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2020-12-31-accounts

SCOTTY’S LITTLE SOLDIERS Unit 21 Bergen Way King’s Lynn Norfolk PE30 2JG

Dear Supporter.

Thank you for your interest in Scotty’s Little Soldiers, the charity for bereaved British Forces Children and Young People.

The day-to-day operations of the charity are conducted by the original Trust which established in 2010. To view the annual report for this charity please search for charity number 1136854.

This Group CIO was established to modernise the charity and provide an organisational structure which would be more suitable for the long term aims of Scotty’s Little Soldiers. Once a number of existing lease agreements (for example vehicle leases, a property lease), entered into under the original charity’s name, have expired, the original charity will be dissolved and only the newer CIO will continue long term.

What you will find enclosed herein is the Group accounts, which also includes our small trading subsidiary which is wholly owned by the charity and is a vehicle for buying and selling charity branded merchandise. For a more informative report which includes information on the impact of the charity’s work please search for the report attached to the charity registered under 1136854.

We anticipate that the original charity will be dissolved at the end of 2021 or 2022, leaving just the CIO.

If you have any questions related to this please feel free to contact us at hello@scottyslittlesoldiers.co.uk.

Thank you for your support.

Registered Charity No. 1136854

www.scottyslittlesoldiers.co.uk

Charity Registration No. 1170528

SCOTTY ’ S LITTLE SOLDIERS

CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

SCOTTY’S LITTLE SOLDIERS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Steve Ward
Jason Worthy
Luke Priestley
Megan Harris
Simon Millar
Charity number 1170528
Principal address 21 Bergen Way
North Lynn Industrial Estate
King’s Lynn
PE30 2JG
Auditor Mapus-Smith & Lemmon LLP
48 King Street
King's Lynn
Norfolk
PE30 1HE
Bankers HSBC Bank PLC
19 Minster St
Salisbury
SPI 1TE
Solicitors Stone King
Thirty Station Road
Cambridge
Cambridgeshire
CB1 2RE

SCOTTY’S LITTLE SOLDIERS

CONTENTS

Page
Trustee report 1–5
Statement of Trustee responsibilities 6
Independent auditor's report 7 - 10
Consolidated statement of financial activities 11
Consolidated balance sheet 12
Consolidated statement of cash flows 13
Notes to the financial statements 14 - 30

SCOTTY’S LITTLE SOLDIERS

TRUSTEE REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with Scotty ’s Little Soldiers’ (The “CIO” ) governing document, the Charities Act 2011 and the 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 (FRS102) published on 16 July 2014.

Scotty’s Little Soldiers is a Charitable Incorporated Organisation which was se t up on 2[nd] December 2016. The original ‘Scotty’s Little Soldiers (The “Charity” 1136854) was established in 2010 as an unincorporated charity. Following guidance from the Charity Commission the CIO was established and became the sole trustee of the Charity on 27[th] November 2018. The charitable activities will be fully transferred to the CIO and the Charity will be dissolved once all existing lease agreements established by the Charity have expired. This was agreed as the preferred course of action due to the cost and logistical complications of transferring existing leases. This process is expected to be finalised in 2021.

Objectives and activities

The charity’s objects are to provide relief from the effects of bereavement to young people who have suffered the loss of a parent who served with the Armed Forces of the Crown.

Our Promises:

We want every bereaved Forces child to have:

  1. Access to the very best emotional well-being support. 2. Outstanding development opportunities.

  2. The chance to smile again.

  3. 1 -

SCOTTY’S LITTLE SOLDIERS

TRUSTEE REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Review of charitable activities and achievements for the public benefit

Review of charitable activities and achievements for the public benefit

Relief is delivered through our four Family Programmes: Smiles – fun and engagement. – Support emotional health & well-being. Strides – education and development. – Springboard young adults (18-25).

