REGISTERED CHARITY NUMBER: 1160910
Report of the Trustees and
Financial Statements
for the Year Ended 31 March 2021
for
The Air Training Corps General Purpose Fund CIO
Wright Vigar Limited Statutory Auditors Chartered Accountants & Business Advisers Northgate House Northgate Sleaford Lincolnshire NG34 7BZ
The Air Training Corps General Purpose Fund CIO
Contents of the Financial Statements for the Year Ended 31 March 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 9 |
| Report of the Independent Auditors | 10 | to | 11 |
| Statement of Financial Activities | 12 | ||
| Balance Sheet | 13 | ||
| Cash Flow Statement | 14 | ||
| Notes to the Cash Flow Statement | 15 | ||
| Notes to the Financial Statements | 16 | to | 30 |
| Detailed Statement of Financial Activities | 31 |
The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives
The objectives of the Charity are to carry on such charitable purposes as the Charity Trustees from time to time think fit for the benefit of personnel of the Air Training Corps and Air Cadets. This is without limiting the generality of the foregoing to provide support and activities for young people which develop their skills, capacities, and capabilities to enable them to participate in society as mature and responsible individuals.
The charitable activities of the Charity are as follows:
Corps Sports - Enabling cadets to achieve high standards in the 7 Corps Sports at Corps Level (athletics, soccer, swimming, cross-country, rugby, hockey and netball).
Corps Activities - Includes costs for the recognised Corps Activities as well as water activities, Sports Leadership Courses, Ten Tors and overseas expeditions, again challenging activities which develop cadets.
Adventure Training Centres - Vehicles, equipment and maintenance for both AT Centres located at Windermere and Fairbourne. These centres provide Adventure Training for adult volunteers and cadets.
Training Ground Activities - Includes the BTEC in Aviation Studies open to every cadet, DofE award costs for bronze, silver and gold, volunteer training including the Leadership for Life Course, cadet messing costs, shooting competitions for cadets and music - encouraging training and development supported by nationally recognised qualifications. Recent developments include a renewed focus on STEM activities and the launch of a new space syllabus as well as continuing development of cyber training in line with Govt objectives to increase skills in these key areas.
Air Cadet Engagement Platform Costs - Basic costs for maintenance and servicing of the three trailers which are now used as classrooms for cadet flight simulator and air traffic control, space communications and cyber training at RAF Syerston. The Fund supports the maintenance of the 25 Part Task Trainers (PTTs) flight simulators.
Air Fares - For overseas camps and International Air Cadet Exchange (IACE) flight tickets and insurance - collection of a proportion from the cadets and offset by the Fund. The experience of an overseas camp or taking part in IACE representing the Air Cadets provides significant personal development opportunities.
Engagement - Cadet awards and finalists along with initial deposits for the National events.
Air Cadet magazine - Costs for the production, printing and distribution of the magazine partially offset by donations. The magazine can be accessed on-line or paper versions are available as required. Articles within the magazine aim to recognise the achievements of cadets and volunteer staff of the RAF Air Cadets and to provide a record of major events throughout the organisation.
Insurance for Cadet Activities - The Fund provides Personal Accident cover for all adults and cadets for all approved Air Training Corps activities. Additionally, Overseas Insurance can be purchased by volunteers and cadets as required.
Donations and Grants - Grants for sports kit, sports facilities, Squadron admin and Regional Activity Centres (RAC) to ensure cadet sport at Corps level can be achieved and the RAC equipment is fully functional to support the cadet syllabus.
Aims
The aims of the Air Training Corps, whose Royal Patron is HRH the Duchess of Cambridge as the Honorary Air Commandant, which this Charity supports are: to promote and encourage among young men and women a practical interest in aviation and the Royal Air Force; to provide training which will be useful both in Service and civilian life; to foster the spirit of adventure; and to develop the qualities of leadership and good citizenship. Our mission is to be a modern, dynamic, sustainable, air-minded youth organisation of choice that offers fun and challenging opportunities to young people and adult volunteers alike and develops citizens with valuable skills for the future. Our mission underpins the No 22 Group Mission, the RAF Youth Strategy, the RAF Engagement Strategy and the Cadet Forces 2025 Strategy.
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
OBJECTIVES AND ACTIVITIES
Public benefit
In deciding its activities, the Fund has had due regard to the Charity Commission guidance in relation to public benefit. The Fund satisfies this as it ensures that the Air Training Corps continues to flourish and to remain true to the ideals laid down in its charters, particularly the provision of challenging activities to enable it to attract and retain membership and thereby providing example and leadership for the Nation's youth. This Fund is necessary to support the modern, dynamic, sustainable air-minded youth organisation that offers fun and challenging opportunities for all. As a result, the Fund derives public benefit as it assists in providing opportunities for today's youth to develop personal qualities and a sense of community and citizenship valued by employers, both military and civilian, creating a positive contribution to adulthood and the good of the Nation. Recent studies by the University of Northampton have been able to demonstrate the value of the Cadet Forces to wider society.
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
ACHIEVEMENT AND PERFORMANCE Review
In common with all youth organizations across the UK, COVID19 has presented RAFAC with a number of exceptional challenges both in the HQ and more significantly in the Air Training Corps community setting. The rapid implementation of an on-line cadet experience has been an outstanding achievement by a small but determined team of staff and CFAVs, keeping the majority of Air Cadets digitally connected to their units. The challenge continued through to the end of the reporting year, nevertheless, planning and some home-based activities have continued. Face-to-face cadet activities, Duke of Edinburgh Awards (at Bronze, Silver and Gold levels) and the Adventure Training Centre's activity have been severely reduced this year.
The Trustees made the decision to pause the collection of cadet subscriptions for the reporting year, to resume with effect 1 Apr 21, and accordingly there has been limited expenditure compared to previous years.
It is envisaged that the financial impact to the fund will be managed as cadets return to activity and as income resumes. The Trustees have managed, so far, to avoid using the charities reserves held in investments but cash reserves have reduced. There have been accomplishments over the last year despite the limited activity. All maintenance of equipment and statutory requirements have been met. The Trustees have continued to support the 13 Regional Activity Centres for purchase and replacement of computer equipment along with maintenance, insurance and internet lines to ensure the cadets have an excellent training opportunity in their area of the country. The Fund supports the maintenance of the 25 Part Task Trainers (PTTs) flight simulators (purchased from a significant RAF Charitable Trust donation in 2016/17) at various Volunteer Gliding Squadron locations around the UK. The PTT training is incorporated into the Air Cadet progressive aviation syllabus and cadets are not only learning the basics of flight but also really enjoying the experience. The Trustees have agreed to maintain and upgrade as necessary, throughout the life of the equipment to ensure full operation at all times. The Trustees agreed to fund various projects, including the revitalised system for BTEC (Certificate in Aviation Studies) registration for all ATC cadets, the provision of Bronze, Silver and Gold Duke of Edinburgh award registration fees for all cadets, along with the delivery of Corporate Clothing (polo shirts) for Civilian Instructors and Chaplains.
