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← Armed Forces Education Trust

2024-08-31-accounts

Charity Registration No. 1167682

ARMED FORCES EDUCATION TRUST

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

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10 Bridge Street
Christchurch
Dorset
BH23 1EF
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ARMED FORCES EDUCATION TRUST

CONTENTS

Page
Legal and administratve informaton 1
Trustees' report 2 - 7
Statement of Trustees' responsibilites 8
Independent auditor's report 9 - 12
Statement of fnancial actvites 13
Statement of fnancial positon 14
Statement of cash fows 15
Notes to the fnancial statements 16 - 26

ARMED FORCES EDUCATION TRUST

COMPANY INFORMATION

Trustees Mr S Porter Mr A Behagg Mrs M Clohessy Mr I Buckle Ms L G B Robinson Mr A Malcolm (Appointed 8 December 2023) Mrs C Chisholm (Appointed 8 December 2023) Mrs J Walker (Appointed 8 December 2023) Mr R Clements (Appointed 23 February 2024) Mr M Davis (Appointed 23 February 2024) Mr B Burton (Appointed 23 February 2024) Charity number 1167682 Auditor TC Group 10 Bridge Street Christchurch Dorset BH23 1EF

ARMED FORCES EDUCATION TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

The Trustees present their annual report and financial statements for the year ended 31 August 2024.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

Objectives and aims

The purpose of the Trust, as set out in its governing document, is the advancement of education ofpeople under the age of 25 years who are or were dependents of serving or former members of HM Armed Forces.

Aim and Intended Impact

The Trust's aim is to improve opportunities and outcomes for children and young adults whose education has been adversely impacted by their parents' service in the Armed Forces. The Trust identifies individuals and institutions in need of its help and establishes a sustainable method of supporting them financially in education.

The key challenge facing the Trust continues to be the task of reaching out to as wide an audience as possible, so that the Trust can identify those individuals and institutions most in need of its help.

Objectives for the Year

The Trust regularly reviews its strategic intent and ensures that its principal objectives for the year reflect the operation of the Trust as a grant giving body. These objectives were:

The number of applicants, the breadth of their geographical location and the diversity of service personnel applying are all key indicators of the Trust's success in meeting its objectives.

Public benefit

The Trustees have had regard to the guidance issued by the Charity Commission on public benefit and have taken care in agreeing the objects with the Charity Commission to reflect a focus on public benefit. The main activities in relation to its purpose for the public benefit include awarding:

Throughout the period the Trustees had due regard to public benefit guidance in determining the activities of the Trust.

ARMED FORCES EDUCATION TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

Grant making

The Trust's policy on grant making is to seek to maximise the effect of grants given: a) to counter instances where children or young adults may have had their education compromised orput at risk because of a parent's current or past military service, or b) to support educational establishments to help minimise the effects of service life on pupils.

To the extent possible, the Trust aims to ensure that grant money awarded does not replace funding which is already available from public or private sources.

Achievements and performance Charitable activities

The Trust is pleased to report significant growth in the grants awarded over the past year, reflecting in part its networking and marketing efforts of the recent past. Continuous review and challenge of its approach to grant giving has helped the Trust increase its engagement with those most in need of its help and broaden its reach. The size and type of grant awarded continued to expand this year, with a diverse group of recipients receiving grants ranging from just a few hundred pounds to over £100,000.

For example, this year the Trust awarded a grant of £170,000 spread over two years to SSCE (Supporting Service Children in Education) Cymru to enable the organisation to continue supporting Service children in Wales. Having worked with SSCE Cymru previously, the Trust is familiar with the organisation’s track record and the impact it has when engaging with Welsh schools with Service children.

At the other end of the scale, the Trust sponsored prizes at an award ceremony in April 2024 for the Month of the Military Child (MOTMC), including a £250 prize to Leconfield Primary School in Yorkshire for books. The Trust’s involvement in MOTMC events enabled it to work with the Ministry of Defence and Never Such Innocence charity to raise awareness of the issues facing Service children and to promote the Trust’s work.

Neston Primary School in Wilshire was another school that benefitted this year. The Trust made an open ended grant to the school for a period of one year of £2,050 for each new child arriving at the nearby Services Cotswold Centre (a centre run by the Army Welfare Service providing short-term transit accommodation for TriService personnel and their families) and attending the local school while there. The Trust has agreed to extend this award for the 2024/25 academic year. The grant helps the school to give Service children immediate support on arriving which can be at any time during the school year.

