2021-06-30-accounts - The Veterans' Foundation

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THE VETERANS’ FOUNDATION

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

COMPANY REGISTRATION NUMBER: 10099309 CHARITY COMMISSION NUMBER: 1166953 OSCR CHARITY NUMBER: SC046571

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Reference and administrative details

Trustees (Directors for company law purposes)

P Mountford, FCA (Chair) R Farndale, FRGS, MCIArb (Deputy Chair) E M Lofgren Skeide, MCISI M F Tulloch B Walker, ED, FRICS

CEO

Major General David Shaw CBE

Registered office

First Floor International House 20 Hatherton Street Walsall WS4 2LA

Correspondence address

Thistle Court 1-2 Thistle Street Edinburgh EH2 1DD

Auditor

Azets Audit Services Chartered Accountants Titanium 1 King’s Inch Place Renfrew PA4 8WF

Company Registration Number: 10099309

Charity Commission Charity Number: 1166953 OSCR Charity Number: SC046571

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Contents	Pages
Annual Report of the Trustees	1 – 9
Independent Auditor’s Report to the Members and the Trustees	10 – 13
Statement of Financial Activities (incorporating the Income and Expenditure
account)	14
Balance Sheet	15
Statement of Cash Flows	16
Notes to the Financial Statements	17 – 28

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

The Trustees of the Veterans’ Foundation (VF) present their annual report with the financial statements of the charitable company for the financial year ended 30 June 2021.

Chairman’s Overview

Despite the impact of the pandemic I’m delighted to report that we awarded just over £3.3M in 157 grants to 132 organisations in the year, due mainly to the continuing strong growth in our Veterans’ Lottery. This means that we awarded 72% more in grants than in the previous year and we have given £7.1M in grants since our inception five years ago, in July 2016 - a remarkable achievement.

All but a small amount of our income comes from our Veterans’ Lottery. Subscribers grew by 45% from 44K to 64K in the year, making the Veterans’ Lottery one of the largest lotteries in the UK . This represented an exceptional performance during a period in which most charities saw a significant drop in their fundraising income and one which made the grant-making of the Veterans’ Foundation even more important.

A key focus of our grant-giving during the year was to respond to pandemic-induced, urgent requirements, including maintaining communication with beneficiaries throughout distancing, reducing the impact of the pandemic on mental health, and delivering vital supplies to maintain the health and wellbeing of beneficiaries.

We continued to direct our grant-giving to support low to medium-wealth organisations that are governed well and that make a big difference to the lives of their beneficiaries. We don’t just fund registered charities but also many organisations with charitable aims, all of whom perform excellent work in helping serve members of the armed forces’ community, and operationally qualified seafarers, and their dependants.

As a result, the Veterans’ Foundation has had a significant incremental impact on the support given to service people and their families, not just in the year, but cumulatively over the last five years.

Guided by the Government’s “Strategy for our Veterans”, our grants were given to a wide range of organisations that are conducting beneficial work across many challenges faced by people linked with the armed forces. For instance, we have supported organisations who tackle homelessness, social isolation and loneliness, family welfare, unemployment, poor mental and physical health, and addictions. Where possible, we link organisations that are delivering similar services in the hope they can collaborate and reduce overheads, while maximizing good outcomes .

While the main route to market, online subscriptions flourished under lockdown, the nascent direct sales capability was severely curtailed in the year. We look forward to re-engaging the public in the coming year to develop that scalable route to market, pandemic-restrictions willing.

Maintaining high standards in governance is critical. We comply with regulations and guidance from a wide range of regulators, including the Charity Commission, OSCR, the Gambling Commission, Companies House, the Information Commissioner and the Fundraising Regulator. Furthermore, we continue to develop the good governance initiative sponsored by the Confederation of Service Charities (Cobseo), and I am pleased to report our ‘green’ status against their Governance checklist. In considering any bids for grants, our Trustees also expect high standards of governance from applicants.

Finally, I would like to thank my fellow trustees and, most importantly, the small Veterans’ Foundation team who maintained unbroken service through remote working. I would also like to thank the team at Bee Ethical for their exceptional work.

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

The VF is a company limited by guarantee and not having a share capital, with registration number 10099309. It is recognised as a charity for tax purposes by HMRC and is registered with the Charity Commission under charity number 1166953 and the Office of the Scottish Charity Regulator (OSCR) under charity number SC046571.

Vision and Objects

The vision of the VF is that it becomes a significant source of funds for serving or former members of the armed forces, qualifying merchant seamen and their dependants, who are in need, in order to help those beneficiaries experience a better quality of life.

In particular, its objects are as follows:

To assist people who are serving or who have served in the British Armed Forces, including UK merchant seafaring veterans, and their dependants by advancing any lawful charitable purposes at the discretion of the Trustees; and
In particular, but not exclusively, to make grants to other charities who assist serving and former members of the armed forces and their dependants who are in need.

Governance

Key points with regard to governance are as follows:

The VF has a Memorandum and Articles of Association which establish the objects and powers of the charitable company and is governed under its Articles of Association of 16 February 2016;
The VF raises funds, currently mainly through the VL, with the objective of making grants and donations to beneficiaries through charities and other organisations; and
The VF is governed by its Board of Trustees.

