** | 150,041 |
The notes form part of these financial statements
Page 5
Sandhurst Trust
Balance Sheet 31 December 2021
| 31.12.21 Unrestricted fund Notes £ FIXED ASSETS Intangible assets 9 3,180 CURRENT ASSETS Stocks 10 23,168 Debtors 11 7,871 Cash at bank and in hand 248,273 279,312 CREDITORS Amounts falling due within one year 12 (57,911) NET CURRENT ASSETS 221,401 TOTAL ASSETS LESS CURRENT LIABILITIES 224,581 NET ASSETS 224,581 FUNDS 13 Unrestricted funds 224,581 TOTAL FUNDS **224,581 ** |
31.12.20 Total funds £ 3,180 24,872 15,685 156,748 197,305 (50,444) 146,861 150,041 150,041 150,041 150,041 |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
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 ............................................. and were signed on its behalf by:
............................................. Mr T R Sherwood - Trustee
The notes form part of these financial statements
Page 6
Sandhurst Trust
Cash Flow Statement for the Year Ended 31 December 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(used in) operating activities Cash flows from investing activities Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.12.21 £ 91,510 91,510 15 15 91,525 156,748 248,273 |
31.12.20 £ (5,935) (5,935) - - (5,935) 162,683 156,748 |
|---|---|---|
The notes form part of these financial statements
Page 7
Sandhurst Trust
Notes to the Cash Flow Statement for the Year Ended 31 December 2021
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 31.12.21 | 31.12.20 | ||
|---|---|---|---|
| £ | £ | ||
| Net income for the reporting period (as per the Statement of | |||
| Financial Activities) | 74,540 | 46,459 | |
| Adjustments for: | |||
| Interest received | (15) | - | |
| Decrease in stocks | 1,704 | 4,825 | |
| Decrease in debtors | 7,814 | 125,628 | |
| Increase/(decrease) in creditors | 7,467 | (182,847) | |
| Net cash provided by/(used in) operations | 91,510 | (5,935) | |
| ANALYSIS OF CHANGES IN NET FUNDS | |||
| At 1.1.21 | Cash flow | At 31.12.21 | |
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 156,748 | 91,525 | 248,273 |
| 156,748 | 91,525 | 248,273 | |
| Total | 156,748 | 91,525 | 248,273 |
2. ANALYSIS OF CHANGES IN NET FUNDS
The notes form part of these financial statements
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Sandhurst Trust
Notes to the Financial Statements for the Year Ended 31 December 2021
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.
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.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
2. DONATIONS AND LEGACIES
| Donations Other income 3. INVESTMENT INCOME Interest receivable - trading |
31.12.21 £ 179,704 398,810 578,514 31.12.21 £ 15 |
31.12.20 £ 174,755 218,642 393,397 31.12.20 £ - |
|---|---|---|
continued...
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Sandhurst Trust
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
4. RAISING FUNDS
Raising donations and legacies
| Direct costs 5. SUPPORT COSTS Management £ Other resources expended 168,597 |
Finance £ 12,600 |
31.12.21 £ 307,071 Other £ 15,721 |
31.12.20 £ 138,305 |
|---|---|---|---|
| Totals £ 196,918 |
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
| 7. STAFF COSTS Wages and salaries Other pension costs The average monthly number of employees during the year was as follows: Staff No employees received emoluments in excess of £60,000. 8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES INCOME AND ENDOWMENTS FROM Donations and legacies EXPENDITURE ON Raising funds Other Total NET INCOME |
31.12.21 31.12.20 £ £ 135,135 149,813 15,924 17,653 151,059 167,466 31.12.21 31.12.20 6 6 Unrestricted fund £ 393,397 138,305 208,633 346,938 46,459 |
|---|---|
continued...