Following the exceptional success of the Progressive Training Syllabus (PTS) badges that show some of the cadet achievements on the brassard as they work through the blue, bronze, silver and gold levels, the Trustees agreed to grant purchase these badges centrally for issue directly to the cadets. Stocks of these have been replenished.
ATC Personal Accident insurance cover is purchased by the Charity for the benefit of cadets and adult volunteers; this is provided to ensure that all personnel taking part in cadet activities have appropriate insurance cover. It remains an option for personnel to purchase cover with increased benefits if they so wish. It should be noted that there was no increase to the premium costs during this year, and the policy was also extended to 1 Jul at no extra cost.
The Air Training Corps publishes its own in-house magazine entitled "The Air Cadet". The magazine is provided free of charge to all squadrons together with publication on the website. The production costs of the magazine are met by the Fund. All Air Training Corps squadrons and individual cadets are encouraged to submit articles for publication in order that the magazine represents a broad spectrum of views from across the Organisation.
The Junior Leaders' course continues to be supported by the Fund, which strives to develop the following attributes amongst participating cadets - leadership, general life skills and an understanding of Air Power and the other Regular Services. It is recognised as the zenith of Air Cadet leadership training and retains a high profile. The benefits of these types of activity develop the powers of leadership by means of training to promote the qualities of responsibility, selfreliance, resourcefulness, endurance and perseverance and a sense of service in the community. The ATC continues to deliver enjoyable, well-organised, military-themed activities in a challenging and safely managed environment to over 30,000 young people.
The RAF Cadet Development bursaries were conceived as part of the ATC's 75th anniversary and will take a higher profile following the success of RAF100. The aim is to provide a legacy for current and future generations of cadets and junior adult volunteers which will support their transition into full time employment, be that via college or university education, work placements or apprenticeships. An application process, structure and award panel have been formed so that awards can be made on an annual basis to those who fulfil the eligibility criteria. The Trustees are keen to support this venture and acknowledge that, in the future if external sponsorship is received, it may be necessary to set up a separate charity with its own Constitution and Trustees, albeit still linked to the ATC GPF for administrative purposes.
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
FINANCIAL REVIEW
Principal funding sources
The Fund is supported primarily by subscriptions of Air Training Corps cadets. Owing to the effects of COVID 19 the Trustees made the decision to suspend the collection of subscriptions for 12 months (1 Apr 20 to 31 Mar 21) consequently no subscriptions were collected during this reporting period. The level of subscriptions is £2.50 per cadet (per month except August, with effect from 1 Jan 2011. The rate of subscriptions for cadets at overseas units is £1.25 per cadet per month, except August, to reflect the reduced access elements of the cadet experience available on the UK mainland. Additional income is derived from donations and a portfolio of long-term investments, held in accordance with the Trustees' powers. A number of funds are held where the income is used for specific purposes.
a. The Malcolm Club Fund's income is used to fund flying scholarships and grants for expeditions (known as Scarman Scholarships).
b. The BAE Millennium Fund's income is used to subsidise International Air Cadet Exchange airfares.
c. The Joseph Singleton Memorial Fund's income is used to fund two annual cash prizes to accompany the presentation of the Lees and Morris Trophies. The Lees and Morris Trophies are competed for on a biennial basis, with large squadrons competing for the Morris Trophy and the smaller squadrons competing for the Lees Trophy. 2018 was the Lees Trophy year, with finalists receiving a cash award from the Fund in addition to the Joseph Singleton awards to the winner and runner up.
d. The Stan Easton Memorial Fund is used to provide a cash award to an ATC cadet producing the best article linked to an aviation theme. This competition is not run annually and is dependent on having enough interested competitors.
Investment policy and objectives
Funds may be invested in any type of Investment other than partly paid shares or any other form of investment involving continuing liability to make contributions or payments in respect thereof, except for liabilities in respect of taxes, rates or rents.
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
FINANCIAL REVIEW
Reserves policy
The General Purposes Fund operates by holding investments to generate sufficient income to enable it to support its activities.
At the year end, the charity had total funds of £3,687,150 which was made up of unrestricted funds of £2,942,143, restricted funds of £299,431 and endowment funds of £445,576.
The level of free reserves at 31 March 2021 was £1,214,052. 'Free reserves' are the level of funds readily available to the Charity and are made up from the unrestricted funds less amounts tied up in fixed assets and long-term investments.
The Trustees aim to maintain sufficient cash reserves to provide a minimum of one year's operating costs. This is to provide sufficient time to identify alternative funding streams in the event of a material decline in income, or in a 'worst case' scenario, to wind up the Organisation's affairs and commitments in an orderly manner. At the year end, the Charity almost has sufficient free reserves to meet one year's operating costs.
Commentary on accounts
During the 12 months to 31st March 2021 the Fund had total receipts of £51,247 comprising cadet subscriptions, investment income, donations and sundry receipts.
Expenditure from the Fund totalled £392,087; therefore net expenditure before transfers and net gains/(losses) on investments was £340,840.
Net gains on investments of £199,337 led to an overall deficit in fund movements of £141,503.
No new investments were acquired; however, there were additions and disposals in the HSBC portfolio during the period.
The Trustees are satisfied that the Fund is in a healthy financial position and continues to meet the purposes for which it was established.
Fundraising policy
The majority of income into the ATC GPF is from cadet subscriptions, investments and donations. Whilst there is currently no overt fundraising from members of the public, the Trustees have considered a fundraising policy, should this be required in the future. The Trustees plan to have effective systems in place so that the Charity complies fully with any legal regulations which would apply to its fundraising. There are no plans to engage a professional fundraiser or participate in street collections, door-to-door or other methods at this time. A detailed policy will be formulated for the Fund.
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
FUTURE PLANS
With an independent review of the RAFAC now complete, and with the new Comdt having high ambition for the organisation, work is now underway to design RAFAC's journey with the Royal Air Force out to 2040. It is envisaged that immersive technologies will increasingly feature in the Youth Aviation Programme as it gears into delivering the next generation of powered air experience flying, in turn playing an important part in the Air Cadet offer by enhancing the benefits of live flying and gliding. That technology will also catalyse an evolution of the Air Cadet Progressive Training Syllabus in the increasingly important areas of space, cyber, coding, aerospace technology and sustainability, alongside other challenging pursuits such as leadership, adventurous training, Duke of Edinburgh Awards, and small arms shooting. RAFAC seeks to create residential Air & Space Ground Schools at each gliding location, equipped with immersive technology to maximise the Air & Space training opportunities for Air Cadets. In parallel, RAFAC will need to find an inexpensive way of flowing such technology into the unit setting, so that training content and delivery can evolve at pace alongside the RAF's transformational journey, retaining RAFAC's world class status, enhancing the range of BTEC qualifications on offer, and creating highly employable air- and space-minded citizens. The Air Training Corps General Purposes Fund supports the cadet element of this vision.
