cha1Y numbor: 1177059 Tho Morclan Reglmgntal Charlty TTustses' raport and financial statements For th8 year ended 31 March 2021 rfIDAINS ACCOUNTAWTS
The mol8n Rgglm•Thtsl Ch•rlty Contents Roforonv and adrnlnlstratl detalls of th• Clo, It$ Tru*tg•s •nd adVIr¥ Tw8tg•6' rnport Indopendont examlnof8 rnport Sl•t•m•nt of flnJncl•l aotlvltlo¥ Bal•n¢o shoot Not•B to th• flnanclal 8tat•m•nts 10-24
The Merclan R•glm•ntal Charlty Referen and admlnlstratlvg dots11s.of thè CIO, Its Tiu8t¢o8 and advlaern Forlho yoar gndgd 31 M'arch 2021 TNstso$ Lt Gen I Cave C8, Chalrman and Colon81 of the R8gim8nl Brlg S 8anlon OBE, Deputy Colono1 Hermage Brig S B811 QVRM, Deputy Co181 RRCM Brig P Kimber OBE, Deputy Colonel Flnance Col A Walton MBE Ll Col N Kelly OBE. C01 Marcian Ifeslgned 8 September 20201 Lt Col M Davls, C02 Mercian Ireslgn8d 8 August 2020) Lt Col F Cutlle MBE. C04 Merdan Ire8ignod 9 November 2020) Lt Col (Reld) M Jack50n OBE Lt Col IR81d) N IAa¢kinto8h Lt Col R Spalton, C04 Merclan {appolnlad 9 November 20201 Lt Col D Canham OBÉ. C01 Merclan18ppolnted 8 S8ptsmber 2020) Lt Col R Grover MBE, C02 Merclan {appointsd 8 August 20201 Mr M Elliott Charlty rgglst•r•d number 1177059 Prlnclpal offl Rggimanlal Headquarter8 The Mercian R8giment Whittington Barracks Llchfield Stsffordshfjre WS14 9TJ Flnanclal socretsry Mrs P Mear Accountant• Dalns LLP 15 Colmore Row Blmiingham B3 2BH B•nkgrn Uoyd8 Bank plc 22 Condtsit Street Lichfield WS13 6JS CAF Bank 25 lQngs Hill Avenue West Mallin9 ME19 4JQ Ror418ank of Scotland 200 FOer Avenue Farnborough GU14 7JP InVtont Managors Invostec Wealth 8nd Invesknent 30 Grasham Street London EC2V 7QN Page 1
The Morolan R8glm•ntal Charlty TruBtses' Toport For the y•ar •nd•d 31 Mar¢h 2021 The Trustees present Ihelr annual report together with tha fin8nc4al stalements of the CIO for th8 y8or 1 Apr41 2020 to 31 March 2021. Obj•ctlv•s and aetlvltlo• . ObJ•ctlvo8 and alms The prSnclp81 oblectlves of the The Mercian R8gimentsl Chadty are.. Promot8 the efflclency of th6 Reglm8nL Preserve m8moria15 and chap8ls of th8 Reglment and the fomer Regiments. in¢ludlng pre8erv8tbn In perpetUY of the Crlch Memori81 ond its grounds. Make grant8 to any othgr charfty or organlsallon lor the beneflt of the Raglment or former Reglments. Provide for the upkeep and maintonance of any museum of or related lo the R8gimenl or fomer Regimènts and their contents and In acquirlng new exhiblt8. Provide for tho pr8s8rvation, repalr, malntenance, replac8menl. safe custody and exhlbluon of chattels, trophles and mèmorials ofthg Regiment and the ffmer Regiments. Prow(Je for th8 compilation and reproductlon by prlntlng. photoJr8phlng, or olheNlse of record8. hlstories and documents of Ihg RegSment and f(vmer Regim8nl8, Inchjdlng th'8 oxpen8es of a Reglm6ntal Journgl. newsletter and website. Maintalnlng and preseMng the trad6tlon8 and splrm of the Reglment and the fornier Reglmenl8 and maintaining communi¢oth)n tsetween pa81 and present membars of the Reglm8nl 8nd fomier Reglments. In 8ettlng obl8ctlv68 and pianning for activ4tl8s, the Tru8tett h8vè given due conslderall¢)n to general guidan¢e . publlshed by the Charfty Commission relatSng to publlc benofil. Includlng th8 guidance 'Public benefit: running charlty IPB21'. b. Maln •¢tlVlt1 undertaken to furtherthe CIO'J purposu for tho publlc ben•fft The main acliwtlgs of the charlty to furthér its charitable puTp0898 for the publlc baneflt hav8 b98n undertaken In thè following arwJ by: Provldlng orants for the aflici8ncy of the Re9lment, ond lo any other Regimental Charity of the Reglmenl, for the benef of the Reglment or the formgr Rgglments. Funding the malntenance and upkeep of the m8morio18 and chape18 of the Regiment. and its fomier reglments, Including th8 The Crich Memorial. Funding the malntsnance and proservalion of the chatte18 of the Regimant and the formgr reglments. Servlng Members of tha Mer¢ian Regiment are entllled to appty for grants towards Adventure tralnlNJ, sport and equlpment. Oals Pay 8cheme psentationS are given through0 the year lo all serving mombgrs of Ihe Merclan Reglmenl to keep them informed of the b8n8flts of donatlng to their Regim8nlal Charllios. Fundlng 8UPPDrt 18 also gwen to kay Rgglmontal Event8, Includlng Remgmbrancg and Freedom Parade8. Page 2
Th• M•rci•n R•glmental Charfty Trn8tees' rnport {contlnued) For th• year •ndod 31 March 2021 Achl•vwnonts and pgrft>miancg . Rèvlow of •¢tlvltl•s ol thg CIO The largg8t portlon of income for The Mercian Regimentsl Charlty Is monthly conlribulions made by semng members of The Merclan Reglmenl under a salary sacrifice scheme called th& Da8 Pay Schame. Reservists lolned the scheme In April 2018. The income is paid to. thè Reglmenlal Chaflty and 51% 18 translerred to The Merclan Benevolent Charity. The Regimental Charity's. share thls financial year wa8 £47,734 balng o sllght Incre88a from the prevlous financi81 year12019'. £45,330.. 2020: £45,756). Thg Trusle8s appToved and paid for the Comm(we81th War Graves to renovate an antecedent Memo81, known as Gheluvell last ffinanclal y88r. Further lundralsing was carripd out by Ihe Mercl8n Reglment Museum to enhance thg Gheluvell Mèmorlal which wa8 completed and unveiled In tlmg for R8m6mbrance Day. Du8 to the pandgmlo many 9vents for h05ting and fundra181ng had to be poslpon8d. 11 was necessary for the Trustees to re-ovaluale the budget to plan for a unique financ581 year. The Regimental ¢h8rity shop d08ed for a short period, when restrictions eased Ihe shop rgopened enabling parcals to be sent out. Crkh The m6morial garden al Crlch was completed last fin8nGial year. 88cau88 of the pandemlc p¢8ns for the garden hgvg been d61ayed, as ha8 the offlcSal opgnlng. 11 was also n8c88sary lo canc81 the annual pllgrimagg for the second y6ar. ' b. lTrv•stm•nt policy and perfomian An Invoslment strate9y for th8 Charfty was approved by the Trust88s. recugnising the long-term natur8 of the Charlty and ils obligations. The oblecuve Is lo grow tho incom8 and reserves of the Charty 118 havlng sufficient liquidty to meet foreseealile need8 in Ihg Short t8mi. Inveslec We81th and Investment was apinted Investm8nt Manager In August 2012. The inlanOn Is that Investments VAII b8 In a mulu asset in¢om8 Portfollo spread across a number of collectTrve inve8tmenl vohidas and as8et cla888s. Flnanclal t•vl•w . Golng COnM After makSng approprlatO onquirigs. the Trustees have a roasonable gxpactation that the CIO has adequate rosources to continue In op8rat4onal existence for the for88eeable futur8. For this reason. they contlnu8 to adopt the going concem bas18 in preparing the finandal ststoments. Page 3