Each Programme has four guiding principles around which it’s activities are focused:

Smiles:

Smiles:
• Creating a trusted and supportive community for bereaved Forces children and young people.
• Building support networks and developing friendships.
• Regular engagement throughout the year with fun and exciting opportunities.
• Encouraging bereaved Forces children and young people to smile again.
Support:
• Resources and information to support bereaved Forces children and young people.
• Guidance for parents and carers to help them support their child from the effects of bereavement.
• Individual bereavement support and referral on to specialised services.
• Bereavement based activities and events to help bereaved Forces children and young people cope with
their bereavement and remember their parent.
Strides:
• Reducing any barriers and disadvantages faced by bereaved Forces children and young people.
• Promoting a positive attitude to education and learning and providing opportunities to develop life skills
• Encouraging bereaved Forces children and young people to develop resilience and thrive.
• Providing opportunities for bereaved Forces children and young people to achieve, succeed and
celebrate successes.
Springboard:
• To provide young adults with opportunities to develop their education and learning, career, volunteering
and life skills.
• To encourage, promote and celebrate young adult’s achievements.
• Reducing any barriers and disadvantages faced due to their bereavement.
• Providing networking opportunities and help to build connections and friendships.

During 2020 the charity helped 452 bereaved children and young people.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

SCOTTY’S LITTLE SOLDIERS

TRUSTEE REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Financial review

Review of the financial position of the Group and reserves policy

The Charity

The Trustees are pleased to report that financially the organisation is in good health and ended what was a challenging year for all charities with a surplus of £97,471. COVID19 presented huge challenges and uncertainty for the third sector and a combination of cost reduction, primarily through the cancellation of in-person support events and activities, and phenomenal support from the public, corporate partners and grant funders, meant the charity closed the year in a strong position despite forecasting a potential deficit at the mid-year point. The charity managed to grow its income during 2020 to £857,076 (from £758,311 in 2019) whilst containing planned increases in costs to £759,605 (from £751,459). Costs are expected to rise significantly in 2021 both to meet a large growth in demand for the charity’s services and to accommodate the return of face -to-face events. It is therefore imperative that the charity continues its current growth trajectory to meet this.

Reserves Policy

The Trustee Board have agreed a Reserves policy in line with the organisation objectives that all reserves shall be applied solely towards promotion of the object of the charity. In the event of dissolution of the charity the reserves would be first used for severance payments and winding up costs. The constitution states that any surplus must be either used directly for the objects of the charity, be transferred to another charity with like objects or in any other manner approved by the Charity Commission.

Following several years of operating with around 4 months of operating expenses it has been the aim of the charity to increase its cash reserves to between 6 and 9 months of operational costs. The present level of reserves held is £985,004 (2019 £887,533) which includes £466,979 (2019 £491,264) of tangible assets and £409,034 (2019 £274,528) in cash reserves available to use.

£918,244 (2019 £827,127) of the reserves held are categorised as unrestricted funds, £66,760 (2019 £60,406) are categorised as restricted funds.

Trading subsidiary

The Trustees continue to value the Trading company for commercial activities handled on behalf of the Charity. Brands such as the Fear Naught range have shown there is a large opportunity for future growth and these product ranges provide an additional way to engage with supporters. The operations of the Charity always take priority but the Trustees are committed to the long term income potential of the Trading company

Principal sources of income and how expenditure meets objectives

As mass participation fundraising events were largely unable to take place during 2020, including our own annual charity ball, because of the global pandemic, public fundraising declined year on year. The availability of emergency COVID19 related grants, support of existing corporate partners and the innovation of virtual public fundraising opportunities filled the void left by traditional forms of fundraising.

The charity’s previous decision to focus more on grant opportunities helped to reduce the risk associated with a potential over reliance on public fundraising events. The creation of a new regular donation programme, called Overwatch, and the further development of the charity’s merchandise are further examples of our commitment to diversifying our income streams.

The charity also benefited from its first ever legacy donation of £30,000.

SCOTTY’S LITTLE SOLDIERS

TRUSTEE REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Risk Management

The Trustees has assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The Trustees have a risk management review which comprises

Plans for the future

A full-service delivery review will take place at the beginning of 2021 following the recruitment of a highly experienced Families Team Project Manager. Several factors had previously limited the charity’s desire to provide direct one-to-one support to young people, rather than refer into external organisations, but during 2020 changes to the external landscape has prompted a review of this decision. These factors included the ending of charity Winston’s Wish’s bespok e military bereavement support (resulting in no dedicated military related one-toone bereavement support available to young people), wide variations in the quality of civilian support available depending on geographic locations, the development of the cha rity’s internal expertise, and the take up of remote video calls allowing for direct support to be provided nationally from our Norfolk based HQ.