The RAF introduced a new vision in 2020, named Astra and it is the Trustees intention to support this initiative and align to the overall objective. Astra is the name chosen for the Royal Air Force's (RAF) journey towards our Next Generation Air Force. It's taken from our Latin motto, 'Per ardua ad astra' - 'through adversity to the stars,' which defines the character of the first 100 years and anticipates a future where the sky is no longer the limit of ambition. Astra will facilitate the journey for the next 20 years to meet the challenges and threats of a rapidly changing world, where huge sets of data and information - 'Big Data' - will be the norm. How to use that information to the best advantage is fundamental to continued success. Astra is built on strong foundations that encompass People, Training, Infrastructure and Equipment. The delivery of measurable effects against these four elements will be our collective focus over the next 20 years and beyond.
It is envisaged that funding may be directed towards various Astra scholarships and projects for example Air Cadet Astra Music Scholarships, Air Cadet Astra STEM Scholarships and ambition for similar scholarship offer in Cyber, Coding and Space.
Looking forward and taking into account the impact of COVID19 on activity levels and methods of training delivery, the Trustees wish to continue with a full programme of activities and prepare for Astra requirements. This important milestone will present engagement opportunities in a number of areas and provide extra occasions for Air Cadets to link with the Regular RAF. Additionally, as a progressive organisation the Trustees are always looking for new opportunities to develop and enhance the cadet experience and help to restore the aviation spirit in the Air Cadets. Therefore, the Trustees wish to ensure that they provide the support to making the cadet experience more attractive, accessible and consistent regardless of location or unit attended and personal circumstances.
The Trustees intend to continue to allocate funding to the traditional activities which include support for BTEC in Aviation Studies, Duke of Edinburgh Awards, the International Air Cadet Exchange programme, Royal International Air Tattoo catering for cadets, grants for squadrons, the continuation of the funding of the "Air Cadet" magazine and the ATC insurance schemes remain key outputs for the Fund.
The priorities have been reviewed and funding for one-off projects continue to be considered. The Trustees are determined to augment aviation positively with consideration for scholarships, simulators and other aerospace activity to help fulfil the minimum offer to cadets. Other areas of the curriculum have been developed to incorporate modern and fun activities such as Cyber and Science, Technology, Engineering and Maths (STEM) training courses. The RAF Charitable Trust is committed to supplementing available resources subject to the impact of COVID 19 on their income streams, and will continue to support cadet activity.
Commandant RAFAC is developing the RAF Air Cadets Astra Ambition, to take the Organisation to 2040 and beyond and this will have an impact on the Fund. The Strategy is aimed at ensuring that the RAF Air Cadets endures as a world class uniformed youth organisation, closely connected to its parent Service the Royal Air Force and will review every aspect of the Royal Air Force Air Cadets enterprise.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
With effect from 1 July 2015 the ATC General Purposes Fund became a Charitable Incorporated Organisation, (Registered Charity Number: 1160910). Historically, the ATC General Purposes Fund Trust Charity (Registered Charity Number: 256391) was established under a Trust Deed dated 19 December 1960 and was approved by the Inland Revenue Charity Division on 28 February 1968. The Trust was registered with the Charity Commission on 29 March 1969 (with various amendments) as a charity whose primary purpose is to provide for the benefit of personnel of the Air Training Corps.
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Recruitment and appointment of new trustees
The Charity's constitution requires the appointment of a total of five Trustees, (two Ex-Officio and three Appointed). The Ex-Officio members (Commandant Air Cadets & Chief of Staff Air Cadets) are appointed for the duration of their term of office and the appointed Trustees (one nominated by Comdt RAFAC to act as a Financial Trustee, one by the ATC Finance & General Purposes Committee of the Air Cadet Council & one nominated by the Corps) for so long as the appointing body decides. The constitution also allows for the recruitment of a further two independent nominated Trustees has also been enacted to increase the strength from five to seven.
Organisational structure
The Fund is managed at HQ RAF Air Cadets and is overseen by the Board of Trustees (incorporated as a body), which meets twice a year. At their meetings, Trustees consider the Fund's Audited Accounts and its general financial condition. In so doing, they consider forecast expenditure against anticipated income to determine whether or not increased contributions in the form of subscriptions are required from cadets to sustain the fund.
The Finance and General Purposes Committee of the Air Cadet Council is the working group that meets a minimum of twice per year to agree the focus of activities to meet the Corps' objectives. The Committee has particular responsibility for maintaining the income of the Fund and allocating it in support of extra mural welfare, Corps activities and sporting activities at Regional and Corps level. The members are Commandant Air Cadets (Chairperson), Chief of Staff Air Cadets (Chairman of the Air Training Corps Sports Council), 6 Regional Chairmen and in attendance a Regional Commandant (appointed by Commandant Air Cadets) and the Corps Chaplain.
Induction and training of new trustees
When new Trustees are appointed they are given a formal induction to the work of the Charity and the Air Training Corps and provided with the information they need to fulfil their roles including Terms of Reference, which includes information about the role of trustees and charity law.
Related parties
The Air Training Corps (ATC) General Purposes Fund (GPF) exists to provide financial support for purposes that the Trustees think fit for the benefit of personnel of the ATC. The GPF provides funding to the ATC which is applied to activities not covered by public funds (i.e. funds from the RAF). Such activities include travel and subsistence for sports, BTEC in Aviation Studies, Duke of Edinburgh Bronze, Silver and Gold Awards, "Air Cadet" magazine and support for the International Air Cadet Exchange (IACE) programme. Thus, the Charity is related to the ATC. It is also related to the RAF (i.e. in modern terminology is part of the RAF Family), although it is an independent organisation. The RAF supports the GPF by providing accommodation, personnel and expertise at no charge, without which the Charity could not function. The RAF Charitable Trust has made substantial donations and grants to the GPF with further consideration for the coming years. although all plans are now under review due to the COVID19 pandemic.
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management
The Trustees have assessed the major risks to which the ATC General Purposes Fund is exposed, in particular, those relating to the finances of the Charity. The six major risks identified by the Trustees are:
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a. A reduction in MOD funding and general support for RAF Air Cadets. Government funding covers a majority of the costs to the ATC. A reduction of public funding would result in a significant increase in GPF expenditure if activity levels were to be maintained.
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b. A reduction in the number of air cadets. The major contribution to the Fund comes from cadet subscriptions, although it is accepted that this would also result in a decrease in demand for funding.
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c. Overseas camp Airfare Loans from the Fund. d. Reduced investment return. e. Disaster Recovery and Planning in the event of IT failure. f. Fraud or error to the Fund.
A system has been put in place to monitor the risks to the Fund and assess possible mitigating actions. Currently, public funding remains sufficient for delivery of core activity. Cadet numbers have fallen over the last few years, probably as a consequence of reduced Air Experience Flying and gliding and the impact of a recognised demographic trough in the age range from which we recruit cadets. Early signs are that we are now slowly increasing cadet numbers as gliding begins to return to some areas of the UK, and Air Experience Flying, whilst still not achieving the full target, is helping to keep the air in air cadets. As aviation opportunities are now improving it is hoped that cadet numbers will increase. The HQ has a cadet exit survey to identify trends and the Air Cadet Council endorsed a reduction in the cadet entry age which has enhanced recruitment.
