## **ARMED FORCES PARLIAMENTARY TRUST**
## **REPORT OF THE TRUSTEES AND UNAUDITED ACCOUNTS**
**FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
**Registered Charity Number**
1159312
**ARMED FORCES PARLIAMENTARY TRUST**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
||Page|
|---|---|
|Legal and administrative information|3|
|Report of the Trustees|4|
|Report of the Independent Examiner|6|
|Statement of financial activities|7|
|Balance sheet|8|
|Notes to the accounts|9|
|Detailed statement of financial activities|14|
**ARMED FORCES PARLIAMENTARY TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
**Trustees** Mr John Robert Macara Gardner James Whiteside Gray MP (Chairman) Sir Bill Jeffrey KCB Mr Bob Keen (resigned 3 November 2020) The Baroness Hodgson of Abinger CBE (appointed 3 November 2020) The Lord Lee of Trafford DL (resigned 3 November 2020) Air Vice-Marshal Hon David Paul Murray CVO OBE The Lord Rogan Colonel Robert Alexander Stewart DSO MP The Right Honourable The Baroness Stuart of Edgbaston Mr William Thomas Tew (appointed 3 November 2020) Colonel Sir Neil Gordon Thorne OBE TD DL (Life President)
**Address** House of Commons London SW1A 0AA **Registered charity number** 1159312 **Independent examiner** Jonathan Wilkes FCA **Bankers** Barclays Bank Leicester LE87 2BB
3
## **ARMED FORCES PARLIAMENTARY TRUST**
## **REPORT OF THE TRUSTEES**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
The Trustees present their report with the financial statements of the charity for the year ended 30 November 2020. The Trustees have adopted the provisions of Financial Reporting Standard 102 Statement of Reporting Practice (FRS 102 SORP) and the Charities Act 2011 in preparing the annual report and financial statements of the charity.
## **OBJECTIVES & ACTIVITIES**
## **Objects**
The advancement of education for the public benefit in the operation and work of Her Majesty's Armed Forces principally through the medium of the Armed Forces Parliamentary Scheme.
## **Summary of main activities**
The Armed Forces Parliamentary Trust runs the Armed Forces Parliamentary Scheme which offers educational visits to bases and units of all three armed services - Royal Navy, Army and Royal Air Force - the purpose of which is to inform participants about the operation and work of Her Majesty's Armed Forces. We confirm the trustees have had regard to the Charity Commission's guidance on public benefit.
## **Achievements and performance**
12 students graduated from the Armed Forces Parliamentary Scheme 2019-20 and 3 from the Royal College of Defence Studies 2019-20.
## **Reserves policy**
The Reserves Policy is to hold a sum equivalent to twelve months' average expenditure. At 20 November 2020, reserves were £76,285, against expenditure for the 12 months of £76,609.
## **SPONSORSHIP INCOME**
The activities of the Trust are funded principally by sponsorship from industry. The trustees are very grateful to the sponsors of the 2019-20 scheme: Airbus Operations UK, Babcock International, BAE Systems, DXC Technology, General Dynamics UK, Leonardo UK, Lockheed Martin UK, QinetiQ, Raytheon UK and RollsRoyce.
Sponsors enter into a rolling annual Sponsorship Agreement, which has the nature of a corporate social responsibility donation, with the aim being better education of parliamentarians about defence matters, and expressly excludes any lobbying activities.
The trustees have adopted the policy of recognising sponsorship in the scheme year to which it relates. If sponsorship has been pledged but not yet remitted at the balance sheet date, and where the sponsor has indicated its intention to remit the funds, the amount is recognised as a receivable, though the trustees acknowledge that due to the voluntary nature of the sponsorship such a debtor is not legally enforceable.
4
## **ARMED FORCES PARLIAMENTARY TRUST**
## **REPORT OF THE TRUSTEES**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
## **CORONAVIRUS PANDEMIC**
## **Impact on activities**
The coronavirus pandemic and consequent government control measures have resulted in the charity having to restrict activity on the Armed Forces Parliamentary Scheme 2019-20 but with the addition of virtual visits and briefings (via Zoom and Microsoft Teams).
The trustees have assessed the ability of the charity to continue its activities in future. The Armed Forces Parliamentary Scheme for 2020-21 will recommence fully as soon as the pandemic recedes and when government restrictions allow.
## **Impact on fundraising**
The charity has not experienced any reduction in sponsorship as a result of the coronavirus pandemic.
## **Financial sustainability and going concern**
Whilst the trustees recognise that there are a great number of national concerns and uncertainties due to the coronavirus pandemic, they do not consider there to be any serious financial uncertainties regarding the charity’s financial sustainability and consider therefore that the financial statements of the charity for the year ended 30 November 2020 shall be prepared on the going concern basis.
**----- Start of picture text -----**
…...............................................................
