Special Boat Service Association
(A charitable incorporated organisation)
Annual Report and Financial Statements Year Ended 31 March 2022 Company registration number: CE008612 Charity registration number: 1168876
Special Boat Service Association
| Contents | |
|---|---|
| Reference and Administrative Details | 1 |
| Trustee's Report | 2 to 7 |
| Statement of Trustee's Responsibilities | 8 |
| Independent Auditors' Report | 9 to 12 |
| Consolidated Statement of Financial Activities | 13 to 14 |
| Consolidated Balance Sheet | 15 |
| Balance Sheet | 16 |
| Consolidated Statement of Cash Flows | 17 |
| Notes to the Financial Statements | 18 to 42 |
Special Boat Service Association
Reference and Administrative Details
Trustee
Mr R Corn
Principal Office
HQ Sqn RM Poole Hamworthy Poole Dorset BH15 4NQ
Company Registration Number
CE008612
Charity Registration Number
1168876
Solicitors
Wilsons Solicitors LLP 4 Lincoln's Inn Fields London WC2A 3AA
Bankers
The Royal Bank of Scotland Plc Holt's Military Banking Lawrie House Victoria Road Farnborough GU14 7NR
Auditor
PKF Francis Clark Chartered Accountants and Statutory Auditors Towngate House 2 - 8 Parkstone Road Poole Dorset BH15 2PW
Page 1
Special Boat Service Association
Trustee's Report
The Board of Trustees are pleased to present the annual report and accounts for the charity for the year ending 31 March 2022.
The financial statements have been prepared under the accounting policies set out in note 1 of the f Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities".
Our Principal Charitable Objectives
The main objectives of the Association as set out in the Constitution are:
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(i) To promote the efficiency of the Special Boat Service by:
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Maintaining contact between serving and former members of the Service and providing for social gatherings for them;
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Fostering esprit de corps, comradeship and the welfare of the Service and perpetuating its deeds;
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Preserving the traditions of the Service including the practice of understatement, humility, and modesty;
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Perpetuating the memory of those members of the Service who have died in the service of their country:
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Assisting Service members or former members of the Service, their families, and dependants by the provision of facilities and services and by such other means as the Board shall from time to time determine.
(ii) To relieve members or former members of the Service or their dependants who are in need by virtue of financial hardship or sickness by:
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Making grants of money to them; or
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Providing or paying for goods, services, or facilities for them; or
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Making grants of money to other persons or bodies who provide goods, services, or facilities to those in need; or
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Provide advice and counselling to them during bereavement or injury or during times of crises or conflict.
(iii) To relieve members or former members of Allied Forces Units or their families and dependants, and the families or dependants of deceased members of such Units, who are in need by virtue of financial hardship or sickness, by such means as the Board shall from time to time determine.
Public benefit
The Association exists to provide a lifetime of support to the Special Boat Service, members of the Special Boat Service Association, and their dependants by providing appropriate charitable assistance when public funding is unavailable. By improving morale and esprit de corps amongst members of the association, the support provided directly contributes to the quality of the Special Boat Service as a key component of the Nations Armed Forces, and thereby to the defence of the Nation.
In guidance on public benefit and compiled the review of our aims and objectives to reflect how our activities deliver public benefit.
Page 2
Special Boat Service Association
Trustee's Report
Achievements and performance
a. Review of achievements and performance
The Association has provided the following benefits to its members during this financial year and has secured funding to the construction of the Resilience and Recovery Centre commenced the tender process to select the contractor to deliver the project in the 2020/21 financial year.
Welfare
How we have helped and supported:
We have provided direct welfare support to: Serving Members - £ 65,000 Veterans - £ 327,000 Dependants - £ 22,000
Other projects we support: Dependants Health Care - £166,000 Families Fund - £30,000 Command Fund - £78,000 Operation Armour - £75,000 Community Centre - £9,000 HMS Excellent - £10,000 HMS PWLS Fund - £20,000
Reunions / Pilgrimages / Historical - £ 232,000
TOTAL: £ 1,034,000
Who and how we help
Veterans
The Unit and their family
Bereaved Families
Children of Service
Wounded Warriors
Amenities
Ongoing through life support to Veterans who have sustained life changing injuries during Service.
Various levels of support which are not limited to; counselling funding for long term illnesses, bereavement and marital support for Operators returning from deployment, as well as respite care to help families with children with disabilities and ongoing support to children affected by serving parents PTSD.
The Aviva Private Healthcare Scheme has proved to be a success to our serving members. The cover provides instant referrals and provides access to specialists. This gives an enhanced peace of mind for deployed operators knowing their families are receiving the best care.
Support offered to Bereaved Families operates on a case by case basis; examples of support are financial aid with funeral costs, wakes, memorial services and counselling.
The Association is continuing to help children via counselling and financial support for further education and coping with the loss of a loved one. The SBSA family is ever-growing increasing the need for child support.
future injuries or casualties sustained in conflict.
The Courtney Building
The Charity achieved expenditure in the financial year Apr 2021 to March 2022 for grants payable of £7,369,474, a rise of over £7m on the previous year. This was due primarily to the exceptional grant made to the MOD for the Courtney Building.
Page 3
The Charity has completed a two-year project to deliver a state-of-the-art welfare and community facility for the Unit. The Courtney Building, which opened in February 2022 is for welfare support, training, rehabilitation activities, briefings, employment workshops, community events for both serving and veterans of the SBS, family activities and charity meetings. The building is named after Roger Courtney, an experienced canoeist, adventurer, and founder of t Section during the Second World War. The building has a large conference hall, which can be split into 4 separate rooms, a cafeteria and kitchen area, meeting rooms, and offices and facilities for the SBSA.
This £7.2m project, which could not be funded by the MOD, has been fully paid for through grants and donations received by the SBSA for the building. No funding has come from Charity general funds. There is a potential £300k for ongoing project expenditure for the year ending March 2023, this will be accounted for in the same manner. The MOD has agreed to fund all ongoing running and maintenance costs. It is expected it will provide a substantial charitable benefit for both personnel and dependants over the next 50 years.
A management committee on which the Charity is represented will oversee use in accordance with the charitable objects of the Charity and will capture feedback to the Unit and trustees annually. The trustees have determined that the most appropriate treatment of the project for accounting purposes (since the land reverts to MOD at the 50-year point and therefore the building), is to deem it a capital
Operation Armour
The Association continue to fund Operation Armour. Our total commitment over recent years is £450,000, a human performance imitative focused on Physical & Mental Resilience for Serving Members.
Our Amenities portfolio is continuing to be utilised by both Veterans and Serving Members. The SBSA now have 4 properties across England and Europe offering much needed R&R. The properties provide good value and quality respite holidays for Association Members and their families.
