2025-03-31-accounts - The Naval Children's Charity

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Registered charity number England 1160182 Scotland SC052322

The Naval Children’s Charity

Trustees’ report and financial statements for the year ended 31 March 2025

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CONTENTS

THE NAVAL CHILDREN'S CHARITY

	Page
Reference and administration information	1
Chair’s commentary	3
Trustees' report	5
Independent auditor’s report	34
Statement of financial activities	37
Balance sheet	38
Statement of cash flows	39
Notes to the financial statements	41

THE NAVAL CHILDREN’S CHARITY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CHARITY INFORMATION

Charity name

The Naval Children’s Charity

Patron

Her Royal Highness, The Princess Royal

Trustees

Mr Christopher Tite Chair Vice-Admiral Sir Martin Connell KCB CBE Mr Kevin Arnold Capt Thomas Early RM Cdr Simon Howell RN Rtd WO Annette Penfold MBE RN Rtd Ms Ellen Riis-White WO1 Clare Robson RN (Resigned 14/10/2025) Dr Linda Williams Cdr Steve Warner RN Lt Col Ian Grant RM Rtd (Resigned 09/10/2024) Lt Col Gary Green OBE RM Rtd Appointed 14/03/2025 Mr Mike McHugh Appointed 14/03/2025 Cdr Frances Bond RN Appointed 14/10/2025 Mr Nicholas Kassapakis Appointed 14/10/2025 Mr James Sergeant Appointed 14/10/2025

Vice-Chair (Resigned as Trustee 14/10/2025) Vice-Chair (Appointed Vice-Chair 14/10/2025)

Hon Treasurer Mr Ian Pitts FCCA (Resigned 30/09/2025)

Principal office 311 Twyford Avenue Portsmouth PO2 8RN

Country of registration and charity registration number England – 1160182 Scotland – SC052322

President

Lt General Sir James Dutton KCB CBE KStJ ADC

Vice Presidents

Rear Admiral Mike Bath Lieutenant General E G M Davis CB CBE Lt Col Ian Grant RM Rtd Major General F H R Howes CB OBE

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THE NAVAL CHILDREN'S CHARITY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CHARITY INFORMATION

Patrons Jonathan Guy Lewis Eilidh McIntyre MBE Imogen Stubbs Dame Kristin Scott Thomas DBE

Chief Executive Officer Mrs Clare Scherer MBE

Young Ambassadors Holly Arkle Ella Baragwanath Marco Bruno Tomo Freire Maddie Martin Florrie Ransom Sian Smith Hannah Taylor

Independent auditor Gibson Whitter Larch House Parklands Business Park Forest Road Denmead Hampshire PO7 6XP Principal bankers Lloyds Bank plc Gosport 20-24 High Street Gosport PO12 1DE

Solicitors Warner Goodman 8 College Place London Road Southampton Hampshire SO15 2FF

Investment Adviser Navera Investment Management Ltd Riverside House 2A Southwark Bridge Road London SE1 9HA

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

CHAIR’S COMMENTARY

As in previous years, this commentary allows me to reflect briefly on our financial year ended 31 March 2025 and events which have happened since.

Our trustees' report, of course, sets out much more detail about our activities and performance for the year.

For us, 2025 marks the bicentenary of our founding and the year got off to the most wonderful start when HRH The Princess Royal agreed to become our Patron.

We were first established just twenty years after the Battle of Trafalgar and our origins lie in the provision of schools and orphanages for Naval Children, first in Portsmouth and later in Chatham and Camberwell. The last of them closed towards the end of the last century and the school site was sold, at which point the sale proceeds and other investments were vested in The Royal Navy and Royal Marines Children’s Fund, which was later re-named The Naval Children’s Charity.

To celebrate our history, we commissioned specialist research to trace our timeline, and the results are summarised graphically in our trustees’ report. I was struck by the breadth of support which our (then three separate) charities received over many years from sources as diverse as the Royal Patriotic Fund, the people of Natal and the King George’s Fund for Sailors (now the Seafarers’ Charity). In fact, we were the first recipient of financial support from the latter, and I am delighted that their financial support continues to this day.

We owe a great debt to all of those who support our work, either financially or in kind, and our grateful thanks go to each of them: every penny donated to us goes to support our beneficiaries, with noncharitable expenses being paid for from our reserves.

The Royal Navy was, of course, very different two hundred years ago but in many ways the needs of Naval Children and Young People today are not that dissimilar. Of course, how those needs manifest themselves are different - and they are now perhaps better understood and provided for – but we still fundamentally look after the same needs by concentrating on the wellbeing of those children and supporting their future development.

Our over-arching goal is to unlock each child’s spirit and talent; to create advantage for them and to help them realise their full potential in life.

We pursue that goal as a National Children’s Charity, headquartered in Portsmouth, with on the ground presence in Scotland and the southwest of England, to ensure that we can reach Naval communities regardless of geography.

Our work is only made possible by the extraordinary people – our staff, trustees, volunteers and donors – who do so much to enable us to support Naval Children. Our enormous thanks go to all of them.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

I hope that our trustees’ report will help you to appreciate the work that we do. It goes without saying that we would welcome any support, of any nature, that you might in future be able to give.

Christopher Tite

Chair

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

The trustees have pleasure in presenting their annual report for the purposes of the Charities Act 2011, together with the accounts for the year ended 31 March 2025. In preparing this Annual Report and financial statements the trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

The Charity was constituted by a Charity Commission Scheme dated 26 October 1998, which came into operation on 1st April 1999. It enabled the merger of the charities previously known as the Royal Naval & Royal Marines Children’s Home and The Royal Naval & Royal Marines Children’s Trust. It became a charitable incorporated organisation (CIO) on the 1 August 2015 and adopted the working name "Naval Children’s Charity" with effect from 16 March 2020. From the 20[th] September 2024 the name of the Charity has been changed with approval of the Charity Commission to The Naval Children’s Charity (NCC).

Trustees

Under its governing document (the constitution adopted when it became a CIO) the Charity may have up to fifteen trustees, with no more than 50% being serving members of the Armed Forces. Trustees are appointed for three-year terms. Currently there are thirteen trustees, four of whom are currently serving in the Royal Navy.

New trustees are selected by an open process and appointed based on the skills and experience that they can bring to the trustee board. There is an induction procedure for each new trustee, which includes briefings by the Chair and CEO and access to a trustees' online portal containing all information relevant to the Charity. Continuing training is also offered to trustees during their term in office.

Governance

Trustees meet three times annually. They delegate oversight of some functions to a Finance & Governance Committee (which meets at least twice annually) and a Grants Committee (which meets monthly to consider applications for assistance from the Charity).

Staff

The trustees delegate the day-to-day operation of the Charity to its Chief Executive Officer (CEO), who is supported by the Head of Operations and the Head of Finance. The Charity employs a specialist team of caseworkers to engage directly with beneficiaries, as well as other staff to support the Charity's operating needs.

The trustees are responsible for setting the remuneration of all staff, using external assessment and benchmarking when needed.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Risk

The Charity has identified the following principal risks:

Governance – Lack of strategic planning
Strategic – Ineffective or inappropriate organisational structure
Compliance – Regulatory and funder reporting requirements are not adequately met
Operational – Black Swan event
Financial – Loss of income, dependency on limited funding sources
Reputation – Loss of reputation caused by adverse publicity

The trustees regularly review risk and, identify ways in which to mitigate the likelihood of the relevant risk occurring and/or its impact on the Charity.