The service review will include retrospectively assessing all existing activities and ensuring each one has clear and measurable outcomes and fits within the charity’s service framework.

Structure, governance and management

Governing Document

The CIO is governed by its Constitution dated 02 December 2016. It was registered as a charity with the Charity Commission on 02 December 2016.

The Charity is governed by its Constitution dated 17 April 2010. It was registered as a charity with the Charity Commission on 13 July 2010.

Trustees

The Trustees who served during the year were:

CIO

Mr S Ward Mr L Priestley Mrs M Harris Mr S Millar Mr J Worth

Charity

Scotty's Little Soldiers (CIO)

scorry's LITTLE SOLDIERS TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 The senior official lo whom the day to day management of the CIO and Charity is deleg8led by the CIO Trustees is Stuart Robinson and co founder Nikki Scott. Appointment of new Trustees The CIO has a formal Trustee Recnjitmenl poliLy and priKess_ New Trustees pjsib'ons can be advertised by the CIO or nominations from the managèment team and the existing Ttustees can bè put forward. Thosè nornin8ted and appointed are elected al the first AGM lollowng appointment. The CIO plans to add further Trusi68s ovw Ihe n&xl 2 years to fill gaps in the boards cjjffent skill sel. Organlsatlon The Charity is administsred by a Committee contsining no less than 3 Trustees ol the CIO. This wnmittee meets 4 limes pèr year. To facilitate effective operations the Chief Execubve Officer has d8legaied authority. wthin lemis of delegats'on approved by the Trustees, lor 0￿ratIonal matttrrs indudirrfJ finance and employment. The CEO reports frequently to the Trust￿. Usually on 8 monthly basis via wrilten reports and confe￿n￿ ¢alls. Rélatèd partl•s As a Charity originally founded by family members and dosè friends the Tnjstees ol Scotty's Little Soldiers have. in association with the Charity Commission. crèated a 'Conflicls ol In¢8rest Pdicy, which 6nsur8s any pol8ntl81 conflicts ol interest are highlighl$d and Ir8nsp8renl. Mrs Nlkkb ScA)tl. Mr John Robinson an¢J Mr Sbjart Robinson are lislod as Directors of ¢he Lirnited Trading Company Scotty's Lilile Soldiars Trading Ltd. This comp8ny was created to sell merchandisa on bahalf ol thè Charity, the pr()fits from which are all donated to the Charity. No dividends or salaries are laken from thè Limited Company. The CIO was confimwd by Companies House as the ￿levant legal enlily with significant control of Scotty's ￿111• Sc4di•rs Tr8(5ing Lid on 1110112019. Audltor In accordance with the CIO'S govaming docurnenl, a resolulion proposing Ihat Mapus-smith & Lemmon LLP be re8ppoinied as auditor of the CIO wll be put at a General Meeting. Disclosure of information to auditor Each ol the Trustees has confimied Ihat therè is no inforrnation of which they are aware which is relevant lo the audit. but ol which the auditor is unaware. They have further confimed that they have taken appropnate steps to identify su¢h relevant informalion and to establish that the auditor is aware ol such informab'on. The Trustee report was approved by the Board of Trustees. SIMON MILLAR- CHAIRMAN Dated..

SCOTTY’S LITTLE SOLDIERS

STATEMENT OF TRUSTEE RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are responsible for preparing the Trustee 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 CIO and of the incoming resources and application of resources of the CIO 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 CIO 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 CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SCOTTY’S LITTLE SOLDIERS

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF SCOTTYS LITTLE SOLDIERS

Opinion

We have audited the consolidated financial statements of Scotty ’s Little Soldiers (the ‘C IO ’) and its subsidiaries (the “Group”) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 Group 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 Trustee 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 Group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

SCOTTY’S LITTLE SOLDIERS

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SCOTTYS LITTLE SOLDIERS

Matters on which we are required to report by exception

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

Responsibilities of Trustees

As explained more fully in the statement of Trustee responsibilities, 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 CIO Charity’s and Group’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 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. 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.

The extent to which the audit was considered capable of detecting irregularities including fraud

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

SCOTTY’S LITTLE SOLDIERS

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SCOTTYS LITTLE SOLDIERS

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

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

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any, Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Counc il’s website at: https://www.frc.org.uk/Our -Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part o f our auditor’s report.