Structure, governance, and management
a. Constitution
The Association, which was incorporated as a charitable incorporated organisation in 2016, is governed by a constitution, which was approved by the Charity Commission on 23 August 2016. It is registered with the Charity Commission with charity number 1168876. The constitution is reviewed annually by the Board and is updated if required, following deliberation and confirmation of change by vote at the Annual General Meeting.
b. Method of appointment or election of Trustees
The composition and size of the Board of Trustees is reviewed regularly to assess the skills profile of the Board relevant to its requirement to meet the needs of the Charity. The Board is responsible for appointing trustees, who are recruited from as broad a network of personal contacts as possible, and who serve for one year, with re-election at the Annual General Meeting.
c. Policies adopted for the induction and training of Trustees
All new trustees are briefed on their responsibilities and their statutory obligations under charity law. In addition, all trustees are encouraged to attend appropriate trustee training courses, such as the oneday courses for the Chair, Investment Training for Trustees and Trustee Training Course. All trustees are given the opportunity to meet key members of staff.
Page 4
Special Boat Service Association
Trustee's Report
d. Organisational structure and decision making
The Association is managed by a Board of Trustees, comprising of 14 trustees in total, of whom 2 are ex- officio and 12 are elected. The trustees receive no remuneration and elected members serve for 4 years, but can be re-elected at the Annual General Meeting. For security purposes and with the agreement of the Charity Commission, details of the Board of Trustees are only available from the Chief Executive Officer at the principal office.
The Trustees meet four times a year. The Trustees agree the strategy and areas of focus of activity on behalf of the Association, including consideration of fundraising, grant making, investments, reserve policy, risk management strategy and performance. The day-to-day administration and conduct of the Association is delegated to the Chief Executive Officer.
The Board is supported by the following committees, which have written terms of reference. These committees meet prior to the Board of Trustees Meeting to make recommendations concerning the extension, cessation or suspension of grants, activities and resources towards their directed tasks:
Investment
Finance Welfare & Grant making
Fundraising Governance Membership Trustee Nomination
e. Welfare and Grant making policy
During Trustees meetings, trustees will consider welfare grants to the fund of over £50,000. The CEO has delegated authority to make individual welfare grants of up to £5,000 and financial delegation to enable him to carry out the general management and day to day business of the charity, in accordance with the approved annual budget as agreed by the Board. The Chairman of Trustees and CEO acting together has delegated authority to approve welfare grants of more than £5,000 but less than £10,000. The Grants committee has delegated authority to approve individual welfare grants of more than £10,000 but less than £50,000. Any bids falling outside of these parameters may be considered for approval by a quorum of at least five Trustees as and when they are received.
f. Related party relationships
The Association continues to maintain active links with similar and like-minded Service and civilian charities.
g. Risk management
The Board of Trustees has assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the Association and are satisfied that systems are in place to mitigate exposure to major risks. The Association maintains two Insurance Policies; Employers and Public Liability and Accidental Death Policy which are reviewed annually. The majority of capital is invested with Cazenove Capital Management and the performance and monitoring of this investment is conducted by the Investment committee on a regular basis.
h. Reserves policy
The Trustees have reviewed the level of free reserves available to use for charitable activities. Free reserves are unrestricted general funds that have not been designated and total £818,860 (2021: £1,895,072) The Trustees have designated a Lifetime care fund which will maintain 3 years of financial help to current long term wounded, injured and sick members. This designated fund is based on the required care for known obligations to care for members. It is difficult to quantify the financial impact of
Page 5
Special Boat Service Association
Trustee's Report
Current free reserves are sufficient to allow the charity to continue to operate and manage future obligations as they occur. The current fund value is £2,031,600.
During the 2019/20 financial year, the Trustees created a new designated fund called Operations Costs Fund, with the purpose that any investment income earned from this fund would go towards the running costs of the charity and cover some operational costs. The agreed value of this fund is £6,000.000 (2021: £6,000,000).
i. Financial review
The Association relies on income from donations, fundraising and investment income. The majority of its funds are invested with Schroders (Cazenove Capital Management). The portfolio provides a monthly income of £15k and capital growth.
The wholly owned subsidiary Frankton Trading Ltd accounts have been consolidated into the Associations financial records.
The net increase (decrease) in funds of (£2,914,063) (2021: £1,521,913) comprises the surplus of income over expenditure of (£3,564,989) (2021: £387,212), plus other gains (losses) of £650,926 (2021: £1,134,701).). Within the cash at bank figure the association holds £35,208 (2021: £414,974) with Cazenove as an immediate cash reserve account.
The charity has continued with its Fundraising Campaign, which aims to continue until we raise sufficient funds for the SBSA to be in a position to provide long term financial assistance and support to SBSA Members and their dependants; and to increase the General Fund with the long term aim to become self-sufficient from capital investment The Association has raised £1,076,953 (2021: £1,608,152) during the reporting period.
The Association has continued to identify welfare cases and provided support to them. In addition a Dependants Healthcare Private Insurance Policy for serving members immediate family members which was initiated in December 2011 and remains in place. During the period of the accounts, the direct charitable expenditure was £1,842,606 (2021: £1,636,706), which includes welfare, memorials and funeral expenditure of £901,933 (2021: £698,456).
At the end of the financial year, the Board judged that the Charity holds sufficient funds to meet its obligations, and the trustees are satisfied with the result for the year. There have been no changes in accounting policies.
The Trustees are monitoring closely the impact that COVIDfundraising and dividend income and believe the short to medium term impact on liquidity will not affect the ability of the charity to fulfil its aims and commitments. The Board are satisfied that the Association will continue to be a going concern for the 12 months following the approval of these financial statements.
j. Investment policy
The Trustees delegated the management of the Associations Capital Fund to Schroders (Cazenove Capital Management). The investment Policy of this portfolio is to produce a balance between income - Progressive attitude to risk.
Page 6
Special Boat Service Association
Trustee's Report
Disclosure of information to auditor
The member has taken steps that he ought to have taken as a member in order to make himself aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The member confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
The annual report was approved by a trustee of the charity on 13 October 2022 and signed on its behalf by: ......................................... Mr R Corn Trustee
Page 7
Special Boat Service Association
Statement of Trustee's Responsibilities
The Trustees (who are also the directors for the purposes of company law) are responsible for preparing the trustee's report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable incorporated organisation and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable incorporated organisation will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable incorporated organisation's transactions and disclose with reasonable accuracy at any time the financial position of the charitable incorporated organisation and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable incorporated organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by a trustee of the charity on 13 October 2022 and signed on its behalf by:
......................................... Mr R Corn Trustee
Page 8
Special Boat Service Association
Independent Auditor's Report to the Members of Special Boat Service Association
Opinion
We have audited the financial statements of Special Boat Service Association (the 'charitable parent') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the group's and parent charity's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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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.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial 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
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 to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information 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.