OBJECTIVE AND STRATEGY

Objective

The Charity's object is the relief of dependent children (up to and including the age of 25) of serving and former members of the Royal Navy (includes Royal Navy, Royal Marines, QARNNS, WRNS, Reserves and Royal Fleet Auxiliary) who are in need, hardship, or distress.

The Charity may relieve beneficiaries in need by making grants of money to them; or providing or paying for goods, services, or facilities for them; or making grants of money to other persons or bodies who provide goods, services, or facilities to those in need.

"We believe that to be the child of someone who is, or has been, in the Royal Navy should be a positive and enhancing experience – something to be borne with pride. For those children where life is more difficult, we are there to help."

Vision

Our vision is that every Royal Navy and Royal Marines child and young person has their spirit and talent unlocked giving them a brighter future and helping them to realise their full potential.

Mission

Our Mission is to support the wellbeing and development of children and young people from Royal Navy and Royal Marines families, serving and veteran, in recognition of the unique situations they and their families face.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Strategy

The Charity's activities focus across two main strands: WELLBEING AND DEVELOPMENT which are delivered through Programmes of support which place children at the heart of our work, improving their lives in both the short and long term:

FUNDING

To cover our programme costs, we need to raise around £1.3 million a year. We seek to secure donations and grants to help us to reach this target. We are fortunate to have long standing support from a number of funders including Greenwich Hospital/Royal Navy & Royal Marines Charity; The Seafarers Charity; Queen Mary’s Roehampton Trust and Trinity House and we also draw down from our investments significantly towards this target.

Our running, administrative and fundraising costs are covered by the income from our investment. This ensures 100% of donations and grants we receive can be used for our programme costs.

Grants from Trusts, foundations, and corporate partners

The Charity is incredibly grateful to the major donors referred to below for their significant and consistent support. We genuinely could not offer the bespoke, wide ranging and much needed support to our families without their grants and funding.

Our biggest and most significant funding comes from our two main funding partners: the Royal Navy & Royal Marines Charity ( RNRMC ) and Greenwich Hospital , and we continue to work closely with both of those organisations. Greenwich Hospital have also provided us with a substantial three-year grant towards 50% of our Life Chances Programme, the salary costs of our Project Manager, to facilitate the Programme.

The Seafarers Charity have given regular support over many years, we were one of the first grants ever awarded when they were formed, as the King George’s Fund for Sailors, back in 1917, with grants towards our core costs as well as a restricted fund for the children of Officer’s in the Royal Naval Service, including the Royal Navy, Royal Marines, Royal Fleet Auxiliary and Reserves .

Trinity House have also very generously continued to provide an annual grant.

Queen Mary’s Roehampton Trust provides us with a grant to support the children of those receiving a War Pension, for which we are incredibly grateful.

In March 2023 we received a generous three-year grant (March 2023 – April 2026) from the Armed Forces Covenant Fund Trust (AFCFT), in partnership with the SCiP Alliance , to develop their Thriving Lives Toolkit for early years and higher education. Part of the AFCFT Transformational Grants Programme, this work to enhance the support given to our Armed Forces children and young adults throughout their education is pivotal in improving their outcomes in life.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

The Charity also acknowledges with thanks those other Trusts, foundations and corporate partners who have generously supported our work during the year. These include: the De Wintons , the Gosling Foundation , the Lest We Forget Association , The Naval Ladies Charitable Trust , The Edinburgh Trust , Sir James Knott Trust , The Mordaunt Foundation .

The Ogden Armed Forces Bursary is a Restricted Fund which supports children aged 11+ of those seriously injured or killed during deployment or those suffering with PTSD from across the Armed Forces. There was one child benefiting from this bursary ending Summer 2024 and the fund was then closed.

The Charity does not actively raise funds from the public. We remain grateful to everyone who chooses to support us financially through fundraising in their communities, donations, and legacies. We would also like to thank those who volunteer for us, their support is invaluable. We would particularly like to thank Sian Smith and Jan Musson who support us in the office and Julian Kirk and Gina Wise who support us in the RAF Marham area.

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

THE NAVAL CHILDREN'S CHARITY

IMPACT REPORT

The Naval Children’s Charity (NCC) is dedicated to supporting the wellbeing and development of children and young people up to age 25 from Royal Navy families, addressing unique challenges they face such as mobility, separation, and mental health risks. The Charity aims to provide support in two key areas: Wellbeing and Development, through a range of programmes, based around Maslow’s Hierarchy of Needs, designed to meet physiological, safety, relational, self-esteem, and selfactualisation needs.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Evidence-based approach

We continue to put evidence and research at the forefront of our strategy and developing our workstreams. In 2021 we published research, The Impact of Service Life on the Military Child , w hich identified the key challenges facing our children and young people (CYP). Subsequent research such as the Living in Our Shoes report, The SCiP Alliance ~~—_ —~~ research into the educational attainment of Service children and the Naval Family Federation research into the challenges affecting our families continue to inform our work.

This research confirms that life for military children can present challenges beyond those

of their civilian counterparts. The impact of long separations/deployments and mobility can affect their educational attainment, which can be lower than that of civilian children, particularly post-16, with children with neurodiversity or special educational needs facing particular challenges. 1 in 6 Naval children aged 5-16 are at risk of mental health problems.

Current data suggest there are up to 105,000 Naval children. Our work suggests that upwards of 10% of these might be in need of additional help. Many of these young people are hard to reach, typically living in concentrated pockets around the Naval bases of the UK but equally dispersed around the UK, isolated from the main Naval areas.

In the year of this report, we supported around 2,500 children/young people through our Emergency & Essentials support & our Disability, SEND and illness support Programmes, distributed books and Wellbeing Packs to over 1,000 children, provided around 100 University bursaries and supported 550 young people through our Life Chances Programme. We also support more young people through our grants to schools and community projects.

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THE NAVAL CHILDREN'S CHARITY

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Our History – 1825 – 2025 – Bicentenary Year

Our lineage of help and support

The NCC initially helped by establishing orphanages in Chatham and Portsmouth in 1825. As the needs of the children of Naval families changed, the NCC evolved its response. The orphanages were duly sold and the proceeds invested. Today, the NCC offers a range of supportive programmes, and the returns from our investment provide an income stream to cover our administrative and fundraising costs. We work from a head office in Portsmouth and have outreach caseworkers in Helensburgh, Scotland and Plymouth, Southwest. We cover all the UK.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

How we work

The NCC runs a team of professional caseworkers who work with other professionals and organisations to offer a comprehensive, holistic range of support to our children and young people. Families can come to us directly or be referred. For families seeking support they are initially triaged to identify need and then supported to ensure each family gets a tailored package of support.

Our team’s specialities

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Casework

We have a team of caseworkers in Head Office in Portsmouth and Outreach in Scotland and the Southwest. The casework process involves initial contact and triage, in-depth casework to identify specific needs, work with other organisations to ensure comprehensive package of support put in place and referrals to specialist organisations when required.

Triage process

Outreach Casework

Funded by Greenwich Hospital (November 2022 – April 2025) and Veterans Foundation (May 2023 – April 2024) respectively, both posts are now fully embedded in their communities. We have seen an increased awareness of the support on offer, significant uplift in families seeking support in both regions, improved and expanded collaboration and partnership working.

