THE VETERANS’ FOUNDATION
TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
COMPANY REGISTRATION NUMBER: 10099309 CHARITY COMMISSION NUMBER: 1166953 OSCR CHARITY NUMBER: SC046571
THE VETERANS’ FOUNDATION
TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
| Contents | Page |
|---|---|
| Reference and administrative details | 1 |
| Chairman’s Statement | 2 |
| Annual Report of the Trustees | 3 |
| Independent Auditor’s Report to the Members and the Trustees | 11 |
| Statement of Financial Activities (incorporating the Income and Expenditure account) | 15 |
| Balance Sheet | 16 |
| Statement of Cash Flows | 17 |
| Notes to the Financial Statements | 18 |
THE VETERANS’ FOUNDATION
TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees (Directors for company law purposes)
P. Mountford, FCA (Chair) B. Walker, MA, ED, FRICS G.R. Brewer S.A. Banks-Cooper, FCMA G.G. Cartwright MA CA (appointed 17 April 2023) N.A. Murdoch CME CCMI FRSA (appointed 12 June 2023) A.M.B Anderson (appointed 12 June 2023) M.A. Pedder (appointed 12 June 2023) R. Farndale, FRGS, MCIArb (resigned 24 April 2023) E. M. Lofgren Skeide, MCISI (resigned 12 June 2023) M. F. Tulloch (resigned 12 June 2023)
CEO
Major General D.A.H. Shaw CBE, FCIPD
Registered office
C/o Weightmans 1 St James’ Gate Newcastle, NE99 1YQ
Correspondence address
Thistle Court 1-2 Thistle Street Edinburgh, EH2 1DD
Independent Auditor
Saffery LLP Chartered Accountants 133 Fountainbridge Edinburgh, EH3 9BA
Bankers
The Co-operative Bank 1 Balloon Street Manchester, M60 4EP
Solicitors
Weightmans (Corporate) 100 Old Hall Street Liverpool, L3 9QJ
Poppleston Allen (Gambling, Licensing and Regulatory) 37 Stoney Street Nottingham, NG1 1LS
Company Registration Number: 10099309 Charity Commission Charity Number: 1166953 OSCR Charity Number: SC046571
1
THE VETERANS’ FOUNDATION
ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2023
Chairman’s Statement
I am delighted to report that The Veterans’ Foundation (VF) has been able to help even more members of the Armed Forces community who are in need over the last year. Our income has grown by 18%, an excellent achievement in the current economic environment. This has enabled us to increase the amount of money we have given as grants to £5m compared to £4.4m in the previous year. This income has mainly been generated through the national Veterans’ Lottery (VL) and also, increasingly, through donations. We are immensely grateful to members of the public for their continuing support.
While most people leaving the Services make the transition to civilian life smoothly, some have difficulty and the VF’s grants enable charities and charitable organisations to help their beneficiaries to overcome hurdles and live a better quality of life. Many of you will have seen on social media the very honest and moving personal stories of veterans who have gone through life-changing experiences, usually as a result of their service for the country. Those of us working for the VF feel highly motivated to help them and the hundreds of other veterans who need a little support; having been supported, they frequently go on and make a real success of their lives.
The 230 grants awarded during the year have helped members of the Armed Forces’ community tackle a variety of complications including homelessness, mental and physical ill health, old age, addiction, losing a parent, isolation and many other challenges. We are delighted to say that some innovative organisations have gone on to flourish with the help of VF funding, for instance Icarus, Soldiers Arts Academy, Fighting With Pride, Team Endeavour and Style For Soldiers. The VF’s good reputation relies to an extent on us making sure that we support organisations with our grants who are themselves well-governed and who are doing good.
In order to increase and diversify our income, we have grown our online capability and are gradually expanding the Direct Selling capability; you may see VF-liveried staff in motorway service stations, shopping complexes and at events throughout the UK. We are also growing our fundraising capabilities, other than the VL.
We collaborate with a variety of organisations to ensure our funding decisions are sensible – neither conflicting with, nor duplicating unnecessarily, other funders’ decisions. We also take note of Government priorities for veterans, particularly the actions stemming from the Strategy for our Veterans. We are regularly liaising with the likes of the Office for Veterans Affairs (OVA) and the Confederation of Service Charities (Cobseo) to ensure that our work is complementary to theirs.
The VF Staff are a wonderfully professional team; they manage hundreds of bids for grants each year, they account for large sums of money and they are growing our non-VL fundraising capability; I thank them for their dedication and cheerfulness. We also have a wonderful Board of Trustees; this year we have said goodbye to some who have been with the VF since inception and we thank them for their time and dedication. I extend a warm welcome to the three trustees who joined our board in 2023. I would also like to thank our External Lottery Providers, Bee Ethical Limited, for not only running the VL but creating remarkable videos and managing the associated PR for the VF and the VL.
Finally, and on behalf of all those involved with the VF, I would like to take a moment to remember Paul Heward, our CFO, who unfortunately passed away this year. He was such a kind and diligent person and everyone who came across him was touched by his fine qualities. Our best wishes go to Annabel and the Heward family. Paul was a major contributor to the VF’s success and we all remember him fondly.
2
OBJECTIVES
Our charitable objectives 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.
ACTIVITIES
Grant-Giving
Our main aim is to maximise the amount of funds available for grant-giving and ultimately our beneficiaries. All surplus funds from fundraising activities, with the exception of a relatively small amount held in the Reserve, are distributed as grants. The recipients of the grants include serving or retired members of the Armed Forces and their immediate dependants; this includes those who served in the Royal Navy, Royal Air Force, Army and Royal Marines as well as qualifying merchant seafarers (for instance, those who served during the Falklands War of 1982).
The Veterans’ Lottery (VL)
The VL, which was established in 2016, continued to grow well during the year and it remains our main source of income. The VL gives members of the public the opportunity to support the charity, to become part of the VL community and to win a cash prize.
To date, growth of the VL has been achieved mainly through social media marketing, which continues to be the most important route to market. However, investment has also been made in Direct Sales, using Face-to-Face (F2F) and Door-to-Door (D2D) marketing methods. This year, Direct Sales was responsible for 39% of new lottery subscribers.
The VL is managed by Bee Ethical Limited (BE), the VF’s external lottery manager. BE also develops the VL marketing strategies and it provides social media marketing services.