Page 9
Special Boat Service Association
Independent Auditor's Report to the Members of Special Boat Service Association
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the and Trustee's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the and Trustee's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent charitable incorporated organisation and its environment obtained in the course of the audit, we have not identified material misstatements in the and the Trustee's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept by the parent charitable incorporated organisation, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable incorporated organisation financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustee remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustee
As explained more fully in the Statement of Trustee's Responsibilities (set out on page 7), 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.
Page 10
Special Boat Service Association
Independent Auditor's Report to the Members of Special Boat Service Association
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charity. We gained an understanding of the Charity and the sector in which the Charity operates as part of this assessment to identify the key laws and regulations affecting the Charity. regulations in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were Charity legislation, health and safety regulations and breaches of The General Data also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and Charities SORP - FRS 102.
We discussed with management and trustees how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance misstatement to the accounts.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
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Enquiries of management and trustees regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud.
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Reviewed filings with the Charity Commission and whether there were any serious incident reports made during the year.
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Discussed with management if any health and safety incidents have been recorded during the year.
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Review of the GDPR policy and enquiries to management as to the occurrence of any reportable breaches.
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Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
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Reviewed Board minutes.
Page 11
Special Boat Service Association
Independent Auditor's Report to the Members of Special Boat Service Association
Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Reviewed estimates and judgements made in the accounts for any indication of bias.
www.frc.org.uk/auditorsresponsibilities. This descr
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable parent members in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group's members th
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent and its members as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Daniel Tout FCA (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor
Chartered Accountants and Statutory Auditors Towngate House 2 - 8 Parkstone Road Poole Dorset BH15 2PW
Date: 20 October 2022
Page 12
Special Boat Service Association
Consolidated Statement of Financial Activities
Year Ended 31 March 2022
(Including Consolidated Income and Expenditure Account)
| Note | Unrestricted Restricted Total |
|---|---|
| £ £ 2022 |
|
| £ | |
| Income and Endowments from: | |
| Donations and legacies 2 |
461,100 3,917,500 4,378,600 |
| Charitable activities 3 |
1,222,543 1,222,543 |
| Investment income 4 |
142,344 142,344 |
| Total income | 1,825,987 3,917,500 5,743,487 |
| Expenditure on: | |
| Raising funds 5 |
(267,071) (267,071) |
| Charitable activities 6 |
(6,881,289) (2,160,116) (9,041,405) |
| Total expenditure | (7,148,360) (2,160,116) (9,308,476) |
| Net (expenditure)/income | (5,322,373) 1,757,384 (3,564,989) |
| Transfers between funds | 2,794,396 (2,794,396) |
| Other recognised gains and losses | |
| Other gains/losses | 650,926 650,926 |
| Net movement in funds | (1,877,051) (1,037,012) (2,914,063) |
| Reconciliation of funds | |
| Total funds brought forward | 11,382,125 1,262,226 12,644,351 |
| Total funds carried forward 19 |
9,505,074 225,214 9,730,288 |
The notes on pages 17 to 41 form an integral part of these financial statements. Page 13
Special Boat Service Association
Consolidated Statement of Financial Activities
Year Ended 31 March 2021
(Including Consolidated Income and Expenditure Account)
| Year Ended 31 March 2021 (Including Consolidated Income and Expenditure Account) |
Year Ended 31 March 2021 (Including Consolidated Income and Expenditure Account) |
|---|---|
| Unrestricted funds Restricted funds Total 2021 |
|
| Note £ £ £ |
|
| Income and Endowments from: | |
| Donations and legacies 2 |
153,193 92,070 245,263 |
| Charitable activities 3 |
1,734,842 - 1,734,842 |
| Investment income 4 |
320,321 - 320,321 |
| Other income | 44,500 - 44,500 |
| Total income | |
| 2,252,856 92,070 2,344,926 |
|
| Expenditure on: | |
| Raising funds 5 |
(321,008) - (321,008) |
| Charitable activities 6 |
(1,480,508) (156,198) (1,636,706) |
| Total expenditure | |
| (1,801,516) (156,198) (1,957,714) |
|
| Net income/(expenditure) | |
| 451,340 (64,128) 387,212 |
|
| Transfers between funds | 2,534,076 (2,534,076) - |
| Other recognised gains and losses | |
| Othergains/losses | 1,112,032 22,669 1,134,701 |
| Net movement in funds | |
| 4,097,448 (2,575,535) 1,521,913 |
|
| Reconciliation of funds | |
| Total funds brought forward | |
| 7,284,677 3,837,761 11,122,438 |
|
| Total funds carried forward 20 |
|
| 11,382,125 1,262,226 12,644,351 |
All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 20.