Th• Mgrclan Rgglm9ntsl ¢harlty TrnIt. r•port {continu•dl For the yeor ended 31 March 2021 Flnanolal revlow (contlnuod) b. R•8orv•s pollcy The free re8erve8 of th6 CIO lotsllad £91,535 at Ihe balance 8he8t date12020- £73,414). The capltsl a88ets {minus the Bond FurKI) of Morctan Regimgntal Charlty assets represented thIn thé 8868ts sh811 not fall be'low £1.75m. If that level Is breached at any Ilm8, 8xp8ndllurg Shall be rgduced 80 that no further cash Is drawn down to make up any deficit of experltUre over incorne. Inslgad all Income generated by the r8malnlng capltal Bhall b re-lnvested unl51 the reserve level of £1.75m has b$en r8slor8d. Crlch Re8lrlcted Fund wlthln Merclan Roglmgntal Charlty The capllal value of the Crich Fund shall not fall bglow £300,000. If Ihal 18vel is breach8d at any time. the trustees wlll rèview and reduce expenditure andlor cause a lund.rai8ing campaign to launchéd andlor Iran81er capltal from Mercl8n Reglmentsl Charity. c. Prlnclpal fundlng The princlp818OL¢rce8 of fundlng for the Merclan Reglmentsl Charlty h88 been through th8 rec8lpt of income through Ihg salary Sacrifi'ce Scheme from serving m8mbers of lh9 M8rc48n Reglment. Th8 Charfty recelv IrMe from thg Investment Fortfolk) quarterly. The Charfly would normally recefve Income from 8ervihg members of the Merclan Reglment who lundraise by gmbarklng on varlous 8porUng ev8nts during th6 ftnanctol y9ar lo achleve Income bul th8 pandemlc hamper& not only unil moves, bul fundraisi. The Charlty enrolled In the 8m8zon 8mll8 charity giving and hop8s to rac8lve a small dlvKlend annually. Tho restdcted fund Crich Memorial Fund has benefitted from fundralslng Income vthere th8 org8nlser split the proceeds between the Mercian Benevolent Charily and Crtch. The Memorial FurKI a180 r8c8ive$ some donatlon8 from the general publlc. diredy into the charity bank account. Pago 4
Thg Mgrclan Rgglmgntsl ¢har5ty Tru8t88s' roport (oonllnuod) For tho yoar ond•d 31 March 2021 Structure, govern•nce and man#g•mgnt Con•tithtlon Oeclaratlon8 of Trust In rdatlon to The Merclan Reglmentsl Charfty 8nd Thè Mercl8n Regiment Bènevolent Charlly (The Ch8rlll88"I were made on 7th December 2006 gnd these were se8led by the Charlty Commls810 on 23rd January 2007. .Th8 charillgs were r8glstered as Ilnk8d charltlgs wlth Ih8.Charlty R8gislratlon No. 1117653. The Trust8es elethd to separalgly register The Mercian Rg9lmgnl 8engvolent Charity with effeGI from 1st April 2008, the Charity Commission agr88d to this requ88t. The chariues weTg cfealed In antlcip8llors of the formatlon of the Merclan Reglment on 21st August 2007 by the merger of the 22nd Icheshlrel Reglmenl, The Worcester and Sherwood Forester8 Regiment afid The staffordshlre Reglmgnl {The Prlnce of Wales's) together wllh elements of the Wesl Mldlands RoglmenL 8 Terrltorlal Am)y unlt. All three regular amy reglments wofked together to cre8te the Mercian Reglmenl ch8rilles and agr88d that on the fomatlon of th8 new Ragimenl they would transfer thelr ch8rf1able as8818 and r88pon8ibillt88 to th8 Charftia8. The Trustoes agr88d lo transfer The Mercian Regimental Charity (charity numb8r 11176531 trust lo a charitable inenrporaled organisation ICIOI. The Mercian Regirnental Charity {charity number 11770591 CIO was reg15t8red vAth Ihg Charity Cornmlsslon on 8th Fgbruary 2018. b. M8thods of appolntmant or ohetlon of Tru•t•o8 Th8 conslllutlon of the CIO, dated 8th February 2018. started wllh 15 Iruslees and states tha compositn of the Councll beSng'. The Colon81 of the R89iment. Deputy Colong18 of the Rggimenl - (Heritage, RRCM. Financ8 & Benevolenc81, Commandlng Officers, non-executive mgmbgr, plus non-voting mgmbars a secretary and trea$urgr. The trustegs ore recordod in th8 rggisler of m8mb8rs. c. Pollclos adopted for