Reports & Financial Statements For the year ended 31 March 2021 Royal Commonwealth Ex-services League Company number: 10922587 Charlty number: 1174874 Contents Charfty Snlorn•tltsn Truste21' V•PQrt io Indryondont•udlto¢s rEPOrt 11-13 Stm•nl oi nn•ncl•l Balant•she•t 5tsternentolth flows 16 Notes to the finDncl•l Jt•tements 17-32
Royal Commonwealth Ex-services League Charity information Charlty reglstratlon number: 1174874 Company registration number: 10922587 Princlpal office: 199 Borough High Street, London SEI IAA Patron: Her Maje5tyThe Queen Grand President: General The Lord Richards of Herstmonceux GCB CBE DSO Deputy Grand President: Major General Gl Mitchell CB MBE land Trustee) Trustees: Mrj M Archer Colonel l M Bowles M8E Malor U Cleminson BEM TD Colonel P A Davis CBE Major General C H Elliott CVO C8E Brigadier A W Freemantle C8E DBA Lieutenant Commander M R Hawthorn RN Mr A L Holme5 OBE Brigadier J C L Klng MBE Colonel A J Martin ONZM Colonel M M Slattery RRC Mr5 E Strout5 Mrs E A Watkins DL Bri8adier D A Wllllams MBE Honorary Recorder: Colonel M J Winarick 08E Honor•ry Legal Advlser: MrTEJCase Honorary Medl¢al Advlser: Major General D S Jolliffe CB FRCP Secretary General.. Lieutenant Colonel C F Warren Controller Flnance: Malor DThompson Bankers: National Westminster Bank plc 65 Piccadillv London WIA 2PP Independent audltor: Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton SurreySMI 4JQ
Royal Commonwealth Ex-services League Charity infomiation Investment managers: Newton Investment Management Llmited 160 Queen Vlctoria Street London EC4V 4LA Sollcltors: Withers 16 Old Bailey London EC4M 7EG
Royal Commonwealth Ex-services Leagu8 Trustees, report Introductlon from The Honorary Treasurer This Report and Accounts covers for the first time, a 12-month accounting period, in line with the tax year running from April to the following March. This report will not be directly comparable with that of the previous year as It covers a 12-month period, rather than the 1S-month period required last year in order to realign the accounting year from a calendar year to a flnanclalltax year. The key driver for the change in accountin8 period was the impact of the Accountable Gront Arrangement IAGAI that we entered into, in partnership with the Foreign, Commonwealth and Development Office IFCDOI, formerly the Department for International Development IDFIDI. As reported last year, the AGA is game-chan8ing, not only for the increase in value of individual grants to beneficiaries, but also in the wav that the League conduct5 Its business. A little more than a year ago, very few people predicted that the COVID-19 pandemic would either last as lon8 as it has, or, have the devastatin8 Impact that it ha5 had on so many lives, or, indeed, have driven such levels of change, both in working practices and in personal live5. These changes have affected the Lea8ue In the same way as everyone else. International travel has proved impossible and our Member OrBanisations around the world have had to adapt to the measures imposed by their respective governments. In the UK, the HQ Staff have been working from home, with only occasional, essential visits to the office and all key meetings Sncluding the Executive Committee, Finance Sub-committee and Commonwealth Council & Annual General Meeting have all been held vlrtuallv. The League'5 income, Ilke that of all charities, has been adversely impacted, with donations lower than bud8eted and realistically expected over a comparable 12-month period. Investment performance was also affected, as was the income 8enerated in interest payments in the League's various deposlt accounts. At the same time, demand for veterans, support has grown, driven both by greater awarene55 of the Commonwealth Veterans, Programme and also the effect5 Of the pandemic. The impact of these chan8es wlll be covered later in this report. Despite the challenges posed by the COVID-19 pandemic, the League - through its network of Member Or8anisations- ha5 successfully continued to support our beneficiaries around the world, providing much needed food grants at time when many veterans and widows have been particularly vulnerable. Publlc Beneflt The Trustees present their report and the financial statements for the perlod ended 31 March 2021. AII charities must have charitable purposes which are for the public benefit. Thi5 requirement is reinforced under The Charities Act 2011, which removes the presumption that charities that existed prior to that date to advance education or religion or to relieve poverty are for public benefit. The Royal Commonwealth Ex- Services League (the Leaguel does not promote religion or educatlon but exists to relieve poverty by providing support to eligible Commonwealth Ex-service men and women and widows if in need. There are two key principles of public beneflt and the relevant ones for the League are that: Principle l.. There must be an identifiable benefit or benefit5 which are cleor and related to the League's aim. Principle 2.. Benefit must be to the public or to a section of the public. As a consequence of the law, the Trustees are required io disclose how they provide public benefit during a given accounting period. In the case of this report, it is the year l April 2020- 31 March 2021.
Royal Commonwealth Ex-ServiGes League Trustees, report There is little additional information required of the League by the Charity Commission as the League already meets the requirements of The Charities Act 2011. In some cases, additional irbformation is provided to explain clearly how the League meet5 Public Benefit guidelines. The League was incorporated on 18 August 2017,. on l January 2018 the activitie5 and a55ets of the unincorporated charity were transferred into this entity. The unincorporated charity was founded in 1921 and, since then, it is estimated that more than one million people have been provided with welfare support in order to relieve poverty. The League is confldent that all applicable guidelines for meetin8 public benefit in 2020121 have been met. Structure, Governance and Management Organlsatlonal structure The League, a Prlvate Company Limited by Guarantee, is governed by its Articles of Assoclation, Objects and Rules approved at a Special Conference in 2017. Executive power is vested in the Grand President, and in the Commonwealth Council, whlch comprises Members representing the 57 Member Or8anisations. This Council meets once a year. An Executive Committee is appointed by the Commonwealth Council and a Secretary General and Controller Finance appointed by the Grand President who, together with four other office staff, are responsible for delivering welfare 5upporl, the administratlon of the affairs of the Charitv and for advisin8 on the content and procedures of Conference. The procedure for the election of Trustees Is laid down in the CharitV'5 Articles of Association and detailed in the Standing Orders for the Executlve Committee. The Members of the Executive Committee are the Trustee5 who are also Directors. Two Trustees are ex.officio appointments and other Trustees are recruited by experience when knowledge of a particular field - for example, legal, medical or financial- is required. Once Selected, a Trustee will receive a personal briefing from the Secretary General, who will explain the detailed workings of the League and their role withln It and they will receive a booklet entitled 'Duties and Responsibilities of a Trustee, Trustees are kept fully informed of any changes that could Impact on them or on the Charity. Each year training and advice is given to all Trustees by Mazars LLP at the Trustees, meeting in April and Trustee5 are invited to attend traininB seminars organised by Newton Investment Management and Mazars. The Secretary General and the Controller Finance a150 attend relevant seminars and advise Trustees as required.