The notes on pages 17 to 41 form an integral part of these financial statements. Page 14
Special Boat Service Association
Consolidated Balance Sheet
31 March 2022
| 31 March 2022 | 31 March 2022 |
|---|---|
| 2022 2021 |
|
| Note £ £ |
|
| Fixed assets | |
| Intangible assets 12 |
16,534 16,860 |
| Tangible assets 13 |
39,392 2,851,889 |
| Heritage assets 14 |
- 17,500 |
| Investments 15 |
9,934,033 9,813,334 |
| 9,989,959 12,699,583 |
|
| Current assets | |
| Stocks 16 |
84,994 100,189 |
| Debtors 17 |
486,057 408,441 |
| Cash at bank and in hand | 533,038 802,913 |
| 1,104,089 1,311,543 |
|
| Creditors: Amounts falling due within oneyear 18 |
|
| (1,363,760) (1,366,775) |
|
| Net currentliabilities | |
| (259,671) (55,232) |
|
| Netassets | |
| 9,730,288 12,644,351 |
|
| Funds of the group: | |
| Restricted income funds | |
| Restricted funds 20 |
225,214 1,262,226 |
| Unrestricted income funds | |
| Unrestricted funds | 9,505,074 11,382,125 |
| Total funds 20 |
|
| 9,730,288 12,644,351 |
The financial statements on pages 12 to 41 were approved by the trustees, and authorised for issue on 13 October 2022 and signed on their behalf by:
......................................... Mr R Corn Trustee
Company Registration Number: CE008612
The notes on pages 17 to 41 form an integral part of these financial statements. Page 15
Special Boat Service Association
Balance Sheet
31 March 2022
| 31 March 2022 | |
|---|---|
| Note | 2022 2021 |
| £ £ |
|
| Fixed assets | |
| Intangible assets 12 |
16,534 16,860 |
| Tangible assets 13 |
39,392 2,851,577 |
| Heritage assets 14 |
- 17,500 |
| Investments 15 |
9,934,034 9,813,335 |
| 9,989,960 12,699,272 |
|
| Current assets | |
| Stocks 16 |
26,087 44,581 |
| Debtors 17 |
540,563 463,032 |
| Cash at bank and in hand | 522,376 795,165 |
| 1,089,026 1,302,778 |
|
| Creditors: Amounts falling due within oneyear 18 |
(1,347,990) (1,357,085) |
| Net currentliabilities | (258,964) (54,307) |
| Netassets | 9,730,996 12,644,965 |
| Funds of the charity: | |
| Restricted income funds | |
| Restricted funds 20 |
225,214 1,262,226 |
| Unrestricted income funds | |
| Unrestricted funds | 9,505,782 11,382,739 |
| Total funds 20 |
9,730,996 12,644,965 |
The financial statements on pages 12 to 41 were approved by the trustees, and authorised for issue on 13 October 2022 and signed on their behalf by:
......................................... Mr R Corn Trustee
Company Registration Number: CE008612
The notes on pages 17 to 41 form an integral part of these financial statements. Page 16
Special Boat Service Association
Consolidated Statement of Cash Flows
Year Ended 31 March 2022
| Year Ended 31 March 2022 | |
|---|---|
| Note | 2022 2021 |
| £ £ |
|
| Cash flows from operating activities | |
| Net cash income | (2,914,063) 1,521,913 |
| Adjustments to cash flows from non-cash items | |
| Depreciation 13 |
26,153 36,357 |
| Amortisation 12 |
8,466 3,625 |
| Investment income 4 |
(142,344) (320,321) |
| Revaluation of investments | (650,926) (1,134,701) |
| Disposal of asset under construction 13 |
2,794,396 - |
| Impairment loss on disposal of fixed assets held for the group's own use |
17,500 - |
| (860,818) 106,873 |
|
| Working capital adjustments | |
| Decrease in stocks 16 |
15,195 39,346 |
| (Increase)/decrease in debtors 17 |
(77,616) 298,106 |
| (Decrease)/increase in creditors 18 |
(170,582) 589,202 |
| Increase in deferred income | 167,567 104,952 |
| Net cash flows from operating activities | (926,254) 1,138,479 |
| Cash flows from investing activities | |
| Interest receivable and similar income 4 |
948 5,173 |
| Purchase of intangible fixed assets 12 |
(8,140) (12,176) |
| Purchase of tangible fixed assets 13 |
(8,052) -2,570,690 |
| Sale of tangible fixed assets | - 50,900 |
| Purchase of investments | (5,129,519) (814,267) |
| Sale of investments | 5,659,746 2,086,160 |
| Income from dividends 4 |
141,396 315,148 |
| Net cash flows from investing activities | 656,379 (939,752) |
| Net (decrease)/increase in cash and cash equivalents | (269,875) 198,727 |
| Cash and cash equivalents at 1 April | 802,913 604,186 |
| Cash and cash equivalents at 31 March | 533,038 802,913 |
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 17 to 41 form an integral part of these financial statements. Page 17
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
1 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Charities Act 2011.
Basis of preparation
Special Boat Service Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 March 2022.
No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a deficit for the financial year of £2,913,969 (2021 - £1,522,088 surplus).
A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the s and contingent liabilities recognised is recorded as goodwill.
Page 18
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiarie -controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Going concern
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Page 19
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Deferred income
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:
- The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement.
Donated services and facilities
The Ministry of Defence provides support in the form of utilities, services, buildings, grounds and maintenance. The trustees are unable to ascertain precisely the cost of this provision but estimate the value based on the cost of purchasing such services externally.
Gift aid
Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate.
Investment income
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges f staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Page 20
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Governance costs
reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Intangible assets
Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives.
Tangible fixed assets
Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Heritage assets
Heritage assets include a work of art, which has been fully written off during the year. In addition the Association holds a collection of memorabilia displayed or available in the SBSA office. These assets are not capitalised as to obtain a valuation would not be cost effective and too onerous for the Association.
Expenditure, which in the Trustees' view, is required to preserve or clearly prevent further deterioration of individual collection items is recognised in the Income and Expenditure account when it is incurred.
Amortisation
Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
Asset class
Website
Amortisation method and rate 20% straight line
Page 21
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| Office equipment | 20% - 33% straight line |
| Static homes | 20% straight line |
| Respite accommodation and accessories | 10% - 20% straight line |
| Leasehold buildings | Over the length of the lease |
| Asset under construction | no depreciation |
Impairment of fixed assets
Impairment reviews are carried out on a periodic basis. If an asset is found to have a carrying value materially higher than its recoverable amount it is written down accordingly.
Fixed asset investments
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
Concessionary loans
Concessionary loans include those receivable from third parties which are interest free or below market rates and are made to advance charitable purposes. All loans are measured at cost, less impairment.