James Gray MP
Chairman
**----- End of picture text -----**
Date: 28 September 2021
5
## **ARMED FORCES PARLIAMENTARY TRUST**
## **REPORT OF THE INDEPENDENT EXAMINER**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
I report on the accounts for the year ended 30 November 2020 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under s.144(2) of the Charities Act 2011 (the “2011Act”) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under charity law and is eligible for independent examination, it is my responsibility to:
- examine the accounts under s.145 of the 2011 Act;
- follow procedures laid down in the General Directions given by the Charity Commission under s.145(5)(b) of
- the 2011Act; and
- state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a "true and fair" view and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
(1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with s.130of the 2011 Act;
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of
- the 2011Act have not been met; or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached, other than the following:
Sponsorship revenues committed by a single sponsor totalling £10,000 as at 30 November 2020 remain unpaid at the date of this report. The sponsor has reaffirmed its commitment to pay, so the trustees consider the outstanding sponsorship to be recoverable.
…............................................................... Jonathan Wilkes FCA
Independent Examiner
Date: 28 September 2021
6
## **ARMED FORCES PARLIAMENTARY TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
|**Notes**
**Income and endowments from:**
Donations and legacies
3
Other trading activities
4
**Total**
**Expenditure on:**
Other
5
**Total**
Net gains on investments
**Net income**
**Net income before other**
**gains / (losses)**
**Other gains and losses:**
**Net movement in funds**
**Reconcilliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
95,000
(476)
94,524
73,609
73,609
-
20,915
20,915
-
20,915
58,178
**79,093**|**Total funds**
**2020**
**£**
95,000
(476)
94,524
73,609
73,609
-
20,915
20,915
-
20,915
58,178
**79,093**|**Total funds**
**2019**
**£**
90,000
(34,038)|
|---|---|---|---|
||||55,962
64,438|
||||64,438
-|
||||(8,476)|
||||(8,476)
-|
||||(8,476)
66,654|
||||**58,178**|
7
## **ARMED FORCES PARLIAMENTARY TRUST**
## **BALANCE SHEET**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
|**Fixed assets**
Tangible assets
**Current assets**
Debtors
7
Cash at bank and in hand
**Liabilities**
Creditors falling due within one year
8
**Net current assets**
**Net assets**
**The funds of the charity**
Restricted funds
Unrestricted funds|**2020**
**£**
2,808
15,000
65,605
80,605
(4,320)
76,285
**79,093**
-
79,093
**79,093**|**2019**
**£**
-
30,000
30,678|
|---|---|---|
|||60,678
(2,500)|
|||58,178|
|||**58,178**|
|||-
58,178|
|||**58,178**|
The financial statements on pages 7 - 14 were approved by the Trustees and signed on their behalf by:
…............................................................... James Gray MP Chairman
Date: 28 September 2021
8
## **ARMED FORCES PARLIAMENTARY TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
## **1 Accounting policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with: 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), issued in October 2019; the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102); and the Charities Act 2011.
## **Change in basis of accounting or to previous accounts**
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
## **Fund accounting**
|**Fund accounting**||
|---|---|
|Unrestricted funds|These are available for use at the discretion of the trustees in furtherance of the|
||general objects of the charity.|
|Restricted funds|These are available for use subject to restrictions imposed by the donor or through|
||terms of an appeal.|
|**Income**||
|Recognition of|Income is induded in the Statement of Financial Activities (SoFA) when the|
|income|charity becomes entitled to, and virtually certain to receive, the income and the|
||amount of the income can be measured with sufficient reliability.|
|Income with related|Where income has related expenditure the income and related expenditure is|
|expenditure|reported gross in the SoFA.|
|Donations and|Voluntary income received by way of grants, donations and gifts is included in the|
|legacies|the SoFA when receivable and only when the Charity has unconditional|
||entitlement to the income.|
|Tax reclaims on|Income from tax reclaims is included in the SoFA at the same time as the|
|donations and gifts|gift/donation to which it relates.|
|Donated services|These are only included in income (with an equivalent amount in expenditure)|
|and facilities|where the benefit to the Charity is reasonably quantifiable, measurable and|
||material.|
|Volunteer help|The value of any volunteer help received is not included in the accounts.|
|Investment income|This is included in the accounts when receivable.|
|Gains/(losses) on|This includes any gain or loss resulting from revaluing investments to market|
|revaluation of fixed|value at the end of the year.|
|assets||
|Gains/(losses) on|This includes any gain or loss on the sale of investments.|
|investment assets||
9
**ARMED FORCES PARLIAMENTARY TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
## **Expenditure**
|**Expenditure**||
|---|---|
|Recognition of|Expenditure is recognised on a cash basis. Expenditure includes any VAT which|
|expenditure|cannot be fully recovered, and is reported as part of the expenditure to which it|
||relates.|
|Expenditure on|These comprise the costs associated with attracting voluntary income, fundraising|
|raising funds|trading costs and investment management costs.|
|Expenditure on|These comprise the costs incurred by the Charity in the delivery of its activities|
|charitable activities|and services in the furtherance of its objects, including the making of grants and|
||governance costs.|
|Grants payable|All grant expenditure is accounted for on an actual paid basis plus an accrual for|
||grants that have been approved by the trustees at the end of the year but not yet|
||paid.|
|Governance costs|These include those costs associated with meeting the constitutional and statutory|
||requirements of the Charity, including any audit/independent examination fees,|
||costs linked to the strategic management of the Charity, together with a share of|
||other administration costs.|
|Other expenditure|These are support costs not allocated to a particular activity.|
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Trade and other debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Sponsorship amounts receivable are recognised at the amount pledged but not yet remitted. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other shortterm highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
## **Trade and other creditors**
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Pension costs**
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.