Royal Commonwealth Ex-services League Trustees, report Membershlp of Committees and Sub-committees Members of Standin Committe on Welfare Pro rammes Brigadier J C L Kin8 M8E 8rigadier A W Freemantle CBE DBA Mr T D Irvine CD Mrs E A Watkins DL Major U Cleminson BEM TD Mr A Baines Major General C H Elliott CVO CBE Lieutenant Commander M R Hawthorn RN Colonel A J Martin ONZM Mrj M Archer Chairman Australia IExecutive Committee Member) Canada, Dominion President Canada (Executive Committee Memberl The Royal Brltish Legion, National Chairman The Roya1 British Leglon, Director of Operations South Africa (Executive Committee Member) The Legion Scotland, Chairmar) New Zealand IExecutlve Committee Member) RCEL Honorary Treasurer Members of Finance Sub-committee: Mr J M Archer MrTEJCase Mr P I W Henderson MrORMMar5h Chairman Members of Penslons Committee.. Mrj M Archer Lleulenant Colonel C F Warren Major D Thompson Chairman Secretary Statement of Trustees, Responslbllltles Law applicable to charities in England and Wales requires the Trustees to prepare financlal statements for each financial year which 8ive a true and fair view of the state of affalrs of the Charity a5 at the balance sheet date and of its income and expenditure for the financial year. In preparing those financial statements, the Trustees afe required to: select suitable accounling policie5 and then apply them consistentlv- make judgements and estimates that are reasonable and prudent,. comply with applicable accounting standards subject to any material departures di5c105ed and explained in the financial statements- and prepare the financial statements on the going concern basis unless It Is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping proper accounting records which dlsclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with The Charitie5 Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irre8ularities.
Royal Commonwealth Ex-services League Trustees, report Relationship wlth Related Parties and Other Charltles In addition to distributing its own funds, the Charlty acts for over 40 UK-based Service and Regimental charities in channelling funds overseas to appropriate beneficiaries. The key Service charities are The Royal Navy and Royal Marines Charity, ABF The Soldier5, Charity, The Royal Air Force Benevolent Fund, The Royal British Legion and The Officers, Association. Any money held on behalf of such organi5ations is included in restricted funds. The Charity also holds funds in deposit accounts for five of its Member Organisations. These funds are entirely under the control of these Drganisotions and are held separately from the Charity's own funds. Statements of Account are sent every slx months to these Member Organisations. The Charity also holds restricted funds on deposlt for The Askari Appeal which it draws down for designated beneficiarles of the appeal when Instructed by the Trustees of The Askari Appeal (these are included within restricted funds in note 191. Objects and Actlvltles The Charity operates outside the Unlted Klngdom looking after the welfare of ex-servlce men, women and their widows and widower5 of Commonwealth countries who have at Some tlme served the British Crown prior to the independence of thelr own country and who are now living in poverty. Earl Hai8 founded the Charity in 1921 and its scope greatly increased followin8 the Second World War. Today there are 57 Member Organisations in 48 countries, stretching from the Carlbbean, across West, East and South Africa, the Indian sub-continent to South-Ea5t Asia, the Pacific and Australasia. The Charity acts as a link throughout the Commonwealth for many ex-service or8anlsations and provide5 fSnancial assistance for ex-service men, women and thelr widows and widowers whose difficulties are beyond the mean5 of their local organisations. Financial support is also 8lven to self-help projects that will generate income for local welfare. The Object is that no eligible ex-servlce man or woman shall be without help if in need and the Charity's grant-makin8 policy is formulated accordir)gly. Achievement5 and Performance Challenging fundraising targets were set by the Trustees for 2020, in line the League's 5-Year Plan. The donations target was not achieved because, like all charitles, the League's income fell this year and we did not have the benefit of either the Poppy Ball donation or a major legacy comparable to the generous one provided from Mrs Zoè Taylorfs estate last year. Expenditure on grants was above budget and this was entirely driven by an increase in the number of beneficiaries supported, a si8niflcant proportion of which were widows from countrie5 which had not previously supported them. The additional beneficiaries more than offset the natural attrition of our ageing veterans and widows and, as a result, the original actuarial numbers forecast for the remainder of the programme are likely to be exceeded. On this basis, an updated actuarial forecast was commissioned to enable financial modelling to be completed to assess options and mitigate future risk. Ultimately the League has been able to support more beneficiaries Wlth a higher value grant. Other cost lines were tightly controlled and were delivered well under budget.