Other matter

Your attention is drawn to the fact that the Group has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2016.

scorry's LITTLE SOLDIERS INDEPENDENT AUDITOR'S REPORT (CONTINUEDI TO THE TRUSTEES OF scO￿s LITTLE SOLDIERS Use of our report This report is madè $olety to the CIO'S trustee5. as a body. in accordan¢% with part 4 of the Charibès IA¢¢oun15 and Reports) Regulations 2008. Our audit work has been undertaken $0 that we might state lo th8 CIO'S Iruslees those rnalters we are required to slate lo thèm in an audilor5' report and for no other purpose. To the fullest extent permilled by law. we do not accept or assume responsibility lo anyone other than Ihe CIO and the CIO'S trustees as a body, for our audit work, for this report, or for Ihe opin*)ns we havè fomed. Sharon Edwards Isenior Statutory Auditor> for and on behalf of Mapus.Smith & Lemmon LLP Chartered Accountants Statutory Audltor 48 King Street King's Lynn Norfolk PE30 1HE Mapus-smilh & Lemmon LLP is eligible fN appointmenl as audilor of thg CIO by ¥Artue of rts el1g1￿.11ty forappoinlmenl as auditor of 8 ¢ompany under o15eclion 1212 of the Companies Act 2LXJ6 10-

SCOTTY’S LITTLE SOLDIERS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Restricted donation income
2
592,260
253,956
Commercial trading operation
45,921
-
Total income received
638,181
253,956
Expenditure on:
Raising funds
3
230,040
-
Charitable activities
4
329,580
247,602
Taxation
7
(660)
-
Total resources expended
558,960
247,602
Net (expenditure)/income for the year/
Net movement in funds
79,221
6,354
Fund balances at 1 January 2020
842,043
60,406
Fund balances at 31 December 2020
921,264
66,760		 As
Total
2020
£
846,216
45,921
892,137
230,040
577,182
(660)
806,562
85,575

902,449
988,024		 restated
Total
2019
£
742,440
110,255
852,695
239,792
612,219
725
852,736
(41)
902,490
902,449

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

scorry's LITTLE SOLDIERS CONSOLIDATED BALANCE SHEET AS A T 31 DECEMBER 2020 As restated Group 2019 Group 2020 cio 2020 cio 2019 Not•s Flxed assets Tangible assets Investments 10 11 470,063 493,019 470.063 493,019 Current ass•ts'. Stocks Oeblors Cash at bank and in hand 13 14 83.440 62,245 419,064 92,183 65.453 294.737 564,749 452,373 Credltors; amount¥ falling du• within one y•ar 15 {46.171} 142,5921 Net current assets 988.641 409,781 Provlslons for Ilabllltle 16 1617) {3511 Tol•l ossel$1g3s current liabllities 988.024 902.449 Income funds Re$lrided funds Unrestricted funds 17 66,760 921.264 60.406 842,043 988.024 902.449 The Iina I statements were approved by Ihe Tnjstees on .is/.!b/. Ic2 SIMON MI THY an 12-

SCOTTY’S LITTLE SOLDIERS

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
24
Income taxes paid

Investing activities
Purchase of tangible fixed assets
Cash introduced on acquisitions
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£

(5,778)
-		 £
130,890
(785)


(5,778)
-
124,327
294,737
419,064		 2019
£

(6,325)
-

 £
63,318
(593)
(6,325)
-
56,400
238,337
294,737

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Scotty ’ s Little Soldiers is a charitable incorporated organisation (CIO). The principle office for the CIO and its two subsidiaries is 21 Bergen Way, North Lynn Industrial Estate, King’s Lynn, Norfolk, PE30 2JG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the CIO's governing document, 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 Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Basis of accounting and consolidation

These financial statements consolidate the results of the CIO, it’s unincorporated charitable subsidiary Scotty’s Little Soldiers (charity number 1136854) and it’s trading subsidiary Scotty’s Little Soldiers Trading Limited (company number 07667490). The trading subsidiary is a private company limited shares, registered in England and Wales.

A separate statement of financial activities is not presented for the CIO itself following the exemptions available under the Charities SORP.

1.3 Going concern

The trustees consider that there are no material uncertainties about the Group ’ s ability to continue as a going concern.