During the year, the Board considered ways that it could extend its service offering, particularly to students beyond school age and agreed some grants to students from Armed Forces families attending college and university. Whilst the outcomes of these awards have yet to be fully assessed, the Trust will continue to consider applications from beyond school age students, assessing each one on its merits.

The Trust is part way through a two-year funding of a project being undertaken by the Service Children’s Progression Alliance (SCiP) to roll out a Thriving Lives Toolkit which helps schools support Service children to navigate some of the issues they face. SCiP are pleased with their progress to date in engaging schools with around 20,000 Service children.

The Trust is cognisant of the need to continuously promote its services and undertakes a vast array of networking initiatives each year. This year, the CEO held meetings or gave presentations to representatives from county councils across the country, including Kent, Lincolnshire, Wiltshire and the Scottish County Council, with a view to informing schools about the Trust’s grants whilst increasing the Trust‘s understanding of local needs of Service children.

ARMED FORCES EDUCATION TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

The Trust also took part in a Service Children Support Sector Development event in Leeds in September 2023 which provided an excellent opportunity to meet with a wide range of stakeholders, understand how each supports Service children and ascertain what more the Trust can do to help Service children in state schools.

The CEO’s ongoing discussions with the Families Federations have continued to prove fruitful, with the Federations referring an increased number of cases to the Trust this year. The Trust has seen more enquiries than ever from schools or individuals seeking help for students with learning difficulties. The impact of providing such help can have far reaching consequences not only for the student concerned but also for fellow pupils. The CEO attended the Royal British Legion roundtable for special educational needs and disability children (SEND) in January 2024 focusing on the specific experiences of Service children with SEND. Following this round table, the Trust had a series of meetings with other interested parties that may result in future grant applications.

The Trust is delighted to be able to work with other charities wherever possible and a number of charities have shown an increasing appetite to work alongside the Trust to jointly fund awards. For example the Army Benevolent Fund, along with some Regimental Charities, has worked with the Trust to to jointly support Army children this year. The Trust hopes these relationships will continue and grow to include the other Services.

Financial review

Reserves Policy

The Trustees review the Trust's policy on reserves at least annually with reference to guidance published by the Charity Commission. The policy is also reviewed, when warranted, by changes in risk assessment or the business plan. During the year, reserves were held to minimise any disadvantage to beneficiaries should the Trust's income be stopped or severely reduced. Taking account of the main risks to the Trust, the Trust's policy is to hold reserves of around three times the level of total annual grants awarded based on forward estimates.

As of 31 August 2024, total unrestricted reserves amounted to £14,521,951 (2023: £14,434,423), of which £2,536,951 were free reserves as the Trust's investment property cannot be quickly disposed of. Free reserves as at 31 August 2024 of £2,536,951 (2023: £2,649,423) represent 3.8 years of total grants based on forward estimates.

Financial Activities and Results

The results for the year and the financial position are set out in the Statement of Financial Activities on page 13 and the Statement of Financial Position on page 14. The Trust's principal source of funds was income from rent receivable on its principal property asset. The property asset is let on a 50 year lease to September 2061 to Cognita Schools Limited, a company which operates and invests in schools. The Trustees regularly meet with personnel from Cognita to ensure that the terms of the lease are being met. The Trust is not involved in direct fundraising although periodically donations and legacies are made to the Trust. In particular, the Trust receives an annual donation of £300 from the Privy Purse. The Trustees have agreed to award this donation each year to the grantee(s) who they feel has best met the objectives of their grant.

Expenditure on charitable activities was £965,252 (2023: £141,430) reflecting significantly higher awards for grants in 2024, compared to 2023, particularly in relation to grants awarded to institutions. Grants are accrued as at the date they are approved by the Trustees. Individual grants were given to 32 children (2023: 32) and young people to assist with the provision, or to sustain an existing provision, of appropriate education.

ARMED FORCES EDUCATION TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

In addition, grants were awarded to 20 institutions (2023: 7), including schools and Local Education Authorities, to enable educational support to be provided to Armed Forces children. The recipients have been able to provide individual and group interventions or arrange targeted training to teachers and staff working with Armed Forces children. The Trust invests surplus funds with a multi asset fund. Investment in funds is maintained for when future cash is required.