Direct Sales activities are managed by Bee Ethical Active Limited (BEA).
Other Fundraising activities
We receive donations through our website payment system, other online fundraising platforms and occasionally from corporates or via legacies. During 2021 we launched the Memorial Wall (MW) on our website. The MW is a platform through which members of the public can post images and narratives of deceased veterans (either friends or family) as well as make a donation to the VF if they wish. We will develop the MW in the months ahead.
3
Public benefit
Trustees considered the Charity Commission guidance on public benefit when planning future activities, setting grant-making policies and in making grants.
Grants have been made to many frontline charities and charitable organisations that deliver necessary support to the VF’s beneficiaries who are in need, aligning with the VF’s objects.
During the year, the Trustees approved 230 (2022: 202) grants amounting to £5m (2022: £4.4m) to 186 (2022: 160) different organisations, mostly registered charities, and three individuals. The VF ensures the grants not only provide benefit to those in need but also, where possible, maximise benefit by facilitating collaboration amongst grantees and other organisations within the Third Sector that are supporting the Armed Forces’ community.
Grant recipients are listed in the Notes to the Accounts (Note 9). Together, they are tackling the following challenges facing our beneficiaries:
| Challenges of Service Life | Grants Awarded 2023 £’000 |
Grants Awarded 2023 No.* |
Grants Awarded 2022 £’000 |
Grants Awarded* 2022 No. |
|---|---|---|---|---|
| Health and Wellbeing Sports/Activities Health and Wellbeing Support Community Hubs/Signposting/Advice Family Welfare and Wellbeing Homelessness/Housing Mental Health Clinical Support Employment/Self-employment/Education Other Aspects of Service Life** |
1,536 1,423 385 310 414 352 440 127 |
75 65 21 12 20 10 20 7 |
1,031 1,225 711 359 329 313 305 170 |
49 58 31 19 12 11 15 7 |
| Total | 4,987 | 230 | 4,443 | 202 |
- Includes multiple grants paid to single grantees.
** Includes grants for challenge categories including support for Care Homes; Education, Conservation and Remembrance; Financial Assistance/Debt Assistance; Addiction; and Justice System needs.
Grant-Making Policy
The VF raises funds to provide grants to organisations that are providing help to those in the Armed Forces community who are in need. The needs that the VF’s grants help vary enormously and in many cases the beneficiaries endure complex needs. The grants address homelessness, unemployment, loneliness, illhealth and poor mental health, the consequences of being orphaned, limblessness, poverty, debt, addiction and others.
Significant due diligence is conducted on grant applicants and grantees are chosen according to a variety of qualities, including the standard of their governance, the needs being addressed, cost per head to deliver the benefit they provide, wealth of the organisations, duplication of the service provided and so on. Grants vary in size, from hundreds of pounds to £100k-200k provided within one a year. While many of the grants are tackling beneficiaries needs directly, others, or part of the grants, sustain the operation of grantee organisations. Grants are provided under strict Terms and Conditions and are reported on during and/or at the end of the delivery period.
4
ACHIEVEMENTS AND PERFORMANCE
During the year the number of VL subscribers grew from around 80k in June 2022 to around 100k in June 2023. This growth has been achieved through the marketing and advertising services supplied by BE and BEA, and through ongoing investment in online social media advertising. As a result, by June 2023 the VL was generating income of around £1m a month before costs. The economic benefits of this marketing investment should be seen in the next 2 or 3 years as today’s new players continue to play the lottery.
The success and continued growth of the VL has allowed us to award almost £5m in grants in the year ended 30 June 2023, compared to £4.4m in the year ended 30 June 2022.
During the year ended 30 June 2022 we received a large one-off corporate donation of more than £100k, boosting the donations’ income significantly in that year. Without an equivalent donation in the current year, total donation and interest income is lower this year at £138k (2022: £204k). General donations from the public have increased and we continue to develop our strategies for increasing donations across all sources.
The following table provides details of the income and costs of the VL, and the VF’s other activities.
| 2023 £’000 |
2022 £’000 |
|
|---|---|---|
| The VL: Lottery income Prizes paid out External lottery management Other lotteryoperatingcosts |
10,482 (306) (1,284) (46) |
8,819 (277) (1,087) (9) |
| Surplus from the VL before marketing/advertising costs External lottery manager marketing services Direct sales activities Social media advertising |
8,846 (1,175) (974) (1,322) |
7,446 (1,122) (680) (750) |
| Surplus from the VL after marketing/advertising costs Other income and costs relating to charitable operations are as follows: Income from donations and other investment income Will writing services Other fundraising costs Head office costs Grantspaid to charities/good causes1 |
5,375 138 (19) (54) (287) (4,987) |
4,894 204 (46) (25) (258) (4,443) |
| Remaining surplus retained in reserves | 166 | 326 |
1 Section 99 of the Gambling Act 2005 requires that at least 20 percent of the proceeds from a lottery must be applied to the purpose for which the promoting society is conducted. After adjusting for other income, for year ending 30 June 2023 the grants paid to charities and good causes were 46.3% of lottery proceeds.
5
FINANCIAL REVIEW
Financial position
The surplus reported for the year is £166k (2022: £326k), after awarding grants of £4,987k (2022: £4,443k).
Cash at bank of £1,942k (2022 £1,631) represents the majority of the charity assets. Cash represents funds held in reserves, plus amounts held to satisfy creditors, including the payment of grants committed and not yet paid of £1,103k (2022: £944k), including future instalments of multi-year grants.
A significant proportion of the cash is held within a cash deposit platform, where practical. This allows the funds to be spread across several banking institutions to maximise the Financial Services Compensation Scheme (FSCS) protection while also earning interest.
Reserves Policy
Total reserves at 30 June 2023 are £684k and represent three months’ worth of operating costs amounting to £100k (2022 £87k), three months of lottery prizes and rollovers amounting to £189k (2022: £170k) and a further £200k (2022: £200k) to cover any potential risks in the event of a change of circumstances affecting the VL. The remaining £195k (2022 £nil) is expected to be allocated to grants in the year ending 30 June 2024.
Contrary to 2022, no funds are held in reserves to contribute to future costs relating to growth of the VF fundraising activities (2022: £61,022).
All the reserves are unrestricted. The VF’s Reserves policy is reviewed every six months.
Risk management
Trustees place considerable importance on compliance with charity, gambling legislation and 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. Cash levels are monitored to ensure that sufficient funds are available.