The roles combine casework and community engagement. Casework enquiries are picked up directly from the community or partner agencies as well as the cases allocated to them by the Head Office due to the priority of the needs. The community engagement aims to build and maintain relationships with local Naval communities, support hubs, and external organisations. This on the ground working means that they can identify and address gaps in service provision by gathering feedback and insights from the community. The aim is to build bridges for hard-to-reach Naval communities, so they are aware of the support available.

Through proactive outreach and compassionate casework, the OC roles strengthen the safety net for Naval children and young people from both serving and former serving families, ensuring they not only receive appropriate support in crisis but are given tools and opportunities for developing their talent and skills. This role is essential in bridging the gap between those in need and the services available, enhancing wellbeing, resilience, and community cohesion for children and young people.

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THE NAVAL CHILDREN'S CHARITY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Outreach Caseworkers

Outreach Caseworker Southwest (OCSW). The Southwest, from a Naval service perspective, is very unique. It takes all the new Naval recruits for the basic training, has the biggest number of Naval bases and units and geographically covers a huge area. According to the latest census, it also has the largest number of veterans in England. Therefore, the role of the OCSW makes a significant difference to the Naval community in this area. Our OCSW has been in the post since November 2023, providing individualised casework support and community engagement to strengthen the charity’s visibility and accessibility. The focus is primarily on Devon and Cornwall, with a vast number of beneficiaries living in a proximity of six Naval establishments located in those two counties. In the six-month period from mid-July 24 to mid-Jan 25, around 20% of our beneficiaries came from the region. This role is also the Domestic Abuse Lead for the team.

Outreach Caseworker Scotland (OCS). This year has continued to see the growth and impact of the work of NCC in Scotland. Our cases of families in Scotland have increased by about 200% since the post was created in March 2023. Partner relationships and collaborative working has been key to establish an excellent client base and ensure that all needs of families/beneficiaries are met without duplication of work and ensuring a shared purpose to make a change to the Naval community and their families.

Scotland as a devolved nation has its own Government, school systems and benefits, part of the role is to ensure that NCC families moving to Scotland are aware of the differences and how things operate North of the Border. Training has also been delivered to the NCC team highlighting the education system and terminology that is used in Scotland. A leaflet “Living in Helensburgh” was co-produced with CYP in the area.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Helensburgh is home to the Royal Navy Nuclear Submarine Base which hosts approx. 2,500 service personnel and approx. 3,000 civilian workers. Submarine deployments vary in length and contact with many lasting over 200 days with zero contact with families, which can have an adverse effect on them.

This role is also the Young Carers Lead for the team and, over the past year, has worked with The Children’s Society on their Nexus Project, funded by the AFCFT through their Transformational Grants Programme, to improve support, resources and access to services for Young Carers from Armed Forces families.

Both Outreach Caseworker roles involve attendance at meetings and events across their region, strengthening NCC’s strategic relationships, community engagements and partner involvement.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Programmes of support

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Wellbeing

Emergency and essentials support Programme : NCC offers crisis-driven aid through grants for household goods, school uniforms, and groceries. This programme allows for families to meet a living standard that aids their physiological and safety needs. Some families are given a monthly regular payment for a few months, sometimes longer. This allows them to navigate through a difficult period of financial hardship whilst also receiving support on budgeting, debt and other challenges.

Disability, SEND and illness support Programme : We provide disability aids, home adaptations, and therapeutic services, including help for special educational needs and neurodiversity, aiding access to assessments, education progression from early years, and statutory support. This programme aims to support families with their safety, relational and selfesteem needs.

In the year of this report, neurodiversity continues to make up a large amount of our support, with grants being awarded for SEND related need including assessments and equipment. Our ADHD and autism assessment processes put a greater focus on equipment and other intervention for children who are nine and under to ensure that parents are exploring statutory routes first, whilst also accessing non diagnosis dependent support. For children and young people who are ten and up we do consider private

assessment where a CYP is on an NHS assessment waiting list and there is no option of the right to choose pathway. This is to help CYP get access to diagnosis in time for significant events in education which leads to feedback such as ‘This diagnosis ensures that [he] will start secondary school in September with the right support in place to enable him to thrive.’

In the initial contact with a family, a triage caseworker discusses areas of support available, exploring relevant signposting and referrals to our partnerships where they can gain advice and support that can be crucial. For instance, through our partnership with the National Autistic Society, 41 families were referred for advice and support in the last financial year. Allowing them to access 1:1 advice and support covering topics such as: tribunals, behaviour and transitions. Our partnership with Kids started in October 2024 but

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

in the space of 6 months, we referred 60 families with SEND needs where they can access support on topics such as: DLA paperwork, behaviour and sleep support.

We also appreciate how challenging finding trustworthy and reputable private providers for neurodiversity assessments can be, and ensuring families get a diagnosis that is recognised nationally is crucial. We have helped families to do this through partnerships with the Lorna Wing Centre and Purple House who are assessment providers. Through these trusted partnerships, families have fed back how ‘ The whole experience was very supportive and positive, and the report and recommendations are very detailed, considered and reflective of the discussions we had with them during the assessment.’

When families initially come to us for neurodiversity support, they often describe feeling let down, overwhelmed and frustrated. When families have gained our support, many report feeling ‘empowered’ , having ‘better understanding’ and the support being a ‘massive relief’

Wellbeing Packs : To mitigate effects of separation and mobility and meet their relational and selfesteem needs, NCC provides wellbeing packs, online resources and financial grants addressing mental health, bereavement, and parenting challenges.

These packs are themed around the issues of separation, mobility and mental health across the different age ranges with bespoke packs for bereavement, parenting and SEND. Some of the books were commissioned by the Naval Children’s Charity to particularly support younger children understand the separations they experience in a Naval family.

In the year 24/25 we sent out over 1,000 books to improve wellbeing to beneficiaries. The packs came into effect in May 2025.

Doing Distance: Our online free set of resources specifically designed to help families address the challenges they face. Being a child of somebody in the Armed Forces can have a huge impact on the way that we see the world. A common theme amongst Armed Forces children is separation whether that be through deployments, weekending it or moving from place to place away from friends and family. This can often bring up a whole range of emotions and quite often these can be difficult to process. Our resources help to guide adults through supporting children and teenagers to process these emotions they are experiencing.

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Development

Higher Education Programme

NCC supports educational progression by awarding university bursaries, and, through the Life Chances Programme, offers tailored opportunities in outdoor activities, creative arts, and career development to build life skills and improve future prospects. The aim of these programmes is to allow young people to thrive – to meet their self-actualisation needs.

Following a pilot in 2023/2024, in 2025 we launched our University Bursary scheme. Research has shown that Armed Forces young people can have their education significantly impacted by the mobility that comes with their parent’s service and do not attend University in the same numbers as other young people. In response to this UCAS have now made being an Armed Forces young person an identifying tick box on their application form. To support and encourage our Naval young people we have launched a bursary scheme in partnership with the JS Group and their innovative Aspire platform. The grant will support the set up costs of studying at University and a ‘cost of learning element’ to support with utilities, food and rent.

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THE NAVAL CHILDREN'S CHARITY

Life Chances Programme

The Life Chances Programme (LCP) is a comprehensive initiative designed to support our CYP to flourish by providing proactive and preventative support tailored to their unique challenges. The programme is divided into three main areas: Outdoor, Creative and Education. Activities include bespoke residential camps, school events, and tailored activities, as well as advice and guidance regarding future pathways, higher education and employment advice. The programme is significantly funded by Greenwich Hospital (50%), and funding towards the remaining 50% from other trusts and foundations.