Investment policy and objectives

The Trust has a long-term investment policy and a set of objectives for its surplus funds, both of which are regularly reviewed by the Board. The Trust's investment policy is to seek the best financial return from investing surplus funds balanced with an acceptable level of risk. Having considered the options available and reviewed a number of potential investment managers and funds, the Trustees determined that its surplus funds should be invested with a third party multi-asset fund (“the Fund”). The Fund seeks to maximise returns through income and capital growth. The Trust's investment in the Fund was valued at £2.9m as at 31 August 2024. During the financial year the Fund made a 13.8% gain, compared with a 3.6% gain in the previous year.

The Board regularly reviews the performance of the Fund in absolute terms and against a number of benchmarks. It considers that the overall performance of the Trust's investment has been satisfactory.

Future plans

The key factors likely to affect the future financial performance of the Trust are the ongoing receipt of rental income from the Trust’s principal asset and the performance of the Trust’s investment in the Fund.

The Trust will continue to serve the needs of Service children throughout the world by the provision of grants that best meet their needs. The Trust will continue its marketing efforts to broaden awareness of its services and in so doing, reach out to a broad range of applicants across the Armed Services community. The Trust aims to keep abreast of matters impacting Service children. It is monitoring the potential impact of VAT on private school fees and on the ability of Armed Forces families to affordhigher school fees, whilst noting that the monetary amount of grants previously awarded may no longer cover as much of school fees from January 2025.

Structure, Governance and management

Governing document

The Armed Forces Education Trust was established to take forward the work of the Royal School Hampstead Trust (charity number 312286). On 7 December 2016 the Royal School Hampstead Trust transferred all of its assets (including cash and freehold property less liabilities) amounting to £13,070,677, to the Armed Forces Children Education Trust.

The Trust is a Charitable Incorporated Organisation and governed by its written constitution dated 16 June 2016. The affairs of the Trust are managed by the Trustees, of which there must be a minimum of five. There is no maximum number of Trustees that may be appointed by the Trust.

ARMED FORCES EDUCATION TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

The Trustees who served during the year and up to the date of signature of the fnancial statements were: The Trustees who served during the year and up to the date of signature of the fnancial statements were:
Mr S Porter
Mr A Behagg
Mrs M Clohessy
Mr I Buckle
Ms L G B Robinson
Mr A Malcolm (Appointed 8 December 2023)
Mrs C Chisholm (Appointed 8 December 2023)
Mrs J Walker (Appointed 8 December 2023)
Mr R Clements (Appointed 23 February 2024)
Mr M Davis (Appointed 23 February 2024)
Mr B Burton (Appointed 23 February 2024)
Mrs J Lycet (Resigned 8 December 2023)
Mr D J Toriat (Resigned 8 December 2023)
Mr T Flesher (Resigned 20 March 2024)
Mr M Willis (Resigned 18 June 2024)

Recruitment and appointment of new trustees

The appointment of Trustees is a matter reserved for the Board of Trustees, based on vacancies occurring through the end of an allotted term, or a resignation, and an agreed succession plan based on a set of criteria. The Board may appoint a new Trustee at any properly convened meeting of the Trustees. The Chair is elected from and by the Trustees. On 18 June 2024, Alan Behagg stepped down as Chair of the Board but continued as a trustee. Simon Porter took over the role of Chair. Alan became Chair of theTrust in June 2016 and over the past eight years he worked tirelessly to promote the work of the Trust, develop its grant giving strategy and broaden its reach. He has been instrumental in achieving these goals and the Board is extremely grateful to Alan for his dedication to the Trust, his wisdom and his guidance. During the year, the Trust also undertook a recruitment drive to appoint new trustees to replace those stepping down at the end of their terms of office. The Board would like to thank those who served the Trust over the recent past and gave of their time so generously and effectively.

New Trustees are given a documented and personal induction programme. Trustees are able to attend a range of training courses and seminars, either at external institutions, or internally organised with external contributors as required.

Organisational structure

The Board meets five times a year, with additional meetings arranged if required.

Day to day management of the Trust's affairs is delegated to the Trust's Chief Executive Officer, Mrs C Hickman. In addition, the Trust benefitted from the services of Mrs L Abbott, its education adviser, to facilitate policy and decision-making with regard to individual and collective grants, and from Mr D Caleb, its property adviser to facilitate oversight of its principal property investment. Mrs L Abbott stepped down as education adviser in April 2024. The Trustees consider that they, together with the Chief Executive Officer, comprise the key management of the Trust in charge of directing, controlling, running and operating the Trust on a day-to-day basis. None of the Trustees receives any remuneration in respect of their services as Trustees. Staff pay is reviewed by the Trustees annually using external benchmarking and comparison data.