Royal Commonwealth Ex-servicos League Trustees, report Flnancial Review During the 12 months to 31 March 2021, the League d15tributed £4,568,454 on welfare115-month period ended 31 March 2020: £5,303,690). The net expenditure Ibefore gainslllossesl on investment assets) from the 12-month period's operations was £1,012,943115-month period ended 31 March 2020.. £120,405). The underlyin8 unrestricted result for the 12-month perlod ended 31 March 2021 was net expenditure of £381,830 Ivear ended 31 March 2020.. net income of £461.4211. At the end of the year total funds amounted to £2,030,46912020: £2,899,532). Investment Report The Flnance Sub-committee is responslble for the management of the Lea8Lte's investment portfolio and relies on information provided by Newton Investment Management Limited, the appointed managers. In addition to the normal twice-yearly meetings, the Flnance SLsb-Committee meet when required, in order to ensure diligent management. The investment objective of the portfolio Is to maximise income and capital available for drawdown, in order to provide financlal assistance to the beneficiaries of the League. The portfolio is carefully managed in line with the 5-Year Plan drown up by Newton Investment Management and the Finance Sub-committee. Thls report is for 12 months to 31 March 2021, which therefore covers the perlod immediately after the market sell-off triggered by COVID-19. The market Iow5 were recorded in the second half of March 2020. The investments comprise a holdSng in the Newton Growth and Income Fund for Charitie5 (the Fund). The initlal market recovery In the second quarter favoured sectors such as tech that were COVID-19 beneficiaries, whilst those that are more highly correlated to the economy generally lagged. The latter included sectors such as Oil and Gas, Financials, Basic Materials and Consumer SeNices. During this quarter, the Fund was up 11.3%, slightly ahead of its benchmark of 10.7%. This rally favoured overseas stocks, largely because the UK market is more heavily weighted towards the laggard sectors. Equity markets generally traded sldeways in ihe third quarter and until November when the reports of the vaccine efficacy starteij to come out. Markets then had a second rally that continued into the first quarter of 2021,. however, this favoured the lag8ards from the summer period and the UK relative to overseas. Dealing with such market rotation proved dlfficult,. however, some themes that were empha5i5ed in the Fund continued to perform such a5 semiconductor5 and the transition tQ Electric cars since the Fund has a sizeable exposure to car batterie5. Gilts had performed very well in the first quarter of 2020, as a safe haven from the turmoil in equity markets. However, they sold off for the year under review a5 the resilience of the economy became clear. Thirty-year gllt yields, which had fallen to 0.5% In March 2020, rose to 1.4% by the end of Morch 2021, with a resultant fall in capital values. The Fund turn over the twelve month5 wa5 +24.3% against its benchmark of 21.8%. Over the period, the main market returns in GBP term5 were.. FTSE All-share Index +26.7%.. FTSE World ex-UK Index +40.84%; and FTA Government All-Stock5 Gilts Index-5.5%. IThe composite benchmark of the Fund 15 50% FTSE All-share Index. 25% FfsE World ex-UK Index, 20% Government All-stocks Gilts Index and 5% 7-Day GBP LIBID.) The income received by the Fund was affected by the cancellation or postponement of dividends, Some of which were driven by corporates conserving cash, and some by the regulators. This was biased towards those sectors that are heavily represented in the UK market, such as Financials and Oils and Gos. Thi5 Was
Royal Commonwealth Ex-services League Trustees, report exacerbated by GBP showing Strength against the USS because a number of UK stocks. such as the Pharmaceuticals declare a USS dividend. However, this trend is now starting to reverse. Dividend income in 2020 fell by 25%, although we expect an increase of some 15% in 2021. The outlook remains dominated by COVID-19; however, the data indicates that where conditions allow, the recovery could well be very strong, with cash balances in working households building up to unprecedented levels while corporate investment has been deferred. US GDP 15 now bock to only 1% below pre-COVID-19 levels, with the US economy also benefitting from government handouts to household5. Concerns about inflalion will possibly resurface periodically during the next phase of the recovery,. however, high unemployment rates and other global deflationary forces are expected to hold inflation in check. A focus on individual Stocks should help the Fund through this uncertaln period. Rlsk Assessment Head Offlce RCEL maintains a comprehensive Rlsk Management Register. Eighteen rlsks are considered and reviewed on a quarterly basis In line with the Accountable Grant Arrangernent IAGAI for the FCDO (UK Aid) Programme. Mitlgating action is taken as required. These risks have also been applied to Member Or8anisation5 overseas and have proved satisfactory. The key risks identified are: The concern that all military charltles will be affected by reduced Income over the next 10 years and the reliance on the major military charities to malntain their level of support is not guaranteed. The impact on fundraising generated by the global Covid pandemlc is a cause of concern. With reductlon to military service charities income there has been an increase in demand for services. There ha5 been a knock-on effect across the military charity sedor with all grants bein8 categorised into either must, should or could award. To overcome th15 risk the League is to strengthen relationships and continue to raise awareness of the plS8ht of some of the poorest and most vulnerable veterans and widows across the world. Interruptlon to Business Continuity caused by external events includin8 pandemic, natural disaster, terrorist activity or major system failure. Thls has been thoroughly tested over the last year with the office staff working remotely and through increased communication wlth Member Organisations to establish the onBoin8 Sltuation across the globe and the impact of the Covid pandemic in each country. That the signiflcant reduction in the size of the British Armed Forces and the cessation of combat operations in Iraq and Af8hanistan will reduce public awareness. However, the League's short-term financial concern5 have been mitigated by the £11.8 million FCDOIUK Aid award for the period 2019. 2024. Increased risk of fund dlverslon glven the significant increase Sn value of grant5 disbursed. The governance Df the HQ team ha5 been stren8thened through both the recruitment of an additional post to allow separation of key financial duties and the production of a finance manual outlining kev policies, processes & procedure5. Oversight on Member Organi5ations has increased through an annual due diligence process, the introduction of Quarterly financial reporting and an increased frequency of visits. That HQ staff continuity is disrupted due to retirement or resignations. Additional posts have been recruited to manage the contractual requirements of the FCDO programme which has developed a broader knowledge base across the whole HQ team.