Stock
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Page 22
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Fund structure
Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the group.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The group operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
2 Income from donations and legacies
| 2 Income from donations and |
legacies | |||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Restricted | Total | Total | |
| General | funds | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Donations and legacies; | ||||
| Donations from individuals | 367,980 | 3,917,500 | 4,285,480 | 117,915 |
| Legacies | 500 | - | 500 | 50,000 |
| Gift aid reclaimed | 92,620 | - | 92,620 | 77,348 |
| 461,100 | 3,917,500 | 4,378,600 | 245,263 |
3 Income from charitable activities
| 3 Income from charitable activities |
|
|---|---|
| Unrestricted | |
| funds Total Total |
|
| General 2022 2021 |
|
| £ £ £ |
|
| Trading income; | |
| Sales of goods and services | 17,804 17,804 26,967 |
| Local fundraising and street collection income | 1,059,149 1,059,149 1,581,185 |
| Membership subscriptions | 2,500 2,500 1,000 |
| Income from tradingsubsidiary | 143,090 143,090 125,690 |
| 1,222,543 1,222,543 1,734,842 |
Page 23
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
4 Investment income
| 4 Investment income |
|
|---|---|
| Unrestricted | |
| funds Total Total |
|
| General 2022 2021 |
|
| £ £ £ |
|
| Income from dividends; | |
| Dividends receivable from other listed | |
| investments | 141,396 141,396 315,148 |
| Interest receivable and similar income; | |
| Other interest receivable | 948 948 5,173 |
| 142,344 142,344 320,321 |
5 Expenditure on raising funds
Costs of generating donations and legacies a)
| a) Costs of generating donations and legacies |
a) Costs of generating donations and legacies |
|---|---|
| Unrestricted | |
| General Total 2022 Total 2021 |
|
| Note £ £ £ |
|
| Fundraising 148,645 148,645 208,116 |
|
| b) Costs of trading activities |
|
| Unrestricted | |
| funds Total Total |
|
| General 2022 2021 |
|
| Note £ £ £ |
|
| Tradingsubsidiarycosts | 118,426 118,426 112,892 |
| 118,426 118,426 112,892 |
Page 24
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
6 Expenditure on charitable activities
| Restricted funds £ Unrestricted funds £ Total 2022 £ Total 2021 £ 2,154,813 5,043,986 7,198,799 - 1,053 498,406 499,459 410,217 - 27,914 27,914 8,279 - 170,675 170,675 210,225 - - - 107,691 - 203,885 203,885 69,705 4,250 306,055 310,305 269,225 - 53,263 53,263 45,643 - 22,436 22,436 18,593 - 490,238 490,238 444,120 - 52,431 52,431 37,978 - 12,000 12,000 15,000 |
|
|---|---|
| The Courtney building (see note | |
| below) | |
| Welfare and funerals | |
| Memorials | |
| Gifts and grants | |
| Grant repayments | |
| Reunions and pilgrimages | |
| Operational costs | |
| Investment management fees | |
| Motor and static home expenses | |
| Staff costs (see analysis below) | |
| Depreciation and amortisation | |
| Governance costs (see note | |
| below) | |
| 2,160,116 6,881,289 9,041,405 1,636,706 |
Analysis of staff costs
| Analysis of staff costs | |
|---|---|
| Total Total |
|
| 2022 2021 |
|
| £ £ |
|
| Wages, salaries and pensions (Admin) | 68,540 62,277 |
| National insurance (Admin) | 6,198 5,671 |
| Wages, salaries and pensions (Fundraising) | 159,711 153,398 |
| National insurance (Fundraising) | 16,362 16,594 |
| Wages, salaries and pensions (Governance) | 23,592 21,815 |
| National insurance (Governance) | 3,257 3,023 |
| Wages, salaries and pensions (Welfare) | 192,619 164,286 |
| National insurance (Welfare) | 19,899 17,056 |
| 490,238 444,120 |
In accordance with the charitable objective 'to relieve members or former members of the Service or their dependants who are in need by virtue of financial hardship or sickness', grants of £170,675 (2021: £210,255) have been made to individuals during the year.
Page 25
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
The Courtney building
Since 2020, the charity has been constructing the Resilience building on the SBS Military Base in Hamworthy. Costs attributable to the Resilience building totalling £2,794,396 previously held on the balance sheet as an asset under construction (note 13) and costs incurred in the current financial year of £4,404,403 make up the total expenditure shown in the Statement of Financial Activities of £7,198,799. Upon completion in February 2022 the building was granted to the Ministry of Defence and all the construction costs relating to the building have therefore been treated as a grant in the Statement of Financial Activities.
A proportion of the building has been leased back to the SBSA for a 50-year period, ending 31[st] July 2070. The SBSA use the premises as their office and for their subsidiary, Frankton Trading Limited, to trade from.
7 Analysis of governance and support costs
Governance costs
| Governance costs | |
|---|---|
| Unrestricted | |
| funds Total Total |
|
| General 2022 2021 |
|
| £ £ £ |
|
| Audit fees | |
| Audit of the financial statements | |
| 10,000 10,000 12,360 |
|
| Other fees paid to auditors | |
| 2,000 2,000 2,640 |
|
| Audit of the financial statements | |
| 12,000 12,000 15,000 |
8 Net incoming/outgoing resources
Net incoming resources for the year include:
| 8 Net incoming/outgoing resources Net incoming resources for the year include: |
|
|---|---|
| 2022 2021 |
|
| £ £ |
|
| Audit fees | 10,000 12,360 |
| Other non-audit services | 2,000 2,640 |
| Impairment loss on disposal of fixed assets held for the group's | |
| own use | 17,500 - |
| Depreciation of fixed assets | 61,477 36,357 |
| Amortisation of goodwill | 8,466 3,625 |
Page 26
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
9 Trustee remuneration and expenses
£197 (2021: £Nil) of travel expenses were reimbursed to the trustees during the year.
No trustee, nor any persons connected with them, have received any remuneration from the group during the year.
No trustees have received any other benefits from the charity during the year.
10 Staff costs
The aggregate payroll costs were as follows:
| 10 Staff costs The aggregate payroll costs were as follows: |
|
|---|---|
| 2022 2021 |
|
| £ £ |
|
| Staff costs during the year were: | |
| Wages and salaries | 428,584 382,125 |
| Social security costs | 45,716 42,344 |
| Pension costs | 15,938 19,651 |
| 490,238 444,120 |
The monthly average number of persons (including senior management team) employed by the group during the year was as follows:
| during the year was as follows: | |
|---|---|
| 2022 2021 |
|
| No No |
|
| Employees | 11 10 |
The number of employees whose emoluments fell within the following bands was:
| 2022 2021 |
|
|---|---|
| No No |
|
| £70,001 - £80,000 | - 1 |
| £80,001 - £90,000 | 1 - |
The total employee benefits of the key management personnel of the group were £85,283 (2021 - £78,013).
11 Taxation
The parent company is a registered charity, and its activities are exempt from taxation.