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Sandhurst Trust
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
| 8. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | ||
|---|---|---|---|
| Unrestricted | |||
| fund | |||
| £ | |||
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 103,582 | ||
| TOTAL FUNDS CARRIED FORWARD | 150,041 | ||
| 9. | INTANGIBLE FIXED ASSETS | ||
| IPR on | |||
| Medals | |||
| £ | |||
| COST | |||
| At 1 January 2021 and | |||
| 31 December 2021 | 3,180 | ||
| NET BOOK VALUE | |||
| At 31 December 2021 | 3,180 | ||
| At 31 December 2020 | 3,180 | ||
| 10. | STOCKS | ||
| 31.12.21 | 31.12.20 | ||
| £ | £ | ||
| Stocks | 23,168 | 24,872 | |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
| 31.12.21 | 31.12.20 | ||
| £ | £ | ||
| Trade debtors | 3,600 | 404 | |
| Other debtors | 4,271 | 14,748 | |
| VAT | - | 533 | |
| **7,871 ** | 15,685 | ||
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
| 31.12.21 | 31.12.20 | ||
| £ | £ | ||
| Social security and other taxes | 14,962 | 13,305 | |
| VAT | 6,776 | - | |
| Other creditors | 11,846 | 16,963 | |
| Accruals and deferred income | 19,151 | 15,000 | |
| Commandant's fund loan | 5,176 | 5,176 | |
| 57,911 | 50,444 |
continued...
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Sandhurst Trust
Notes to the Financial Statements - continued
for the Year Ended 31 December 2021
13. MOVEMENT IN FUNDS
| Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS |
Net movement At At 1.1.21 in funds 31.12.21 £ £ £ 150,041 74,540 224,581 150,041 74,540 224,581 Incoming Resources Movement resources expended in funds £ £ £ 578,529 (503,989) 74,540 578,529 (503,989) 74,540 |
|---|---|
Comparatives for movement in funds
| Comparatives for movement in funds | |||
|---|---|---|---|
| Net | |||
| movement | At | ||
| At 1.1.20 | in funds | 31.12.20 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 103,582 | 46,459 | 150,041 |
| TOTAL FUNDS | 103,582 | 46,459 | 150,041 |
| Comparative net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 393,397 | (346,938) | 46,459 |
| TOTAL FUNDS | 393,397 | (346,938) | 46,459 |
| A current year 12 months and prior year 12 months combined Unrestricted funds General fund TOTAL FUNDS |
position is as follows: Net movement At 1.1.20 in funds £ £ 103,582 120,999 103,582 120,999 |
At 31.12.21 £ 224,581 224,581 |
|---|---|---|
continued...
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Page 12 continued...
Sandhurst Trust
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
13. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming Resources Movement resources expended in funds £ £ £ 971,926 (850,927) 120,999 971,926 (850,927) 120,999 |
|---|---|
14. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2021.
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Sandhurst Trust
Detailed Statement of Financial Activities for the Year Ended 31 December 2021
| Detailed Statement of Financial Activities for the Year Ended 31 December 2021 |
||
|---|---|---|
| 31.12.21 | 31.12.20 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 179,704 | 174,755 |
| Other income | 398,810 | 218,642 |
| 578,514 | 393,397 | |
| Investment income | ||
| Interest receivable - trading | 15 | - |
| Total incoming resources | 578,529 | 393,397 |
| EXPENDITURE | ||
| Raising donations and legacies | ||
| Direct costs | 307,071 | 138,305 |
| Support costs | ||
| Management | ||
| Wages | 135,135 | 149,813 |
| Pensions | 15,924 | 17,653 |
| Insurance | - | 1,652 |
| Postage and stationery | 2,473 | 1,705 |
| Marketing | 7,679 | 11,198 |
| Sundries | 5,725 | 942 |
| Website costs | - | 942 |
| Computer expenses | **1,661 ** | 2,104 |
| 168,597 | 186,009 | |
| Finance | ||
| Bank charges | 12,600 | 7,452 |
| Other | ||
| Accountancy fees | 15,721 | 15,172 |
| Total resources expended | 503,989 | 346,938 |
| Net income | 74,540 | 46,459 |
This page does not form part of the statutory financial statements
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