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.
The principal risks associated with the VF’s major source of income, the VL, are:
-
The main route to market, online subscriptions to the VL, becomes uneconomic or unusable. This risk is being mitigated through the diversification of the VF’s routes to market.
-
Regulatory or legislative changes affecting the VF’s ability to run the VL or recruit new players. The VF works with BE and third-party experts to become aware of any change, to remain up to date and to be compliant.
-
Cyber threats or other IT systems’ failure. Expert-recommended precautions and defences are used to mitigate these risks.
Post Year End
No major changes have occurred since the year end.
6
STRUCTURE, GOVERNANCE AND MANAGEMENT
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, as subsequently amended on 1 October 2019 and on 10 January 2022.
The VF is a charitable company limited by guarantee and not having 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.
The VF is governed by its Board of Trustees. A list of Trustees who served during the year and up to the date of the signing of the report is on Page 1.
The Trustees meet on a quarterly basis to consider items such as achievements, partnering arrangements, risks, regulations and finances, as well as to confirm the allocation of grants. They occasionally consider matters out of committee. Board Meetings are usually held at the VF’s office in Edinburgh.
The VF recruits its Trustees after advertising, by word of mouth or invitation, using appropriate procedures to ensure it has the breadth of experience among the Trustees to suit the requirements of the VF. New Trustees can be appointed following decisions by the extant Trustees, who are the only Members of the VF, at Board Meetings.
Having been appointed, new Trustees are briefed by the Chair and CEO, as well as other staff, as necessary, on policies and procedures used by the VF. They are provided with relevant documentation and directed to useful sites such as those hosted by the Charity Commission, OSCR, NVCO and so on.
The VF has two standing committees and as required, an Appointments’ Committee. The standing committees operate as follows:
Audit & Finance Committee (AFC):
The AFC takes delegated responsibility on behalf of the Board for ensuring that there is a framework for accountability and for reviewing all systems and methods of control, both financial and otherwise. The AFC consists of a minimum of two Trustees including a Chair appointed by the Board. The main duties of the AFC include: -
-
Recommend to the Board a framework of effective audit coverage.
-
Advise the Board on the minimum and optimum level of internal and external audit arrangements.
-
Monitor internal and external audit reviews and to advise the Board accordingly.
-
Ensure effectiveness of internal financial controls and financial risk management arrangements.
-
To investigate on behalf of the board any financial or administrative matter that may put the VF at financial risk.
7
Grants Committee:
The Grants Committee takes delegated responsibility on behalf of the Board for ensuring that there is an effective grant-giving process, ensuring the charity is complying with all aspects of the law, relevant regulations and good practice. The Grants Committee consists of a minimum of three Trustees, including a Chair appointed by the Board. At least one of the CEO or one of the Grants Managers must attend all the meetings. The main duties of the Grants committee include: -
-
Establish the grants policy.
-
Approve the process for grantees submitting grant bid.
-
Approve the process for grant approval.
-
Approve grant applications.
-
Agree reporting mechanism for grantees.
-
Report to the Board for final approval of grants at quarterly Board Meeting.
Executive team
The executive team consists of founder Major General David Shaw CBE (CEO), Simon Heye (COO) and a further seven staff members working within grants management, finance and fundraising.
Executive responsibilities
The CEO, supported by the rest of the executive team, conducts the day-to-day business of the VF, working under strategic objectives agreed with the Trustees. This includes, implementing the VF’s key policies including fundraising, managing the grants programme, liaising with grantee organisations and other stakeholders, managing the VF’s reputation, as well as overseeing contractors and other partner organisations.
The Board has delegated responsibility for awarding grants of up to £20k to the CEO executive team advice, subject to certain controls (including that they shall not exceed 20% of all grants awarded). This has spread the peak approval period and enabled prompt processing of bids while maintaining the same level of due diligence checks (including visiting a sample of the grantees’ premises). The Board is briefed on all delegated grants at quarterly Board Meetings.
The Trustees devolve responsibility for preparing management accounts, financial budgets and forecasts to the executive team. The Trustees review the financial performance, including comparison to forecasts or budgets at their quarterly Board Meetings. Annual forecasts and budgets are reviewed by the Trustees each year at the June Board Meeting.
Executive remuneration
The Trustees approve salaries for all new staff. An annual remuneration review is undertaken in March and covers benchmarking, social and economic conditions and the financial ability of the VF to absorb any changes. Trustees debate the review before approving changes to remuneration.
Relationships with external organisations
The CEO works closely with the external lottery manager (BE) and the supplier of lottery direct selling services (BEA). As part of their service, BE and BEA provide weekly and monthly reports to the CEO which include relevant statistics and other information relating to the VL. The CEO discusses key points from the reports with the Chairman of the Board on a regular basis.
The CEO and Chairman of the Board meet BE and BEA every six months for a formal review, at which contractual issues, performance and future plans are considered. The relationships with BE and with BEA are open and mutually supportive. All organisations are highly motivated to maximise the support we are able to give beneficiaries.
Independent Auditor
During the year Saffery LLP was appointed as auditor, replacing Azets Audit Services.
8
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 and follows the guidance and regulation of these organisations.
PLANS FOR FUTURE PERIODS
Strategy and Plans
The VF’s strategy is that it will become an even more 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 by forming responsible partnerships with the public, partner organisations and sector authorities. A Review of strategy will be completed in the New Year.
9
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
Saffery LLP, 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 11.12.2023.
Peter Mountford Chairman
10
THE VETERANS’ FOUNDATION
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023
Opinion
We have audited the financial statements of The Veterans’ Foundation (the ‘charitable company’) for the year ended 30 June 2023 which comprise 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 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 charitable company’s state of affairs as at 30 June 2023 and of its incoming resources and application of resources, including 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 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 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.
11
THE VETERANS’ FOUNDATION
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023
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 auditor’s report 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.
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.
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 Trustees’ Annual Report which includes the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Trustees’ Annual Report which includes the Directors’ Report 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 Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
-
adequate 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
-
the T rustees 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 Trustees’ Annual Report.
Responsibilities of Trustees
As explained more fully in the Trustees’ Responsibilities Statement set out on page 10, the Trustees (who are also directors of the charitable company for the purposes 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 to do so.
12
THE VETERANS’ FOUNDATION
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditors under the Companies Act 2006 and under the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts.
