ARMED FORCES PARLIAMENTARY TRUST
REPORT OF THE TRUSTEES AND UNAUDITED ACCOUNTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
Registered Charity Number
1159312
ARMED FORCES PARLIAMENTARY TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2022
| 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 YEAR ENDED 30 NOVEMBER 2022
Trustees Stephen Doughty MP Mr John Robert Macara Gardner (retired 17 August 2022) James Whiteside Gray MP (Chairman) Jeremy Justin Greaves (appointed 30 November 2022) Lt Gen Sir Andrew Gregory KBE CB DL (appointed 9 March 2022) Baroness Hodgson of Abinger CBE Sir Bill Jeffrey KCB (retired 6 July 2022) Thomas McKane (appointed 6 July 2022) Baroness Julie Smith of Newnham (appointed 6 July 2022) The Lord Rogan (retired 9 March 2022) The Right Honourable Colonel Robert Alexander Stewart DSO MP Mr William Thomas Tew Address House of Commons London SW1A 0AA Registered charity number 1159312 Independent examiner Jonathan Wilkes FCA Bankers Barclays Bank Leicester LE87 2BB
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ARMED FORCES PARLIAMENTARY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 NOVEMBER 2022
The Trustees present their report with the financial statements of the charity for the year ended 30 November 2022. 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 His 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 His Majesty's Armed Forces.
We confirm the trustees have had regard to the Charity Commission's guidance on public benefit.
Achievements and performance
37 students graduated from the Armed Forces Parliamentary Scheme 2021-22 and 4 from the Royal College of Defence Studies 2021-22.
FINANCIAL REVIEW
Financial position
Sponsorship income in the year ended 30 November 2022 was £120,000 (2021: £115,000) and our expenditure was £110,959 (2021: £71,312), resulting in a net surplus of £9,041 for the year (2021: £43,688). The increase in costs was principally due to the charity resuming its event activities following the lifting of coronavirus restrictions.
Reserves policy
The Reserves Policy is to hold a sum equivalent to twelve months' average expenditure. At 30 November 2022, reserves were £131,822 against expenditure for the 12 months of £70,731.
Principal risks and uncertainties
The trustees have considered the effect of the current economic environment, in particular high inflation, rising energy prices and the cost-of-living crisis, on the operation of the charity. Whilst there will be some upward pressure on the expenses of the charity, exposure to energy costs is not significant. There is sufficient flexibility in the cost base, in particular in relation to discretionary spend within events, which when combined with the surplus reserve position, ensures that the charity can continue its activities at the present level.
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ARMED FORCES PARLIAMENTARY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 NOVEMBER 2022
SPONSORSHIP INCOME
The activities of the Trust are funded principally by sponsorship from industry. The trustees are very grateful to the sponsors of the 2021-22 scheme: Airbus Operations UK, Babcock International, BAE Systems, Boeing Defence UK, DXC Technology, Elbit Systems, General Dynamics UK, Leonardo UK, Lockheed Martin UK, QinetiQ, Raytheon UK and Rolls-Royce.
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.
…............................................................... James Gray MP Chairman
Date: 5 July 2023
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ARMED FORCES PARLIAMENTARY TRUST
REPORT OF THE INDEPENDENT EXAMINER FOR THE YEAR ENDED 30 NOVEMBER 2022
I report to the trustees on my examination of the accounts of the Armed Forces Parliamentary Trust for the year ended 30 November 2022.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
…............................................................... Jonathan Wilkes FCA
Independent Examiner
Date: 5 July 2023
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ARMED FORCES PARLIAMENTARY TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 NOVEMBER 2022
| 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 2022 £ 120,000 (40,228) 79,772 70,731 70,731 - 9,041 9,041 - 9,041 122,781 131,822 |
Total funds 2022 £ 120,000 (40,228) 79,772 70,731 70,731 - 9,041 9,041 - 9,041 122,781 131,822 |
Total funds 2021 £ 115,000 (3,235) |
|---|---|---|---|
| 111,765 68,077 |
|||
| 68,077 - |
|||
| 43,688 | |||
| 43,688 - |
|||
| 43,688 79,093 |
|||
| 122,781 |
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ARMED FORCES PARLIAMENTARY TRUST
BALANCE SHEET
FOR THE YEAR ENDED 30 NOVEMBER 2022
| Fixed assets Tangible assets Current assets Debtors (Sponsorship receivable) 7 Other debtors 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 |
2022 £ 654 30,000 146 104,977 135,123 (3,955) 131,168 131,822 - 131,822 131,822 |
2021 £ 2,106 20,000 86 102,072 |
|---|---|---|
| 122,158 (1,483) |
||
| 120,675 | ||
| 122,781 | ||
| - 122,781 |
||
| 122,781 |
The financial statements on pages 6 - 13 were approved by the Trustees and signed on their behalf by:
…............................................................... James Gray MP Chairman
Date: 5 July 2023
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ARMED FORCES PARLIAMENTARY TRUST
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
1 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
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 |
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ARMED FORCES PARLIAMENTARY TRUST
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 NOVEMBER 2022
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.