ARMED FORCES EDUCATION TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

Risk management

The Trustees review and update the schedule of risks facing the Trust at least annually but monitor principal risks at every Board meeting. The Board considers a schedule of risks, their likelihood and potential damage together with preventative measures and mitigating actions. The Board considers that the principal risks facing the Trust are as follows:

The key strategies to manage these risks involve developing a closer relationship with the leaseholder of the Trust's principal asset and the regular monitoring of investment policy and performance.

Safeguarding

The Trust has a safeguarding policy which is regularly reviewed. Among other things, it covers measures to protect the Trustees and the Chief Executive Officer who is at the forefront of requests for grants. In addition, safeguarding is on the agenda of each Board meeting. The safeguarding lead is the CEO and a trustee, Ms L G B Robinson, is now the Trustee for Safeguarding. Both are undertaking the necessary training from SAFE CIC.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

The Trustees report was approved by the Board of Trustees.

Mr S Porter

Trustee Dated: 13 December 2024

ARMED FORCES EDUCATION TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2024

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

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year.

In preparing these financial statements, the Trustees are required to:

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

ARMED FORCES EDUCATION TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF ARMED FORCES EDUCATION TRUST

Opinion

We have audited the financial statements of Armed Forces Education Trust (the 'charity') for the year ended 31 August 2024 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

ARMED FORCES EDUCATION TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF ARMED FORCES EDUCATION TRUST

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee report.

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

Responsibilities of Trustees

As explained more fully in the trustees' responsibilities statement, the trustees 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

ARMED FORCES EDUCATION TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF ARMED FORCES EDUCATION TRUST

Auditor's responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. These include Health and Safety and other charity legislative requirements. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

ARMED FORCES EDUCATION TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF ARMED FORCES EDUCATION TRUST

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: htps:// www.frc.org.uk/auditorsresponsibilites. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with of Part 4 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an 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 charity and the charity's trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Dean Pullen FCCA (Senior Statutory Auditor) for and on behalf of TC Group

Statutory Auditor

Office: Christchurch

7 January 2025

ARMED FORCES EDUCATION TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2024

Unrestricted Unrestricted
funds funds
2024 2023
Notes £ £
Income from:
Donatons and legacies 3 313 353
Charitable actvites 4 523,531 478,451
Total income 523,844 478,804
Expenditure on:
Charitable actvites 5 965,252 141,430
Total expenditure 965,252 141,430
Net gains/(losses) on investments 10 528,937 121,229
Net income and movement in funds 87,529 458,603
Reconciliaton of funds:
Fund balances at 1 September 2023 14,434,422 13,975,820
Fund balances at 31 August 2024 14,521,951 14,434,423

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

ARMED FORCES EDUCATION TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2024

Notes
Fixed assets
Tangible assets
12
Investment property
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current (liabilites)/assets
Total assets less current liabilites
Creditors: amounts falling due afer more
than one year
17
Net assets
The funds of the Trust
Unrestricted funds
18		 2024
£
£
1,140
11,985,000
2,937,292
14,923,432
-
267,396
267,396
(565,546)
(298,150)
14,625,282
(103,331)
14,521,951
14,521,951
14,521,951		 2023
£
£
1,702
11,785,000
2,608,355
14,395,057
8,398
262,542
270,940
(208,074)
62,866
14,457,923
(23,500)
14,434,423
14,434,423
14,434,423

The financial statements were approved by the Trustees on 13 December 2024

Mr S Porter Trustee

Mrs M Clohessy Trustee

ARMED FORCES EDUCATION TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2024

Notes
Cash fows from operatng actvites
Cash generated from operatons
21
Investng actvites
Purchase of tangible fxed assets
Purchase of investments
Investment income received
Net cash generated from/(used in)
investng actvites
Net cash used in fnancing actvites
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
-
-
2,603		 2023
£
£
£
2,252
153,374
(1,702)
(200,000)
678
2,603
(201,024)
-
-
4,854
(47,650)
262,542
310,192
267,396
262,542

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting policies

Charity information

Armed Forces Education Trust is a charity registered in England and Wales and is a Charitable Incorporated Organisation. The address of the principal office is PO Box 684, Farnham, GU9 1LP.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Trust is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

1.4 Incoming resources

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount.

Legacies are recognised on receipt or otherwise if the Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required insettlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers 33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9

Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting policies

(Continued)

1.11 Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Trust's statement of financial position when the Trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.