The Trustees who served during the year and up to the signing of the financial statements were:

P Mountford, FCA (Chair) R Farndale, FRGS, MCIArb (Deputy Chair) E M Lofgren Skeide, MCISI M F Tulloch

B Walker, MA, ED, FRICS

The Trustees meet on a quarterly basis to consider, inter alia, items such as achievements, partnering arrangements, risks, regulations and finances, as well as to allocate grants. They occasionally consider matters out of committee, including urgent pandemic-based grants. Due to the effects of the pandemic, all Trustees’ meetings during the year were carried out virtually. However, subject to government and other restrictions, it is intended that Trustees should revert to a mixture of F2F and meetings with at least one F2F meeting per year as soon as practicable in the future.

The VF has an Audit Sub-Committee, comprising Eline Lofgren Skeide (Chair) and Peter Mountford. Currently, there are no other sub-committees.

To date, the VF has recruited its Trustees either by advertising or by word of mouth and always aims to have a breadth of experience among Trustees to suit the requirements of the VF. Trustees are appointed through interview with the Members’ and subsequent voting in the VF’s General Meeting.

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

Governance (continued)

Given that the VF is responsible for allocating funds subscribed or donated by the public, the Trustees place the upmost importance on good governance. In the previous financial year, VF carried out the Cobseo Governance self-reporting tool and achieved ‘green’ status, being the highest standard of governance and continues to review its practices with regard to Cobseo’s Governance self-reporting tool from time to time.

We continue to monitor best practice in charity governance and adapt as necessary. Recently we have refined our complaints’ process and scrutiny of contractors to ensure they are following regulatory guidance and best practice.

Management

The VF’s management consists of founder David Shaw, CEO, Paul Heward, CFO, Sarah Kelling, Grants Manager and Jayne Millar, Finance Manager. All of them work on a part-time basis.

The CEO, supported by the rest of VF’s management, conducts the day-to-day business of the VF, working under strategic objectives agreed with the Trustees. This includes, inter alia, implementing the VF’s key policies including fundraising, management of grants, liaison with grantee organisations, awarding prizes, and overseeing contractors and other partner organisations.

The VF contracts the running of the VL and its advertising and marketing to two professional fund raising organisations, Bee Ethical Limited (BE) and Bee Ethical Active Limited (BEA). BE manages and advertises the VL to attract new players and to maintain the support of existing players, mainly using online routes to market. BEA markets the VL to attract new players through its direct sales activity, which involves Face to Face (F2F) and Door to Door (D2D) sales activities.

The CEO of the VF works closely with BE, BEA and other organisations who support actual or potential beneficiaries. As part of its service to the VF, BE provides weekly and monthly reports to the CEO who discusses key points with the Chair of the Board.

The VF meets BE and BEA every six months for a formal review, at which the VF considers, inter alia, contractual issues, assesses performance and develops plans. The relationship between VF, BE and BEA is open and mutually supportive. All three organisations are highly motivated to maximise the support we are able to give beneficiaries.

During the last year, the VF has developed links with a number of major and well-established charities in order to exchange information about veterans’ groups and to identify where support is most needed. The VF will continue this liaison to ensure we work with the principal Armed Forces’ members in the Third Sector.

The VF communicates through its website at www.veteransfoundation.org.uk, newsletters and on other social media, particularly Facebook, Instagram and Twitter.

Risk Management

Trustees place considerable importance on compliance with charity, gambling legislation, other legislation and regulations. The Board examines all risks annually and new risks or significant changes in risk at every quarterly meeting and it reviews policies at regular intervals to ensure risks are mitigated. Risks are considered by likelihood and severity. The VF actively monitors the cash levels to ensure that sufficient funds are available; in fact funds continue to grow.

All risks documented in the risk register have been mitigated to an acceptable level by internal control systems, insurance cover and other factors as appropriate. In terms of financial control, the Trustees devolve responsibility for preparing financial budgets and cash flow forecasts to management, which are reviewed at Trustees’ Meetings.

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

Risk management (continued)

Management accounts are produced by VF’s accountants, Azets, on a monthly basis and are then reviewed by VF who use a cloud accounting and management information package to facilitate in-depth financial monitoring and analysis. The Trustees review VF’s financial performance at their quarterly board meetings and review VF’s budgets at least annually, alongside projected income and expenditure.

The principal risk is that our main route to market, online subscriptions, becomes uneconomic or unusable due to process, regulatory or legislative changes. This risk is being mitigated through diversification of our routes to market. Given the scale of the VF’s online operation, cyber threats could have major impact and so expertrecommended precautions and defences are used.

Partners

The VF’s key partners are, currently, as follows:

----- Start of picture text -----
Organisation Service provided Remarks
Bee Ethical Ltd External lottery management, On contract with VF.
advertising and marketing
Bee Ethical Active Ltd Direct sales marketing (F2F On contract with VF
and D2D)
HW Development Ltd IT support to VL mainly
The Co-operative Bank plc Banking
Azets Holdings Limited and Accountancy and audit
Azets Audit Services Limited
Poppleston Allen Legal (Gambling Commission Quarterly retainer.
focus)
Weightmans LLP Legal
----- End of picture text -----

Wider Network

The VF is a member of Cobseo, Veterans Scotland and the Lotteries Council. It is registered with the Charity Commission, OSCR, the Gambling Commission, the Fundraising Regulator and the Information Commissioner. The VF and the VL follow the guidance and regulation of these organisations.