10
## **ARMED FORCES PARLIAMENTARY TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
|**2**
**Statement of Financial Activities - prior year**
**Income and endowments from:**
Donations and legacies
**Total**
**Expenditure on:**
Raising funds
Other
**Total**
**Net income**
**Net income before other**
**gains / (losses)**
**Other gains and losses:**
**Net movement in funds**
**Reconcilliation of funds:**
Total funds brought forward
**Total funds carried forward**
**3**
**Income from donations and legacies**
**4**
**Income from other trading activities**
Costs of generating funds:
Events|**Unrestricted**
**2020**
**£**
95,000
95,000
**Unrestricted**
**2020**
**£**
(476)
(476)|**Unrestricted**
**funds**
**2019**
**£**
90,000
90,000
34,038
64,438
98,476
(8,476)
(8,476)
-
(8,476)
66,654
**58,178**
**Total**
**2020**
**£**
95,000
95,000
**Total**
**2020**
**£**
(476)
(476)|**Total funds**
**2019**
**£**
90,000|
|---|---|---|---|
||||90,000
34,038
64,438|
||||98,476|
||||(8,476)|
||||(8,476)
-|
||||(8,476)
66,654|
||||**58,178**|
||||**Total**
**2019**
**£**
90,000|
||||90,000|
||||**Total**
**2019**
**£**
(34,038)|
||||(34,038)|
11
## **ARMED FORCES PARLIAMENTARY TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
|**5**
**Other expenditure**
Employee costs
Travelling expenses
General administrative costs
**6**
**Staff costs**
Salaries and wages
**7**
**Debtors**
Sponsorship receivable
**8**
**Creditors: Amounts falling due within one year**
Other creditors
**9**
**Movement in funds**
**At 21**
**November**
**Incoming**
**resources**
**(including**
**other**
**gains/losses)**
**2019**
**£**
**£**
**Restricted funds:**
-
-
**Unrestricted funds:**
General funds
58,178
95,000
**Total funds**
**58,178**
**95,000**|**Unrestricted**
**2020**
**£**
64,487
1,935
7,187
73,609
62,929
62,929
**Resources**
**expended**
**£**
-
(74,085)
**(74,085)**|**Total**
**2020**
**£**
64,487
1,935
7,187
73,609
62,929
62,929
**2020**
**£**
15,000
15,000
**2020**
**£**
4,020
4,020
**Gross**
**transfers**
**£**
-
-
**-**|**Total**
**2019**
**£**
59,681
633
4,124|
|---|---|---|---|
||||64,438|
||||54,665|
||||54,665|
||||**2019**
**£**
30,000|
||||30,000|
||||**2019**
**£**
2,500|
||||2,500|
||||**At 20**
**November**
**2020**
**£**
-
79,093|
||||**79,093**|
12
## **ARMED FORCES PARLIAMENTARY TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
|**10**
**Analysis of net assets between funds**
Net current assets|**Unrestricted**
**funds**
**£**
79,093
**79,093**|**Total**
**£**
79,093|
|---|---|---|
|||**79,093**|
13
**ARMED FORCES PARLIAMENTARY TRUST**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD FROM 21 NOVEMBER 2019 TO 30 NOVEMBER 2020**
|**Income and endowments from:**
Donations and legacies
Other trading activities
Costs of generating funds: events
**Total income and endowments**
**Expenditure on:**
Employee costs
Salaries and wages
Staff welfare
Travelling
General administrative costs,
including depreciation and amortisation
Stationery and printing
Professional fees
Sundry expenses
Depreciation of tangible assets
**Total expenditure of other costs**
**Total expenditure**
Net gains on investments
**Net income**
**Net income before other**
**gains / (losses)**
Other gains
**Net movement in funds**|**Unrestricted**
**funds**
**2020**
**£**
95,000
95,000
(476)
(476)
**94,524**
62,929
1,558
64,487
1,935
1,935
310
5,815
265
797
7,187
**73,609**
**73,609**
-
20,915
20,915
-
**20,915**|**Total funds**
**2020**
**£**
95,000
95,000
(476)
(476)
**94,524**
62,929
1,558
64,487
1,935
1,935
310
5,815
265
797
7,187
**73,609**
**73,609**
-
20,915
20,915
-
**20,915**|**Total funds**
**2019**
**£**
90,000|
|---|---|---|---|
||||90,000|
||||(34,038)|
||||(34,038)|
||||**55,962**
54,665
5,016|
||||59,681|
||||633|
||||633|
||||1,393
288
2,443
-|
||||4,124|
||||**64,438**|
||||**64,438**
-|
||||(8,476)|
||||(8,476)
-|
||||**(8,476)**|
14