1.12 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

1.13 Taxation

The charity is exempt from tax on its charitable activities.

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

2 Critical accounting estimates and judgements

In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Management review the judgements and estimates used to determine the fair values attributed to the charity's investment property on an annual basis. They consider the most recent revaluation disclosed in note 13 to be a true and fair reflection of the market value of the property at the reporting date.

Grants to be paid over multiple years are recognised in full in the year in which they are awarded. The Trustees believe there to be no performance related requirements on the part of the grant recipient and there is therefore a sufficient degree of probability the grant will be paid.

There were no other key sources of estimation uncertainty.

3 Donations and legacies

Unrestricted Total
funds
2024 2023
£ £
Donatons 313 353

4 Charitable activities

Rent received
Deposit account interest		 Income Income
2024
£
520,928
2,603
523,531		 2023
£
477,773
678
478,451

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

5 Charitable activities

Charitable
actvites
2024
£
Depreciaton and impairment
562
Grants to insttutons
710,712
Grants to individuals
189,936
Salaries
-
Insurance
-
Other establishment
-
Advertsing
-
Auditors' remuneraton
-
Legal and other professional fees
-
Costs of Trustees' meetngs
-
901,210
901,210		 Charitable
actvites
2024
£
Depreciaton and impairment
562
Grants to insttutons
710,712
Grants to individuals
189,936
Salaries
-
Insurance
-
Other establishment
-
Advertsing
-
Auditors' remuneraton
-
Legal and other professional fees
-
Costs of Trustees' meetngs
-
901,210
901,210		 Support
costs
Governance
costs
2024
2024
£
£
-
-
-
-
-
-
40,854
-
1,820
-
11,750
-
1,159
-
-
5,216
-
1,811
-
1,432
55,583
8,459
55,583
8,459		 Total
2024
£
562
710,712
189,936
40,854
1,820
11,750
1,159
5,216
1,811
1,432
965,252
965,252		 Total
2023
£
-
15,009
73,408
37,932
1,369
5,599
-
5,040
1,992
1,081
2024
£
562
710,712
189,936
-
-
-
-
-
-
-
901,210
901,210		 2024
£
-
-
-
40,854
1,820
11,750
1,159
-
-
-
55,583
55,583
141,430
141,430

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

6 Grants payable The total grants payable to institutions during the year were as follows:

2024 2023
Alexander First School 42,000 (46)
Angus Council (8,291) 8,291
Carnagill Primary 9,800 -
Carterton Community College - 15,000
Colerne Primary 54,230 -
Credenhill Primary - (99)
East End Primary (76) 280
Edit Moorhouse - 540
Elson Infants - 1,868
Forces Employment 25,000 -
Gateway School - 9,720
Haveford West Secondary 30,000 -
Kiwi Primary 43,436 -
Knocknagoney Primary School - (1,000)
Larkhill Primary 38,881 -
Leconfeld Primary 250 -
Lincolnshire schools 17,999 -
Lyneham Primary 95,335 -
Neston Primary 2,283 -
Peel primary - (550)
Portsmouth Festval of Friends 24,000 -
RAF Benson Cluster 33,267 -
Risedale Secondary 37,500 -
Salisbury Plain Academies - (12,628)
South Farnborough Junior School - (6,345)
SSCE Cymru 170,000 -
St Christopher's - 1,198
St Geraldine Primary 24,580 -
St Gerards 5,000 -
St Peters Primary 800 -
St Peters Farnborough 7,995 -
Upton by Chester High - (1,220)
Ysgol Colweg Pen y Fan 56,723 -
Total grants to insttutons 710,712 15,009

Grants are accrued at the date they are approved by the trustees and communicated to recipients, based on the information available at the time of grant application. If circumstances change, the recipient is required to inform the charity. This can result in a change to the initial value of the grant previously agreed. The negatives balances above represent a change in the amounts accrued due to unforeseen circumstances.

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

6 Grants payable (Continued)

The total grants payable to collaborative and individuals during the year was £196,106 (2023: £73,408).

7 Net movement in funds 2024 2023
£ £
The net movement in funds is stated afer charging/(creditng):
Depreciaton of owned tangible fxed assets 562 -

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.

During the year Trustee's had expenses for travel and subsistence reimbursed for a total of £1,432 (2023: £1,081).

9 Employees

There was 1 employee during the year (2023 - 1).

No staff received emoluments in excess of £60,000.

Staff costs represent the remuneration of key management personnel.