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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the Trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with Trustees and updating our understanding of the sector in which the charitable company operates.
Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and guidance issued by the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
13
THE VETERANS’ FOUNDATION
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE VETERANS’ FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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. Our audit work has been undertaken so that we might state to the charitable company’s members and 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 and Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Kenneth McDowell (Senior Statutory Auditor) for and on behalf of Saffery LLP
Chartered Accountants Statutory Auditors 133 Fountainbridge Edinburgh, EH3 9BA
Date:
Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
14
THE VETERANS’ FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2023
| Note Income from: Donations and legacies 4 Charitable activities 5 Investment income Total income Expenditure on: Raising funds 7 Charitable activities 7 Total expenditure Net income and movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
2023 Unrestricted Funds £’000 111 10,482 27 10,620 (5,195) (5,259) (10,454) 166 518 684 |
2023 Restricted Funds £’000 - - - - - - - - - - |
2023 Total Funds £’000 111 10,482 27 10,620 (5,195) (5,259) (10,454) 166 518 684 |
2022 Total Funds £’000 202 8,819 2 |
|---|---|---|---|---|
| 9,023 | ||||
| (3,936) (4,761) |
||||
| (8,697) | ||||
| 326 192 |
||||
| 518 |
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.
15
THE VETERANS’ FOUNDATION
BALANCE SHEET AS AT 30 JUNE 2023
| Note | 2023 | 2022 | |
|---|---|---|---|
| £’000 | £’000 | ||
| Fixed assets | |||
| Tangible assets | 11 | 5 | 3 |
| Intangible assets | 12 | 28 | 35 |
| ─────── | ─────── | ||
| 33 | 38 | ||
| Current assets | |||
| Debtors | 13 | 98 | 14 |
| Cash and cash equivalents | 14 | 1,942 | 1,631 |
| ─────── | ─────── | ||
| 2,040 | 1,645 | ||
| Creditors:amounts falling due within one | |||
| year | 15 | (1,337) | (1,054) |
| ─────── | ─────── | ||
| Net current assets | 703 | 591 | |
| ─────── | ─────── | ||
| Total assets less current liabilities | 736 | 629 | |
| Creditors:amounts fully due in more than one | |||
| year | 16 | (52) | (111) |
| ─────── | ─────── | ||
| Net assets | 684 | 518 | |
| ═════ | ═════ | ||
| Funds | |||
| Unrestricted funds | 18 | 684 | 518 |
| Restricted funds | 18 | - | - |
| ─────── | ─────── | ||
| 684 | 518 | ||
| ═════ | ═════ |
The Financial Statements were authorised for issue by the Trustees on 11.12 2023 and signed on their behalf by:
P. Mountford FCA (Chair)
Company Registration Number 10099309
The notes form part of these financial statements.
16
THE VETERANS’ FOUNDATION
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023
| 2023 | 2022 | |
|---|---|---|
| £’000 | £’000 | |
| Cash flows from operating activities | ||
| Net income for the year | 166 | 326 |
| Amortisation of intangible assets | 12 | 10 |
| Depreciation of tangible assets | 1 | 1 |
| (Increase)/decrease in debtors | (84) | 19 |
| Increase/(decrease) in creditors | 224 | (163) |
| Interest received | (27) | (2) |
| ─────── | ─────── | |
| Net cash generated from operating activities | 292 | 191 |
| ─────── | ─────── | |
| Cash flows from investing activities | ||
| Purchase of tangible fixed assets | (3) | (4) |
| Purchase of intangible fixed assets | (5) | (26) |
| ─────── | ─────── | |
| Net cash (used in) investing activities | (8) | (30) |
| ─────── | ─────── | |
| Cash flows from financing activities | ||
| Interest received | 27 | 2 |
| ─────── | ─────── | |
| Net cash generated in financing activities | 27 | 2 |
| ─────── | ─────── | |
| Net increase in cash and cash equivalents | 311 | 163 |
| Cash and cash equivalents at 1 July | 1,631 | 1,468 |
| ─────── | ─────── | |
| Cash and cash equivalents at 30 June | 1,942 | 1,631 |
| ═══════ | ═══════ |
(i) Analysis of changes in net debt
| ) Analysis of changes in net debt | ||||
|---|---|---|---|---|
| At 1 July | Other non- | At 30 June | ||
| 2022 | Cash flows | cash changes | 2023 | |
| £’000 | £’000 | £’000 | £’000 | |
| Cash and cash equivalents | ||||
| Cash | 1,631 | 311 | - | 1,942 |
| ────── | ─────── | ─────── | ────── | |
| 1,631 | 311 | - | 1,942 | |
| ══════ | ═══════ | ═══════ | ══════ |
17
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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 2023.
The principal activity of The Veterans’ Foundation is to make grants to charities which help veterans in need.
The Veterans’ Foundation is a private charitable 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.
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:
18
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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 or receivable 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 and donation income.
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 organisations and individuals to further its strategic objectives.
Value added tax and corporation tax
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.
19
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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. Amortisation is provided as follows:
Website development 33.3% Trademarks 10%
Debtors
Short term debtors are measured at transaction price, less any impairment.
Cash and cash equivalents
Cash and cash equivalents include 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.
20
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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.
Designated Funds
Trustees may choose during the reporting period to set aside a part of the unrestricted funds to be used for a particular future project or commitment. By earmarking funds in this way, the Trustees set up a designated fund that remains part of the unrestricted funds of the charitable company. This is because the designation has an administrative purpose only and does not legally restrict the Trustees’ discretion in how to apply the unrestricted funds that they have earmarked.