The Fund is managed at HQ RAF Air Cadets and is overseen by the Board of Trustees (incorporated as a body), which meets twice a year. At their meetings, Trustees consider the Fund's Audited Accounts and its general financial condition. In so doing, they consider forecast expenditure against anticipated income to determine whether or not increased contributions in the form of subscriptions are required from cadets to sustain the fund. The Finance and General Purposes Committee of the Air Cadet Council is the working group that meets a minimum of twice per year to agree the focus of activities to meet the Corps' objectives. The Committee has particular responsibility for maintaining the income of the Fund and allocating it in support of extra mural welfare, Corps activities and sporting activities at Regional and Corps level. The members are Commandant Air Cadets (Chairperson), Chief of Staff Air Cadets (Chairman of the Air Training Corps Sports Council), 6 Regional Chairmen and in attendance a Regional Commandant appointed by Commandant Air Cadets, and the Corps Chaplain.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1160910
Principal address
HQ RAF Air Cadets Royal Air Force College Cranwell Sleaford Lincolnshire NG34 8HB
Trustees
Air Cdre D McCafferty CBE (resigned 21.9.20) Gp Capt J Lawlor (resigned 31.8.21) A Irvine Gp Capt G Bowerman OBE Air Cdre M Neville CBE Sir David Tweedie CVU J Lee (resigned 17.11.20) Air Cdre A Keeling OBE (appointed 17.11.20)
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The Air Training Corps General Purpose Fund CIO
Report of the Trustees for the Year Ended 31 March 2021
REFERENCE AND ADMINISTRATIVE DETAILS Auditors
Wright Vigar Limited Statutory Auditors Chartered Accountants & Business Advisers Northgate House Northgate Sleaford Lincolnshire NG34 7BZ
Bankers Lloyds TSB Plc 2 Northgate Sleaford Lincolnshire, NG34 7BL
Investment Managers
Schroder & Co Ltd 31 Gresham Street London EC2V 7QA HSBC 8 Canada Square London E14 5HQ M & G Investments PO Box 9038 Chelmsford CM99 2XF
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
Approved by order of the board of trustees on 18 January 2022 and signed on its behalf by:
Air Cdre A Keeling OBE - Trustee
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Report of the Independent Auditors to the Trustees of The Air Training Corps General Purpose Fund CIO
Opinion
We have audited the financial statements of The Air Training Corps General Purpose Fund CIO (the 'charity') for the year ended 31 March 2021 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).
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In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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.
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Report of the Independent Auditors to the Trustees of The Air Training Corps General Purpose Fund CIO
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.
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:
Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
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We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.
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We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
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Substantive procedures performed in accordance with the ISAs (UK).
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Challenging assumptions and judgments made by management in its significant accounting estimates.
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Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.
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Assessing the extent of compliance with the relevant laws and regulations.
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.
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.
Wright Vigar Limited Statutory Auditors Chartered Accountants & Business Advisers Northgate House Northgate Sleaford Lincolnshire NG34 7BZ
Date: 18 January 2022
Page 11
The Air Training Corps General Purpose Fund CIO
Statement of Financial Activities for the Year Ended 31 March 2021
| Notes INCOME FROM Subscriptions, donations and grants 2 Charitable activities 4 Air Fares Air Cadet Magazine Corps Sports Corps Activities Training Ground Activities Insurance for Cadet activities Investment income 3 Total EXPENDITURE ON Charitable activities 5 Air Fares Adventure Training Air Cadet Magazine Corps Sports Corps Activities Training Ground Activities Insurance for Cadet activities Engagement Donations and Grants Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) Transfers between funds 13 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 1,337 - - 89 - 4,190 6,354 10,271 22,241 - 9,605 - 27,172 710 222,249 60,034 100 31,908 351,778 213,924 (115,613) (27,761) (143,374) 3,085,517 2,942,143 |
Restricted funds £ 19,310 - 3,674 - - - - - 22,984 - - 11,747 - - - - - 10,562 22,309 - 675 14,322 14,997 284,434 299,431 |
Endowment funds £ - - - - - - - 6,022 6,022 - - - - - - - - 18,000 18,000 (14,587) (26,565) 13,439 (13,126) 458,702 445,576 |
2021 Total funds £ 20,647 - 3,674 89 - 4,190 6,354 16,293 51,247 - 9,605 11,747 27,172 710 222,249 60,034 100 60,470 392,087 199,337 (141,503) - (141,503) 3,828,653 3,687,150 |
2020 Total funds £ 1,163,764 42,088 9,362 366 12,525 129,218 27,776 23,598 |
|---|---|---|---|---|---|
| 1,408,697 31,758 9,403 23,286 175,878 13,877 550,669 77,355 50 550,568 |
|||||
| 1,432,844 (143,958) |
|||||
| (168,105) - |
|||||
| (168,105) 3,996,758 |
|||||
| 3,828,653 |
The notes form part of these financial statements
Page 12
The Air Training Corps General Purpose Fund CIO
Balance Sheet 31 March 2021
| Notes Investments FIXED ASSETS Tangible assets 9 8 Cash at bank Debtors CURRENT ASSETS Stocks 11 10 CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS Endowment funds Restricted funds Unrestricted funds FUNDS 13 TOTAL FUNDS |
£ fund Unrestricted 1,283,354 444,736 1,728,090 1,178,320 15,313 30,419 1,224,052 (10,000) 1,214,052 2,942,142 2,942,142 |
£ funds Restricted - - - 284,432 15,000 - 299,432 - 299,432 299,432 299,432 |
£ Endowment funds 297,694 - 297,694 147,882 - - 147,882 - 147,882 445,576 445,576 |
£ funds Total 2021 1,581,048 444,736 2,025,784 1,610,634 30,313 30,419 1,671,366 (10,000) 1,661,366 3,687,150 3,687,150 445,576 299,432 2,942,142 3,687,150 |
£ funds Total 2020 534,794 1,343,055 |
|---|---|---|---|---|---|
| 1,877,849 22,303 429,893 1,560,095 |
|||||
| 2,012,291 (61,487) |
|||||
| 1,950,804 | |||||
| 3,828,653 | |||||
| 3,828,653 | |||||
| 3,085,517 284,434 458,702 |
|||||
| 3,828,653 |
The financial statements were approved by the Board of Trustees and authorised for issue on 18 January 2022 and were signed on its behalf by:
Gp Capt G Bowerman OBE - Trustee
The Air Training Corps General Purpose Fund CIO
Cash Flow Statement
for the Year Ended 31 March 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of fixed asset investments Disposal of mobile challenge course Net cash (used in)/provided by investing activities Cash flows from financing activities Income attributable to endowment Expenditure attributable to endowment Net cash used in financing 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 |
2021 £ 101,173 101,173 - (38,656) - (38,656) 6,022 (18,000) (11,978) 50,539 1,560,095 1,610,634 |
2020 £ 155,161 |
|---|---|---|
| 155,161 | ||
| (70,599) 7,648 95,000 |
||
| 32,049 | ||
| 7,059 (18,200) |
||
| (11,141) | ||
| 176,069 1,384,026 |
||
| 1,560,095 |
The notes form part of these financial statements
Page 14
The Air Training Corps General Purpose Fund CIO
Notes to the Cash Flow Statement for the Year Ended 31 March 2021
| 1. | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES | |
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| £ | £ | |||||
| Net expenditure for the reporting period (as per the | Statement of | |||||
| Financial Activities) | (141,503) | (168,105) | ||||
| Adjustments for: | ||||||
| Depreciation charges | 90,058 | 89,942 | ||||
| (Gain)/losses on investments | (199,337) | 143,958 | ||||
| Income attributable to endowment | (6,022) | (7,059) | ||||
| Expenditure attributable to endowment | 18,000 | 18,200 | ||||
| Increase in stocks | (8,116) | (1,221) | ||||
| Decrease in debtors | 399,580 | 60,754 | ||||
| (Decrease)/increase in creditors | (51,487) | 18,692 | ||||
| Net cash provided by operations | 101,173 | 155,161 | ||||
| 2. | ANALYSIS OF CHANGES IN NET FUNDS | |||||
| At | 1.4.20 | Cash flow | At | 31.3.21 | ||
| £ | £ | £ | ||||
| Net cash | ||||||
| Cash at bank | 1,560,095 | 50,539 | 1,610,634 | |||
| 1,560,095 | 50,539 | 1,610,634 | ||||
| Total | 1,560,095 | 50,539 | 1,610,634 |
The notes form part of these financial statements
Page 15
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements
for the Year Ended 31 March 2021
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.