Activities aim to enhance holistic wellbeing, confidence, educational outcomes and career prospects. Many have been chosen as they also contribute towards achievement of accredited awards such as the Duke of Edinburgh award and provide young people with a tangible record of their achievements. Over the year of this report 550 CYP participated in the Life Chances Programme.

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To inform and guide the work of the NCC we have created a Youth Council , building from a cohort of young people who participated in the LCP. They have helped developed a three-year programme of activities across all strands of the LCP and are also working more widely in National research being carried out into the lives of Armed Forces children and young people.

Working with our Youth Council, we have created a 3-year expansion plan for the Life Chances programme which will act as our framework moving forward. The planning has built upon the successes of past pilots, expanded the type of activities on offer to cater for a wide range of interest areas, and introduced many more delivery partners so that young people can learn from and interact with industry expertise.

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THE NAVAL CHILDREN'S CHARITY

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THE NAVAL CHILDREN'S CHARITY

Impact and Outcomes

In 2024, working with a team from Winchester University, we developed our Theory of Change and an Evaluation Framework which we are now embedding in our Programmes. We hope this will give us the ability to demonstrate our impact more robustly against recognised benchmarks using the ONS4, PSS4, FSES and, for our young people, SWEMBS, SBS8, GSEC and, if on an activity, use of structured diaries for reflection.

Personal Wellbeing (ONS-4)

The Office for National Statistics 4 (ONS-4) is a harmonized standard measure of personal wellbeing across four items – life satisfaction, happiness, anxiety and feelings of how worthwhile life is. This short scale is widely used in the sector and standardises NCC’s evaluation with other related organisations. It can also be used to compute WellBeing-Years (WELLBY) for showing value for money of an organisational activity. The measure can be used with adults or children (10 years old or older).

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Perceived Stress (PSS-4)

The Perceived Stress Scale (PSS-4) is a measure of perceived stress in life for adults. It measures the degree to which individuals perceive their lives to be stressful, uncontrollable or unpredictable.

Financial Self-Efficacy (FSES)

The Financial Self-Efficacy Scale (FSES) is a short six question measure of an individual's confidence and financial management abilities. The scale focuses on the role of beliefs and perceptions of behaviour related to financial management.

Mental wellbeing (SWEMWBS)

The Short Warwick–Edinburgh Mental Well-being Scale (SWEMWBS) measures mental well-being across seven items. It includes items related to emotional wellbeing and psychological functioning. All seven items are positively worded as the focus is on measuring how “good” the respondent feels.

Belonging (SBS)

The Sense of Belonging Scale measures a person’s sense of belonging within a specific context. The respondent chooses how much they agree with each statement using a 5- point rating scale measuring factors such as inclusion, valued involvement and social connectedness.

General Self-Efficacy (GSE)

The General Self-Efficacy Scale measures the respondent’s belief in their ability to cope with challenging situations and how well they can adapt when facing difficult situations. The scale is worded to emphasise positive agency and outcomes – how well they cope and adapt, not how badly they do so.

We also gather more qualitative feedback. This consistently shows that our support is life-changing to many families who come to us feeling anxious, stressed, in crisis, ill, worried, depressed, and scared. Following our support through one of our programmes families report feeling supported, an improved sense of wellbeing, a better quality of life and improved independence.

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Collaboration and Partnership

At the core of our work, we collaborate and partner across our Programmes with a wide range of organisations. We work closely with other Naval charities to provide grants, advice and support. We work with delivery partners in providing our specialised support around neurodiversity and other issues facing families. Through our Life Chances Programme we partner with many delivery partners, all experts in their field, to ensure a wide range of opportunities and activities are on offer.

We are the lead, tri-service, for the Armed Forces Children’s Sector in driving further collaboration and partnership working. Our CEO formed and Chairs the Cobseo Children’s Cluster, bringing together Armed Forces Charities that support children and young people. She also Chairs the Educational Trusts Forum and the SCiP Alliance Management Group and sits on the SCiP Alliance Board.

We collaborate with partners across all our Programmes and across the Naval charity sector, the wider charity sector and external delivery partners. By working in partnership, identifying, and collaborating with best practice in the areas that affect our children and young people we can ensure the best ROI (return on investment) for our and our funders’ money.

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Our people

The Charity has a small Senior Leadership Team comprising the CEO, Head of Operations and Head of Finance. There are two part-time admin and data support roles, a dedicated Project Manager (funded by Greenwich Hospital) and a Community Engagement Officer and then nine caseworkers. This small team passionate about providing the best for our beneficiaries, working across all sectors to collaborate and drive best practice.

We have an active and committed Trustee Board, bringing a wealth of skills and lived experience to their roles. There is a sub-committee that meets monthly and oversees all our grant awards with expertise amongst them of Medicine, education, Service in the Royal Navy and one is a former beneficiary. We also have a Finance & Governance sub-committee and a Marketing sub-committee. We are committed to Equity, Diversity and Inclusion and ensure that we have representation on the staff and trustee Board of the families we support. This includes spouses, parents, serving, veteran, beneficiaries and charity backgrounds.

Funding

We spend around £3 million a year with £2.5 million of that going on Charitable Expenditure. We seek to secure donations and grants to help us to reach this target with an annual target of circa £1.3 million.

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

THE NAVAL CHILDREN'S CHARITY

We have around £12 million in our Investment Fund (Permanent £4 million, Expendable £8 million) and we use the income and drawdown from the Fund towards our expenditure. This ensures that all our administrative and fundraising costs are covered from our Fund ensuring that 100% of all grants and donations are used on charitable expenditure.

We are fortunate to have long standing support from a number of funders including Greenwich Hospital/Royal Navy & Royal Marines Charity RNRMC; The Seafarers Charity; Queen Mary’s Roehampton Trust and Trinity House and we also draw down from our investments significantly towards this target.

Greenwich Hospital / RNRMC provide an annual grant of £720,000 towards our Emergency & Essentials and Disability, SEND and illness support Programmes.

Greenwich Hospital is funding 50% of our Life Chances Programme for three years, 2025-2028 plus the Project Manager role responsible for delivery of the LCP.

During the period of April 2024 – March 2025, 100% of grants and donations we received were spent on direct charitable activity, with £2.4 million being spent on direct charitable activity overall. The Charity also administered over £97k in grants on behalf of partner charities. This enabled us to award 3,246 grants to families, with 8,185 children and your people being supported by a grant over the course of the year. All other expenditure was covered by our own resources, drawn down from our investments.

FINANCIAL REVIEW

Summary

The period under review is the year ended 31st March 2025.
The Charity’s incoming resources amounted to £1,501,456.
Total expenditure was £2,517,094, including expenditure on charitable activities of £2,413,658 (95% of all expenditure).
100% of all donations and grants is spent directly on beneficiaries.
Our operating deficit was funded by cash withdrawn from reserves.
As at 31 March 2025 net assets were worth £11,875,939, which our trustees consider to be an appropriate level of reserves having regard to their future plans for the Charity.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Public benefit

The identifiable benefit provided by the Charity is the relief of children of serving and veteran personnel of the Royal Navy who are in need, hardship, or distress thereby contributing to the health, welfare, and social cohesion of the Nation. Additionally, this contributes to maintaining or improving morale within the Royal Navy and thus to the quality of these vital components of the Nation’s Armed Forces and, thereby, to the defence of the Nation.

Our work is targeted at helping children who are in need, often in crisis but also those who need support as result of the impact of their parents’ service in the Royal Navy. Providing support to all our children in need reduces the risk of crisis arising and improves outcomes, both socially and educationally.