Royal Commonwealth Ex-services Laague Trustees. report Safeguardin8 issues given the vulnerability of our beneficiaries combined with an increase in the value of their grants. The Safe8uarding policy has been updated and dlstributed to all Member Organisations. 2 planned Regional training seminars, in Jamaica and Sri lanka, had to be postponed due to the pandernic. A new online training platform has been developed and 3 training module5 were rolled out to the Member Organisatlons. These were Safeguarding Essentials, IT & Data Security and Fraud Awareness. Reserves Pollcy It Is planned to expend the majority of the League's reserve5 over the next 5 years, during which time the number of potential beneficiaries is expected to reduce substantially. In effect, the Charity has no reserve5 since the existing assets wlll be consumed on a routine, planned basis over the next five year5, In line with the FCDO award. The 5-Year Plan is reviewed regularly. Adjustments may have to be made if there is a significant reduction in welfare support from the major military charitSes. Grant Maklng Pollcv The CharitV'5 grant5 are directly related to the total amount that it can glve away each year, as dictated by the drawdown of resee5 and the success of Head Offlce fundraising. Withln this restriction the Charity aims to provide os many eligible beneficiaries as P055ible with the equivalent of a meal a day. The FCDO award wlll allow The Lea8ue to increase this support to the equivalent of two meals a day. Key Management Personnel The key management personnel are considered to be the Secretary General, the Controller Finance and the Controller Welfare, The Trustees review the salaries for these staff annually, making a pay award based on market salaries. Plans for Future Periods The malorlty of RCEL countries did qualify for the FCDO award with funding confirmed in time for 2021 SCOWP. For those countries that do not qualify, RCEL will endeavor to ensure that similar support will be delivered to them from grants from the RCEL portfolio of funds, fundraising and of the major Setvice Charities generous donations. With the use of public funds, there remains a comprehensive reportin8 requirement which will fall to RCEL and the Member Organi5ation5 to deliver. Some countries are considered to be a greater risk and a significant amovnt of work by RCEL HQ and Member Orgonisations has been undertaken in order to reduce rlsk to an acceptable level. The introduction of Quarterly reporting by Member Organisations coupled to annual Due Dillgence has increased oversight and provlded more timely and accurate information. In addition, Honorary Representatives have taken an active role supporting Member Organisations on the Bround and as5iStin8 Wlth light touch oversight. The Royal Brltish Legion has generously agreed to contlnue its support for Commonwealth veterans and their widows for another 2 years to the end of 2022. The League is extremely Brateful for this enhanced Support, which doubles the annual unrestricted grant from 2018 and allow5 RCEL Head Office to remain in HaiE House, with full Information Management and Technology IIM&TI and administrative Support. Agency work comprises a significant proportion of the Charity's workload and thi5 will continue. There is a decrease from 897 in 2019120 to 703 in 202012021, administered by Controller Welfare and Grants. Most of
Royal Commonwealth Ex-ServiGes League Trustees, report this decrease can be attributed to the difference between a 12-month versus 15-month reporting period. The value of grants disbursed has largely increased and Controller Welfare and Grants 5pend5 some 30% of his time in direct support of the 40 or so military charities who have less global reach than the League. Work 15 now underway to consider the longer-term future of the League beyond the FCDO Programme which is due to finish In March 2024. This proJect will consider both future sources of funding and the future role of the League supporting both declining numbers of pre-independence veterans & widows and contemporary veteran5 around the commonwealth. Related parties One of the Trustees is a150 a trustee of another or8anlsatlon wlth which the League has dealin8s. This Is detailed In note 21 to these financial statements. Audltors The Trustees have confirmed that so far a5 they are aware, there Is no relevant audlt Information of which the League's auditors are unaware, and that they have taken all steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit informatlon and to e5tab115h that the League's auditors are aware of that information. Mazars LLP have si8nified their willingness to continue in office and a resolution to re-appoint them as uditors will be proposed at the forthcomin8 Executlve Committee Meetin8. This report has been prepared In accordance with the special provisions of The Companies Act 2006 relatin8 to small entitles. Approved by the Trustees on 8th July 2021 and slgned on their behalf by Major U Cleminson BEM TD Trus ee Mrj M Ar(. er Trustee io
Independent auditor's report to the Trustees of Royal Commonwealth Ex-services League Opinion We have audited the financial statements of Royal Commonwealth Ex-services League (the 'charl) for the year ended 31 March 2021 which comprise the Statement of Flnancial Activities, the Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of 5igniflcant accounting policies. The financi31 reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kin8dom Generally Accepted Accounting Practice). In our opinion, the financiol statements.. give a true and fair view of the state of the chariV5 affairs a5 at 31 March 2021 and of its income ond expenditure for the year then ended,. have been properly prepared in accordance with United Kingdorn Generally Accepted Accounting Practice; and have been prepared in accordance wlth the requirements of the Companies Act 2Q)6. Basls for oplnlon We conducted our audit in accordance with Internatlonal Standards on Audltlng IUKI IISAS IUKII ond appllcable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial Statements in the UK, includin8 the FRC'5 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 sufflcient and appropriate to provlde a basis for our opinion. Conclusions relatlng to golng concern In auditin8 the financial stalements, we have concluded that the tru5tees' use of the Boin8 concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not idenlified any material uncertalnties relating to events or condition5 that, individually or collectively, may cast significant doubt on the charity's ability to continue as a goin8 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 descrlbed in the relevani sections of this report. Other Informatlon The other information comprises the information included In the annual report, other than the flnancial statements and our auditor'5 report thereon. The trustee5 are responsible for the other information. Our opinion on the financial statements doe5 not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance concluslon thereon. In connection with our audit of the financial statements, our responsibility is to read the other Information and, in doing so, consider whether the other information is materially inconslstent 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 there 15 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 thi5 Other informatlon, we are required to report that fact. We have nothing to report in thi5 regard.