OBJECTIVES AND ACTIVITIES IN THE REPORTING YEAR

Objectives

The VF started operating in July 2016 and its objectives continue to be to raise funds with which to make grants to beneficiaries through charities and other organisations. It has raised funds through attracting direct debit subscriptions to the VL; it has also encouraged and received donations.

At its inception, one of VF’s key objectives was to give at least 50% of lottery income over the longer term available for grants. The VF fulfilled this objective in the year, giving 50% to the organisations that it supports, which compares faviourably with other national lotteries. All donations are passed to grantees, with the exception of donations for restricted purposes.

Activities

The VF’s Trustees consider applications submitted by organisations and individuals to help beneficiaries and make grants according to the following non-exclusive factors:

Needs of the potential beneficiaries;
Number of beneficiaries who will benefit from the grant;
Other funds held by the applicant; and
Suitability of the applicant to deliver the project for which funds are applied.

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

Activities (continued)

Trustees take great care when analysing the validity of the bids for grants, weighing up carefully the benefit proposed to beneficiaries but also the competence of those delivering the benefit. Recipients of the VF’s grants include serving or retired members (and immediate dependants) of the armed forces – Royal Navy, Royal Air Force, Army and Royal Marines – and operationally qualified British Seafarers, e.g. those who served during the Falklands War of 1982.

ACHIEVEMENTS AND PERFORMANCE

Fundraising

Dealing with the Pandemic . The pandemic affected the VF throughout the year. Apart from a few exceptions, our staff have operated from home since March 2020, and almost all meetings have been held using IT conferencing facilities. We continued to operate a quick process for our Trustees to approve grants to organisations whose beneficiaries had been particularly affected by the pandemic. By the end of the year, we had awarded 28 grants amounting to £435k since March 2020 to overcome pandemic-related challenges of our beneficiaries, including six grants amounting to £140k during the year.

The VF has to raise money competently and legally so that it can make grants. The growth in the VL has been strong through the year with the number of subscribers rising by 45%, from c.44K at the beginning of the financial year to c.64K by the end of June 2021. Thanks must go to the staff of BE and BEA for their excellent work in the year in growing the VL in very challenging circumstances.

The VF’s major route to market for the VL is through social media. While this has been very successful, we continue to recognize the need to broaden our range of fund-raising routes to market, given the possible effects of any future changes to online activity and gambling, as well as changes to regulations and law.

In 2019, we started a direct sales activity through BEA. This uses face-to-face and door-to-door marketing methods which have been successful, even though the cost per acquisition is greater than online sales. However, this has not been able to operate as effectively we would have liked during the year due to the consequences of lockdown and distancing restrictions.

As we indicated in last year’s Report, we changed our prize draw arrangements in December. As a result, we increased the number of third prize winners from 10 to 40 and the third prize from £100 to £120 and the rollover prize from £20,000 to £30,000. There were no changes to the first and second prizes of £5,000 and £2,000 respectively. As a result, there has been a significant increase in the total prize money paid out to lottery prize winners during the year from £176k to over £302K. This has included four rollovers of £30K since December 2020.

BE receives monthly fees from the VF for their work in developing, advertising and managing the lottery. These fees are subject to a contract with the VF that is reviewed at the six monthly Review Meetings between our organisations. At our Review Meeting in March, 2021 the VF and BE agreed a new fee model which places a cap on the profit margins achieved by BE for running the VL.This agreement was reached following VF’s benchmarking of profit margins in UK businesses to establish a level of profit margin which was fair and reasonable.

The VF receives donations through the website payment system and has occasionally received donations through legacies; we raised £42.2K (2020: £20.3K) in donations in the financial year. All of these donations have been paid out in grants with the exception of one donation that was received for a specific purpose. The VF is registered with HMRC to receive Gift Aid and the majority of donations have been eligible for it.

We recognize that it is important to develop this source of fund-raising and are actively considering expanding our ability to attract donations directly to the VF. Apart from continuing to work with several affiliate partners, we are currently progressing several innovative plans to deliver in the next financial year.

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

Public benefit and Impact

The VF has made grants to many frontline charities and organisations that are delivering necessary support to beneficiaries, principally veterans in need. Very occasionally, the VF might support an individual but there are other organisations who would normally do this.

During the year, the Trustees approved 157 grants for a total amount of £3.3M to 132 different organisations/individuals, mostly registered charities. We have given grants to a wide range of charities or organisations that are carrying out charitable activities that match the VF’s objects – to help service people, and operationally-qualified seafarers, and their dependants, who are in need. The VF continues to ensure the VF grants not only provide direct benefit to those in need but also, where possible, maximise benefit by facilitating collaboration amongst grantees and other organisations within the Third Sector supporting service people.

We have listed the grant recipients in the Notes to the Accounts (Note 9) but, together, they are tackling the following challenges facing our beneficiaries:

----- Start of picture text -----
Total of Grant Awards No. of Grantees, incl.
Challenge (£ 000) multiple grants
Homelessness/Housing 363 12
Mental Health Clinical Support 125 7
Health and Wellbeing 1,110 55
Unemployment/Education 674 29
Family Welfare and Wellbeing 282 12
Community Hubs/Signposting/Advice 592 32
Other Disadvantages of Service Life 208 10
Total 3,354 157
----- End of picture text -----*

*Includes grants for Fellowship, Loneliness/Isolation

**Includes grants for challenge categories including Care Homes; Education/Conservation/Remembrance; Finacial/Debt; Addiction; and Criminal Justice

The above table does not reflect adjustments /refunds of unused grants totalling £49,277 in respect to five awards made in prior years. The net figure for grants awards after adjustments is £3,304,425.