The charity is a Charitable Incorporated Organisation registered with the Charity Commission in England and Wales.
Incoming resources
Subscriptions
Cadet subscriptions as remitted by Wings via Regions are recognised in the period to which they relate.
Voluntary Income
Cash donations and gifts are recognised in the Statement of Financial Activities when they can be accurately valued, the right to the income has been transferred and it is probable that the income will be received. Cash collected at special fund raising events is included gross.
Significant non-cash donations are included in the Statement of Financial Activities at the Trustees' estimate of their market value when received. The value of voluntary help is not included in the accounts as it can not be accurately valued.
Investment Income
Investment income is included when receivable and the amount can be measured reliably by the charity.The charity has both Restricted and Unrestricted Endowment Funds. Income from these funds has been classified accordingly.
Grants
Grant income is recognised when there is sufficient probability of receipt, therefore being more likely than not. Grant income is only deferred where the specific conditions of the grant stipulate that it relates to a later period.
Support from the RAF
The administration of the General Purposes Fund is undertaken by staff paid from RAF Public funds. No charge is made for these services and they have not been valued in the accounts.
Legacies
For legacies, entitlement is taken as the earlier of:
-
the date on which the charity is aware that probate has been granted;
-
the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made; or
-
when a distribution is received from the estate.
Recognition of a legacy, in whole or in part, is only considered when receipt is probable, when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Expenditure
Expenditure is included on an accruals basis.
Section expenditure is applied in accordance with the charity's objects. Section income and expenditure have been included gross in the Statement of Financial Activities (SOFA). The analysis is shown in the notes as referenced. Income represents contributions to the costs of the activities and any surplus arising will be applied in furthering the objects of the charity. In the Trustees' opinion this treatment provides clarity and gives a true and fair view of the Income and Expenditure of the Charity in the year.
The allocation of expenditure across the different headings shown in the SOFA reflects how costs are incurred by the individual sections which run independently.
Page 16
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued
for the Year Ended 31 March 2021
1. ACCOUNTING POLICIES - continued
Expenditure
Administration expenditure comprises those costs for the running of the charity itself as an organisation, and ensuring that its objects are complied with. The central administrative costs are fully apportioned to the training ground activities charitable activity.
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.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Camping equipment - 33% on cost Simulators - 10% on cost Radio Comms - 10% on cost Motor vehicles - 15% on reducing balance - Target Rifles 5% on reducing balance
Fixed Assets whose original cost, (or if donated, value at the date of receipt) was more than £100 have been capitalised.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Details of the nature and purpose of each fund are set out in note 13.
Unrestricted Funds comprise those funds which the trustees are free to use in accordance with the charitable objects of the Fund.
Restricted Funds are funds which have been given for a particular purpose or project. The fund and income arising therefrom can only be used for that specific purpose.
Endowment Funds represent investments that must be held permanently by the charity. Income arising on an endowment fund can be used in accordance with the objects of the charity, provided no restriction has been applied to the fund.
Capital gains or losses relating to these investments form part of the fund.
Restricted Endowment Funds represent permanent investments whose uses are specifically restricted to the purposes for which they were intended.
Investments
Investments have been valued at market value as at the financial year end. The change in market valuation is reflected in the Statement of Financial Activities as an Unrealised Gain or Loss on Investment Assets.
Page 17
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued
for the Year Ended 31 March 2021
| 2. SUBSCRIPTIONS, DONATIONS AND GRANTS Subscriptions Grants and donations The Anne & John Singleton Will Trust RAFCT - STEM The Edinburgh Trust MOD Libor Lloyds TSB Matched Giving Miscellaneous Donations 3. INVESTMENT INCOME Dividend income 4. INCOME FROM CHARITABLE ACTIVITIES Activity Contributions Air Fares Contributions Air Cadet Magazine Contributions Corps Sports Contributions Corps Activities Contributions Training Ground Activities Contributions Insurance for Cadet activities 5. CHARITABLE ACTIVITIES COSTS Adventure Training Air Cadet Magazine Corps Sports Corps Activities Training Ground Activities Insurance for Cadet activities Engagement Donations and Grants |
2021 £ 311 20,336 20,647 |
2021 £ 311 20,336 20,647 |
2021 £ 311 20,336 20,647 |
2020 £ 921,706 242,058 1,163,764 |
2020 £ 921,706 242,058 1,163,764 |
2020 £ 921,706 242,058 1,163,764 |
||||
|---|---|---|---|---|---|---|---|---|---|---|
| Restricted | Unrestricted | 31.03.21 | ||||||||
| £ | £ | £ | ||||||||
| 2,000 | - | 2,000 | ||||||||
| 8,764 | - | 8,764 | ||||||||
| - | 1,000 | 1,000 | ||||||||
| 6,314 | - | 6,314 | ||||||||
| 2,232 | - | 2,232 | ||||||||
| - | 26 | 26 | ||||||||
| 19,310 | 1,026 | 20,336 | ||||||||
| Direct Costs £ 9,605 11,747 27,172 710 222,249 60,034 100 - 331,617 |
2020 £ 23,598 2020 £ 42,088 9,362 366 12,525 129,218 27,776 221,335 Totals £ 9,605 11,747 27,172 710 222,249 60,034 100 60,470 392,087 |
|||||||||
.
.