Restricted funds
Restricted funds comprise those funds which the Trustees are restricted in how they might be used in the 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, legacies and investment
| Donations, legacies and investment | |||
|---|---|---|---|
| Unrestricted | Restricted | Total | |
| 2023 | 2023 | 2023 | |
| £’000 | £’000 | £’000 | |
| General donations | 97 | - | 97 |
| Memorial wall donations | 11 | - | 11 |
| Corporate donations | 3 | - | 3 |
| Legacy income | - | - | - |
| Investment | 27 | - | 27 |
| ─────── | ─────── | ─────── | |
| 138 | - | 138 | |
| ═════ | ═════ | ═════ |
21
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
4. Donations and legacies (continued)
| . | Donations and legacies (continued) | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | ||
| 2022 | 2022 | 2022 | ||
| £’000 | £’000 | £’000 | ||
| General donations | 54 | - | 54 | |
| Memorial wall donations | 16 | - | 16 | |
| Corporate donations | 112 | 15 | 127 | |
| Legacy income | 5 | - | 5 | |
| Investment | 2 | - | 2 | |
| ─────── | ─────── | ─────── | ||
| 189 | 15 | 204 | ||
| ═════ | ═════ | ═════ | ||
| 5. | Charitable income | 2023 | 2022 | |
| £’000 | £’000 | |||
| Lottery income | 10,482 | 8,819 | ||
| ═════ | ═════ | |||
| 6. | Staff Costs | 2023 | 2022 | |
| £’000 | £’000 | |||
| Wages & Salaries | 219 | 127 | ||
| Social Security Costs | 21 | 12 | ||
| Pension costs | 4 | 3 | ||
| ─────── | ─────── | |||
| 244 | 142 | |||
| ═════ | ═════ |
No employees earned over £60,000 (2022: nil).
There are 8 individuals employed by the charitable company ( 2022:7
The average number of persons (full time equivalent) employed by the charitable company during the year was 5.2 ( 2022: 2.3) .
The key management personnel are considered to be the CEO, the CFO, the Finance Manager, the Fundraising Manager and the Permanent Grants Managers. The total payments made to key management personnel during the year were £203,644 (2022: £ 142,436 ). None of the Trustees received remuneration in the year, as per note 10.
22
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
| 7. | Expenditure | Unrestricted | Restricted | Unrestricted | Restricted | |
|---|---|---|---|---|---|---|
| expenditure | expenditure | expenditure | expenditure | |||
| on raising | on raising | charitable | on charitable | |||
| funds | funds | activities | activities | 2023 | ||
| £’000 | £’000 | £’000 | £’000 | £’000 | ||
| Lottery costs | 5,095 | - | - | - | 5,095 | |
| Amortisation | 12 | - | - | - | 12 | |
| Will writing services | 19 | - | - | - | 19 | |
| Fundraising staff costs | 38 | - | - | - | 38 | |
| Other fundraising costs | 16 | - | - | - | 16 | |
| Grants awarded (note 9) | - | - | 4,987 | - | 4,987 | |
| Support costs (note 8) | 15 | - | 272 | - | 287 | |
| ─────── | ─────── | ─────── | ─────── | ────── | ||
| 5,195 | - | 5,259 | - | 10,454 | ||
| ═════ | ═════ | ═════ | ═════ | ═════ | ||
| Unrestricted | Restricted | Unrestricted | Restricted | |||
| expenditure | expenditure | expenditure | expenditure | |||
| on raising | on raising | charitable | on charitable | |||
| funds | funds | activities | activities | 2022 | ||
| £’000 | £’000 | £’000 | £’000 | £’000 | ||
| Lottery costs | 3,925 | - | - | - | 3,925 | |
| Will writing services | - | - | 46 | - | 46 | |
| Other fundraising costs | - | - | 25 | - | 25 | |
| Grants awarded (note 9) | - | - | 4,430 | 13 | 4,443 | |
| Support costs (note 8) | 11 | - | 245 | 2 | 258 | |
| ────── | ────── | ────── | ────── | ───── | ||
| 3,936 | - | 4,746 | 15 | 8,697 | ||
| ═════ | ═════ | ═════ | ═════ | ═════ |
23
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
8. Support costs
| upport costs | |||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Unrestricted | Restricted | ||
| expenditure | expenditure | expenditure | expenditure | ||
| on raising | on raising | on charitable | on charitable | ||
| funds | funds | activities | activities | 2023 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | |
| Insurance | - | - | 2 | - | 2 |
| Subscriptions | 15 | - | - | - | 15 |
| Postage | - | - | 1 | - | 1 |
| Accountancy fees | - | - | 3 | - | 3 |
| Legal and professional fees | - | - | 16 | - | 16 |
| Independent auditor’s fees | |||||
| (incl. VAT) | - | - | 14 | - | 14 |
| Travel and subsistence | - | - | 11 | - | 11 |
| Depreciation | - | - | 1 | - | 1 |
| Rent | - | - | 11 | - | 11 |
| Staff costs | - | - | 206 | - | 206 |
| Telephone and IT costs | - | - | 3 | - | 3 |
| Bank charges | - | - | 4 | - | 4 |
| ─────── | ─────── | ─────── | ─────── | ────── | |
| 15 | - | 272 | - | 287 | |
| ═════ | ═════ | ═════ | ═════ | ═════ | |
| Unrestricted | Restricted | Unrestricted | Restricted | ||
| expenditure | Expenditure | Expenditure | Expenditure | ||
| on raising | on raising | on charitable | on charitable | ||
| funds | funds | activities | activities | 2022 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | |
| Insurance | - | - | 2 | - | 2 |
| Fundraising expenses | 3 | - | - | - | 3 |
| Subscriptions | 8 | - | - | - | 8 |
| Sundry expenses | - | - | 10 | - | 10 |
| Postage | - | - | 1 | - | 1 |
| Accountancy fees | - | - | 10 | - | 10 |
| Legal and professional fees | - | - | 33 | - | 33 |
| Independent auditor’s | |||||
| fees (incl. VAT) | - | - | 11 | - | 11 |
| Travel and subsistence | - | - | 6 | - | 6 |
| Memorial wall overheads | - | - | 2 | 2 | 4 |
| Depreciation | - | - | 1 | - | 1 |
| Amortisation | - | - | 10 | - | 10 |
| Rent | - | - | 10 | - | 10 |
| Staff costs | - | - | 142 | - | 142 |
| Telephone and IT costs | - | - | 6 | - | 6 |
| Consultancy fees | - | - | 1 | - | 1 |
| ─────── | ─────── | ─────── | ─────── | ─────── | |