The VF’s regular grants are no more than £30K each spread over 1-3 years. During the year, the Trustees approved a few significant changes in VF’s grant-making policy. These changes included an increase in the upper limit on grants awarded specifically for salaries which were raised to £40K (£20K over two years).

In addition, the Trustees agreed to continue providing annual funding to certain organisations that match the VF’s objects closely. Trustees approve an annual grant arrangement inviting Launchpad to submit quarterly grant bids although there is no guarantee these applications will be met.

Full details of the VF’s grants to Launchpad and Heropreneurs, where related parties are involved, are set out in Note 19 of the Accounts, on page 28.

We have not applied a limit to the number of bids that a single organization can make, preferring to judge each bid on its merits. Where there is a choice between supporting small and medium-sized organisations over larger ones, we support the former, as long as they pass our due diligence review. Whenever we agree to provide funds in the future, these commitments are recognised within accruals and grants committed within creditors in accordance with applicable accounting rules.

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

The VF has an established process for receiving feedback from the grantees regarding the impact and benefits of its grants. Grantees are required to complete and submit a report six months after receipt of the grant which sets out, inter alia, the outcomes and benefits of the grants. This feedback is then summarised and reviewed by the Trustees at their next quarterly meeting. Whenever possible and practicable, VF’s management and/or Trustees will visit grantee organisations to assess how the VF’s grants are making a difference.

The following tables provide details of the income and costs of (1) the VL and (2) the VF’s charitable operations.

VL alone:

----- Start of picture text -----
2021 2020
£’000 £’000
Lottery income 6,618 4,323
Prizes paid out (303) (176)
BE management, advertising, marketing and media (1,673) (1,097)
services
BEA direct marketing (316) (295)
-
Website and rebranding (32)
Social media advertising, (incl. Youtube) (771) (590)
Other Costs (mainly bank charges) (32) (32)
Surplus passed to the VF 3,523 2,101
----- End of picture text -----

Other income and costs relating to the VF’s charitable operations are as follows:

----- Start of picture text -----
2021 2020
£’000 £’000
Income from donations and other investment income 43 23
Other costs (192) (132)
Grants paid to charities/good causes from income (3,304) (1,920)
Overall net income 70 72
----- End of picture text -----

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

Reserves Policy

The VF’s Reserve represents three months’ worth of operating costs amounting to c.£192K This includes the costs of the operations of the VF, including prizes and rollovers in the unlikely event of closure. VF’s Reserves policy is reviewed every six months.

Strategy and Plans

The VF’s strategy is that it will become a significant source of funds for its beneficiaries by maximising public subscriptions to the VL and by attracting donations. The good reputation of the VF will be enhanced through the benefit it brings through its grants and responsible relations with the public, partner organisations and sector authorities.

The VF operates within national and international law, as is relevant, and by abiding with relevant regulations. It will remain a member of Cobseo and live by Cobseo’s code of conduct. It also follows the guidance and regulations of the Gambling Commission, the Charity Commission, OSCR, the Information Commissioner and Companies House.

Post Year End

Major changes that have occurred since the year-end are as follows:

We have signed a new lottery services agreement with BE to advertise, market, manage and develop the VL.
We have launched a trial for the Memorial Wall Project. If this is successful, this could provide an important new source of funds for the VF.
We are in discussions with several potential partners to develop new and innovative fund raising projects.
We are taking actions to secure relevant trademarks.

THE VETERANS’ FOUNDATION

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021

Statement of Trustees’ responsibilities

Charity law 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 charitable company and of the surplus or deficit of the charitable company for that year. In preparing those financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the relevant Charities Statement of Recommended Practice;
make judgements and estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue to operate.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to the auditor

To the knowledge and belief of each of the persons who are Trustees at the time this report is approved.

a) so far as each Trustee is aware there is no relevant information of which the charitable company’s auditor is unaware; and
b) the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of the information.

Auditor

Azets Audit Services, Chartered Accountants, will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006.

For and on behalf of the Trustees on 19 November 2021.

Peter Mountford Chairman

THE VETERANS’ FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2021

Opinion

We have audited the financial statements of the Veterans’ Foundation (the ‘charitable company’) for the year ended 30 June 2021 which comprise the Statement of Financial Activities (incorporating the Income and Expenditure Account), the Balance Sheet, the Statement of Cash Flows and the 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, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 30 June 2021 and of its income and expenditure 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 Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s (FRC’s) Ethical Standard, and we have fulfilled our 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 charitable company’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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.

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 course of 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.

THE VETERANS’ FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2021

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Annual Report of the Trustees, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors’ Report included within the Annual Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report included within the Annual Report of the Trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the Annual Report of the Trustees and take advantage of the small companies’ exemption from the requirement to prepare a Strategic Report.

Responsibilities of the trustees

As explained more fully in the Statement of Trustee’s Responsibilities set out on page 9, the trustees (who are also directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

THE VETERANS’ FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2021

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 an auditor’s report 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.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the FRC’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the charitable company, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the charitable company is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charitable company through discussions with trustees and other management, and from our knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), taxation legislation, data protection, antibribery, environmental, employment and health and safety;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and relevant regulators.