At the time of approving the financial statements, the trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continues to adopt the going concern basis of accounting in preparing the financial statements. The COVID-19 pandemic does not appear to have affected the finances of the Group to such a degree that going concern is an issue.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

The Charity has a restricted income fund to account for situations where a donor or grant provider requires that a donation or grant must be spent on a particular purpose or where funds have been raised for a particular purpose. All other funds are unrestricted income funds.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.5 Incoming resources

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Assets for distribution are recognised only when distributed. Assets given for use by the Charity are recognised when receivable. Stocks of undistributed donated goods are not valued for balance sheet purposes.

Legacies are recognised on receipt or otherwise if the Charity 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.

Grant income is recognised when the Charity 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.

Scotty’s Little Soldiers Trading Limited

Turnover represents amounts receivable for goods and services. Turnover also includes amounts received from fund raising events. Amounts receivable from, goods are recognised at despatch of the goods and amounts generated from fund raising events are recognised at the date received.

1.6 Resources expended

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that results in the payment being unavoidable.

Costs for charitable activities are recognised when the liability is incurred.

1.7 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.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Capitalisation of fixed assets Tangible fixed assets are capitalised at original cost of acquisition. Donated tangible fixed assets which do not have a cost to the Charity are capitalised at their current value at the date of donation.

Lodges 4% straight line basis. Lodge and office equipment 25% straight line basis Computers 25% reducing balance basis Motor vehicles 25% reducing balance basis Scotty’s Little Soldiers Trading Limited Fixtures and fittings 15% reducing balance basis

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 net income/(expenditure) for the year.

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.8 Impairment of fixed assets

At each reporting end date, the Charity 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).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

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.

1.11 Financial instruments

The Charity 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 Charity's balance sheet when the Charity 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.

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.11 Financial instruments cont:

Derecognition of financial liabilities

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

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.15 Taxation

Scotty’s Little Soldiers Trading Limited

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Restricted donation income

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
557,260
50,000
Other general grants
35,000
203,956
592,260
253,956
For the year ended 31 December 2019
560,180
182,260		 Total
2020
£
607,260
238,956
846,216		 Total
2019
£
560,180
182,260
742,440
742,440

3 Raising funds

Unrestricted
funds
2020
£
Fundraising and publicity
Seeking donations, grants and legacies
51,963
Team costs
65,954
Support costs
64,506
Fundraising and publicity
182,423
Commercial trading operation
47,617
Commercial trading operation–restated
-
230,040		 Total
2019
£
62,470
35,701
41,070
139,241
90,551
10,000
239,792

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Charitable activities
Smiles
Programme
Strides
Programme
Spring
Board
Programme
Support
Programme
Family
Programme
Activities
2020
2020
2020
2020
2020
£
£
£
£
£
Team costs
13,767
9,047
7,182
36,199
82,494
Members gifts
53,109
-
-
-
-
Member Christmas Event
19,080
-
-
-
-
Scotty Breaks
62,422
-
-
-
-
Member travel and subsistence
-
-
-
-
-
Scotty Lodge Running Costs
49,530
-
-
-
-
Member Costs - IT, Office and Advertising
-
-
-
-
7,882
Member Costs - Support
-
-
-
5,992
-
Member Costs - Other
3,037
-
-
-
698
Family Communications
-
-
-
-
7,571
Springboard Communications
-
-
394
-
-
Smiles Communications
-
809
-
-
-
200,945
9,856
7,576
42,191
98,645
Grant funding of activities (see note 5)
-
26,190
-
-
-
Share of support costs (see note 6)
28,189
-
-
-
150,474
Share of governance costs (see note 6)
-
-
-
-
13,116
229,134
36,046
7,576
42,191
262,235
Analysis by fund
Unrestricted funds
140,737
26,631
5,857
4,322
152,033
Restricted funds
88,397
9,415
1,719
37,869
110,202
229,134
36,046
7,576
42,191
262,235		 Total
2020
£
148,689
53,109
19,080
62,422
-
49,530
7,882
5,992
3,735
7,571
394
809
359,213
26,190
178,663
13,116
577,182
329,580
247,602
577,182		 Total
2019
£
-
56,558
55,250
42,636
7,959
66,264
22,817
4,771
283
49,000
-
-
305,538
29,938
266,027
10,716
612,219
466,002
146,217
612,219