Page 27
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
12 Intangible fixed assets
| Group and charity | Website £ Total £ 21,168 21,168 8,140 8,140 29,308 29,308 4,308 4,308 8,466 8,466 12,774 12,774 16,534 16,534 16,860 16,860 |
|---|---|
| Cost | |
| At 1 April 2021 | |
| Additions | |
| At 31 March 2022 | |
| Amortisation | |
| At 1 April 2021 | |
| Charge for theyear | |
| At 31 March 2022 | |
| Net book value | |
| At 31 March 2022 | |
| At 31 March 2021 |
Page 28
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
13 Tangible fixed assets
Group
| Asset under | |
|---|---|
| Static home Office equipment Kayaks construction Total |
|
| £ £ £ £ £ |
|
| Cost | |
| At 1 April 2021 | 98,571 33,803 23,723 2,794,396 2,950,493 |
| Additions | - 8,052 - - 8,052 |
| Disposals(See note 6) | - - - (2,794,396) (2,794,396) |
| At 31 March 2022 | |
| 98,571 41,855 23,723 - 164,149 |
|
| Depreciation | |
| At 1 April 2021 | 71,906 18,778 7,920 - 98,604 |
| Charge for theyear | 13,332 10,449 2,372 - 26,153 |
| At 31 March 2022 | |
| 85,238 29,227 10,292 - 124,757 |
|
| At 31 March 2022 | |
| 13,333 12,628 13,431 - 39,392 |
|
| At 31 March 2021 | |
| 26,665 15,025 15,803 2,794,396 2,851,889 |
Page 29
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Charity
| Charity | |
|---|---|
| Office Asset under |
|
| Static home equipment Kayaks construction Total |
|
| £ £ £ £ £ |
|
| Cost | |
| At 1 April 2021 | 98,571 33,803 23,723 2,794,396 2,950,493 |
| Additions | - 8,052 - - 8,052 |
| Disposals(See note 6) | - - - (2,794,396) (2,794,396) |
| At 31 March 2022 | |
| 98,571 41,855 23,723 - 164,149 |
|
| Depreciation | |
| At 1 April 2021 | 71,906 18,778 7,920 - 98,604 |
| Charge for theyear | 13,332 10,449 2,372 - 26,153 |
| At 31 March 2022 | |
| 85,238 29,227 10,292 - 124,757 |
|
| At 31 March 2022 | |
| 13,333 12,628 13,431 - 39,392 |
|
| At 31 March 2021 | |
| 26,665 14,713 15,803 - 2,851,889 |
The asset under construction was disposed of during the year and donated to the SBS, along with additional construction work during the year.
Page 30
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
14 Heritage assets
| Group | Art £ Total £ 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 - - 2022 £ 2021 £ 9,934,033 9,813,334 |
|---|---|
| Cost | |
| At 1 April 2021 | |
| At 31 March 2022 | |
| Impairment | |
| Charge for theyear | |
| At 31 March 2022 | |
| Net book value | |
| At 31 March 2022 | |
| 15 Fixed asset investments |
|
| Group | |
| Other investments |
Page 31
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Other investments
| Other investments | |||
|---|---|---|---|
| Other Listed |
|||
| investments investments Total |
|||
| £ £ £ |
|||
| Cost or Valuation | |||
| At 1 April 2021 | - 9,813,334 9,813,334 |
||
| Revaluation | - 471,350 471,350 |
||
| Additions | 8,000 5,121,519 5,129,519 |
||
| Disposals | - (5,480,170) (5,480,170) |
||
| At 31 March 2022 | |||
| 8,000 9,926,033 9,934,033 |
|||
| Net book value | |||
| At 31 March 2022 | |||
| 8,000 9,926,033 9,934,033 |
|||
| At 31 March 2021 | |||
| - 9,813,334 9,813,334 |
|||
| Charity | |||
| 2022 2021 |
|||
| £ £ |
|||
| Shares in group undertakings and participating interests | 1 1 |
||
| Other investments(see analysis above) | 9,934,033 9,813,334 |
||
| 9,934,034 9,813,335 |
|||
| Shares in group undertakings and participating interests | |||
| Subsidiary | |||
| undertakings Total |
|||
| £ £ |
|||
| Cost | |||
| Additions | 1 1 |
||
| At 31 March 2022 | |||
| 1 1 |
|||
| Net book value | |||
| At 31 March 2022 | |||
| 1 1 |
Page 32
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Subsidiaries
The loss for the financial period of Frankton Trading Limited was £94 (2021 - £175) and the aggregate amount of capital was reserves at the end of the period was (£708) (2021 (£614)).
Details of undertakings
Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:
| Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows: |
Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows: |
|---|---|
| Undertaking Country of incorporation Holding Proportion of voting rights and shares held Principal activity |
|
| 2022 2021 |
|
| Subsidiary undertakings | |
| Frankton Trading Limited England |
Running a |
| ordinary 100% 100% shop in Hamworthy |
|
| 16 Stock |
|
| Group Charity |
|
| 2022 2021 2022 2021 |
|
| £ £ £ £ |
|
| Stocks | 84,994 100,189 26,087 44,581 |
| 17 Debtors |
|
| Group Charity |
|
| 2022 2021 2022 2021 |
|
| £ £ £ £ |
|
| Due from group undertakings | - - 55,458 55,543 |
| Prepayments | 81,507 22,863 80,555 21,911 |
| Accrued income | 12,000 6,000 12,000 6,000 |
| Other debtors | 392,550 379,578 392,550 379,578 |
| 486,057 408,441 540,563 463,032 |
Group and charity debtors includes £355,458 (2021: £355,543) receivable after more than one year.
Page 33
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
18 Creditors: amounts falling due within one year
| Group | Charity | |||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Other taxation and social | ||||
| security | 13,018 | 12,098 | 12,193 | 11,735 |
| Other creditors | 156,368 | 130,516 | 156,368 | 130,516 |
| Pension scheme creditor | 2,515 | 2,354 | 2,515 | 2,354 |
| Accruals | 830,310 | 1,017,825 | 805,830 | 1,008,825 |
| Deferred income | 371,549 | 203,982 | 371,084 | 203,655 |
| 1,363,760 | 1,366,775 | 1,347,990 | 1,357,085 |
19 Pension and other schemes
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £15,938 (2021 - £19,651). Contributions totalling £2,515 (2021: £2,354) were payable to the scheme at the end of the year and are included in creditors.