THE VETERANS’ FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2021

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in these financial statements were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Our audit work has been undertaken so that we might state to the charitable company’s members and the trustees, those matters we are required to state to them in an auditor’s 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 charitable company, the charitable company’s members, as a body, and the charitable company’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

James McBride, Senior Statutory Auditor For and on behalf of

Azets Audit Services, Statutory Auditor

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Chartered Accountants Titanium 1 King’s Inch Place Renfrew PA4 8WF

Date: 23 November 2021

THE VETERANS’ FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2021

		2021	2020
		Total	Total
		Unrestricted	Unrestricted
		Funds	Funds
	Note	£	£
Income from:
Donations and legacies	4	42,210	20,348
Charitable activities	5	6,618,086	4,323,360
Investment income		1,173	2,253
		───────	───────
Total income		6,661,469	4,345,961
		═══════	═══════
Expenditure on:
Raising funds	7	(3,101,312)	(2,222,273)
Charitable activities	7	(3,490,169)	(2,051,519)
		───────	───────
Total expenditure		(6,591,481)	(4,273,792)
		═══════	═══════
Net income and movement in funds		69,988	72,169
Reconciliation of funds:
Total funds brought forward		122,344	50,175
		───────	───────
Total funds carried forward	18	192,332	122,344
		═══════	═══════

The Statement of Financial Activities includes all gains and losses in the year.

All results relate to continued activities.

The notes form part of these financial statements.

THE VETERANS’ FOUNDATION

BALANCE SHEET AS AT 30 JUNE 2021

	Note	2021	2020
		£	£
Fixed assets
Tangible assets	11	621	1,051
Intangible assets	12	18,200	21,420
		───────	───────
		18,821	22,471
Current assets
Debtors	13	33,624	3,888
Cash and cash equivalents	14	1,467,586	866,921
		───────	───────
		1,501,210	870,809
Creditors:amounts falling due within one
year	15	(1,287,819)	(722,833)
		───────	───────
Net current assets		213,391	147,976
		───────	───────
Creditors:amounts fully due in more than
one year	16	(39,880)	(48,103)
		───────	───────
Net assets		192,332	122,344
		═══════	═══════
Funds
Unrestricted funds	18	192,332	122,344
		═══════	═══════

The financial statements were authorised for issue by the Trustees on 19 November 2021 and signed on their behalf by:

_______ P Mountford (Chair)

Company Registration Number 10099309

The notes form part of these financial statements.

THE VETERANS’ FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

			2021	2020
			£	£
Cash flows from operating activities
Net income for the year			69,988	72,169
Amortisation of intangible assets			7,000	-
Depreciation of tangible assets			430	235
(Increase) in debtors			(29,736)	(1,789)
Increase in creditors			556,763	444,396
Interest received			(1,173)	(2,253)
			───────	───────
Net cash generated from operating activities			603,272	512,758
			───────	───────
Cash flows from investing activities
Purchase of tangible fixed assets			-	(709)
Purchase of intangible fixed assets			(3,780)	(21,420)
			───────	───────
Net cash (used in) investing activites			(3,780)	(22,129)
			───────	───────
Cash flows from financing activities
Interest received			1,173	2,253
			───────	───────
Net cash generated in financing activities			1,173	2,253
			───────	───────
Net increase in cash and cash equivalents			600,665	492,882
Cash and cash equivalents at 1 July			866,921	374,039
			───────	───────
Cash and cash equivalents at 30 June			1,467,586	866,921
			═══════	═══════
(i) Analysis of changes in net debt
	At 1 July		Other non-	At 30 June
	2020	Cash flows	cash changes	2021
	£	£	£	£
Cash and cash equivalents
Cash	866,921	600,665	-	1,467,586
	──────	───────	───────	──────
	866,921	600,665	-	1,467,586
	══════	═══════	═══════	══════

THE VETERANS’ FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1. General information

These financial statements are presented in pounds sterling (GBP) as that is the currency in which the charitable company’s transactions are denominated. These financial statements are of the Veterans’ Foundation only and cover the year ended 30 June 2021.

The principal activity of the Veterans’ Foundation is to make grants to charities which help veterans in need.

The Veterans’ Foundation is a private company limited by guarantee, incorporated in the United Kingdom and registered in England and Wales. It is recognised as a charity for tax purposes by HMRC and registered with the Office of the Scottish Charity Regulator (OSCR) under charity number SC046571 and with The Charity Commission under charity number 1166953. Details of the registered office can be found on the reference and administrative details page of these financial statements.

2. Accounting policies

Basis of accounting

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (FRS102) (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless stated otherwise in the relevant accounting policy notes.

The principal accounting policies applied in the preparation of these financial statements are noted below. These policies have been applied consistently to all the years presented in dealing with items which are considered material in relation to the charitable company’s financial statements.

The preparation of these financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Trustees to exercise their judgement in applying the accounting policies (see note 3).

Going concern

The Trustees have considered a period of at least 12 months from the date of signing the financial statements. The Trustees believe that the charitable company will continue to meet its obligations as they fall due for the foreseeable future and on this basis, believe that it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. This assessment of going concern includes the expected impact of Covid 19 to the charitable company in the 12 months following the signing of these financial statements.

Income

Income is included in the Statement of Financial Activities when the charitable company is entitled to the income, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

2. Accounting policies (continued)

Income (continued)

Donations and legacies

Donations, grants and gifts are included in full in the Statement of Financial Activities when the charitable company becomes entitled to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donated services and facilities are included at the value to the charitable company where this can be quantified. The value of services provided by volunteers has not been included in these accounts in line with the Statement of Recommended SORP “Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)”.