Independent auditor's report to the Trustees of Royal Commonwealth Ex-services League Oplnlons on other rnatters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Report which includes the Directors, Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is conslstent with the financial statement5; and the Directors, Report included within the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In liBht of the knowledge and understanding of the charlty and its environment obtained in the course of the audit, we have not identified material misstatements in the Director5, Report included within the Trustees, Report. We have nothing to report in respect of the followlng matters In relation to which the Companies Act 2006 requlres us to report to you if, in our opinlon.. adequate and proper accounting records have not been kept, or returns adequate for our audlt have not been received from branches not visited by u5,. or the financial statements are not in agreement with the accountlng record5 and returns,. or certain disc105ure5 of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we requlre for our audit. Responslbllltles of Trustees As explained more fully in the Irustees, responsibilities statement set out on page 5, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl 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 financlal statements that are free from material mSsstatement, 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, disclosin8, 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 operatSons, or have no realistic alternotive but to do so. Auditorf5 re5ponslbllltles for the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements a5 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 a55urance but Is not a guarantee that an audit conducted in accordance with ISAS IUKI w511 alway5 detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered materlal if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Irregularities, intluding fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilitie5, Outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with law5 and regulations related to the Charities Act 2011, the Charities Statement of Recommended Practice, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. 12
Independent auditor's report to the Trustees of Royal Commonwealth Ex-services League Auditorf5 responslbllltles for the audit of the financlal statements {contlnued) We also considered those law5 and regulations that have a direct impact on the preparation of the financial statement5, such as the Companies Act 21XJ6. We evaluated the trustees, and management's incentives and opportunities for fraudulent manipulation of the financial statements lincludin8 the risk of override of controls) and determined that the principal risk5 were related to posting manual journal entries to manipulate financial performance, management bia5 through judgements and assumptions in Significant accountln8 estimates, in particular in relation to use of restricted funds, and SiBnificant one-off or unusual transactions. OUT audit procedures were designed to re5pofbd to those identlfied risks, including non-compliance wlth laws and re8ulations lirregularitiesl and fraud that are material to the financial statements. Our audit procedures included but We not limited to: Dlscussing with the trustees and management their pollcies and procedures regardin8 compliance with laws and regulations; Communicating identified laws and regulations throughout our engagement team and remaining alert to any indlcations of non-compliance throughout our audit,. and Considering the risk of acts by the charity which were contrary to appllcable laws and regulations, includlng fraud. Our audlt procedures In relatlon to fraud included but were not limited to: Making enquiries of the tTUStees and mana8ement on whether they had knowledge of any actual. Suspected or alleged fraud. Gaining an understandin8 of the internal controls established to mitigate risks related to fraud,. Oiscussing amongst the engagement team ihe ri5k5 of fraud,. and Addressing the risk5 of fraud throu8h management override of controls by performin8 journal entry testing. There are inherent Ilmltations in the audit procedures descrlbed above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As wlth any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentlonal omissions, misrepresentations or the override of internal controls. A further description of our responsibilities for the audit of the financial statement5 15 located on the Financial Reporting Council's website at www.frc.or auditorsres onsibilities. This description forms part of our auditorfs report. Use of the audit report This report is made solely to the charitV'5 members as a bo¢Jy 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 charitv's members those matters we are required to state to them in an audltor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume re5pon5ibility to anyone other than the charity and the charity's members as a body for our audit work, for this report, or for the opinions we have formed. signed.. Rlchard Bott (Senior Statutory Audltor) for and on behalf of Mazar5 LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton SMI 4JQ Date: 29 July 2021 13
Royal Commonwealth Ex-services League Statement of financial activlties For the year ended 31 March 2021 Notes Unrestrl¢ted De$i£nated Restricted Total funds 12 months 10 31 Mar 2021 Total fund5 15 months to 31 Mar 2020 Inote Zl fund5 funds funds In¢ome Donatlon5 leBade5 Donations. grants and appeals FCDO grant Le8acies 648,651 10,000 785,547 2,092.184 1,444,198 2,092,184 1.898.111 2.979,040 262,374 Incomq fiom Sn¥e51ffl¢nts 19.044 22 63 19,129 43,760 Tol•l Income 667,695 10,022 2,877,194 3.555,511 5,183,285 Exp•ndliur• ExpEndltur• ofi ralslrb8 fundi Fundr3lsln8 COSIS Poppy supplles and Irel8ht charges 45,782 45,782 54,852 37,013 37,013 42,935 82.795 82,795 97.787 Expenditure ofi ch4dt•bl• Brtlvltles RCEL wclfare 8rants FCDO grant 1,110,610 99 791,454 2,583,496 1,902,163 2,583,496 2,724,937 2,48Q,966 Tot•1 ?xpendlture 1.193,405 99 3,374,950 4,568,454 5,303.690 Net lexpendhyrelllncom• before Investment 8•lnsllloss•sl 1525,7101 9,923 1497.1561 11.012,9431 1120,4051 G•ln$lllosse51 on InStMen 143,880 143,880 113,9151 Net lexpendlturelllncorne befor¢ tr•n$f4rs 1381.8301 9,923 1497,1561 1869,0531 1134,3201 Tiinslers between tunds 130,0001 30,000 Net mov•ment Inlunds 1411,8301 39,923 1497.1561 1869.0631 1134,3201 Total funds breught forward 1176,291 79.545 643,696 2,899,532 3.033,852 Tol•l funds carrled forwird 16.A7.18,19 1,764,461 119,468 146,540 2.030,469 2,899,532 There are no re£o8nised Kain5 or losses other than those Included above. All amounts relate to continuing activltles. 14
Royal Commonwealth Ex-services League Balance sheet as at 31 March 2021 2021 2020 Notes Flxed assets Intangible assets Investments 12 13 1,660.943 1,748,388 1,660,943 1,748,388 Current assets Debtor5 Cash at bank and in hand 14 38,818 409,351 42,331 1,163,102 448,169 1.205,433 Credltors: arnounts folllng due wlthln one year 15 178,6431 154,2891 Net current assets 369,526 1,151,144 Net asset5 19 2,030,469 2,899,532 Represented by: Unrestricted funds De518nated funds Restrlcted funds 16 17 18 1,764,461 119,468 146,540 2.176,291 79,545 643,696 2,030,469 2,899,532 These financial statements have been prepared in accordance with the special provisions of the Companie5 Act 2006 relating to small entities. Approved by the Trustees on 8 Juw 2021 and signed on their behalf bv Major U Cleminson BEM TD Trustee Ai £ knJc7 Mr l M Archer Trustee 15