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ARMED FORCES PARLIAMENTARY TRUST
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
| 2 Statement of Financial Activities - prior year Income and endowments from: Donations and legacies Total Expenditure on: Cost of charitable activities 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 Cost of charitable activities Events |
Unrestricted 2022 £ 120,000 120,000 Unrestricted 2022 £ (40,228) (40,228) |
Unrestricted funds 2021 £ 115,000 115,000 3,235 68,077 71,312 43,688 43,688 - 43,688 79,093 122,781 Total 2022 £ 120,000 120,000 Total 2022 £ (40,228) (40,228) |
Total funds 2021 £ 115,000 |
|---|---|---|---|
| 115,000 3,235 68,077 |
|||
| 71,312 | |||
| 43,688 | |||
| 43,688 - |
|||
| 43,688 79,093 |
|||
| 122,781 | |||
| Total 2021 £ 115,000 |
|||
| 115,000 | |||
| Total 2021 £ (3,235) |
|||
| (3,235) |
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ARMED FORCES PARLIAMENTARY TRUST
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
5 Other expenditure
| 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 Trade creditors Accruals and other creditors 9 Movement in funds At 21 November Incoming resources (including other gains/losses) 2021 £ £ Restricted funds: - - Unrestricted funds: General funds 122,781 120,000 Total funds 122,781 120,000 |
Unrestricted 2022 £ 62,485 942 7,304 70,731 62,485 62,485 Resources expended £ - (110,959) (110,959) |
Total 2022 £ 62,485 942 7,304 70,731 62,485 62,485 2022 £ 30,000 30,000 2022 £ 2,100 1,855 3,955 Gross transfers £ - - - |
Total 2021 £ 58,890 2,237 6,950 |
| 68,077 | |||
| 58,890 | |||
| 58,890 | |||
| 2021 £ 20,000 |
|||
| 20,000 | |||
| 2021 £ - 1,483 |
|||
| 1,483 | |||
| At 20 November 2022 £ - 131,822 |
|||
| 131,822 |
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ARMED FORCES PARLIAMENTARY TRUST
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 NOVEMBER 2022
| 10 Analysis of net assets between funds Net current assets |
Unrestricted funds £ 131,822 131,822 |
Total £ 131,822 |
|---|---|---|
| 131,822 |
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ARMED FORCES PARLIAMENTARY TRUST
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 NOVEMBER 2022
| Income and endowments from: Donations and legacies Other trading activities Cost of charitable activities 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 2022 £ 120,000 120,000 (40,228) (40,228) 79,772 62,485 - 62,485 942 942 835 4,737 281 1,451 7,304 70,731 70,731 - 9,041 9,041 - 9,041 |
Total funds 2022 £ 120,000 120,000 (40,228) (40,228) 79,772 62,485 - 62,485 942 942 835 4,737 281 1,451 7,304 70,731 70,731 - 9,041 9,041 - 9,041 |
Total funds 2021 £ 115,000 |
|---|---|---|---|
| 115,000 | |||
| (3,235) | |||
| (3,235) | |||
| 111,765 58,890 - |
|||
| 58,890 | |||
| 2,237 | |||
| 2,237 | |||
| 383 4,772 344 1,451 |
|||
| 6,950 | |||
| 68,077 | |||
| 68,077 - |
|||
| 43,688 | |||
| 43,688 - |
|||
| 43,688 |
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