Through its grant making to serving and veteran Royal Navy personnel and dependants in need, the Charity demonstrates its support of the Military Covenant between the Nation and its Armed Forces and has signed the Armed Forces Covenant as a reflection of that support.

Investment Policy

Directive to Navera Investment Management

Funds held in the RN & RM Children’s Trust at the time of the merger (constitution was approved on 26th October 1998) were allocated as permanent endowment and the funds held in the RN & RM Children’s Home were allocated as expendable endowment. On 1 March 2020, the charity exercised its rights by the Trustees under section 104(A) of the Charities Act 2011 to invest permanent endowment funds on a total returns basis. On this date, the gift component of the permanent endowment fund £2,299,183.

Investment Powers

Following the 2019 Strategic Review, the Trustees seek to use some of the income and capital gain returns (total returns) from the invested Permanent and Expendable Endowment Funds to cover the operating costs of the charity, thereby allowing external funding to be devoted to charitable activities. After a number of years of positive total returns, the Trustees wish to adjust their approach to investment by

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

withdrawing into holding accounts sufficient money for three year's operating costs and allowing Navera to concentrate on growing the remaining investment. As well as securing the funds needed for three year's operating costs, this means the Charity will not need to withdraw funds should the portfolio experience a more difficult performance period.

The NCC continues to delegate discretionary investment management to Navera Investment Management in accordance with the Charitable Incorporated Organisation (CIO) Constitution 4.1.8, the Investment Management Agreement, this Policy Directive, the powers conferred by the Trustee Act 2000 and any amplifying guidance issued by the Charity Commission. Any queries should be raised with the Chief Executive who will advise the Chair and Treasurer.

Investment Objectives

The Charity’s reserves are held in an investment portfolio and cash deposits.

The Trustees adopted a cash withdrawal policy, providing for the periodic release of cash from our investment portfolio, allowing our investment advisors to concentrate on achieving total return growth to replace cash withdrawn over time while the Charity holds cash on deposit sufficient to fund its near-term operating requirements.

The investment objectives for the portfolio are:

To protect and grow the real value of the Expendable and Permanent Endowment Funds
To maintain a minimum balance in cash to assist with cashflow as and when required
To provide additional drawdown and withdrawal of funds if required by the charity
The benchmark is a real return of CPI + 3% on a rolling 5-year basis net of fees

Risk

In seeking to meet the Charity's objectives the Trustees are prepared to tolerate a medium level of risk. Volatility is to be minimised with respect to both capital and income.

Asset Allocation

Navera has discretion to adjust asset allocation within the following bands, to be reviewed at least annually.

Cash & Fixed Interest	10-50%
Equities	45-90%

If the above parameters are likely to be breached, then advice is to be sought from the Finance and Governance Committee.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

Investment Restrictions

No more than 5% of the portfolio may be invested in any one direct equity or bond investment at the date of purchase. If because of market movements, the weighting increases to 7%, Navera will review the holding with a view to reducing the position in the following months and notify the Chair. The fund manager may invest directly in sub-investment grade bonds. However, no more than 5% of the portfolio may be directly allocated to such bonds at the date of investment. Should the manager invest via a pooled vehicle, which should allow some diversification of risk, a maximum of 7% may be allocated to this asset class at the date of investment. No bonds may be purchased with an S&P credit rating of CCC or lower. Non-rated bonds can be held where Navera Investment Management deem them to be equivalent to investment grade. No direct investments are to be made in derivatives.

Environmental and Social Governance

The Trustees recognise that responsible corporate behaviour with respect to ESG issues can have a positive influence on the financial performance of companies. Navera should take this into account when considering the Charity’s investment objective. Navera should also note that where the investment managers consider there may be a conflict of interest to the aims of the Charity, they should refer the investment to the Chair for his authority.

Reserve Policy

A prerequisite of fund accounting is an understanding of the different classes of funds a charity may hold in trust. A charity may hold both unrestricted and restricted funds. Income generated by the investment of a particular fund’s assets accrues to that fund unless the terms of the initial gift provide otherwise, for example in the case of a permanent endowments.

Unrestricted funds are spent or applied at the discretion of the trustees to further any of the charity’s purpose. Unrestricted funds can be used to supplement expenditure made from restricted funds. Trustees may choose during the reporting period to set aside part of the unrestricted funds to be used for a particular future project or commitment and this can be set up as a designated fund that remains part of the unrestricted funds of the charity. Identifying designated funds may be helpful when explaining the charity’s reserve policy and the level of reserves held.

Restricted funds can be specified in several ways. The donor when making a gift or legacy. Grant makers funding specific projects or posts.

Restricted funds fall into two categories, restricted income funds or endowment funds .

Restricted income funds are to be spent or applied within a reasonable period from their receipt to further a specific purpose of the charity. Alternatively, the restricted fund may be an endowment. Trust law requires a charity to invest the assets of an endowment or retain them for the charity’s use in furtherance of its charitable purposes, rather than apply or spend them as income.

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THE NAVAL CHILDREN'S CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

A gift of endowment, where there is no power to convert the capital into income, is known as a permanent endowment fund . Where the Trustees have the power to convert the endowment funds income, such funds are known as expendable endowments .

The NCC’s funds are split between permanent and expendable endowment, they are there to:

Generate total returns for sustained operations.
Sufficient free reserves to be able to meet or smooth out the unexpected fluctuations in charitable expenditure, to be able to meet the increasing needs of the current beneficiaries and remain sustainable for both current and future generations.
Sufficient free reserves to be able to meet or smooth out any unexpected shortfall in income from our major donors so enabling our level of support to beneficiaries to remain consistent.
The annual administration costs of the Charity will be funded by the release of cash from investment so ensuring that all donations and funding received are used 100% towards our charitable activities.
The current expendable endowment fund will be held in part in holding accounts to cover 3 years of operations and will support the estimated budgetary deficit for the next 5 years and continue to generate investment income.

With these aims in mind the reserves are invested with the purpose of protecting and growing their real value on a total return basis.

As at 31 March 2025 net assets were worth £11,875,939 (2024 - £12,668,434, unrestricted funds were £nil), which our trustees consider to be an appropriate level of reserves having regard to their plans for the Charity. At 31 March 2025 the unrestricted general funds (the SORP defined Reserves) were nil (2024 – nil).

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing their report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2015 (FRS 102);
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORT OF THE TRUSTEES

THE NAVAL CHILDREN'S CHARITY

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees and signed on their behalf.