Royal Commonwealth Ex-services League Statement of Cash Flows for the year ended 31 March 2021 12 months to 31 Mar 2021 15 months to 31 Mar2020 Cash flows from operatln8 artivities Net {expenditurel Adjustments for.. Amortisation IGainl/loss on investment5 Interest income Trade and other debtors Trade and other creditors (869.0631 1134,320) 112 13,915 143,7611 18.2061 33,252 1143,8801 119,1291 3,513 24,354 Cash flows lused In) Dperatln8 artlvltles 11.004,205} 1139,0081 Cash flows 8ener?led in investing actlvltles Purchase of investments Proceeds on dlsposal of investments Interest received 118,6751 250,000 19,129 149,1451 I,O.0C0 43,761 Cash flows ienerated from Investln8 actlvltles 250,454 994,616 Net Idecreaselllncrease In cash (753,7511 855,608 At l Apr2020 Movement In cash At 31 Mar 2021 Cash at bank 1,163,102 1753,7511 409,351 Purchases of investment5 and proceeds on disposals of investments include transltions made by the investment managers in order to change the equities held by the portfolio as well as additions to or withdrawals from the portfolio. 16
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month perlod ended 31 March 2021 Accountlng pollcle5 Basis of preparatlon The financlal statemenls 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 IFRS 1021 (effective l January 20151- Icharities SORP IFRS 10211. The Finance Sub-committee has reviewed detailed cash flow projections to l October 2022 and have agreed detailed budgets for the year ended 31 March 2022. Both sources of Income and types of expenditure have been reviewed. Whilst one of the main charitable purposes of the charity is to provide grants to veteran5 and widows in need, the level of this necessary expenditure is at the discretion of the Trustees and can be adlusted durln8 the year. The Trustees have also consldered the charity's working capital and capital expenditure requlrements. Finally* Trustees have considered the impact of Covid-19 both operationally and financially. As a result of the fore80ing the trustees ore satisfied that it is appropriate to prepare the accounts on a golng concern basis. Royal Commonwealth Ex-servlces Lea8ue meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially reco8nised at historlcal cost or transaction value unless otherwise stated in the relevant accounting policy notels). Income All income Is included in the Staternent of FinancSal Activities when the Charity 15 legally entltled to the income and the amount can be quantified with reasonable accurary. expendlture All expenditure is included on an accruals basls. Where costs cannot be directly attrlbuted to particular headin8S they have been allocated to activities on a basis consistent wlth the use of the resources. Fundraising Costs are those incurred in seeking voluntary contributions. Support costs are allocated between activities based on the use of resources. Grant expenditure Grants are included when the Charity is comrnitted to makin8 the payment and the recipient has been notified of the grant. Fund accounting Unrestricted funds are available for use at the discretion of the Trustees In furtherance of the general objectives of the Charity. Designated funds comprise unrestrlcted funds and have been set aside by the Trustees for particular purposes. 17
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 Accountlng pollcles (contlnued) Restricted funds are funds which are to be used in accordance with Specific restrictions imposed by the donor5. Depreclatlon Depreciation of fixed a55et5 is provided so as to write off their costs over their estimated useful lives and 15 calculated at the following rates:. Office equipment- 20-25% per annum on a straight line bas15 Computer equipment- 33% per annum on a straight line basis Amortlsatlon Webslte and software cost5 are capitali5ed a5 intangible fixed assets and amortisation is provided so as to write off their costs over their estimated useful lives and is calculated at the followlng rate.. Web51te- 20% per annum on a stralght line basls Investments Investments are stated at market value at the balance sheet date. The statement of Financlal Activitie5 includes the net gains and losses arising on revaluations and disposals durin8 the perlod. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due, 1.10 Creditor5 and provlslans Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recoBnlsed at their settlement amount after allowing for any trade discounts due. 1.11 Flnanclal Instruments The Charity only has financial assets and financial liabilitie5 of a kind that qualify a5 basic financial instruments. Basic financial instruments are initially recognised at transaction value and Subsequently measured at their settlement value. 1.12 Foreign currency translation Tiallsaction5 in foreign currencie5 are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchan8e ruling at the balance sheet date. All difference5 are taken to the Statement of Financial Activities. 18
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 Comparatlve Statement of Finan¢lal A¢tl¥ltles- IS month perlod ended 31 March 2020 Unr•strlcted D•slgnated funds funds Restrlrted Total fund5 funds 2020 Income Donatlons and lega¢les Oonatlons, grants and appeals FCDO grant Legacies 908,296 989,815 2,979,040 500 1,898,111 2,979,040 262,374 261.874 Income from Inv•stments 43,036 116 608 43,760 Total Incorn• 1,213,206 116 2,969,963 5,183,285 expendlture Expendlture on ralslng funds Fundraising costs Poppy supplies and frei8ht charges 54,852 42,935 S4,852 42,935 97,787 97,787 Expendlture on ¢harlt4ble octlvltles FCDO grant Welfare 2,480,966 1,055,605 2,480,966 2,724,937 640,083 1,029,249 Total exp•ndltur• 737,870 1,029,249 3,536,571 5,303,690 Net lexpendlturelllncome before Snve5tment 8aSns 475,336 11,029,133) 433.392 1120,4051 {L055e51 on Investment assets 113,9151 113,9151 Net lexpendltur¢lllncome before transfers 461,421 11,029.1331 433,392 1134,3201 Transfers between funds 114,7981 30,000 115,2021 Net movement In funds 446.623 1999,1331 418.190 1134,3201 Total funds brou8ht forward 1.729,668 1,078,678 225,506 3,033,852 Total funds carrSed forward 2,176,291 79,545 643,696 2,899,532 19
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 Donations, Grants and Appeals Unrestrlcted funds Deslgnated funds Restri¢ted fund5 12 month5 to 31 Mar Z021 Total funds Afflllation fees 4CII 41Xl Donatlons from Member Or8anisatlons Donatlons In kind from Member Organisallon (see note al Contribution5 from external funds to admlnlstratlon Isee note bl Other donations 242,652 10,000 252,652 72,928 72,928 55,473 55,473 277.198 785,547 1,062,745 648,651 10,000 785,547 1,444,198 Unrestrl¢ted funds De518nated funds Re5trlcted funds 15 months to 31 Mar 2020 Total funds Affiliation fees 400 Donatlons from Member Organlsations DonatlDn5 in klnd from Member OrganisatSon 15ee note al Contributions from external funds to administration (see noie bl 242,574 242,574 95,600 95,600 56,624 56,624 Other donations 513,098 989,815 1,502,913 908.296 989,815 1,898,111 a. The donations in kind from The Royal British Legion were made up as follows'.- 12 months to 31 Mar 2021 15 months to 31 Mar 2020 DonatSon of lapel poppie5 Free office accommodation and Services 30.198 37,278 42.730 58.322 72,928 95.600 20