thg Inductlon and tralnlng of Trust90$ Th8 constilutlon stales that oach new thallty truslaes WIN b8 provided a copy of the current con8tltutlon and copy of the CIO'S lat881 Iru8ts88 report and 8talement of accounts. Selected tru8ts68 and staff attend 8emlnar8 ganI88d by the charW8 fund managers that Indude govgrnanoe and invostment. d. Organ181tlofial structurn Th8 trustees,. all of thom are members of the Councll of the Merclan Regiment, mo8t biannually. There are apprOpats 8ubcommittees comprL8ing of members where at 18881 iwo of them ore members of the Councll. The Bubcommittee$ have clearfy dellned written lem18 of reference deallng wlth such w8ttws as Hgritag9. RRCM. Finance and Assoclalion3', committee reports ara provlded lo the Coundl. D8tai1gd annual budg8ts aro prepared and submiited to thè Councll for approval, aclual income and exp8nditur8 15 compared with budgel forecasts. The 8ubc(>mmltte68 meat 81 leail twi¢e 8 year, over8eelng all aspects of the mana9gment of the financ95. . Flnanclal rlsk manag•m&nt The Trustees have 8 duty to Idenufy and rovlew th8.r18k8 to whlch Iho charlty Is gXP059d and to ensure approprlBte controls ar8 in place to provide rea80nable a58urance agaln81 fraud and error. FSnancial accounting by the Finance Officer is supervl8ed by the Chalmian of the Flnance Commi1189. The Charity èmploys communications officer in it8 Lichfield HQ. Charty also employs a warden at th8 Crich memori81 who Is provld8d accommodation. Pagg 5
Th• M•rclan Reglrn•ntal Charity Twstse8' report {¢ontlnued} For the y•ar •ndèd 31 March 2021 Plans for fvture porlods Presentations about th8 Merclan charltlos and salary sacrillce scheme are ptanned In the new flnanclal year, for serving personnel lo Inform them of what18 avallable ty) them and how they can donate to Ihelr charty. Chattel• These are ComSed of Regimen181 trophies. plGtur9s and sl1voare. much of whlch w9rg g11ts and whosg Cost Is not 8SCOrta5noblg. Each month a section of chattgls ar8 checked and annually a full inspecbon is carrigd out: A n8w improvad systam is being investigated for presentation to the Trustees for their consideration. 8t8tgment of Trustgos. rnspanslbllltlgl The TnJslee3 are respansible for preparin9 the Trustees, rèport and the fin8n¢i81 statements in accord8nce with opplicable law and United Kingdom kcounling Stsndards (Unitsd lQngdom Generally Accepted AGwunting Practka}. Tha 18w applic8ble to ch8ri1ies In England & Wal88 requlres the Tru8t888 to prepare financlal slatemants for aach financial year whlch glve 8 true and falr vlèw of the 8tste of affalrs of the CIO and of its incomlng iesource8 and application of resources, 1ndL19 its Inwm8 ar expendlbJr8, for that pariod. In pr8paring thesa flnandal statements, the Tru8t8es are required to= select Sultable accountlng pollcle8 and then apply them consl3tentty', observ8 th8 m8thods Bnd winciples of the Charities SORP IFRS 1021., mak8 judg8monts and accounting esbmates that are r8asonabl8 and prud8ntr stale whether applicable UK Accounting Standaid5 IFRS 1021 have been followed. subject lo any material departuros disclosed and explaineLI in the financial slatemenls., prepare the financlal $18tsments on the golng concern ba8is unless il is inapproprlate lo presume that the CIO wlll conllnue in business. Th8 Truste8S 8re T88ponsibl8 for k88ping ad8qual8 accounting records tho1 are suffi81 lo show and 8XF481n the CIO'S transgotions pnd disdose wth reasonable accurocy al any