Christopher Tite

Chair Date: 14 October 2025

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE NAVAL CHILDREN'S CHARITY

Opinion

We have audited the financial statements of The Naval Children's Charity (the 'charity') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
give a true and fair view of the state of the charity's affairs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE NAVAL CHILDREN'S CHARITY

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will 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 are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory framework in which the company operates. The key laws considered included the Charities Act. We have corroborated our enquiries through review of Trustee minutes.
We have evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override of controls and the application of revenue recognition at cut-off and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before the year end. We have addressed this by assessing journal entries as part of our planning audit approach.
We have enquired of management and those charge with governance in respect of known or suspected instances of non-compliance with laws and regulations.
We have also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE NAVAL CHILDREN'S CHARITY

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gibson Whitter Limited Statutory Auditors Larch House Parklands Business Park Denmead Hampshire PO7 6XP

Date: 4 November 2025

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THE NAVAL CHILDREN'S CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted Restricted funds funds Notes £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 49,655 25,000 Charitable activities 4 Support of Naval Families 795,700 354,079 Investment income 3 1,943 - Total 847,298 379,079 EXPENDITURE ON Raising funds 5 423 - Charitable activities 6 Support of Naval Families 2,041,257 372,401 Total 2,041,680 372,401 Net gains on investments - - NET INCOME/(EXPENDITURE) (1,194,382) 6,678 Transfers between funds 20 1,194,382 - Net movement in funds - 6,678 RECONCILIATION OF FUNDS Total funds brought forward - 27,632 TOTAL FUNDS CARRIED FORWARD - 34,310	31.3.25 Endowment Total funds funds £ £ - 74,655 - 1,149,779 275,079 277,022 275,079 1,501,456 103,013 103,436 - 2,413,658 103,013 2,517,094 223,143 223,143 395,209 (792,495) (1,194,382) - (799,173) (792,495) 12,640,802 12,668,434 11,841,629 11,875,939	31.3.24 Total funds £ 48,454 1,138,170 178,026
		1,364,650
		119,781 2,551,607
		2,671,388
		1,406,505
		99,767 -
		99,767 12,568,667
		12,668,434

The notes form part of these financial statements

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THE NAVAL CHILDREN'S CHARITY

BALANCE SHEET 31 MARCH 2025

		31.3.25	31.3.24
	Notes	£	£
FIXED ASSETS
Investments	14	11,805,009	12,771,898
CURRENT ASSETS
Debtors	15	94,360	98,994
Cash at bank and in hand		214,537	135,886
		308,897	234,880
CREDITORS
Amounts falling due within one year	16	(237,967)	(320,407)
NET CURRENT ASSETS		70,930	(85,527)
TOTAL ASSETS LESS CURRENT
LIABILITIES		11,875,939	12,686,371
CREDITORS
Amounts falling due after more than one year 17		-	(17,937)
NET ASSETS		11,875,939	12,668,434
FUNDS	20
Restricted funds		34,310	27,632
Endowment funds		11,841,629	12,640,802
TOTAL FUNDS		11,875,939	12,668,434

The financial statements were approved and authorised for issue by the Board of Trustees and authorised for issue on 14 October 2025 and were signed on its behalf by:

............................................. Mr C Tite - Trustee

The notes form part of these financial statements

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THE NAVAL CHILDREN'S CHARITY

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025

Notes Cash flows from operating activities Cash generated from operations 1 Net cash used in operating activities Cash flows from investing activities Purchase of fixed asset investments Sale of fixed asset investments Interest received Dividends 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	31.3.25 £ (1,388,403) (1,388,403) (4,928,394) 6,118,426 1,943 275,079 1,467,054 78,651 135,886 214,537	31.3.24 £ (1,241,481) (1,241,481) (2,460,893) 3,167,531 6,553 171,473 884,664 (356,817) 492,703 135,886

The notes form part of these financial statements

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Gain on investments Interest received Dividends received Decrease in debtors (Decrease)/increase in creditors Net cash used in operations	31.3.25 £ (792,495) (223,143) (1,943) (275,079) 4,634 (100,377) (1,388,403)	31.3.24 £ 99,767 (1,406,505) (6,553) (171,473) 152,328 90,955 (1,241,481)

2. ANALYSIS OF CHANGES IN NET FUNDS

	At 1.4.24	Cash flow	At 31.3.25
	£	£	£
Net cash
Cash at bank and in hand	135,886	78,651	214,537
Total	135,886	78,651	214,537

The notes form part of these financial statements

Page 40

THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Income

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 and it is probable that the income will be received.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair 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 willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and cash deposits. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable 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.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised:

Costs of raising funds; which includes the costs of organising events and investment management fees.
Expenditure on charitable activities; which includes grants made to beneficiaries and costs incurred to support those activities.

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES - continued

Expenditure

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the Charity.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Taxation

The charity is exempt from tax on its charitable activities.

Investments

The investment portfolio has been valued at market value at the balance sheet date. The SOFA includes the net gains and losses on investments arising on revaluation at the year end and on disposals throughout the year. Realised gains and losses on sales of investments are calculated as the difference between the sale proceeds and opening market value. Unrealised gains and losses represent the movement between market value.

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.

Endowment funds incorporating an expendable and permanent endowment funds represent those investment assets held by the Charity, principally to generate investment income for the Charity's use. The endowment funds were created from a merger between the Charity, RN & RM Children's Trust and RN & RM Children's Home in 2002. The gift component of the permanent endowment must be retained in perpetuity, however those investments within the expendable endowment may be converted to income by the Trustees. The permanent and expendable endowment are invested on a total return basis. Income and any capital gains or losses arising on the endowment funds can be used in accordance with the objects of the Charity and are included as endowment funds. Investment management charges and legal advice relating to the fund are charged against the fund.

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

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

2. DONATIONS AND LEGACIES Donations 3. INVESTMENT INCOME Investment income Deposit account interest 4. INCOME FROM CHARITABLE ACTIVITIES Activity Grants Support of Naval Families Grants received, included in the above, are as follows: RNRMC/Greenwich Hospital Greenwich Hospital Trinity House The Seafarers Charity Queen Mary Roehampton Trust The Veterans' Foundation The Gosling Foundation Lest We Forget Association The James Knott Trust The 29th May 1961 Charitable Trust The Mordaunt Foundation Special Boat Service Association The Armed Forces Covenant Fund Trust The Noel Sweeney Foundation	31.3.25 £ 74,655 31.3.25 £ 275,079 1,943 277,022 31.3.25 £ 1,149,779 31.3.25 £ 720,000 107,100 49,700 100,000 5,000 2,500 10,000 38,854 6,000 - - - 105,625 5,000 1,149,779	31.3.24 £ 48,454 31.3.24 £ 171,473 6,553 178,026 31.3.24 £ 1,138,170	31.3.24 £ 48,454 31.3.24 £ 171,473 6,553	31.3.24 £ 48,454
			178,026
		31.3.24 £ 720,000 142,000 47,300 100,000 5,000 27,500 9,450 14,100 6,000 2,000 7,000 5,880 51,940 -
		1,138,170

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

5. RAISING FUNDS

Other trading activities

Direct event costs Investment management costs Portfolio management fees Aggregate amounts 6. CHARITABLE ACTIVITIES COSTS Grant funding of Direct activities Costs (see (see note note 7) 8) £ £ Support of Naval Families 514,891 1,470,410 7. DIRECT COSTS OF CHARITABLE ACTIVITIES Staff costs Other staff costs Recruitment costs Travel and subsistence 8. GRANTS PAYABLE Support of Naval Families The total grants paid to institutions during the year was as follows: Naval community projects costs Naval community projects research and publications The University Of Winchester - Thriving Through Childhood And Beyond	Grant funding of activities (see note 8) £ 1,470,410		31.3.25 £ 423 31.3.25 £ 103,013 103,436 Support costs (see note 9) £ 428,357 31.3.25 £ 479,816 18,714 571 15,790 514,891	31.3.24 £ 10,765 31.3.24 £ 109,016 119,781 Totals £ 2,413,658 31.3.24 £ 391,980 11,046 896 12,711 416,633	31.3.24 £ 10,765 31.3.24 £ 109,016 119,781 Totals £ 2,413,658 31.3.24 £ 391,980 11,046 896 12,711 416,633


		31.3.25 £ 1,470,410 31.3.25 £ 129,170 - 101,464 230,634		31.3.24 £ 1,706,372 31.3.24 £ 152,075 163 49,894 202,132

continued...