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

For the year ended 31 December 2019

For the year ended 31 December 2019
Smiles
Programme
Strides
Programme
Support
Programme
Family
Programme
Activities
£
£
£
£
Members gifts
56,558
-
-
-
Member Christmas Event
55,250
-
-
-
Scotty Breaks
42,636
-
-
-
Member travel and subsistence
7,959
-
-
-
Scotty Lodge Running Costs
66,264
-
-
-
Member Costs - IT, Office and Advertising
-
-
-
22,817
Member Costs - Support
-
-
4,771
-
Member Costs - Other
283
-
-
-
Family Communications
-
-
-
49,000
228,950
-
4,771
71,817
Grant funding of activities (see note 5)
-
29,938
-
-
Share of support costs (see note 6)
30,021
-
-
236,006
Share of governance costs (see note 6)
-
-
-
10,716
258,971
29,938
4,771
318,539
Analysis by fund
Unrestricted funds
208,481
29,938
827
226,756
Restricted funds
50,490
-
3,944
91,783
258,971
29,938
4,771
318,539		 Total
2019
£
56,558
55,250
42,636
7,959
66,264
22,817
4,771
283
49,000
305,538
29,938
266,027
10,716
612,219
466,002
146,217
612,219

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

5 Grants payable

Grants to individuals:
Members allowances
Members grants		 2020
£
11,779
14,411
26,190		 2019
£
15,388
14,550
29,938

6 Support costs

,

Support costs
Team costs
Depreciation
Other office costs
Premises expenses
Marketing
Insurance
Legal and professional fees
Subscriptions
Bank charges
Training and other costs
Accountancy
Analysed between
Fundraising
Charitable activities		 Support
costs
Governance
costs
£
£
132,828
-
28,189
-
36,252
-
609
-
41,090
-
-
-
-
-
3,113
-
712
-
376
-
-
13,116
243,169
13,116
64,506
-
178,663
13,116
243,169
13,116		 2020
£
132,828
28,189
36,252
609
41,090
-
-
3,113
712
376
13,116
256,285
64,506
191,779
256,285		 2019
£
187,225
30,020
34,745
5,465
41,070
533
5,659
1,044
440
896
10,716
317,813
41,070
276,743
317,813

Governance costs includes payments to the auditors of £8,500 (2019- £7,500) for audit fees, and £4,616 (2019 - £3,216) for non-audit fees.

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

7
Taxation
UK Corporation tax charge on profit for the
year
Origination and reversal of timing
differences		 Group
2020
£

(926)
266
(660)		 Group
2019
£
785
(60)
725		 CIO
2020
£
-
-
-		 CIO
2019
£
-
-
-

8 Trustees

None of the trustees of the CIO or group (or any persons connected with them) other than set out below received any remuneration during the year.

During the year, the following expenses were paid to the following trustees or those closely connected to trustees:

*Simon Millar - training courses £339 (2019 - NIL)

9 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
12
2020
£
314,943
25,665
6,863
347,471		 2019
Number
9
2019
£
200,238
14,940
7,748
222,926

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Employees (continued)

The key management personnel of Scotty's Little Soldiers comprise the Trustees and the Executive Team. The total remuneration including benefits in kind, employers pension contributions, employers National Insurance contributions and termination payments paid to and on behalf of the Executive Team amounted to £102,617 (2019: £96,308).

The number of employees whose annual remuneration was £60,000 or more were:

£60,001 - £70,000
Tangible fixed assets
GROUP
Lodges
Equipment,
fixtures &
fittings
£
£
Cost
At 1 January 2020
620,352
17,342
Additions
-
1,874
Disposals
-
-
At 31 December 2020
620,352
19,216
Depreciation and impairment
At 1 January 2020
138,084
15,389
Depreciation charged in the period
24,815
744
Eliminated on disposals
-
-
At 31 December 2020
162,899
16,133
Carrying amount
At 31 December 2020
457,453
3,083
At 31 December 2019
482,268
1,953		 2020
2019
Number
Number
1
1
Computers
Motor vehicles
Total
£
£
£
7,866
9,825
655,385
3,904
-
5,778
-
-
-
11,770
9,825
661,163
3,213
5,680
162,366
2,139
1,036
28,734
-
-
-
5,352
6,716
191,100
6,418
3,109
470,063
4,653
4,145
493,019

10 Tangible fixed assets GROUP

The CIO did not hold any tangible fixed assets as at 31 December 2020.