| 11 | - | 245 | 2 | 258 | |
| ═════ | ═════ | ═════ | ═════ | ═════ |
24
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
| 9. | Grants awarded | Total | Total |
|---|---|---|---|
| 2023 | 2022 | ||
| £’000 | £’000 | ||
| Grants to organisations | 4,977 | 4,434 | |
| Grants to individuals | 10 | 8 | |
| ─────── | ─────── | ||
| 4,987 | 4,443 | ||
| ═════ | ═════ |
Grants awarded to the following organisations in the reporting year:
| Organisaton Name | 2023 | 2022 | Organisaton Name | 2023 | 2022 |
|---|---|---|---|---|---|
| 1st Batalion, The Yorkshire Regiment | * | Brixham Future CIC | * | ||
| Accrington Stanley Football in the | Brook House Health and Wellbeing Centre | * | |||
| Community Trust Ltd | * | Broughton House - Veteran Care Village | * | ||
| Abberton Rural Training | * | Bthechange CIC | * | ||
| ACVC Hub | * | * | BuildForce Group CIC | * | |
| ADFAM Natonal | * | Building Heroes Educaton Foundaton | * | * | |
| Launchpad | * | * | Bulldogs Boxing & Community Actvites | * | |
| AFC Flyde Community Associaton | * | Caerphilly Veterans Support Hub | * | ||
| Age Cymru Dyfed | * | * | Caistor Roman Project Limited | * | |
| Age UK Bradford and District | * | Canine Partners for Independence | * | ||
| Age UK Enfeld | * | Cardif City FC Community Foundaton | * | ||
| Age UK North Yorkshire and Darlington | * | Care Afer Combat | * | * | |
| Age UK West Cumbria | * | Care for Veterans | * | ||
| Age Well East Ltd | * | CatZero | * | * | |
| Alabare Christan Care and Support | * | * | Challenge the Wild Ltd | * | |
| Alzheimers Support | * | Citzens Advice Hillingdon Ltd | * | ||
| Anxious Minds | * | Clarets in the Community (Burnley FC) | * | ||
| Armed Forces Community HQ CIC | * | Clervaux Trust | * | ||
| Armed Forces Community Support Hub | * | Climb2Recovery | * | ||
| Ashington Veterans and Elders Insttute | * | Colne Open Door Centre | * | ||
| Associaton of Service Drop-In Centres Ltd | * | * | Combat Stress | * | |
| B.A.S.I.C. Brain And Spinal Injury Centre Ltd | * | Community Drug and Alcohol | * | ||
| Belisama’s Retreat CIC | * | Recovery Services | |||
| Beverley Armed Forces and Veterans | Community Solutons North West Ltd | * | |||
| Breakfast Club | * | Community Veterans Support | * | ||
| Beyond the Batlefeld | * | Curzon Ashton Community Foundaton | * | ||
| Blackburn Rovers Community Trust | * | Cyrenians | * | ||
| Blind Veterans UK | * | DeafBlind UK | * | ||
| Bound by Veterans | * | Defence Gardens Scheme CIC | * | * | |
| BRAVEHOUND | * | * | Deptherapy & Deptherapy Educaton | * | * |
| Bright Star Boxing Academy | * | Dig In | * | ||
| Britsh Ex-Services Wheelchair Sports | Disability Stockport CIO | * | * | ||
| Associaton | * | Dundee Therapy Garden | * | * | |
| Britsh Nuclear Test Veterans Associaton | * | East Durham Veterans Trust | * | * |
25
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
9. Grants awarded (continued)
Grants awarded to the following organisations in the reporting year (continued):
| Organisaton Name | 2023 | 2022 | Organisaton Name | 2023 | 2022 |
|---|---|---|---|---|---|
| Edinburgh Napier University | * | Icarus Online SCIO | * | * | |
| Erskine Hospital | * | * | Improving Lives Plymouth | * | |
| Fares4Free | * | * | ILM (Highland) | * | |
| Felix Fund – The Bomb Disposal Charity | * | Islay & Jura Community Enterprises Ltd | * | ||
| Fife Employment Access Trust | * | King Edward VII’s Hospital Sister Agnes | * | ||
| Fightng with Pride FirstLight Trust |
* | LABRATS (Legacy of The Atomic Bomb Recogniton For Atomic Test Survivors) |
* | ||
| Fisher House, part of the University Hospitals Birmingham Charity |
* | Leigh Community Centre Libanus Lifestyle (Wales) CIC |
* | * | |
| Folkestone Nepalese Community | * | Litle Troopers | * | ||
| Food is Fun CIC | * | Litlehampton Armed Forces Breakfast Club | * | ||
| For the Fallen CIC | * | Liverpool Veterans HQ | * | ||
| Forces Children Scotland | * | Lothians Veterans' Centre Limited | * | * | |
| Forgoten Veterans UK | * | Made by Mortals CIC | * | ||
| Foundaton 92 Foundaton of Light |
* | Medway District Citzens Advice Bureau Service |
* | ||
| Friends of the Allied Special Forces Memorial Grove |
* | Mid Ulster Victms' Empowerment Project Military Assistance Social Hub (M.A.S.H.) |
|||
| Friends of the Royal Britsh Legion Band of Wales |
* | * | Military Grave Restorer Millburn Community Associaton |
* | |
| Future Terrain | * | Mission Motorsports | * | ||
| Garelochead Staton Trust | * | Mode Rehabilitaton | * | ||
| Gateshead Council | * | Monmouthshire Veterans Support Hub | * | ||
| Give us Time | * | Morecambe FC Community Sports | * | ||
| Gladiators Wheelchair Rugby Club | * | No Duf UK CIC | * | ||
| Gorkha Zilla Gurung Samaj UK | * | Norland Crew | * | ||
| Healthier Heroes CIC | * | Okehampton Community and Recreaton | * | ||
| Help 4 Homeless Veterans | * | Associaton | |||
| Helping Homeless Veterans | * | On Course Foundaton | * | * | |
| Herefordshire Veteran Support Centre | * | Only a Pavement Away | * | ||
| Heropreneurs | * | * | Operaton Veteran CIC | * | * |
| HighGround Projects Limited | * | * | Operatons Cairngorms CIC | * | |
| Home-Start Medway Limited | * | * | Pain Associaton Scotland | * | * |
| Home-Start Southern Oxfordshire | * | Plymouth Sports Charity Limited | * | * | |
| Honeypot Under 5’s Centre | * | Portsmouth Royal Maritme Club | * | ||
| Hornsea Ex-Service Mens Club Limited | * | Positve Adventure CIC | * | ||
| HorseBack UK Hounds for Heroes |
* | Preston North End Community and Educaton Trust |
* | ||
| Housing Optons Scotland | * | * | Project Recce | * | |