Page 18
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
5. CHARITABLE ACTIVITIES COSTS - continued
FURTHER ANALYSIS OF CHARITABLE ACTIVITIES FOR THE PERIOD
Air Fares
| Contributions | Expenditure | Cost to the Charity |
|
|---|---|---|---|
| £ | £ | £ | |
| Germany Camp | - | - | - |
| - | - | - | |
| Corps Sports | |||
| Contributions | Expenditure | Cost to the Charity |
|
| £ | £ | £ | |
| Soccer | - | 5,656 | 5,656 |
| Swimming | - | 2,467 | 2,467 |
| Cross Country | 89 | 8,739 | 8,650 |
| Rugby | - | 2,267 | 2,267 |
| Netball | - | 2,344 | 2,344 |
| Hockey | - | 5,465 | 5,465 |
| Rail Costs | - | 234 | 234 |
| 89 | 27,172 | 27,083 | |
| Training Ground Activities | |||
| Contributions | Expenditure | Cost to the Charity |
|
| £ | £ | £ | |
| Projects | - | 1,921 | 1,921 |
| BTEC | - | 20,525 | 20,525 |
| Duke of Edinburgh Bronze, Silver & Gold Awards | 173 | 8,307 | 8,134 |
| Shooting | - | 7,990 | 7,990 |
| Music | 327 | 9,190 | 8,863 |
| Radios | - | 1,302 | 1,302 |
| IACE (Memorabilia & Clothing) | - | 2,297 | 2,297 |
| IACE (Horizons Royalties) | - | 100 | 100 |
| CVQO Limited | - | 14,000 | 14,000 |
| Junior Leaders | 3,690 | 5,155 | 1,465 |
| Fundraising | - | 216 | 216 |
| National Concert Band | - | 2,009 | 2,009 |
| DACRE Finalists Leadership Camp | - | 439 | 439 |
| Duke of Edinburgh Instructors | - | 1,136 | 1,136 |
| QAIC | - | 455 | 455 |
| Cyber Kit | - | 880 | 880 |
| PTS Badges | - | 41,540 | 41,540 |
| Miscellaneous | - | 1,109 | 1,109 |
| Auditors' Remuneration | - | 5,950 | 5,950 |
| Auditors' Remuneration - non-audit | - | 7,670 | 7,670 |
| Depreciation on Tangible Fixed Assets | - | 90,058 | 90,058 |
| 4,190 | 222,249 | 218,059 | |
| Engagement | |||
| Contributions | Expenditure | Cost to the Charity |
|
| £ | £ | £ | |
| Bank charges | - | 100 | 100 |
| - | 100 | 100 | |
Page 19
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued
for the Year Ended 31 March 2021
5. CHARITABLE ACTIVITIES COSTS - continued
Insurance for Cadet Activities
Insurance cover is provided for personal accident, RAC contents, TII and Corps Trophies. Personal accident (entitled members) and overseas cover is provided on the payment of the appropriate premium by the individual or unit. Germany and Gibraltar camps and IACE insurance costs are included in the appropriate activity costs.
Auditors' Remuneration
| Auditors'Remuneration | |||||
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| £ | £ | ||||
| Auditors' Remuneration | 5,950 | 5,950 | |||
| GRANTS PAYABLE Donations and Grants |
2021 £ 60,470 |
2020 £ 550,568 31.03.21 £ 6,250 5,999 2,732 18,000 2,624 160 2,660 19,465 1,000 1,580 60,470 |
|||
| Restricted | Unrestricted | ||||
| £ | £ | ||||
| RAFAC - Development Bursaries | 6,250 | - | |||
| Lees & Morris Trophy | - | 5,999 | |||
| Lloyds TSB Foundation | 2,732 | - | |||
| Malcolm Club Endowment | 18,000 | - | |||
| Engagement | - | 2,624 | |||
| Administration | - | 160 | |||
| VGS PTT | - | 2,660 | |||
| Regional/Wing Activity Centres | - | 19,465 | |||
| BAE Systems | 1,000 | ||||
| RAFCT (Motivational Flying) | 1,580 | - | |||
| 28,562 | 31,908 | ||||
6. GRANTS PAYABLE
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.
Page 20
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
8. TANGIBLE FIXED ASSETS
| COST At 1 April 2020 and 31 March 2021 DEPRECIATION At 1 April 2020 Charge for year At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020 COST At 1 April 2020 and 31 March 2021 DEPRECIATION At 1 April 2020 Charge for year At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020 |
Camping equipment £ 32,501 32,501 - 32,501 - - Motor vehicles £ 45,230 35,100 1,520 36,620 8,610 10,130 |
Simulators £ 720,712 355,298 72,071 427,369 293,343 365,414 Target Rifles £ 184,715 30,083 15,313 45,396 139,319 154,632 |
Radio Comms £ 11,543 |
|---|---|---|---|
| 6,925 1,154 |
|||
| 8,079 | |||
| 3,464 | |||
| 4,618 | |||
| Totals £ 994,701 |
|||
| 459,907 90,058 |
|||
| 549,965 | |||
| 444,736 | |||
| 534,794 |
Page 21
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued
for the Year Ended 31 March 2021
9. FIXED ASSET INVESTMENTS
| Schroders | Schroders | Schroders | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Fund 513 | Fund 514 Fund 514 |
Fund 1066 | ||||||||
| Charity | Charity Charity |
Charity | ||||||||
| Fixed Int | Equity Inc Fixed Int |
Fixed Int | ||||||||
| Stan Easton | Unrestricted Funds | J. Singleton | ||||||||
| £ | £ | £ | £ | |||||||
| C O ST |
||||||||||
| At 1 April 2020 | 1,884 | 101,618 | 97,694 | 10,092 | ||||||
| Introduced | - | - | - | - | ||||||
| Withdrawn | - | - | - | - | ||||||
| At 31 March 2021 | 1,884 | 101,618 | 97,694 | 10,092 | ||||||
| V A LU A TI O N |
||||||||||
| At 1 April 2020 | 2,418 | 189,740 | 124,465 | 12,332 | ||||||
| Purchases | - | - | - | - | ||||||
| Sales | - | - | - | - | ||||||
| Change in Value | (135) | 72,575 | (6,955) | (689) | ||||||
| At 31 March 2021 | 2,283 | 262,315 | 117,510 | 11,643 | ||||||
| Schroders | HSBC | M&G | Total | |||||||
| Fund 2161 | Portfolio | |||||||||
| Charity | ||||||||||
| Fixed Int | ||||||||||
| BAE Millenium | ||||||||||
| Malcolm Club | Unrestricted Funds | Challenge (IACE) | ||||||||
| £ | £ | £ | £ | |||||||
| C O ST |
||||||||||
| At 1 April 2020 | 200,000 | 503,605 | 50,000 | 964,893 | ||||||
| Introduced | - | - | - | - | ||||||
| Withdrawn | - | - | - | - | ||||||
| At 31 March 2021 | 200,000 | 503,605 | 50,000 | 964,893 | ||||||
| V A LU A TI O N |
||||||||||
| At 1 April 2020 | 248,645 | 716,569 | 48,886 | 1,343,055 | ||||||
| Purchases | - | 203,618 | - | 203,618 | ||||||
| Sales | - | (260,222) | - | (260,222) | ||||||
| Change in Value | (13,893) | 243,563 | 131 | 294,597 | ||||||
| At 31 March 2021 | 234,752 | 903,528 | 49,017 | 1,581,048 | ||||||
10. STOCKS
IACE Supplies
| 2021 | 2020 |
|---|---|
| £ | £ |
| 30,419 | 22,303 |
Page 22
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
| 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors 13. MOVEMENT IN FUNDS At 1.4.20 £ Unrestricted funds Unrestricted Fund 3,085,517 Restricted funds Air Cadet Magazine - BAE 76,264 Anne & John Singleton 97,523 Lloyds TSB Foundation 850 Convention 2,500 RAFAC - Development Bursaries - RAFCT - Motivational Flying 18,982 RFCA - WM 8,315 RAFCT - STEM - MOD Libor - Worshipful Company of Coachmakers 80,000 284,434 Endowment funds BAE Millenium Fund 194,090 Joseph Singleton 12,683 Malcolm Club 248,645 Stan Easton 3,284 458,702 TOTAL FUNDS 3,828,653 |
Net movement in funds £ (115,614) (8,072) - 2,000 (500) - (6,250) (1,580) - 8,764 6,314 - 676 1,321 (463) (27,332) (91) (26,565) (141,503) |
||