Income from charitable activities

Income raised from charitable activities is accounted for when earned and comprises lottery ticket sales.

Investment income

Investment income is recognised when received and the amount can be measured reliably by the charitable company.

Expenditure

Expenditure is recognised on an accrual basis when a legal or constructive obligation arises. Expenditure includes VAT which cannot be recovered.

All liabilities are recognised when a contractual obligation is in place.

Raising funds

Raising funds costs comprise the costs associated with attracting lottery ticket sales.

Charitable activities

Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated to such activities and those costs of an indirect nature necessary to support them. All costs relate to a single activity.

Grants payable

During the course of the business, the charitable company makes grant contributions to institutions, businesses and individuals to further its strategic objectives.

Value added tax and corporation tax

As the Veterans’ Foundation does not make taxable supplies, and is thus not registered for VAT. The charitable company is exempt from corporation tax on its charitable activities.

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

2. Accounting policies (continued)

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the charitable company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment 33.3%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Financial Activities.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. The reliable useful life of the asset is deemed to be three years.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash and cash equivalents includes cash and short-term highly liquid investments with a short-term maturity of three months or less from the date of acquisition or opening of the deposit or similar accounts.

Creditors

Creditors are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at the transaction price.

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

2. Accounting policies (continued)

Financial Instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments that are payable or receivable within one year are initially and subsequently measured at the undiscounted amount of cash expected to be paid or received. Debt instruments payable or receivable after more than one year are initially measured at the net present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Funds

Unrestricted funds

Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objectives, including corporate stewardship.

3. Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions which affect reported results, financial position and disclosure of contingencies. Use of available information and application of judgement are inherent in the formation of the estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

4.	Donations	2021	2020
		£	£
	General donations	42,210	20,348
		═══════	═══════
5.	Charitable income	2021	2020
		£	£
	Lottery income	6,618,086	4,323,360
		═══════	═══════
6.	Staff Costs	2021	2020
		£	£
	Wages & Salaries	93,929	75,134
	Social Security Costs	8,093	7,172
	Pension costs	1,458	1,058
		────────	────────
		103,480	83,364
		════════	════════

No employees earned over £60,000 (2020: nil.)

There are 4 individuals employed by the charitable company ( 2020: 4 ).

The key management personnel are considered to be the Trustees, the CEO, the CFO, the Finance Manager and the Grants Manager. The total payments made to key management personnel during the year were £103,480 (2020: £83,364). None of the Trustees received remuneration in the year, as per note 10.

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Expenditure	Expenditure	Expenditure	Expenditure
	on raising		on charitable
	funds		activities	2021
		£	£	£
Prizes and rollover	302,600		-	302,600
Lottery management, advertising and marketing	1,672,607		-	1,672,607
Direct marketing	316,467		-	316,467
Website and rebranding	78		-	78
Online advertising	770,801		-	770,801
Bank charges	32,489		-	32,489
Grants awarded (note 9)	-		3,304,425	3,304,425
Support costs (note 8)	6,270		185,744	192,014
	───────		───────	───────
	3,101,312		3,490,169	6,591,481
	═══════		═══════	═══════
	Expenditure		Expenditure
	on raising		on charitable
	funds		activities	2020
		£	£	£
Prizes and rollover	176,000		-	176,000
Lottery management, advertising and marketing	1,097,157		-	1,097,157
Direct marketing	295,062		-	295,062
Website and rebranding	31,560		-	31,560
Online advertising	590,455		-	590,455
Bank charges	29,632		-	29,632
Grants awarded (note 9)	-		1,919,589	1,919,589
Support costs (note 8)	2,407		131,930	134,337
	───────		───────	───────
	2,222,273		2,051,519	4,273,792
	═══════		═══════	═══════

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Support costs	Expenditure	Expenditure	Expenditure
	on raising		on charitable
	funds		activities	2021
		£	£	£
Insurance	-		876	876
Subscriptions	6,270		-	6,270
Sundry expenses	-		5,815	5,815
Postage	-		778	778
Accountancy fees	-		9,670	9,670
Legal and professional fees	-		28,769	28,769
Independent auditor’s fees (incl. VAT)	-		9,480	9,480
Travel and subsistence	-		-	-
Donations	-		180	180
Memorial overheads	-		8,873	8,873
Depreciation	-		430	430
Amortisation	-		7,000	7,000
Rent	-		7,707	7,707
Staff costs	-		103,480	103,480
Telephone costs	-		1,336	1,336
Consultancy fees	-		1,350	1,350
	───────		───────	───────
	6,270		185,744	192,014
	═══════		═══════	═══════
	Expenditure		Expenditure
	on raising		on charitable
	funds		activities	2020
		£	£	£
Insurance	-		431	431
Subscriptions	2,407		-	2,407
Sundry expenses	-		6,175	6,175
Postage	-		1,993	1,993
Accountancy fees	-		8,808	8,808
Legal and professional fees	-		8,087	8,087
Independent auditor’s fees (incl. VAT)	-		8,400	8,400
Travel and subsistence	-		4,157	4,157
Depreciation	-		235	235
Rent	-		6,348	6,348
Staff costs	-		83,364	83,364
Telephone costs	-		2,012	2,012
Consultancy fees	-		1,920	1,920
	───────		───────	───────
	2,407		131,930	134,337
	═══════		═══════	═══════