lime the financlal positi'on i)f the CIO ond enable them to gnsLre that the flnancSal'stslgmgnl8 comply.wilh the Ch8rttSe8 Act 2011, the Charlly (Accounts ond Roportsl Regulations 2008 and the provlslon$ of the Twsl dged. They are also responslble for safegLiarding th8 assets of the CIO and h8nce for taking reasonable stsps for tha prevention ond dat8cilon of fraLtd and other irregLlaritie8. Approved by order of tho m8mb8rs of the board i?f Trusta8s and 6ign8d on Ih6ir b8half by. Brlg P KlmborOBe Deputy Colonel Finan Paue 6
Th• Morclan Rtgimenlal Charlty Independont oxamlnarfs rgport For tho yoar gndgd 31 Mah 2021 Ind•p&nd•nt examln•tr• report to th• Tru•leè• of Th• Mor¢l•n Roglm•ntal Charlty (Vio CIO'I I report to the chadty Trustees on my examlnation of the accounts of the Clo for tho year 8ndod 31 March 2021. R•sponsibllitie• and ball$ ol report A8 the Tru818es of ihe CIO you ar8 responsibl8 for the preparauon of tho a¢counl$ In a¢cordance w41h the roquirernents of the Chariues Act 20111'the 2011 Act'i. I report in re8pecl of my examlnallon of th8 CIO'S 8ccounts carrled out under seotion 145 of the 2011 Act and In c8rrOng out my examinatSon I have followed tho applJcable Dlre¢tions glvgn by the Charity Comm188ion under 88cllon 145{S)Ibl of the 2011 Act. Independent.oxamlnerf8 •tstem•nl Your att8nllon 18 drawn lo the fact that the CIO has prepared the accounts in accordance wlth Accounting and Reporting by Charilles.. Statement of Recomm8ndgd Praclico applicable to charities preparlno their accounts in accordance ¥th the Flnancial Reporting StsndBrd applicoble in the UK and Republlc of Ireland IFRS 102) In preterence to the Accounting and Reportlng by Charflies.. Statement of ReGommgnded Pracllce i8gued on I Aprll 2005 whlth Is referred to In the axlant r8gLtlallons bul has bggn wlthdrawn. l urKl8rstand that this has been done In order for the accounts to provide a true and fair vtaw In accorda wlth the Generally Accepted AccounlNJ Practlce 8ffectlve for roportlng perlodB bgglnnlng on or after 1 January 2019. I have completed my examination. I confim that no matter8 have come to my attention in connectbn wlth the eX81n8110n giving ma cause lo bèlleve that in any material respect.. accoundng records werg not k8pl in respert ol tho CIO as requlred by secllon 130 of the 2011 Act; or thp accounts do nol accord t those record8. or the accounts do not comply wlth tha appllc8ble requlrements concgrnSng th8 form and content of accounts sel out kn thg Chorilh?s {Accounls arid Reports) RegulatSons 2008 other than any requirement that the accounts glva a 'trug and fairf view which is not a matter consldered as part of an independanl examination. I have no concems and have come 8cros8 no other matters In connectlon wRh the examination to whlc attention 8hould be drawn In th18 Teport In order.to enable a proper under8landlng of the a¢¢ounts lo be r8ach8d. Thls report Is made solely to the CIO'S Trusteès, as a b¢y. In 8ccordance wlh Part 4 of the Cha8 (Accounts and Rèport8} Regulations 2008. My work h85 b88n und8rtakèn so that I mlght State lo the CIO'S TnJsla8s Ihosa matters l am requir8d to 8tat8 to them In an Independent examiner's report and for no other purpose. To the fullest ex18nt p8rmitt8d by law, I do not accept or assume re3ponsAMlity to anyone other than the CIO and tha CIO'S Trustees as a body, for work or for this report. Slgned= Andrgw Morris FCA Dains LLP Blmiingham P8ga 7