Page 34
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
20 Funds
Group
| Group | |
|---|---|
| Balance at 1 April 2021 Incoming resources Resources expended Transfers Other recognised gains/(losses) Balance at 31 March 2022 |
|
| £ £ £ £ £ £ |
|
| Unrestricted funds | |
| General | |
| Unrestricted general fund | 1,894,458 1,825,987 (6,846,907) 3,294,396 650,926 818,860 |
Designated |
|
| Toby Gutteridge fund | 300,000 - - - - 300,000 |
Lifetime Care fund |
2,031,600 - - - - 2,031,600 |
| Resilience fund | 147,872 - (88,857) - - 59,015 |
| Operational Costs fund | 6,000,000 - - - - 6,000,000 |
| Welfare Staff Salary Fund | 500,000 - (212,518) - - 287,482 |
WT Memorial fund |
8,195 - (78) - - 8,117 |
| Rehabilitation Centre Fund | 500,000 - - (500,000) - - |
| 9,487,667 - (301,453) (500,000) - 8,686,214 |
|
| Total unrestricted funds | 11,382,125 1,825,987 (7,148,360) 2,794,396 650,926 9,505,074 |
| Restricted funds | |
| Families Centre fund | 11,024 - - - - 11,024 |
| Memorial Garden | 8,950 - - - - 8,950 |
| Individuals donation fund | 114,998 - - - - 114,998 |
| Rehabilitation Centre fund | 824,209 - (824,209) - - - |
| Resilience Building fund | 250,000 3,875,000 (1,330,604) (2,794,396) - - |
K9 fund |
43,980 - (1,053) - - 42,927 |
| Command Fund | 9,065 - - - - 9,065 |
| Armes Forces Covenant | - 17,500 - - - 17,500 |
| Gas and Electric fund | - 25,000 (4,250) - - 20,750 |
| Total restricted funds | 1,262,226 3,917,500 (2,160,116) (2,794,396) - 225,214 |
| Total funds | 12,644,351 5,743,487 (9,308,476) - 650,926 9,730,288 |
Page 35
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
| Year Ended 31 March 2022 | |
|---|---|
| Balance at 1 April 2020 Incoming resources Resources expended Transfers Other recognised gains/(losses) Balance at 31 March 2021 |
|
| £ £ £ £ £ £ |
|
| Unrestricted funds | |
| General | |
| Unrestricted general fund | 1,821,366 2,198,532 (1,678,582) (1,558,890) 1,112,032 1,894,458 |
| Designated | |
| Toby Gutteridge fund | 300,000 - - - - 300,000 |
| Lifetime Care fund | 2,031,600 - - - - 2,031,600 |
| Resilience fund | 121,711 31,754 (98,559) 92,966 - 147,872 |
| Operational Costs fund | 3,000,000 - - 3,000,000 - 6,000,000 |
| Welfare Staff Salary Fund | - - - 500,000 - 500,000 |
| WT Memorial fund | 10,000 22,570 (24,375) - - 8,195 |
| Rehabilitation Centre Fund | - - - 500,000 - 500,000 |
| 5,463,311 54,324 (122,934) 4,092,966 - 9,487,667 |
|
| Total unrestricted funds | 7,284,677 2,252,856 (1,801,516) 2,534,076 1,112,032 11,382,125 |
| Restricted funds | |
| Families Centre fund | 11,024 - - - - 11,024 |
| Help for Heroes | 108,241 27 (108,268) - - - |
| Memorial Garden | - 8,950 - - - 8,950 |
| Individuals donation fund | 92,329 - - - 22,669 114,998 |
| Rehabilitation Centre fund | 3,326,167 73,728 - (2,575,686) - 824,209 |
| Resilience Building fund | 250,000 - - - - 250,000 |
| K9 fund | 50,000 300 (6,320) - - 43,980 |
| Command Fund | - 9,065 - - - 9,065 |
| Espirit de Corps | - - (10,000) 10,000 - - |
| Armed Forces Covenant | - - (31,610) 31,610 - - |
| Total restricted funds | 3,837,761 92,070 (56,198) (2,534,076) 22,669 1,262,226 |
| Total funds | 11,122,438 2,344,926 (1,957,714) - 1,134,701 12,644,351 |
Page 36
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Charity
| Balance at 1 April 2021 Incoming resources Resources expended Transfers Other recognised gains/(losses) Balance at 31 March 2022 |
|
|---|---|
| £ £ £ £ £ £ |
|
| Unrestricted funds | |
| General | |
| Unrestricted general fund | 1,895,072 1,701,784 (6,722,610) 3,294,396 650,926 819,568 |
| Designated | |
| Toby Gutteridge fund | 300,000 - - - - 300,000 |
Lifetime Care fund |
2,031,600 - - - - 2,031,600 |
| Resilience fund | 147,872 - (88,857) - - 59,015 |
| Operational Costs fund | 6,000,000 - - - - 6,000,000 |
| WT Memorial fund | 8,195 - (78) - - 8,117 |
| Welfare staff salary fund | 500,000 - (212,518) - - 287,482 |
Rehabilitation Centre fund |
500,000 - - (500,000) - - |
| 9,487,667 - (301,453) (500,000) - 8,686,214 |
|
| Total unrestricted funds | 11,382,739 1,701,784 (7,024,063) 2,794,396 650,926 9,505,782 |
| Restricted funds | |
| Families Centre fund | 11,024 - - - - 11,024 |
| Memorial Garden | 8,950 - - - - 8,950 |
| Individuals donation fund | 114,998 - - - - 114,998 |
| Rehabilitation Centre fund | 824,209 - (824,209) - - - |
| Resilience Building fund | 250,000 3,875,000 (1,330,604) (2,794,396) - - |
K9 fund |
43,980 - (1,053) - - 42,927 |
| Command Dagger fund | 9,065 - - - - 9,065 |
Armed Forces Covenant |
- 17,500 - - - 17,500 |
| Gas and Electric fund | - 25,000 (4,250) - - 20,750 |
| Total restricted funds | 1,262,226 3,917,500 (2,160,116) (2,794,396) - 225,214 |
| Total funds | 12,644,965 5,619,284 (9,184,179) - 650,926 9,730,996 |
Page 37
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
| Balance at 1 April 2020 Incoming resources Resources expended Transfers Other recognised gains/(losses) Balance at 31 March 2021 |
|
|---|---|
| £ £ £ £ £ £ |
|
| Unrestricted funds | |
| General | |
| Unrestricted general fund | 1,821,805 2,079,815 (1,559,690) (1,558,890) 1,112,032 1,895,072 |
Designated |
|
| Toby Gutteridge fund | 300,000 - - - - 300,000 |
Lifetime Care fund |
2,031,600 - - - - 2,031,600 |
| Resilience fund | 121,711 31,754 (98,559) 92,966 - 147,872 |
| Operational Costs fund | 3,000,000 - - 3,000,000 - 6,000,000 |
| WT Memorial fund | 10,000 22,570 (24,375) - - 8,195 |
| Welfare staff salary fund | - - - 500,000 - 500,000 |
Rehabilitation Centre fund |
- - - 500,000 - 500,000 |
| 5,463,311 54,324 (122,934) 4,092,966 - 9,487,667 |
|
| Total unrestricted funds | 7,285,116 2,134,139 (1,682,624) 2,534,076 1,112,032 11,382,739 |
| Restricted funds | |
| Families Centre fund | 11,024 - - - - 11,024 |
| Help for Heroes | 108,241 27 (108,268) - - - |
| Memorial Garden | - 8,950 - - - 8,950 |
| Individuals donation fund | 92,329 - - - 22,669 114,998 |
| Rehabilitation Centre fund | 3,326,167 73,728 - (2,575,686) - 824,209 |
| Resilience Building fund | 250,000 - - - - 250,000 |
K9 fund |
50,000 300 (6,320) - - 43,980 |
| Command Dagger fund | - 9,065 - - - 9,065 |
| Total restricted funds | 3,837,761 92,070 (114,588) (2,575,686) 22,669 1,262,226 |
| Total funds | 11,122,877 2,226,209 (1,797,212) (41,610) 1,134,701 12,644,965 |
Page 38
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
The specific purposes for which the funds are to be applied are as follows:
TG Loan Fund - a secured loan of £300k has been granted to a member of the Association to enable him to purchase a property, which has been reflected by way of a legal charge and secured against this property.