|---|---|---|---|
Page 23
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
13. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds Unrestricted Fund Restricted funds Air Cadet Magazine Anne & John Singleton Lloyds TSB Foundation RAFAC - Development Bursaries RAFCT - Motivational Flying RAFCT - STEM MOD Libor Endowment funds BAE Millenium Fund Joseph Singleton Malcolm Club Stan Easton TOTAL FUNDS |
Incoming resources £ 22,240 3,675 2,000 2,232 - - 8,764 6,314 22,985 1,190 226 4,562 44 6,022 51,247 |
Resources expended £ (351,778) (11,747) - (2,732) (6,250) (1,580) - - (22,309) - - (18,000) - (18,000) (392,087) |
Gains and Movement losses in funds £ £ 213,924 (115,614) - (8,072) - 2,000 - (500) - (6,250) - (1,580) - 8,764 - 6,314 - 676 131 1,321 (689) (463) (13,894) (27,332) (135) (91) (14,587) (26,565) 199,337 (141,503) |
Gains and Movement losses in funds £ £ 213,924 (115,614) - (8,072) - 2,000 - (500) - (6,250) - (1,580) - 8,764 - 6,314 - 676 131 1,321 (689) (463) (13,894) (27,332) (135) (91) (14,587) (26,565) 199,337 (141,503) |
|---|---|---|---|---|
| 676 1,321 (463) (27,332) (91) |
||||
| (26,565) | ||||
| (141,503) |
Page 24
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
13. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds Unrestricted Fund Restricted funds Air Cadet Magazine RAFCT - Shooting ranges BAE Anne & John Singleton Lloyds TSB Foundation Marshall Trophy Convention RAFAC - Development Bursaries RAFCT - Motivational Flying RFCA - WM Sir Michael Knight Scholarship RAF 100 Bag Pack Prizes MOD Libor Worshipful Company of Coachmakers Endowment funds BAE Millenium Fund Joseph Singleton Malcolm Club Stan Easton TOTAL FUNDS |
At 1.4.19 £ 3,233,777 - - 31,264 100,723 350 - 2,500 7,465 20,773 8,315 - 2,500 67,521 80,000 321,411 193,034 11,859 233,594 3,083 441,570 3,996,758 |
Net movement in funds £ (156,035) (13,924) 35,000 45,000 (3,200) 500 (475) - (7,626) (1,791) - (279) (2,500) (67,521) - (16,816) 1,056 824 2,665 201 4,746 (168,105) |
Transfers between funds £ 7,775 13,924 (35,000) - - - 475 - 161 - - 279 - - - (20,161) - - 12,386 - 12,386 - |
At 31.3.20 £ 3,085,517 - - 76,264 97,523 850 - 2,500 - 18,982 8,315 - - - 80,000 |
|---|---|---|---|---|
| 284,434 194,090 12,683 248,645 3,284 |
||||
| 458,702 | ||||
| 3,828,653 |
Page 25
continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
13. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds Unrestricted Fund Restricted funds Air Cadet Magazine RAFCT - Shooting ranges BAE Anne & John Singleton Lloyds TSB Foundation Marshall Trophy RAFAC - Development Bursaries RAFCT - Flying Excellence Award RAFCT - Motivational Flying Sir Michael Knight Scholarship RAFCT - STEM RAF 100 Bag Pack Prizes MOD Libor The Award Scheme Limited - Duke of Edinburgh Award Endowment funds BAE Millenium Fund Joseph Singleton Malcolm Club Stan Easton TOTAL FUNDS |
Incoming resources £ 1,153,391 9,362 35,000 45,000 - 12,962 475 2,924 10,000 - 99,000 25,000 - - 8,524 248,247 1,112 278 5,614 55 7,059 1,408,697 |
Resources expended £ (1,149,581) (23,286) - - (3,200) (12,462) (950) (10,550) (10,000) (1,791) (99,279) (25,000) (2,500) (67,521) (8,524) (265,063) - (200) (18,000) - (18,200) (1,432,844) |
Gains and losses £ (159,845) - - - - - - - - - - - - - - - (56) 746 15,051 146 15,887 (143,958) |
Movement in funds £ (156,035) (13,924) 35,000 45,000 (3,200) 500 (475) (7,626) - (1,791) (279) - (2,500) (67,521) - |
|---|---|---|---|---|
| (16,816) 1,056 824 2,665 201 |
||||
| 4,746 | ||||
| (168,105) |
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continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
13. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds Unrestricted Fund Restricted funds Air Cadet Magazine RAFCT - Shooting ranges BAE Anne & John Singleton Lloyds TSB Foundation Marshall Trophy Convention RAFAC - Development Bursaries RAFCT - Motivational Flying RFCA - WM Sir Michael Knight Scholarship RAFCT - STEM RAF 100 Bag Pack Prizes MOD Libor Worshipful Company of Coachmakers Endowment funds BAE Millenium Fund Joseph Singleton Malcolm Club Stan Easton TOTAL FUNDS |
At 1.4.19 £ 3,233,777 - - 31,264 100,723 350 - 2,500 7,465 20,773 8,315 - - 2,500 67,521 80,000 321,411 193,034 11,859 233,594 3,083 441,570 3,996,758 |
Net movement in funds £ (271,649) (21,996) 35,000 45,000 (1,200) - (475) - (13,876) (3,371) - (279) 8,764 (2,500) (61,207) - (16,140) 2,377 361 (24,667) 110 (21,819) (309,608) |
Transfers between funds £ (19,986) 21,996 (35,000) - - - 475 - 6,411 - - 279 - - - - (5,839) - - 25,825 - 25,825 - |
At 31.3.21 £ 2,942,142 - - 76,264 99,523 350 - 2,500 - 17,402 8,315 - 8,764 - 6,314 80,000 |
|---|---|---|---|---|
| 299,432 195,411 12,220 234,752 3,193 |
||||
| 445,576 | ||||
| 3,687,150 |
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continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
13. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming Resources resources expended £ £ Unrestricted funds Unrestricted Fund 1,175,631 (1,501,359) Restricted funds Air Cadet Magazine 13,037 (35,033) RAFCT - Shooting ranges 35,000 - BAE 45,000 - Anne & John Singleton 2,000 (3,200) Lloyds TSB Foundation 15,194 (15,194) Marshall Trophy 475 (950) RAFAC - Development Bursaries 2,924 (16,800) RAFCT - Flying Excellence Award 10,000 (10,000) RAFCT - Motivational Flying - (3,371) Sir Michael Knight Scholarship 99,000 (99,279) RAFCT - STEM 33,764 (25,000) RAF 100 Bag Pack Prizes - (2,500) MOD Libor 6,314 (67,521) The Award Scheme Limited - Duke of Edinburgh Award 8,524 (8,524) 271,232 (287,372) Endowment funds BAE Millenium Fund 2,302 - Joseph Singleton 504 (200) Malcolm Club 10,176 (36,000) Stan Easton 99 - 13,081 (36,200) TOTAL FUNDS 1,459,944 (1,824,931) |
Gains and Movement losses in funds £ £ 54,079 (271,649) - (21,996) - 35,000 - 45,000 - (1,200) - - - (475) - (13,876) - - - (3,371) - (279) - 8,764 - (2,500) - (61,207) - - - (16,140) 75 2,377 57 361 1,157 (24,667) 11 110 1,300 (21,819) 55,379 (309,608) |
Gains and Movement losses in funds £ £ 54,079 (271,649) - (21,996) - 35,000 - 45,000 - (1,200) - - - (475) - (13,876) - - - (3,371) - (279) - 8,764 - (2,500) - (61,207) - - - (16,140) 75 2,377 57 361 1,157 (24,667) 11 110 1,300 (21,819) 55,379 (309,608) |
|---|---|---|
| (16,140) 2,377 361 (24,667) 110 |
||
| (21,819) | ||
| (309,608) |
Funds of the charity
Air Cadet Magazine
The RAFCT donate towards the production costs of the magazine along with income from advertising revenue and support from the fund. There are 3 magazines a year for cadets, to use as a recruitment tool and to advertise the breadth of activities undertaken by the Corps.