| Hull 4 Heroes | * | * | PTSD Resoluton Ltd | * | |
| Hull FC Rugby Community Sports & Educaton Foundaton |
* | * | Queen Victoria Seamen’s Rest Radiate Arts CIC |
||
| Humberside & South Yorkshire Army Cadet Force |
* | Raw Performance Reading Force |
* |
26
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
9. Grants awarded (continued)
Grants awarded to the following organisations in the reporting year (continued):
| Organisaton Name | 2023 | 2022 | Organisaton Name | 2023 | 2022 |
|---|---|---|---|---|---|
| Recruit For Spouses Academy CIC | * | * | The Bradford Bulls Foundaton | * | |
| Re-Live | * | The Bridge for Heroes | * | * | |
| Remount (Future 4 Heroes) | * | The Burma Star Memorial Fund | * | ||
| RFEA - The Forces Employment Charity (now Forces Employment Charity) |
* | * | The Contact Group The Ely Centre |
* | |
| Rhondda Hub for Veterans | * | The Gurkha Centre | * | ||
| Rochdale AFC Football in the Community Trust | * | The Gwennili Trust | * | * | |
| Rock 2 Recovery CIC | * | * | The League of Remembrance | * | |
| Royal Air Forces Associaton - Corporate Body | * | The Military Wives Choirs Foundaton | * | * | |
| Royal Britsh Legion Industries (RBLI) Royal Britsh Legion – Northern Ireland District |
* | The M.M Natonal Gulf Veterans and Families Benevolent Associaton |
* | * | |
| Sale Sharks Foundaton | * | The Naval Childrens Charity | * | ||
| SACRO (Safeguarding Communites, Reducing Ofending) |
* | The Not Forgoten Associaton (NFA) The Open University |
* | ||
| Sale Sharks Foundaton | * | The Orchestra of the Swan | * | ||
| Saviours Simul CIC | * | The Princess of Wales’s Royal Regiment | |||
| SCiP Alliance hosted by Winchester University | * | (Queen's and Royal Hampshires) Benevolent | * | ||
| Scotsh Veterans Residences | * | Fund | |||
| Scoty’s Litle Soldiers | * | * | The Royal Naval Associaton | * | |
| Service Dogs UK | * | * | The Royal Scots Regimental Trust | * | |
| Shared Parentng Scotland | * | The Royal Star & Garter Homes | * | * | |
| Shropshire Council Veterans Outreach | * | The Scar Free Foundaton | * | ||
| Programme | The Sir Oswald Stoll Foundaton | * | * | ||
| Small Woods Associaton | * | The Soldiers' Arts Academy CIC | * | * | |
| Smart Savings South West Community Interest Company |
* | The St John & Red Cross Defence Medical Welfare Service (DMWS) |
* | * | |
| South West Scotland RnR | * | The Ulysses Trust | * | ||
| Sportng Force Ltd | * | The Veterans Charity | * | ||
| SSAFA Scotland | * | The Veterans Community Cooperatve CIC | * | ||
| Stafordshire Network for Mental Health | * | The Veterans Contact Point | * | ||
| Stand Easy Productons Stand Easy Military Support |
* | The Veterans Hub - Weymouth and Plymouth CIC |
* | * | |
| Standing Tall Foundaton | * | The Vine Centre | * | ||
| Step Together Volunteering | * | * | The Warrior Programme | * | |
| STEPWAY | * | The Well Being Centre (Saltburn) CIC | * | ||
| Style for Soldiers | * | The White Horse Federaton, Larkhill Primary | * | ||
| Sufolk Family Carers | * | Theatre Royal Plymouth | * | ||
| Supportng Wounded Veterans Ltd. | * | * | The Viking Boat Co. | * | |
| Swansea Veterans Hub CIC | * | Tickets For Troops | * | ||
| Taxi Charity | * | Tom Harrison House | * | * | |
| Team Endeavour Racing UK CIC | * | * | Tonic Health | * | |
| Team Endeavour Wheelchair Rugby | * | Transatlantc Warrior Cup | * | ||
| Tedworth Equestrian | * | Tri Services and Veterans Support Centre | * | ||
| The Blues & Royals Associaton | * | Tross Gynall Plant (TGP Cymru) | * | ||
| The Bolton Guild of Help | * | Turn to Starboard | * |
27
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
9. Grants awarded (continued)
Grants awarded to the following organisations in the reporting year (continued):
| Organisaton Name | 2023 | 2022 | Organisaton Name | 2023 | 2022 |
|---|---|---|---|---|---|
| UK Homes 4 Heroes Pride and Passion | * | Veterans With Dogs | |||
| UK Veterans Hearing Foundaton | * | * | Veterans Wood Craf CIC | * | * |
| Valkyrie Wilderness Workshops CIC | * | * | Voluntary Acton - Swindon | * | * |
| Valley Veterans | * | Walking with the Wounded | * | * | |
| Venture Trust | * | Warrior Equine | * | ||
| Veteran 180 (Vet Run 180) | * | Waterloo Uncovered | * | * | |
| Veterans Business Base | * | We Are With You | * | ||
| Veterans Chaplaincy Scotland | * | West Lancashire Crisis and Informaton Centre | * | ||
| Veterans Community (Lanarkshire) SCIO | * | West London Mission Methodist Circuit | * | ||
| Veterans Community Network | * | Wetwheels Solent CIC | * | ||
| Veterans Community Support | * | Wigan Athletc Community Trust | * | ||
| Veterans at Ease Ltd | * | Wings for Warriors | * | * | |
| Veterans' Growth | * | * | Wintergreen-UK CIC | * | |
| Veterans In Acton Ltd | * | * | Wirral Joint Service Club Ltd | * | |
| Veterans In Crisis Community Interest Company |
* | * | Withernsea Armed Forces Veterans Breakfast Club |
* | |
| Veterans into Logistcs | * | Woodland Xperiences CIC | * | * | |
| Veterans Living History Museum | * | Woodwork to Wellness | * | ||
| Veterans Outdoors | * | * | Woody’s Lodge | * | * |
| Veterans Outreach Support | * | * | Workplace Chaplaincy Scotland | * | |
| Veterans Skills Academy CIC | * | Wrexham and District CAB | * | ||
| Veterans Tribe CIC | * | * | YourNorth Veteran Support CIC | * |
The Trustees have considered the disclosure requirements of the Charity Statements of Recommended Practice (SORP) and have concluded that no individual grants represent a material grant in their own right, and that all grants made are in line with the charitable objectives of the Charity as outlined in the Trustees report.