10 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2024 2023
Gains/(losses) arising on: £ £
Revaluaton of investments 328,937 121,229
Revaluaton of investment propertes 200,000 -
528,937 121,229

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

12
Tangible fxed assets
Cost
At 1 September 2023
At 31 August 2024
Depreciaton and impairment
Depreciaton charged in the year
At 31 August 2024
Carrying amount
At 31 August 2024
At 31 August 2023
13
Investment property
Fair value
At 1 September 2023
Net gains or losses through fair value adjustments
At 31 August 2024		 Computers
£
1,702
1,702
562
562
1,140
1,702
2024
£
11,785,000
200,000
11,985,000

The fair value of the investment property has been arrived at on the basis of a valuation carried out in August 2024 by House & Son Chartered Surveyors, who are not connected with the Trust. The valuation was based on the estimated amounts a willing buyer would purchase the property for at arm's-length. The Trustees consider the value to be appropriate at 31 August 2024. The cost of the investment property to the charity was £11,589,735.

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

14 Fixed asset investments

Listed
investments
£
Cost or valuaton
At 1 September 2023
2,608,355
Valuaton changes
328,937
At 31 August 2024
2,937,292
Carrying amount
At 31 August 2024
2,937,292
At 31 August 2023
2,608,355
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
8,398
16
Creditors: amounts falling due within one year
2024
2023
£
£
Grant creditors
6,134
23,175
Accruals and deferred income
559,412
184,899
565,546
208,074
Included within accruals are grants agreed for future periods of £552,991 (2023 - £179,860).
17
Creditors: amounts falling due afer more than one year
2024
2023
£
£
Accruals and deferred income
103,331
23,500
Included within accruals are grants agreed for future periods of £103,331 (2023 - £23,500).		 Listed
investments
£
Cost or valuaton
At 1 September 2023
2,608,355
Valuaton changes
328,937
At 31 August 2024
2,937,292
Carrying amount
At 31 August 2024
2,937,292
At 31 August 2023
2,608,355
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
8,398
16
Creditors: amounts falling due within one year
2024
2023
£
£
Grant creditors
6,134
23,175
Accruals and deferred income
559,412
184,899
565,546
208,074
Included within accruals are grants agreed for future periods of £552,991 (2023 - £179,860).
17
Creditors: amounts falling due afer more than one year
2024
2023
£
£
Accruals and deferred income
103,331
23,500
Included within accruals are grants agreed for future periods of £103,331 (2023 - £23,500).		 Listed
investments
£
Cost or valuaton
At 1 September 2023
2,608,355
Valuaton changes
328,937
At 31 August 2024
2,937,292
Carrying amount
At 31 August 2024
2,937,292
At 31 August 2023
2,608,355
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
8,398
16
Creditors: amounts falling due within one year
2024
2023
£
£
Grant creditors
6,134
23,175
Accruals and deferred income
559,412
184,899
565,546
208,074
Included within accruals are grants agreed for future periods of £552,991 (2023 - £179,860).
17
Creditors: amounts falling due afer more than one year
2024
2023
£
£
Accruals and deferred income
103,331
23,500
Included within accruals are grants agreed for future periods of £103,331 (2023 - £23,500).
2,937,292
2,937,292
2,608,355
2023
£
8,398
2023
£
23,175
184,899
208,074
2023
£
23,500
2024
£
103,331

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds		 At 1
September
2023
£
14,434,423
At 1
September
2022
£
13,975,820		 Incoming
resources
£
523,844
Incoming
resources
£
478,804		 Resources
expended
£
(965,252)
Resources
expended
£
(141,430)		 Gains and
losses
At 31 August
2024
£
£
528,937
14,521,951
Gains and
losses
At 31 August
2023
£
£
121,229
14,434,423

19 Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

20 Operating lease

The charity is the lessor to a 50 year operating lease ending 1 September 2061. Investment income for future periods is based on rental fees payable for the previous year plus any changes in RPI.

ARMED FORCES EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

21 Cash generated from operatons 2024 2023
£ £
Surplus for the year 87,529 458,603
Adjustments for:
Investment income recognised in statement of fnancial actvites (2,603) (678)
Fair value gains and losses on investment propertes (200,000) -
Fair value gains and losses on investments (328,937) (121,229)
Depreciaton and impairment of tangible fxed assets 562 -
Movements in working capital:
Decrease/(increase) in debtors 8,398 (8,398)
Increase/(decrease) in creditors 437,303 (174,924)
Cash generated from operatons 2,252 153,374