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 Donations, Grants and Appeals {continuedl b. The following charitles have made donatlons to contribute to the League's administration c05tS.'_ 12 months to 31 Mar 2021 IS month5 to 31 Mar 20ZO Royal Alr Force Benevolent Fund ABF The Soldlers. Charity 15,473 11,624 20,0fy3 25.000 The Offlcers. Association 20,000 20,Th)0 55,473 56,624 Income from Investment$ Unrestrlcted funds D•slgnated funds Restrlrted lunds 12 months to 31 Mar 2021 Total funds Divldend Income 14,771 14,771 Interest on flxed dep051t Other bank deposit Interest 3,676 3,676 597 22 63 682 19,044 22 63 19,129 Unrestrlcted funds Desl8nated funds Restrlcted funds 15 months to 31 Mai 2020 Total funds Dividend Income 30,373 30,373 Interest on fixed deposit 9,354 9,354 Other bank dep051t interest 3,309 116 608 4,033 43,036 116 608 43,760 21
Royal Commonwealth Ex-services League Notes to the flnanclal statements For the 15-month period anded 31 March 2021 Fundralsln8 Costs 12 months to 31 Mar 2021 15 months to 31 Mar 2020 Direct fundralsln8 Costs Support ¢0st$15ee note 81 5,703 40,079 2,532 52.320 45,782 54,852 All amounts relate to unrestricted funds in both periods. RCEL welfare grants Unr•strScted funds Desllnatod fund5 Restrlded fund5 12 months to 31 Mar 2021 Total funds Fund5 adrnlnlstered and dlsbursed on behalf of other charltles 718,759 718,759 Grant5 to Member Organlsatlons 988,674 72.551 1,061,225 Prolect Brants 14,467 14,467 Welfare tour ¢ostS 12,5591 110,027 12,5591 Support costs (see nore 81 99 145 110,271 1,110,609 791,45S 1,902,163 15 months to 31 Mar 2020 Total funds Unre5trlrted funds Des18nated funds Restrlcted tunds Funds adminlstered and disbursed on behalf of other charltles 925,617 925,617 Grants to Member OrBanisatlDns 286.035 I,000,o()J 124,568 1,410,603 Project grant5 11,775 11,775 Welfare tour costs 35,158 35,ISS Support eost515ee note 81 307,115 29,249 5,420 341,784 640,083 1,029,249 1,055.605 2,724.937 22
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 Welfare l¢ontlnued) The number of individual cases asslsted during the period was as follows:_ 2Q21 2020 Number Number From the Charity's own funds Funds administered and disbursed on behalf of other charities IAgency workl 5,231 703 7,305 897 5,934 8,202 The above totals reflect the number of cases whlch recelved dlrect payment from the Charity as dlstlnct from bulk grants to Member Organisation5 for local benevolence work. It should be noted that due to the Government of India Forelgn Contribution Regulation kt IFCRAI 2010 and 2020, RCEL has been unable to send further funds to 1,222 Indian beneficiarie5. In addition, due to 155ue5 Wlth governance, grants could not be sent to 222 veterans in Tanzania this year hence the significant fall In cases assisted. Funding for both India and Tanzania could not therefore be claimed from FCDO, however the number of beneficiaries in some other countrie5 has increased drlven by the addition of widows and increased awarene55 of the programme. Further detalls of grants to Member Organisatlon5 and Project grants can be obtained from the Charity's Annual Report and copie5 of this publlcatlon can be obtained from Lt Col CF Warren1Secretary Generall, Royal Commonwealth Ex-servlces League, 199 8orou8h High Street, London, SEI IAA. FCDO Unrestrlcted funds Oeslinated funds Restrlct•d funds 12 months to31 Mar 2021 Total funds 15 months to 31 Mar 2020 Total funds Income FCDO incoffle - wellare 1,919,237 1,919,237 2,420,547 FCDO income - operatlonal 172,947 172,947 558,493 2,092,184 2,092,184 2,979,040 Expenditure FCDO welfare Brants 2,159,989 2,159,989 2,CQ8.113 FCDO other costs 423,507 423.507 472,853 2,583,496 2,583,496 2,480.966 23
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 Allocatlon of support costs 12 months to IS months to 31 Mar 2021 31 Mar 2020 Total fund$ Total funds Welfare CDO other ¢osts Fundralsln8 staff costs (see note 91 Confeiences & meetln8S Office accommodatlon & services 76,927 2,981 3,651 1,427 357,177 2,266 31,865 17081 15,3281 3.880 14.075 21,284 406 455,388 5,653 44.369 547.973 49,442 76,753 74,334 38,970 8,853 75 Travel & subslstence cost5 794 Safe8uardin8 Delivery expenses Other costs 15,3281 3.880 19,042 17,981 6.076 4,842 20,151 Legal costs Audltor's remuneratlon 9,050 2,385 16,277 Audlt 6,359 4,725 3,283 3,132 2,327 1,617 9.491 10,650 Other service5 11,230 18,282 4,900 27,149 4,663 Annual report Tolal Isee notes 5 and 61 110,271 423.507 40,079 573.857 866,957 Governarsce costs comprise audit and accountancy fees and the cost of preparing the annual report,. these total £32,67312020- £42,4621. Where cost5 cannot be directly attributed to particular headin85 they have been allocated to activities on a basis consistent with the use of the resources. St•ff costs 12 months to 31 Mar 2021 Total funds 15 months to 31 Mar 2020 Total funds Wages and salarle5 Social security costs Pension costs (see note 111 Staff insurance and health care 326,333 32,548 30,667 36S,9OJ 39,056 43.189 12,804 13,932 Overseas project offlcers Icontraci staln 53,036 85,896 Staff costs 455,388 547,973 The number of employees throughout the period was 11115 month period ended 31 March 2020.. 101 24
Royal Commonwealth Ex-services League Notes to tho financlal statements For the 15-month period ended 31 March 2021 Staff cost5 Icontlnuedl Staff costs overall have decreased reflecting a 12 month versus 15 month comparison. Costs per month have increased sllghtly year over year due to the addition of one FCDO-funded p05t, a full year as opposed to partial year, of all FCDO-funded posts and a halldover period between key staff due to retirement. One employee received emoluments of between £70,¢)00 and £79,999 per annum in both years. Key management personnel are the Secretary General, the Controller Finance and the Controller Welfare. The total employee benefit5 of the key management personnel of the Charity for the year ended 31 March 2021 were £216,035115 month period ended 31 March 2020: £240,590). io Trustees No Trustees received any emoluments durlng elther period. Durin8 the pefiod 2115 month perlod ended 31 March 2020.. 111 of the Trustees were reimbursed for travel expenses, totalling £220115 month period ended 31 March 2020.. £3,229), The decrease reflects the impact of the Covid pandemic which has necessltated holding virtual rather than face.to-face meetings. li Penslon costs The 7 members of staff based in the UK benefit from a non-contributory flxed percentage lof salary) pension scheme. During the year the Charity paid contributions of £30,667115 month period ended 31 March 2020.. £43,189). 12 Intsn8ible Ilxed assets Web51te Cost Balance at l April 2020 and 31 March 2021 2,063 Deprec5atlon Balance at l April 2020 and 31 March 2021 2,063 Net book value At 31 March 2021 At 31 March 2020 25
Royal Commonwealth Ex-services League Notes to the financlal statements For the 15-month period ended 31 March 2021 13 Investrnents 2021 2020 At l January Additlon5 Disp05als Reallsed and unreallsed11055e51 on portfolio Movement in cash 1.748.388 18,675 1250,0001 43,8801 2,713,L59 49.144 11,crfJo,0001 113,9151 Market value at 31 March 1,660,943 1,748,388 Hlstorl¢al cost 824,334 1,074,334 The portfolio did not Include any individual 5hareholdin85 in exce55 of 5% of the total. 14 Debtors 2021 20ZO Accrued Interest Prepayments Other debtors 1,006 37,812 1,495 38,046 2,790 38,818 42,331 26
tyD