Lifetime Care Fund - The Trustees have agreed a reserves policy to maintain 3 years of financial help to the current long term wounded, injured and sick members.
Resilience Fund - The Trustees have agreed to provide £ 450K over 3 years to support the Unit with strength and conditioning consultancy, human performance talks etc, within that fund they will be able to purchase new gym equipment / adapt areas within the gym etc. The main purpose is to assist the lads with their physical fitness so they are in the best shape possible.
Operational Costs Fund - During the financial year the Trustees created a new designated fund called Operations Costs Fund, with the purpose that any investment income earned from this fund would go towards the running costs of the charity and cover some operational costs. The agreed value of this fund was £3,000.000
WT Memorial Fund - The WT Memorial fund is as a result of a legacy donation, for the specific use of supporting part of the Unit and provide funding for all suitable forms of expenditure that are agreed by the current active OC and the CEO that respects the standards of the Unit and wishes of the bereaved family.
Families Centre Fund - the Families Centre Fund is to be used to purchase fixtures, fittings, and equipment once the RM Poole Community Centre is established.
Rehabilitation Centre Fund - this relates to a grant awarded from HM Treasury's allocation of banking fines and is restricted to support the construction of a rehabilitation centre at RM Poole.
Memorial Garden - This fund has been set up to help finance the building of a new Memorial Garden on the Base, Various Donors have contributed towards this worthwhile cause.
Individuals Donation fund - This fund was set up by a individuals who contributed £80K with Gift Aid to make the £100K, SBSA can use the interest it makes / future growth to spend as it wishes, the value has fallen so no funds have been spent.
K9 Fund - An essential element in SBS operations is the use of service dogs who support personnel through a variety of ways and skills. From locating explosive devices and arms caches to front line services in pursuit of an enemy. Like all personnel, service dogs are supported through the SBS. However, long term care is not available especially after retirement. The SBSA has raised £50,000 for a restricted fund to support these dogs throughout their life with medical and rehabilitation costs. Due to the nature of their past injuries and training, these dogs are uninsurable. This fund will support retired and injured service dogs.
Welfare Staff Salary Fund - This fund was created after the Association received a large donation, which was then allocated to cover the costs of the welfare team for the next few years.
Command dagger fund Specific donation received which was to be allocated to the design and development of a new service knife.
Page 39
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Armed Forces Covenant fund Funds granted the Armed Forces Covenant to support and finance the sporting Clubs and Esprit des corps events held by the Association.
Gas and Electric fund - Specific donation received, which was to be used by the Association to support any members that needed support with their fuel bills.
21 Analysis of net assets between funds
Group
| Unrestricted funds Restricted Total funds at 31 March General £ Designated £ funds £ 2022 £ 16,534 - - 16,534 39,392 - - 39,392 1,022,605 8,686,214 225,214 9,934,033 1,104,089 - - 1,104,089 (1,363,760) - - (1,363,760) 818,860 8,686,214 225,214 9,730,288 Unrestricted funds Restricted Total funds at 31 March General £ Designated £ funds £ 2021 £ 16,860 - - 16,860 1,277,680 500,000 1,074,209 2,851,889 17,500 - - 17,500 637,650 8,987,667 188,017 9,813,334 1,311,543 - - 1,311,543 (1,366,775) - - (1,366,775) 1,894,458 9,487,667 1,262,226 12,644,351 |
|
|---|---|
| Intangible fixed assets | |
| Tangible fixed assets | |
| Fixed asset investments | |
| Current assets | |
| Current liabilities | |
| Total net assets | |
| Intangible fixed assets | |
| Tangible fixed assets | |
| Heritage assets | |
| Fixed asset investments | |
| Current assets | |
| Current liabilities | |
| Total net assets |
Page 40
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
Charity
| Unrestricted funds Restricted Total funds at 31 March General £ Designated £ funds £ 2022 £ 16,534 - - 16,534 39,392 - - 39,392 1,022,606 8,686,214 225,214 9,934,034 1,089,026 - - 1,089,026 (1,347,990) - - (1,347,990) 819,568 8,686,214 225,214 9,730,996 Unrestricted funds Total funds at 31 March General £ Designated £ Other £ 2021 £ 16,860 - - 16,860 1,277,368 500,000 1,074,209 2,851,577 17,500 - - 17,500 637,651 8,987,667 188,017 9,813,335 1,302,778 - - 1,302,778 (1,357,085) - - (1,357,085) 1,895,072 9,487,667 1,262,226 12,644,965 |
|
|---|---|
| Intangible fixed assets | |
| Tangible fixed assets | |
| Fixed asset investments | |
| Current assets | |
| Current liabilities | |
| Total net assets | |
| Intangible fixed assets | |
| Tangible fixed assets | |
| Heritage assets | |
| Fixed asset investments | |
| Current assets | |
| Current liabilities | |
| Total net assets |
22 Analysis of net funds
Group
| Group | |
|---|---|
| At 1 April 2021 £ Financing cash flows £ At 31 March 2022 £ 802,913 (269,875) 533,038 802,913 (269,875) 533,038 At 1 April 2020 £ Cash flow £ At 31 March 2021 £ 604,186 198,727 802,913 604,186 198,727 802,913 |
|
| Cash at bank and in hand | |
| Net debt | |
| Group | |
| Cash at bank and in hand | |
| Net debt |
Page 41
Special Boat Service Association
Notes to the Financial Statements
Year Ended 31 March 2022
23 Related party transactions
Charity
During the year the charity made the following related party transactions:
Frankton Trading Limited (Frankton Trading Limited is a wholly owned subsidiary of the Special Boat Service Association.) During the year management fees of £12,000 (2021: £6,000) were received by Special Boat Service Association. Accountancy fees of £3,000 (2021: £nil) relating to Frankton Trading Limited were paid for by Special Boat Service Association. Wages costs of £4,671 (2021: £nil) were recharged to Frankton Trading Limited by Special Boat Service Association. One ordinary share is in issue from Frankton Trading Limited to the Special Boat Service Association and £1 is owing to Frankton Trading Limited at the year end. A loan has been issued from the Special Boat Service Association to Frankton Trading Limited during the previous period amounting to £55,458 which is included in other debtors. At the balance sheet date the amount due from Frankton Trading Limited was £55,458 (2021 - £55,543).
Page 42