Thg Mgw)an Roglmgntal Charlty statement of flnanclal actlvltlos For tho yoar ended 31 March 2021 Unre•trScted fund• 2021 Restrlctèd funds 2021 Total funds 2021 Total funds 2020 Note In¢om• Irom: Donations and18ga¢ioS Other tradin9 activrti88'. Fundraising Inve81ments 64,497 11.009 75.508 63.648 7.368 58.520 5,882 10.122 13.2SO 68.842 16.761 93.498 Total Inc¢mo Exp•ndlture on: Raising funds.. Investment management FundraiÈlng tradlng expense8 chabI0 AotivlUe8 130,385 27.013 157.398 173.907 15.536 36,680 77fv93 1348 386 2q,278 17,884 46,000 98,771 18,760 59,883 138,184 Total expondllure 119,709 33.012 162,721 216,827 Net galn8111088es) on Inv88tments 12 423,898 74686 498,584 1288,181} Nèt movomgnt In funds Roconclllatlon ol funds: Total funds brought forward Not movement in funds 424574 68,687 493,281 1311,1011 15 2,275.992 424574 351712 68,687 2,630,71M 493.261 2,941,805 (311.1011 Total funds carrled forward 15 2,700,566 423.399 3.123.965 2.630.704 The notes on pagos 10 to 24 fomi part of these flnanci81 statsmenls. Pag6 8
Thè Mèrcian Reglmental Charlty Balan¢8 shogt As at 31 March 2021 2021 21)20 Note Fixed assets Tanglble assets Invgslments 11 12 14173 2,994777 17,679 2,514,077 3,008,950 2.531.756 Currnnt assots D8btors Cash at bank and in hand 13 32.287 105.657 37,807 76,576 137.944 114,383 Credltor8.' amounts f811ing du8 within one year 14 (22.929} (15.4351 Nèt currnnt a880ts 115,015 98.948 Total n•t assots 3,123,965 2.630,704 Charlty fund8 Re8trfcted fund8 Unr881ricted funds 15 15 423.399 2.700.566 354,712 2.275,992 Total fvnds 3.123.965 2,630.704 Th8 financlal 8talements were approved outhoris8d for issue by the Twstees and slgngd on their behalf by: 8rlg P Klrnbgr OBE Oeputy Colonel Flnanco Tho nota8 on pag88 10 10 24 forvn part of these financl81 statements. Page 9
The Merclan Rog1Mtal Charlty Notes to the flnanclal statsments For the yèar endod 31 March 2021 Gongral Infomatlon The Mercian Reglmental Charity 58 8 private Charltable Incorporated Organisation ICIOI reglSt8red with th9 Charity Commisslon In England & W8188, Its reg18ter8d number and reglstered offi address are givgn on pago I, The CIO'S oblects and prSncipal 8ctIv89 are set out in the Tru8188s' Raport. Aeeountlng polld•¥ 2.1 Basls of prnparntlon of flTh•nclal $tatomont8 The financial statements hav8 been prepared In accordance wllh the Chari118s SORP IFRS 1021- Accounting and Reporting by Charitles.. Statement of Recommended Practice appl*cabl8 lo chariti8S preparing their aGcounls in accordance Imth the Fln8nc181 Reportlng Standard applicable in the UK and Republic. of Ireland IFRS 1021 {effectlve l January 20191, the Financi81 Reportlng Standgrd applicable in th8 UK and Republic of Ireland IFRS 1021 and the Ch8rltl8s Act 2011. Th6 Merd8n Raglm8ntal Chgrlty meets the de11n10 of a publlc b8nèfll enty under FRS 102. Assets and liabil+ti8s are inltially reccgnlsad at hlBIoTlcal cost or Iran8acUon valu8 unl8s8 Other89 ststed in the leVaTh1 accounting poliGy. 2.2 Golng £oncern After making appropriate enqulrY&s. Iho Tru51ees h8ve a rea80n8bl8 exp8ct81ion that th8 CIO has adequat8 r8sourc8s lo continue in oper81ional exlstence for the foreseeabl8 future. For thls rgason, they conlinue to odopl the going concern basls In preparlng the flnanclal statements. 