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

8. GRANTS PAYABLE - continued

The total grants paid to individuals during the year analysed by pillar is as follows:

	31.3.25	31.3.24
	£	£
Health	243,990	217,819
Wellbeing	113,413	176,055
Security	574,755	645,669
Education	298,155	458,217
Life Chances	9,463	6,480

	1,239,776	1,504,240

9. SUPPORT COSTS

Governance
Management
costs
£
£
Support of Naval Families
409,617
18,740
Support costs, included in the above, are as follows:
Management
31.3.25
Support
of Naval
Families
£
Wages
209,585
Social security
24,515
Pensions
14,765
Insurance
5,222
Telephone
2,812
Postage and stationery
7,358
Sundries
7,241
Computer and equipment costs
54,471
Equipment hire costs
4,804
Advertising and publicity
26,468
Other staff costs
7,556
Rent
22,104
Travel and subsistence
5,641
Trustee expenses
818
Subscriptions
6,252
Recruitment costs
384
Bank and other merchant charges
254
Bookkeeping and payroll fees
9,367
409,617

Totals
£
428,357
31.3.24
Total
activities
£
218,794
23,219
15,199
4,455
4,547
6,903
4,498
64,142
2,940
28,358
1,455
19,292
10,670
2,728
6,205
1,073
(32)
6,967
421,413

continued...

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

9. SUPPORT COSTS - continued Governance costs

Auditors' remuneration Legal and professional fees AUDITORS' REMUNERATION Fees payable to the charity's auditors for the audit of the charity's financial statements	31.3.25 Support of Naval Families £ 7,440 11,300 18,740 31.3.25 £ 7,440	31.3.24 Total activities £ 6,510 679 7,189 31.3.24 £ 6,510

10. AUDITORS' REMUNERATION

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

During the year one (31.3.24: three) trustee was reimbursed expenses by the charity totalling £31 (31.3.24: £261) for travel costs.

12. STAFF COSTS

STAFF COSTS
	31.3.25	31.3.24
	£	£
Wages and salaries	619,387	556,896
Social security costs	67,116	55,500
Other pension costs	42,178	36,796

	728,681	649,192

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

The average monthly number of employees during the year as follows:
	31.3.25	31.3.24
Charitable activities	12	10
Management and governance	4	4

	16	14

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

12. STAFF COSTS - continued

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

31.3.25	31.3.25	31.3.24
2		2
-		-
1		1

3		3

	31.3.25	31.3.24
	11	9
	4	4


	15	13

	31 MARCH 2024 Endowment Total funds funds £ £ - 48,454 - 1,138,170 171,473 178,026 171,473 1,364,650 109,016 119,781 - 2,551,607 109,016 2,671,388 1,406,505 1,406,505 1,468,962 99,767 (1,431,162) - 37,800 99,767 12,603,002 12,568,667 12,640,802 12,668,434
		1,364,650
		119,781 2,551,607
		2,671,388
		1,406,505
		99,767 -
		99,767 12,568,667
		12,668,434

continued...

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

14. FIXED ASSET INVESTMENTS

MARKET VALUE At 1 April 2024 Additions Disposals Revaluations At 31 March 2025 NET BOOK VALUE At 31 March 2025 At 31 March 2024	Listed investments £ 12,771,898 4,928,394 (6,118,426) 223,143 11,805,009 11,805,009 12,771,898

Investments are held in portfolios managed by Navera Investment Management. The market value of investments by geographical area is as follows:

of investments by geographical area is as follows:
	31.3.25 31.3.24
	£ £
Held within UK	826,351 2,516,064
Held outside UK	10,978,658 10,255,834

	11,805,009 12,771,898

The historical cost of the above investments is £9,583,656 (31.3.24: £9,444,443).

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accrued income Prepayments	31.3.25 £ 77,833 16,527 94,360	31.3.24 £ 90,171 8,823
		98,994

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors Social security and other taxes Other creditors Deferred income Accrued expenses	31.3.25 £ 12,471 17,712 23,347 - 184,437 237,967	31.3.24 £ 5,327 17,097 31,248 2,500 264,235
		320,407

Deferred income

Deferred income comprises £Nil (31.3.24: £2,500) for grant income received in the year which will be released to income in future financial periods.

released to income in future financial periods.
	31.3.25	31.3.24
	£	£
Balance brought forward	2,500	12,880
Amount release to incoming resources	(2,500)	(12,880)
Amount deferred in the year	-	2,500

Balance carried forward	-	2,500

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.3.25 £ Accrued expenses -		31.3.24 £ 17,937

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year Between one and five years ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Restricted funds funds £ £ Investments - - Current assets 237,967 34,310 Current liabilities (237,967) - Long term liabilities - - - 34,310	31.3.25 £ 8,334 13,174 21,508 31.3.25 Endowment Total funds funds £ £ 11,805,009 11,805,009 36,620 308,897 - (237,967) - - 11,841,629 11,875,939	31.3.24 £ 7,166 9,302 16,468 31.3.24 Total funds £ 12,771,898 234,880 (320,407) (17,937)	31.3.24 £ 7,166 9,302
			16,468
		12,668,434

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

20. MOVEMENT IN FUNDS

Net movement At 1.4.24 in funds £ £ Unrestricted funds General fund - (1,194,382) Restricted funds Greenwich Hospital 20,061 1,106 The Veterans' Foundation 7,571 (7,571) Sanctuary Lodge - Life Chances: Tall Ships - 13,143 27,632 6,678 Endowment funds Expendable endowment fund 9,301,738 286,738 Permanent endowment fund 3,339,064 108,471 12,640,802 395,209 TOTAL FUNDS 12,668,434 (792,495) Net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 847,298 (2,041,680) Restricted funds The Seafarers Charity 100,000 (100,000) Queen Mary Roehampton Trust 5,000 (5,000) Greenwich Hospital 107,100 (105,994) The Gosling Foundation - Life Chances: Tall Ships 10,000 (10,000) Lest We Forget Association - Life Chances: Tall Ships 18,854 (18,854) The Veterans' Foundation 2,500 (10,071) Thriving Through Childhood And Beyond 105,625 (105,625) The Noel Sweeney Foundation - West Midlands, Staffordshire and Shropshire 5,000 (5,000) Sanctuary Lodge - Life Chances: Tall Ships 20,000 (6,857) The Phillips Charitable Trust - Neurodiverse Project 5,000 (5,000) 379,079 (372,401) Endowment funds Expendable endowment fund 222,698 (73,001) Permanent endowment fund 52,381 (30,012) 275,079 (103,013) TOTAL FUNDS 1,501,456 (2,517,094)		Transfers between funds £ 1,194,382 - - - - (1,143,292) (51,090) (1,194,382) - Gains and losses £ - - - - - - - - - - - - 137,041 86,102 223,143 223,143		At 31.3.25 £ - 21,167 - 13,143 34,310 8,445,184 3,396,445 11,841,629 11,875,939 Movement in funds £ (1,194,382) - - 1,106 - - (7,571) - - 13,143 - 6,678 286,738 108,471 395,209 (792,495)