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

11
Fixed asset investments
Investments in trading subsidiaries
Movements in fixed asset investments
Cost or valuation
As at 1 January 2020
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2020		 2020
£
3		 2019
£
3
Shares
£
3
_
3
3
3

Details of the group's subsidiaries at 31 December 2020 are as follows:

Name of undertaking Country of Nature of business Class of % Held
incorporation shareholding Direct Indirect
or residency
Scotty’s Little Soldiers United Trading company Ordinary
 100.00 -
Trading Limited Kingdom
Scotty’s Little Soldiers United Unincorporated charity N/A
Kingdom

A summary of the subsidiaries performance and assets is shown below:

Income
Expenditure
Restatement– See note 23
Surplus/(deficit)
Net assets		 Trading
2020
£
45,921
(57,817)
-
(11,896)
3,021		 Charity
2020
£
857,076
(759,605)
-
97,471
985,004		 Trading
2019
£
110,255
(107,147)
(10,000)
(6,892)
14,917		 Charity
2019
£
758,311
(751,459)
-
6,852
887,533

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

12
Financial instruments
GROUP
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
CIO
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost
83,440

14
Debtors
Group
2020
£
Amounts falling due within one year:
Trade debtors
8,923
Other debtors
4,864
Prepayments and accrued income
48,458
62,245
13 Stocks
Group
2020
Finished goods and goods for resale
83,440
15
Creditors: amounts falling due within one year
Group
2020
£
Trade creditors
9,175
Corporation Tax
-
Other creditors
10,751
Accruals and deferred income
26,245
46,171		 92,183

Group
2019
£
19,458
500
45,495
65,453
Group
2019
92,183
Group
2019
£
21,172
926
7,340
13,154
42,592		 2020
£
423,354
46,171
-
3
-
-
CIO
2020
£
-
-
-
-
CIO
2020
-
CIO
2020
£
-
-
-
-
-



2019
£
312,386
41,665
-
3
-
CIO
2019
-
-
CIO
2019
£
-
-
-
-
CIO
2019
£
-
-
-
-
-

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

16
Provisions for liabilities
Deferred taxation		 Group
2020
£
617
617		 Group
2019
£
351
351		 CIO
2020
£
-
-		 CIO
2019
£
-
-

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January resources expended 1 January resources expended 31 December
2019 2020 2020
£ £ £ £ £ £ £
Royal British Legion 3,900 - (3,900) - - - -
Veterans Foundation 10,000 20,000 (20,000) 10,000 77,658 (77,658) 10,000
The Oakland Raiders 5,742 - (5,742) - - - -
Lest we forget Association 2,800 14,960 (17,760) - 20,450 (20,450) -
Donation - pledged restricted 1,921 - (1,921) - - - -
Annington Homes - 50,000 (19,594) 30,406 50,000 (54,146) 26,260
Tesco Groundworks - 49,000 (49,000) - 7,000 (7,000) -
ABF - Armys National Charity - 10,000 (10,000) - - - -
The MacRobert Trust - 10,000 (10,000) - - - -
Lloyds Patriotic Fund - 10,000 - 10,000 - - 10,000
Royal Air Force Benevolent Fund - 3,300 (3,300) - 6,000 (500) 5,500
Royal Navy and Marines Charity - 5,000 (5,000) - 15,000 (10,000) 5,000
The Big Salute - 10,000 - 10,000 - - 10,000
National Lottery Community - - - - 9,250 (9,250) -
Intelligent Corps Association - - - - 598 (598) -
Local Community Foundation Grants - - - - 8,000 (8,000) -
Armed Forces Covenant - - - - 60,000 (60,000) -
24,363 182,260 (146,217) 60,406 253,956 (247,602) 66,760

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

17 Restricted funds cont.

Veterans Foundation: This funding is being used to fund our Family Programmes. Lest We Forget: This funding was used as part of our Smiles Programme. Annington Homes: This funding is being used for our Support Programme.