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Grants awarded	Total	Total
	2021	2020
	£	£
Grants to institutions	3,304,425	1,915,589
Grants to individuals	-	4,000
	────────	───────
	3,304,425	1,919,589
	═══════	═══════

Grants were awarded to the following institutions in the reporting year:

AFC Fylde Community Foundation Age Cymru Dyfed Age UK Devon Age UK Nottingham/shire Age UK Teeside Alzhimers Support Anxious Minds Association of Benefits & Pension Claimants, Sailing Wellness project Association of Ex-Service Drop-In Centres (ASDIC) Beyond the Battlefield Blackpool FC Community Trust Bravehound British Ex-Services Wheelchair Sports Association British Forces Foundation Brixham Future CIC Broughton House BuildForce Group CIC Building Heroes Education Foundation Burnley FC in the Community Bury Veterans Hub Cafe C-54 Skymaster Trust, Save the Skymaster project CAIS Care After Combat Care for Veterans Carer Support Wiltshire Changing Faces Changing Lives Community Drug and Alcohol Recovery Services CDARS Community Solutions North West Ltd Community Veterans Support - The Coming Home Centre Crawford House Community Partnership Deafblind UK Debyshire Alcohol Advice Service Durham County Cricket East Durham Veterans Trust Elaine Waterfield Epic Gigability EVA Women's Aid Everton in the Community Felix Fund – the Bomb Disposal Charity Fighting With Pride Finchale Training College t/a Finchale Group FirstLight Trust

Flying For Freedom Ltd. Forces in the Community Garelochhead Station Trust Give Us Time Hats Off For Bootsie Healthier Heroes Help 4 Homeless Veterans Heropreneurs HighGround Projects Limited Hire a Hero Hull 4 Heroes ICARUS Online Improving Lives Plymouth Jonathan Thomsonn (Paid to PTSD Resolution) Launchpad Liverpool FC Foundation Made by Mortals Maurilla Simpson Wheelchair National Gulf Veterans & Families Association On Course Foundation Only a Pavement Away Operation Veteran CIC Pain Assoc. Scotland PATT Foundation Penparcau Community Forum Ltd Phoenix Heroes CIC Plymouth Sports Charity Preston North End Community and Education Trust Prisoners Education Trust PTSD Resolution Ltd Reading Force Recruit for Spouses Academy CIC Remount T/A Future for Heroes Resume Foundation RFEA - The Forces Employment Charity Rhondda Hub for Veterans Ripple Pond RMA - RM Charity Rock2Recovery Royal British Legion Ballymoney Branch Royal British Legion Industries (RBLI) Royal Star and Garter Salford Red Devil’s Foundation

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

9. Grants awarded (continued)

Scotland's Bravest Manufacturing Company (A Division of Royal British Legion Industries) Scotty’s Little Soldiers Service Dogs UK SHAID Veterans Project Soldiers’ Art Academy Southwest Family Values CIC Sporting Force SSVC (Operating as BFBS) St Helens Chamber Stand Easy Military Support Step Together Stoll Supporting Wounded Veterans SWS RnR Team Endeavour Racing UK Team Endeavour Wheelchair Rugby The Bridge for Heroes The Game Change Project CIC The Gurkha Centre The League of Remembrance The Octopus Foundation The Open University The Princess of Wales’ Royal Regiment Benevolent Fund The Rugby Football League Limited

The St John & Red Cross Defence Medical Welfare Service (DMWS) The Veterans Charity The Veterans Farm-Able Foundation The White Ensign Association Tonic Health UK Homes 4 Heroes UK Veterans Hearing Foundation Ulysesses Trust Venture Trust Veterans Garage Veterans in Action Veterans into Logistics CIC Veterans Living History Museum CIC Veterans Outreach Support Veterans Woodcraft CIC Veterans’ Growth Walking with the Wounded Waterloo Uncovered WCADA Wings for Warriors Woodland Xperiences CIC Work Place Chaplaincy Scotland

Grants were awarded to the following institutions in 2019/20:

Action for Arts Trust Ltd Addaction Armed Forces Para Snowsport Team AFC Fylde Community Foundation Age Cymru Gwynedd a Mon Alabare Christian Care and Support Army Widows Association

Association of Royal Naval Officers Beit Halochem UK (Veterans Games and Conf) Beyond the Battlefield NI Blue Van Veterans Drop-In Bowra Foundation Bravehound British Forces Foundation British Nuclear Test Veterans Assn Broughton House - Veterans Care Village

Little Troopers Love Learning Scotland (SCIO) Lynx Workshop Macrobert Arts Centre Military Wives Choirs Foundation Mode Mutual Support - Armed Sevices Multiple Sclerosis Group National Gulf Veterans & Families Association Older Citizens Advocacy York On Course Foundation Pain Association Scotland PTSD Resolution Ltd. Queen Victoria Seamen's Rest Royal British Legion Industries Reading Forces Recruit for Spouses Career Academy CIC