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

20. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds General fund Restricted funds Ogden Trust Greenwich Hospital The Veterans' Foundation Endowment funds Expendable endowment fund Permanent endowment fund TOTAL FUNDS	At 1.4.23 £ (54,786) 3,550 16,901 - 20,451 9,588,268 3,014,734 12,603,002 12,568,667	Net movement in funds £ (1,376,376) (3,550) 3,160 7,571 7,181 1,100,667 368,295 1,468,962 99,767	Transfers between funds £ 1,431,162 - - - - (1,387,197) (43,965) (1,431,162) -	At 31.3.24 £ - - 20,061 7,571
				27,632 9,301,738 3,339,064
				12,640,802
				12,668,434

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

20. MOVEMENT IN FUNDS - continued

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

Unrestricted funds General fund Restricted funds Ogden Trust The Seafarers Charity Queen Mary Roehampton Trust Greenwich Hospital Greenwich Hospital - Life Chances The Gosling Foundation - Life Chances: Tall Ships Lest We Forget Association - Life Chances: Tall Ships The Mordaunt Foundation - Life Chances: Tall Ships Special Boat Service Association - Life Chances: Tall Ships The Veterans' Foundation Thriving Through Childhood And Beyond Endowment funds Expendable endowment fund Permanent endowment fund TOTAL FUNDS	Incoming resources £ 830,307 - 100,000 5,000 102,000 40,000 9,450 14,100 7,000 5,880 27,500 51,940 362,870 135,321 36,152 171,473 1,364,650	Resources expended £ (2,206,683) (3,550) (100,000) (5,000) (98,840) (40,000) (9,450) (14,100) (7,000) (5,880) (19,929) (51,940) (355,689) (81,968) (27,048) (109,016) (2,671,388)	Gains and losses £ - - - - - - - - - - - - - 1,047,314 359,191 1,406,505 1,406,505	Movement in funds £ (1,376,376) (3,550) - - 3,160 - - - - - 7,571 - 7,181 1,100,667 368,295 1,468,962 99,767

Ogden Trust

Funds received for educational support of children (11+) of servicemen and women who have been seriously injured or killed whilst in service.

The Seafarers Charity

Funds received from The Seafarers Charity towards the welfare support of bereaved children and children of officers from within the Naval Service.

Queen Mary Roehampton Trust

Funds received from Queen Mary Roehampton Trust towards the welfare support of children of ex-service men and women in receipt of a war pension and/or disabled in service.

Greenwich Hospital

Funds received from Greenwich Hospital towards the salary costs of an Outreach Caseworker in Scotland and the Life Chances programme lead.

The Veterans' Foundation

Funds received from The Veterans' Foundation towards the salary costs of a Community Outreach Caseworker in South West England.

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

20. MOVEMENT IN FUNDS - continued

Greenwich Hospital - Life Chances

Funds received from Greenwich Hospital towards a variety of projects within our Life Chances Programme. The programme aims to empower and improve outcomes for the children of Royal Navy personnel.

The Gosling Foundation - Life Chances: Tall Ships

Funds received from The Gosling Foundation for the Tall Ships voyages run by the charity as part of their Life Chances programme. The programme aims to empower and improve outcomes for the children of Royal Navy personnel.

Lest We Forget Association - Life Chances: Tall Ships

Funds received from Lest We Forget Association for the Tall Ships voyages run by the charity as part of their Life Chances programme. The programme aims to empower and improve outcomes for the children of Royal Navy personnel.

The Mordaunt Foundation - Life Chances: Tall Ships

Funds received from The Mordaunt Foundation for the Tall Ships voyages run by the charity as part of their Life Chances programme. The programme aims to empower and improve outcomes for the children of Royal Navy personnel.

Special Boat Service Association - Life Chances: Tall Ships

Funds received from Special Boat Service Association for the Tall Ships voyages run by the charity as part of their Life Chances programme. The programme aims to empower and improve outcomes for the children of Royal Navy personnel.

Thriving Through Childhood And Beyond

Funds received from The Armed Forces Covenant Trust Fund for the Thriving Through Childhood And Beyond project. The project aims to provide awareness of the impact of service life on families through development of a toolkit for Early Years and Higher Educational establishments. The charity has a partnership agreement with The University of Winchester to run the project.

The Noel Sweeney Foundation - West Midlands, Staffordshire and Shropshire

Funds received from The Noel Sweeney Foundation to cover our core work, providing crisis support to families supported in the geographical areas of Shropshire, Staffordshire and the West Midlands.

Sanctuary Lodge - Life Chances: Tall Ships

Funds received from Sanctuary Lodge for the Tall Ships voyages run by the charity as part of their Life Chances programme. The programme aims to empower and improve outcomes for the children of Royal Navy personnel.

The Phillips Charitable Trust - Neurodiverse Project

Fund received from The Phillips Charitable Trust towards our neurodiversity work, aimed at tackling the growing number of Naval families needing specialist help and support with a child or young person that has autism.

Transfers between funds

During the year the Charity made transfers as set out below:

During the year the Charity made transfers as set out below:
	Unrestricted	Endowment
	funds	funds
General fund	1,143,292
Expendable endowment fund		(1,143,292)
Being transfers of investment income and investment withdrawals to support current		beneficiaries
as authorised by the constitution.

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

20. MOVEMENT IN FUNDS - continued

Transfers between funds - continued

	Unrestricted	Endowment
	funds	funds
General fund	51,090
Permanent endowment fund		(51,090)
Being transfers of investment income to support current beneficiaries	as authorised by the
constitution.

21. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution pension scheme for all salaried employees. The pension charge for the period was £42,178 (31.3.24: £36,796). At the balance sheet date the contributions outstanding were £6,749 (31.3.24: £6,094).

22. PERMANENT ENDOWMENT INVESTED ON A TOTAL RETURN BASIS

The charity has exercised its rights by the Trustees under section 104(A) of the Charities Act 2011 on 1 March 2020. This power permits the trustees to invest permanently endowed funds to maximise total return and therefore to apply an appropriate portion of the unapplied total return to income. The unapplied total return remains invested as part of the permanent endowment until that power is exercised. When exercised it allows the trustees to apply an appropriate portion of the unapplied total return to income each year. During the current year the trustees have transferred £51,090 from unapplied total returns to unrestricted income funds.

	Endowment for investment	Unapplied total return	Total permanent endowment
	£	£	£
Brought forward
Gift component of permanent endowment	2,299,183	-	2,299,183
Unapplied total return	-	1,039,881	1,039,881

Total	2,299,183	1,039,881	3,339,064

Movements
Investment return: Dividend and interest	-	52,381	52,381
Investment return: Realised and unrealised gains and losses	-	86,102	86,102
Less: Investment management costs	-	(30,012)	(30,012)

Total	-	108,471	108,471

Unapplied total returns transferred to unrestricted funds	-	(51,090)	(51,090)

Net movements in the reporting period	-	57,381	57,381

Carried forward
Gift component of permanent endowment	2,299,183	-	2,299,183
Unapplied total return	-	1,097,262	1,097,262

Total	2,299,183	1,097,262	3,396,445

continued...

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THE NAVAL CHILDREN'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

23. RELATED PARTY DISCLOSURES

Certain trustees were associated with organisations which undertook transactions with the charity. All such transactions were undertaken in accordance with the charity's normal agreements with suppliers. None of the relevant trustees' were in a position of material influence within the organisations concerned such that transactions between the charity and the organisations require disclosure in the financial statements.

Key management

The total remuneration paid to those considered key management during the year was £220,527 (31.3.24: £211,026).

24. ULTIMATE CONTROLLING PARTY

The charity is controlled by the trustees on behalf of the members.

Page 55