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 18 Restrlcted funds AtIApr 2020 Income Exp•ndlture Transfers At31 Mar 2021 FCDO The Askari Appeal Prince Phillp Lodge Fund Auchlnleck Appeal Legacy.. Indian Army A55OClatlon TRBL Women's Sectlon 811nd Veteran5 UK Queen Mary's Roehampton Trust Afrlcan Veterans M St I Way Charilable Trust Funds admlnlstered on behalf of other charltles la8enty workl Other reslricied grants 498,074 53,304 163 2,092,184 211 12,583,496) 1721 6,762 53,443 163 21,469 31,031 17,500 218 1721 21.615 31,031 17,500 10,000 19.690 Is.000 10.000 4,000 717,318 iio,0001 119,6901 Iis.0001 15.6881 14,0001 1718,7591 4.312 13,155 11,714 9,000 9,173 118,1731 643,696 2,877,794 13,374,9501 146,540 Atllan 2019 Income Expendlture Tr•nsfers At 31 Mar 2020 FCDO 2,979,040 3,540 12,480,966) 16,4301 498,074 53,304 163 21.469 31,031 The Askarl Appeal Prince Phi1Sp Lod8e Fund Auchlnleck Appeal Legacy.. Indlan Army A55oclation Gurkha Welfare Trust TR8L Women's Section Blind Veterans UK Queen Mary'5 Roehampton Trust Royal Navy Royal Marine5 Charity Funds administered on behalf of other charitie5 (agency workl Other restricted 8rantS 71.396 163 115,2021 21,239 31,031 12,830 30,0 320 1901 112,8301 112,5001 125,2001 120,0001 152,9381 1925,6171 17,500 25,200 20.000 30,000 911,863 22,938 26,909 13.155 9,000 9,000 225.506 3.969,963 13.536,5711 115,2021 643.696 29
Royal Commonwealth Ex-services League Notes to the financial stataments For the 15-month period ended 31 March 2021 18 Restrlcted funds (contlnuedl The transfer5 to/from restricted funds reflect income initially recorded a5 being unrestricted and reclassified as being restricted on further review and similarly restricted expenditure on 'Other restricted grants, previously recorded withln unrestricted expenditure. In January 2019, the League signed a Contract with the Department for International Development IDFIDI which has slnce been merged with the Foreign and Commonwealth Offlce IFCOI to form the Foreign, Commonwealth and Development Office IFCDOI lo deliver £11.7 million of UK Aid to Commonwealth Veterar)s over a 5-year period. The Askari Appeal is for welfare for veterans of The King'5 African Rifles and other East African armed forces veterans who served the Crown. The Prince Philip Lodge Fund is for the provision of temporary accommodation in Kent for Commonwealth ex-servicemen visitinglreturnin8 to the UK. The Auchinleck Appeal is foi individual welfare for veterans of the Brit15h Indian Army, Navy and Air Force who served the Crown. Indian Army Association- £80,OCQ was distrlbuted In 2014 but no further distributlons were made in either period. These funds will be spent on beneficiaries as and when the need arises. Gurkha Welfare Trust The Trust has asked RCEL to dlstrlbute welfare payments to thelr eliglble veterans and widows Ilvlng In Burma. All reside in the Maymyo area. The grant IS to cover the 3-year period of 2017- 2019. Burma Star A550ciation - Many of those 5UPPOrted by RCEL are holders of the Burma Star medal. On an annual basis, The Burma Star Association considers awardin8 a grant to RCEL to support those who are Burma Star holders around the world but who they are unable to reach. TR8L Women's Section A restricted grant ha5 been awarded to widows in India and Le50tho. Historically this has been £10,000 each year. In 2016 RCEL received an addltional grant of £50,000 for the followin8 5 vears of 2017-2021 at a rate of £10,000 per year. Blind Veterans UK A restricted 8rant is awarded to their beneflclaries across our Member Or8anisation5. All of the annval 8rant15 expended each year. The Queen Mary's Roehampton Trust fund represents funds to support disabled veterans. The African veterans fund represents funds raised by orse of our veterans in Ghana, Joseph Hammond, to 5UPPOrt veterans in Ghana and other countries in West Afrlca. M St J Way Charitable Trust fund represents funds to 5UPPOrt veteran5 in Lebanon. The RAF Benevolent Fun(1 represents funds to support RAF veterans. The Royal Navy Royal Marines Charliy fund- represents funds to support Na and Marine veterans. Fund5 administered on behalf of other charities This is a Significant area of work undertaken by RCEL. RCEL supports over 40 military charities that do not have the global reach to support their veterans across the world. Through the network of RCEL Member Organisations welfare cases are reported, investigated and beneficiaries supported in whichever country in the world they are living. There 15 likely to be a discrepancy between the incoming and outgoing resources due to annual reporting (some fund5 are received before the period end but not paid out until the following period), beneficiarie5 either passing away or no longer being eligible Iso that money has to be refunded to the donor charity) or monèy held until good governance is completed in country. 30
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 19 Analysls of net assets between fvnds Unrestrlcted funds Deslgnated funds Restrlcted funds Total funds 2021 Investment5 1,660,943 1,660,943 Current Assets 182,161 119,468 146,540 448,169 Current liabilitie5 178,6431 178,6431 1,764,461 119.468 146,540 2,030,469 Unrestrlcted Deslgnated funds funds Restrlcted funds Total funds 2020 Investments 1,748,388 1,748,388 Current assets 482,192 79,545 643,696 1,205,433 Current IlabllltSes 154,2891 154,2891 2,176,291 79,545 643,696 2,899,532 20 Funds held on behalf of Member Or8anlsatlons At 31 March 2021 the League held bank balances on behalf of 5 Member Organisations totallin8 £96,934 131 March 2020.. E98,7181. The Lea8ue has no control of these funds which it administers on behalf of the organisations concerned and therefore these funds have not been incorporated into these financial statements. 21 Related parties Donations have been received from these related parties durlng the period: 12 month5 to 31 Mar 2021 15 months to 31 Mar 2020 Total fund5 Total funds The Royal British Le8ion annual donatlon 240,000 240,CKJO The Royal Brit15h Legion15ee note 3a) The Royal Britlsh Legion Iwomen's section) The Royal Britlsh Legion Iconferencel The 8urma Star Association 72,928 95,6(X) io,oc(I io,c 10,000 31
Royal Commonwealth Ex-services League Notes to the financial statements For the 15-month period ended 31 March 2021 21 Related parties (continued) TRBL - The Royal British Legion ITRBLI are one of the Founder Members of The League. Every beneficiary of a RCEL grant or beneficiary of Agency WO undertaken by The League is eligible for support from TR8L. TRBL'5 prime focus are those eligible beneficiaries who reside in the UK and The League support5 those who reside in Commonwealth Countries and other countries where eligible beneficiaries have chosen to live. In return for the support provided overseas by RCEL, TRBL as a Founder Member and through h15torlcal precedent and agreement provide5 office accommodation, services and an annual grant of £240.000 for welfare support to Commonwealth Veterans and their widows. The Chairman of TRBL Is a Trustee of RCEL. The individual Trustee concerned changes as the Chairman of TRBL changes. The Chairman of TRBL 15 also a Trustee of The Officers, Association10A1. RCEL undertakes restricted Agency work on behalf of the OA for specific beneficiarie5 overseas and recovers the cost of this work. ZZ Posi balance sheet event On 21 April 2021, the UK Government announced that fundin8 for the Commonwealth Veteran5 Programme had been protected durin8 the FCDO business planning proce55 whlch encompassed a signlflcant reduction in overall Official Development Assistance IODAI spend. Furthermore, because of the increase In beneficlary numbers on the programme, and the requirement to reduce the size of Sndividual 8rants to meet the programme budget, an additional £219,544 was provlded by FCDO to enable gionts to be maintained at the same level. At this stage it is not clear if these fund5 will be additlonal to the ori8inal bud8et of £11.7M or offset against years 4 ané S of the programme. 32