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

9. Grants awarded (continued)

Building Heroes Education Foundation RFEA - The Forces Employment Charity Church Homeless Trust Royal Navy Association - Liverpool Branch Community Solutions NW Ltd Scotty's Little Soldiers Community Veterans Support Serve on DMRC Benevolent Fund Single Homeless:Action Initiative in Durham Dundee Therapy Garden Soldier Arts Academy Fares for Free Stand Easy Finchale Group Step Together Volunteering Firstlight Trust Stoll Food for Fun CIC Suffolk Family Carers Forgotten Veterans UK Supporting Wounded Veterans Garelochhead Station Trust Sylvia Davies - Conference Gloucester Rugby Community Charity Team Endeavour Racing UK Ltd Gwennili Sailing Trust Team Rubicon Health & Wellbeing Community Scheme CIC The Argyll and Sutherland Highlanders Museum Trust Help for Homeless Veterans The Big Help Project Heropreneurs The Community Bureau SCIO HighGround The Contact Group HorseBack UK The Defence Medical Welfare Service - DMWS Housing Options Scotland The Highlanders Hull 4 Heros The Matthew Project ICARUS The Not Forgotten Association ILM (Highland) The Ripple Pond Invictus Games Foundation The Royal Caledonian Education Trust Jonathan Thomson - Bike Ride The Suited & Booted Centre Ltd Launchpad The UK Veterans Hearing Foundation The Veterans Charity

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

10. Trustees

Trustees received £nil remuneration during the year (2020: £nil). Trustees were reimbursed with expenses of £nil ( 2020: £1,673 ). There are no amounts outstanding at the year end.

11.	Tangible Assets	Office
		Equipment	Total
		£	£
	Cost
	At 1 July 2020 and 30 June 2021	1,303	1,303
		────────	────────
	Depreciation
	At 1 July 2020	252	252
	Charge in year	430	430
		────────	────────
	At 30 June 2021	682	682
		────────	────────
	Net book value at 30 June 2021	621	621
		════════	════════
	Net book value at 30 June 2020	1,051	1,051
		════════	════════
12.	Intangible fixed assets
		Website	Total
		development
	Cost
	At 1 July 2020	21,420	21,420
	Additions	3,780	3,780
		────────	────────
	At 30 June 2021	25,200	25,200
		────────	────────
	Amortisation
	At 1 July 2020	-	-
	Charge in year	7,000	7,000
		────────	────────
	At 30 June 2021	7,000	7,000
		────────	────────
	Net book value at 30 June 2021	18,200	18,200
		════════	════════
	Net book value at 30 June 2020	21,420	21,420
		════════	════════

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

13.	Debtors	2021	2020
		£	£
	Other debtors	810	810
	Prepayments	32,814	3,078
		───────	───────
		33,624	3,888
		═══════	═══════
14.	Cash and cash equivalents	2021	2020
		£	£
	Cash at bank and in hand	1,467,586	866,921
		═══════	═══════
15.	Creditors	2021	2020
		£	£
	Accruals and deferred grants committed	1,125,581	718,939
	Trade creditors	162,238	3,670
	Other creditors	-	224
		───────	───────
		1,287,819	722,833
		═══════	═══════
	Included within accruals and deferred grants committed are grants awarded not yet paid of £1,058,059
	(2020: £521,905). These are expected to be paid within the year to 30 June 2022 and will be funded by
	the charitable company’s unrestricted funds.
16.	Creditors: Amounts due in over 1 year	2021	2020
		£	£
	Grants committed	39,880	48,103
		═══════	═══════

The above grants committed relate to grants awarded over multiple years. These are expected to be paid after 30 June 2022 but before 30 June 2023.

17. Liability of members

The company is limited by guarantee and has no share capital. The liability of each member in the event of a winding-up is limited to £1. As at 30 June 2021, there were 5 members.

Unrestricted funds	2021	2020
	£	£
At 1 July	122,344	50,175
Net income	69,988	72,169
	───────	───────
At 30 June	192,332	122,344
	═══════	═══════

THE VETERANS’ FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

19. Related parties

The Veterans Foundation made grants in the year to two charities which involve related parties, as follows:-

One grant of £20,000, and one of £30,000, a total of £50,000, (2020 - £30,000) to Heropreneurs, Charity Registration No. 1136671. Peter Mountford is the Chairman of Heropreneurs and receives no remuneration from the charity for his services. No amounts were outstanding at 30 June 2021 (2020 - £nil).

Heropreneurs (https://heropreneurs.co.uk) is a successful charity founded in 2009 to help military veterans, and their dependants, create their own businesses. People leaving the Armed Forces that wish to create their own businesses may lack the necessary commercial skills and experience, as well as the networks that are essential to creating a successful business. Heropreneurs seeks to provide essential help in these areas, helping able-bodied veterans as well as those that have suffered physical or mental injuries during their service in the Armed Forces.

Three Grants of £50,000, and one of £40,200, a total of £190,200, (2020- five grants totaling £173,500) to AF&V Launchpad Limited (Launchpad), Charity Registration No. 1153185. David Shaw is the CEO of Launchpad and receives remuneration for his services. £40,200 of these grant awards (2020 - £50,000) was outstanding at 30 June 2021.

Launchpad (https://www.veteranslaunchpad.org.uk) provide accommodation to mainly homeless veterans in Liverpool and Newcastle-upon-Tyne. Once accommodated, Launchpad works with each of the 80 or so residents to stabilise their lives, then to carry out interventions that get them to independent living and where possible, employment, within 2 years. Residents’ challenges include complex issues such as: homelessness, poverty, unemployment, ex-offenders, addictions, physical and mental health, family welfare

Neither Peter Mountford nor David Shaw were involved in any voting regarding any proposals that supported the charities in which they are involved.

Revenue commitments	2021	2020
	£	£
	Office	Office
< 1 year	811	5,677
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