RAFCT - Shooting Ranges
RAFCT donations under Project Aura, SO1 TG administering the purchase of various shooting ranges to be located around the UK.
BAE
BAE have pledged donations which will be managed by Hd MC for recruitment and advertising equipment.
Anne and John Singleton Trust - Restricted Donation
The Air Cadet Organisation has undertaken to use the funds donated to provide assistance to young people between the ages of 16-20 to undertake expeditions in both the British Isles and abroad with a community service aspect, especially where handicapped people are involved, either male or female, who are members of the Air Cadets. On 13 Oct 09 £163,975 was donated to the Air Training Corps, as at 31 March 2021 £64,452 has been spent from this fund.
Lloyds TSB Foundation
Matched giving achieved by Corps members which is then transferred to the sqn Civilian Committee concerned.
RAFAC Convention
The funding for the annual RAFAC Convention.
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continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued
for the Year Ended 31 March 2021
13. MOVEMENT IN FUNDS - continued
Funds of the charity - continued
ATC 80th Anniversary in 2021
2021 marks the ATC 80th Anniversary. There will be a number of events held to promote the RAFAC, the charity and the RAF.
The RAF Cadet Development Bursaries
The RAF Cadet Development Bursaries were conceived as part of the ATC's 75th anniversary celebrations in 2016. The aim is to provide a legacy for current and future generations of cadets and junior adult volunteers which will support their transition into full time employment, be that via university education, work placements or apprenticeships.
RAFCT Motivational Flying
Motivational flying packages.
RAFCT Aerospace Camp
Support of equipment for the Cadet Aerospace camps.
RAFCT Sir Michael Knight Scholarship
Cadet Flying Scholarships.
RFCA WM
Gliding experience for cadets in 3 wings, West Mercian, Staffordshire and Warwick and Birmingham.
RAFCT - Regional Leadership Equipment
Purchase of Air Cadet Leadership Field Equipment.
The BAE Millennium Fund's - Restricted Endowment
Income is used to subsidise International Air Cadet Exchange airfares.
The Joseph Singleton Memorial Fund - Restricted Endowment
The Joseph Singleton Memorial Fund's income is used to fund two annual cash prizes to accompany the presentation of the Lees and Morris Trophies. The Lees and Morris Trophies are competed for on a biennial basis, with large squadrons competing for the Morris Trophy and the smaller squadrons competing for the Lees Trophy.
The Malcolm Club Fund
The investment fund generates interest income which aims to provide six 12 hour flying scholarships and 4 overseas expeditions. Any shortfall between the income and the cost is made up by the general purposes fund.
The Stan Easton Memorial Fund - Restricted Endowment
Income is used to provide a cash award to an ATC cadet producing the best article linked to an aviation theme. This competition is not run annually and is dependent on having enough interested competitors.
Transfers between Funds
The Malcolm Club Fund was established to support the IACE and flying scholarships. Each year an amount equivalent to the average income on the fund is transferred to Unrestricted Funds (from which the expenditure is incurred) to reflect this.
The general fund supports the of producing of the Air Cadet Magazine. A transfer was made during the year to support the shortfall.
A transfer was made within the RAFAC Development Bursaries fund in order to offset the overspend.
All other transfers related to overspend in restricted funds and this has been supported by the general fund.
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continued...
The Air Training Corps General Purpose Fund CIO
Notes to the Financial Statements - continued
for the Year Ended 31 March 2021
14. RELATED PARTY DISCLOSURES
The Royal Air Force Charitable Trust
The Charity is independent of the Royal Air Force Charitable Trust but has a close relationship with it and receives significant support as explained in the Trustees' Report. As Covid-19 significantly disrupted the financial year, there were no grants received in the period (2020: £169,000).
Air Training Corps
The General Purposes Fund exists to support members of the Air Training Corps (ATC) and further its objects. Hence the ATC is considered a related party of the charity. All charitable expenditure in these financial statements is incurred with these objects in mind. Payment of grants directly to the squadrons, wings and regions of the ATC and purchases of equipment for them are shown in note 6 above. Other costs are borne directly by the General Purposes Fund.
Page 30
The Air Training Corps General Purpose Fund CIO
Detailed Statement of Financial Activities
for the Year Ended 31 March 2021
| INCOME Subscriptions, donations and grants Subscriptions Grants and donations Investment income Dividend income Charitable activities Contributions Total incoming resources EXPENDITURE Charitable activities Costs of charitable activities Insurance Auditors' remuneration Auditors' remn - non-audit Bank charges Depn of camping equipment Depn of simulators Depn of radio comms Motor vehicles Depn of target rifles Grants to individuals Total resources expended Net expenditure |
2021 £ 311 20,336 20,647 16,293 14,307 51,247 167,805 60,034 5,950 7,670 100 - 72,071 1,154 1,520 15,313 60,470 392,087 392,087 (340,840) |
2020 £ 921,706 242,058 |
|---|---|---|
| 1,163,764 23,598 221,335 |
||
| 1,408,697 704,787 74,417 5,950 7,130 50 1,895 72,071 1,154 1,788 13,034 550,568 |
||
| 1,432,844 | ||
| 1,432,844 | ||
| (24,147) |
This page does not form part of the statutory financial statements
Page 31