2.3 Incomo All incoma is recognised once the CIO ha8 entitlement to the incom8, it is probable that the Incorne 11 be recelved and the amounl of Income recelvable can bè measured reliably. Thg recognltlon of income from legacres 18 depend8nl on gstabllshlng 9nllUgment, the probablllty of receipt and the 8blllty lo estlmate with sufficient accuracy the amount recelvable. EvKlence of enliuemgnt to g1998cy exists when the CIO has sufficient evidence that a gift has b8en1oft to them (Ihiough knovAedg8 of the 8xl81once of a valid will and the death of the benefaclorl and the executor is soU$flod that the property in question will not be required to saSty claims in the eslale. Receipt of a Eagacy musl be recognlsed when 1118 probable that it will be received ond the fair. value of th& amount receiv8ble. which wlll generalty b8 thè expected cash amount to b8 distrilwted lo the CIO, an be rellably mea8ur8d. Incorn8 tax fecoverable In relatlon lo Investment inrne 18 r8cognlsgd al the tlme the Investment income is rec8ivable. Othor Income Is recognlsed In the perl(xl in which It Is r9able and lo the axlent the oood8 have b88n provlded or on comple.Il¢in of the service. Page 10
The Morclan R•glmonlal Charlty Nolo8 to the flnanclal 8tatsmont• For Ihg year gndgd 31 March 2021 Ac¢¢untlng pollclgs l¢ontlnuod} 2.4 ExpondSturo Expenditure Is reCnIsed once there is a legal or construdvo obligalion lo transfer economlc benefit lo a third party, il is pmbable that a Iran8fer of economic benelits will be requlrpd In BetU8ment an¢J the amount of the Oblall0n c8n b8 measured rellably. Expendllure is dassif18d by activty. The costs of each act$tY are mado up of the total of direct CO8ls and shared costs, Including support costs involved In undertaking gath, activity. Direct costs attributable to 8 single activty are allocated directly to that actSvity. Shared o)sls whith conlrlbuts lo more than rffie actlvlty and support CO818 whlch are not attributable lo a slngle acllvlty are apporoned bgtsv8en th088 8ctivilies on a basls consistanl wih th8 use of re8oufGes. Canlral stsff costs are allocated on the basis ol tim8 sponl. and depr8ciat+on charyes allocated on tha portion of the a8set's use. Expenditur8 on raising funds Indudes all expendIre inourre(I by th8 CIO to ralse fvnds for its ch8rttsble purp0885 and IncludgB wsts of 811 fundra181ng acllvitles evgnts and non-charftable tradlng. Expenditure on charltablg activitygs 1$ inujffed on dlrectly undertakirMJ th8 activltie8 whlth furthar the CIO'S oblectlves, as well as any associated support C08ts. l expendlture18 Inclu81ve of Irrecoverable VAT. 2.5 Intorost ro¢glv•bl• Inler68t on funds held on dap08it 18 Includ8d when recelvable and the amount can bg moosur¢d r8llably by the CIO., thls Is normally upon nouficallon of the intgrest paid or payable by thg irsslitulion wlth whom the fund8 are doposltgd. 2.6 Tanglble Ilxed Issets and doprnclatlon Tanglble fixod assets eo8ting £1,000 or more ar8 capitalised arwj recognlsed wh8n fijture economk benefits are probable and the c#)8t or valug ol Ihg asset can be measured reliably. Tangible fad assets are InRlally recognised al cost. After recognltlon, undgr th6 CO81 model, tsnglble fixed assets are measured al cost less accumulated deprecialiiyi 8nd any accumulated Impalrmenl Io$s9s. All costs incurred to brlng a tsngibl8 red asset Into Its intended Wofklng ¢ondillon should be includad in the measurement of cost. At each reng date the CIO assesses whether there Is 8ny Indlcation of Impalmionl. If such inijicallon exists, th8 recoverabla amount of the asset is delgmilned to b8 the hlgher of its fair value 1gS$ Costs to 8811 and value in usg. An imp8irmenl1085 Is recognisod where the earrwng amount. excgods th8 recoverable amount. Depreciation 18 charged 80 as lo allocate Iho cost of t8nglble fixed assets less their residu81 v81ug over thelr es14maled useful Ilve8, usln9 Ihg straight-line method. Depreciauon Is provided on thè foll¢)wlng ba8es: Equlpment Crockery and cullgry 10%-2Q% straight-ling 10% slralghl-llng No dep¢18t40n Is charged in thè year of purthase or disposal. Paga 11