Tesco Groundworks: This funding was to provide for support costs from Tesco's initiatives for various charitable projects. It has been used as part of our Family Programmes.

The Lloyds Patriotic Fund: This is funding for a Therapeutic Retreat Project to be spent by its members in future years.

Royal Air Force Benevolent Fund: This is funding in respect to RAF members and to assist with the operating costs of the various programmes.

Royal Navy & Royal Marines Charity: This is funding in respect to Royal Navy and Royal Marine members and to assist with the operating costs of the various programmes.

The Big Salute: This funding is being used to fund our Family Programmes.

National Lottery Community: This was funding granted for supporting mental health and wellbeing of at risk bereaved forces members.

Intelligent Corps Association: This is funding used to secure a laptop for a son of a former military fallen individual who served in the Intelligent Corps.

Local Community Foundation Grants: This was funding granted to support bereaved children in local constituencies during Lockdown.

Armed Forces Covenant: This was funding granted to assist members with operating costs affected during the Covid-19 pandemic.

18 Analysis of net assets between funds

Unrestricted
Restricted
2020
2020
£
£
Fund balances at 31 December 2020 are
represented by:
Tangible assets
468,435
1,628
Current assets/(liabilities)
452,829
65,132
921,264
66,760		 Total
2020
£
470,063
517,961
988,024		 Total
2019
£
493,019
409,430
902,449

19 Operating lease commitments

At the reporting end date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2020
£
7,078
7,078		 2019
£
20,540
6,030
26,570

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

20 Related party transactions

Scotty Little Soldiers Trading Limited paid for expenses on behalf of Scotty’s Little Soldiers (Charity) totalling £3,014 during the period ended 31 December 2020 (2019 - £5,871). These expenses mainly related to office running costs for the charity's oper ations and have been treated as a donation to the charity by Scotty’s Little Soldiers Trading Limited.

Scotty Little Soldiers Trading Limited also organised some charitable events on behalf of Scotty’s Little Soldiers totalling £7,846. The proceeds from these were directly paid as a charitable donation to Scotty’s Little Soldiers.

As at 31 December 2020, Scotty’s Little Soldiers Trading Limited owed Scotty’s Little Soldiers £37,173 (2019 - £37,173) in respect of a loan provided for the purchase of merchandise.

£37,173) in respect of a loan provided for the purchase of merchandise.
21 Capital commitments 2020 2019
£ £
At 31 December 2020 the Charity had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment 11,988 -

The charity had entered into a commitment to pay the remaining 50% of Salesforce website and bespoke software installation costs, upon completion of the project.

22 Thank you

We would like to take this opportunity to thank the people and organisations who make our vital work possible by generously giving their time and money.

Particular thanks goes to our partners and people who have made significant contributions throughout the year:

Estate - Ernst Tuck Deceased City Veterans Network Yorkshire Indian Society Piers Morgan - Who wants to be a Millionaire Veterans Foundation Lest We Forget Association National Lottery Community Tesco Groundwork Scheme Royal Navy and Royal Marines Charity Intelligent Corps Association Lloyds Patriotic Fund Annington Trust

SCOTTY’S LITTLE SOLDIERS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

23
Prior period adjustment
Reconciliation of changes in reserves
1
Adjustments to prior year
Adjustment for stock overstated as at 31 December 2019

Reserves as previously reported
Reserves as adjusted
Analysis of the effect upon reserves
Statement of Financial Activities
Reconciliation of changes in surplus/(deficit) for the previous financial period
Adjustments to prior year
Adjustment for stock overstated as at 31 December 2019 in trading
subsidiary
Surplus as previously reported
Deficit as adjusted
24
Cash generated from operations
Surplus for the year
Adjustments for:
Taxation (credited)
Depreciation and impairment of tangible fixed assets
Loss on disposal of tangible fixed assets
Movements in working capital:
(Increase)/decrease in stock
(Increase) in debtors
Increase/(decrease) in creditors

Cash generated from/(absorbed by) operations		 January 31 December
2019
2019
£
£
-
(10,000)
902,490
912,449
902,490
902,449
-
(10,000)
2019
£
(10,000)
9,959
(41)
2020
2019
£
£
85,575
(41)
(660)
725
28,734
30,696
-
426
8,743 2,773
3,994 (1,256)
4,504
29,995
130,890 63,318