10. Trustees
Trustees received £nil remuneration during the year (2022: £nil). Trustees were reimbursed expenses of £4,645 ( 2022: £1,503 ). There was £110 (2022: £nil) outstanding at the year end.
28
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
| 11. | Tangible Assets | |||
|---|---|---|---|---|
| Office | ||||
| Equipment | ||||
| £’000 | ||||
| Cost | ||||
| At 1 July 2022 | 4 | |||
| Additions | 3 | |||
| Disposals | - | |||
| ──────── | ||||
| At 30 June 2023 | 7 | |||
| ──────── | ||||
| Depreciation | ||||
| At 1 July 2022 | 1 | |||
| Charge in year | 1 | |||
| Disposals | ||||
| ──────── | ||||
| At 30 June 2023 | 2 | |||
| ──────── | ||||
| Net book value at 30 June 2023 | 5 | |||
| ══════ | ||||
| Net book value at 30 June 2022 | 3 | |||
| ══════ | ||||
| 12. | Intangible Assets | |||
| Website | ||||
| development | Trademark | Total | ||
| £’000 | £’000 | £’000 | ||
| Cost | ||||
| At 1 July 2022 | 25 | 27 | 52 | |
| Additions | - | 5 | 5 | |
| ──────── | ─────── | ──────── | ||
| At 30 June 2023 | 25 | 32 | 57 | |
| ──────── | ─────── | ──────── | ||
| Amortisation | ||||
| At 1 July 2022 | 15 | 2 | 17 | |
| Charge in year | 9 | 3 | 12 | |
| ──────── | ─────── | ──────── | ||
| At 30 June 2023 | 24 | 5 | 29 | |
| ──────── | ─────── | ──────── | ||
| Net book value at 30 June 2023 | 1 | 27 | 28 | |
| ══════ | ═════ | ══════ | ||
| Net book value at 30 June 2022 | 10 | 25 | 35 | |
| ══════ | ═════ | ══════ |
29
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
| 13. | Debtors | 2023 | 2022 |
|---|---|---|---|
| £’000 | £’000 | ||
| Other debtors | 1 | 4 | |
| Prepayments | 97 | 10 | |
| ─────── | ─────── | ||
| 98 | 14 | ||
| ═════ | ═════ | ||
| 14. | Cash and cash equivalents | 2023 | 2022 |
| £’000 | £’000 | ||
| Cash at bank and in hand | 1,942 | 1,631 | |
| ═════ | ═════ | ||
| 15. | Creditors | 2023 | 2022 |
| £’000 | £’000 | ||
| Trade creditors | 11 | 9 | |
| Accruals and deferred income | 275 | 212 | |
| Grants committed | 1,051 | 833 | |
| ─────── | ─────── | ||
| 1,337 | 1,054 | ||
| ═════ | ═════ |
Included within accruals and deferred grants committed are grants awarded not yet paid of £1,051,437 (2022: £833,137) . These are expected to be paid within the year to 30 June 2023 and will be funded by the charitable company’s unrestricted funds.
16. Creditors: Amounts due in over 1 year
| Creditors: Amounts due in over 1 year | 2023 | 2022 |
| £’000 | £’000 | |
| Grants committed | 52 | 111 |
| ═════ | ═════ |
The above grants committed relate to grants awarded over multiple years. These are expected to be paid after 30 June 2023 but before 30 June 2024.
30
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
17. Liability of members
The charitable 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 2023, there were 8 Members.
18. Funds
| Funds | |||||
|---|---|---|---|---|---|
| Fund Balance | Balance at | ||||
| Brought | Incoming | Outgoing | 30 June | ||
| Forward | resources | resources | Transfers | 2023 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | |
| Unrestricted funds | 518 | 10,620 | (10,454) | - | 684 |
| Restricted funds | - | - | - | - | - |
| 518 | 10,620 | (10,454) | - | 684 |
The Board of Trustees has agreed to hold £nil (2022: £61,022) of certain corporate donations in a designated fund which is included as part of unrestricted reserves.
19. Analysis of net assets between funds
| Analysis of net assets between funds | |
|---|---|
| Fund balances at 30 June 2023 are represented by: Tangible fixed assets Intangible fixed assets Current assets Current liabilities Non-current liabilities Total net assets |
Unrestricted Funds £’000 Restricted Funds £’000 Total 2023 £’000 Total 2022 £’000 5 - 5 3 28 - 28 35 2,040 - 2,040 1,645 (1,337) - (1,337) (1,054) (52) - (52) (111) |
| 684 - 684 518 |
31
THE VETERANS’ FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
20. Related parties
The Veterans’ Foundation made grants in the year to two charities which involve related parties, as follows:-
- One grant of £30,000 (2022 – two grants totalling £60,000) was awarded to Heropreneurs, Charity Registration No. 1136671, in the year. No amounts were outstanding at 30 June 2023 (2022 - £nil).
Two Trustees of the charity are also Trustees of Heropreneurs. Neither receive remuneration for their services nor do they vote on proposals to provide grants to Heropreneurs.
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.
- Four grants of £26,250, a total of £105,000, (2022 - four grants totalling £160,800) were awarded to AF&V Launchpad Limited (“Launchpad”), Charity Registration No. 1153185, in the year. No amounts were outstanding at 30 June 2023 (2022 - £40,200).
The CEO of the Charity is also CEO of Launchpad and receives remuneration for his services.
The CEO does not vote at meetings of the Board of Trustees.
Launchpad (https://www.veteranslaunchpad.org.uk) provides accommodation and other support to mainly homeless veterans in Liverpool and Newcastle upon Tyne and Durham. Once accommodated, Launchpad works with each of the 101 or so residents to stabilise their lives, then to carry out interventions that get them to independent living and where possible, employment, within approximately 2 years. Residents’ challenges include complex issues such as: homelessness, poverty, unemployment, imprisonment, addictions, physical and mental health, family welfare.
| 21. | Revenue commitments | 2023 | 2022 |
|---|---|---|---|
| £’000 | £’000 | ||
| Office | Office | ||
| < 1 year | 1 | 1 | |
| ═════ | ═════ |
Lease payments made in the year amounted to £9,720 (2022: £9,720).
32