Tho Morclan Roglmental Charfty Not•• to the flnancial stat•m•nts For the yoar endèd 31 March 2021 Accountlng pollel•8 l¢ontlnugd) 2.7 Invo•lments Flxed a880t inv6Stm8nts ar8 a form of fin8nclal In8trument and 8re Inltlally re¢coned ot thelr tran88clion Cost and 3ubsequenlly measure(1 01 falr value al the Balance sheet data. unlgss Ihe value c8nnot b6 measured reliably in which case Il Is measured at C08t less impairment. Investmonl gains and losses. whether realised or unraalised, 8r8 comblned and psented as 'Gainsl{Losses) on Investments, in thè Stat8rnent of fin8nc181 acUvllle8. 2.8 thbtorJ Tr8d8 and other debtors are recryJnl8ed al the 8etUem8nt 8mount after any discount offered. Prepayments are valuad at ts amcwnt prepald nel of any trade discounts duè. 19 Cash at bank #nd in hand Cash al bank and in hand Includgs cash and 8hort-tern highty Ilqukl investmonts wlth a Short matudty of Ihm months or18ss from the date of acqulslllon or openlng of the dgposlt or 8lmllar account. 2.10 Llabllltleg Llabilltles are recognised wh8n an obligatlon arl888 to trarb8f8r economic beneflts as a result of past transactions or events. 2.11 Financial Instrumgnts Th8 CIO only has financial assets and flnanc181 liabilities of a kind that qualSfy as baslc financial Instrument8. Basic finonclal instruments are lnilla1 recognised aft transaction value and 8ubsequ8ntly measured at thelr settlement value wlh the exception of bank loans whlch ar8 Subsequenly measured al amortised cost using the effective intsrost method. 2.12 Pon8lon8 The CIO operalos a deflned contribution pension schamo 8nd the pen81on charg8 represents the amounts payabl& by th& CIO lo th8 fund In respect of the year. 2.13 Fund aceountlng General funds ar8 unrestricted funds which are available for use at the dlscretion of the Truileès In furtherance (rf the general obj8clive8 of the CIO and lch hav9 not b8en deslgnaled for oth8r Pufposes. Restricted funds are funds vthlch are to bo UBed in accordance wllh speCC rnstrkt4on8 imposed by donors or which hove b88n r81sed by the CIO for particular purposes. The costs of raising and adminislerlng such funds ore charged again81 th8 specific fund. The aim and usè of each restricted fund is sel out In the not9S to lh9 flnanclal 81atem8nts. Investment incom8, gains gnd10s888 are allocated to th8 approprk9te fund: Poge 12
Tho Morclan Rgglmgntsl Chailty Notss to the Ilnanclal 8tatement8 For the year •hd•d 31 mAh 2021 Income from donatlons andlogaclos UTrrg$trlctgd Re8trl¢tBd funds funds 2021 2021 Totsl funds 2021 Donotlon8 Subscripllons and legacles other voluntary In¢om8 Dals Pay Scknemg 4.507 10.2C 2,050 47,734 11,009 15,516 10206 2,050 47,734 Totsl 2021 64,497 11,009 75,506 Unre•trlcted Restrlctod funds funds 2020 2020 Total funds 2020 Don8tlons sub8criplionB ar legacie8 Other voluntary income Dals Pay Scheme 1,216 11,636 674 45.756 4,366 5,582 11,638 674 45,756 Total 2020 59.282 4,366 63,648 Pa9e 13
Tho Mor¢lan Roglmgntal Charlty Notas to th• flnon¢l•l statomont• For tho yfjar endod 31 March 2021 Incomo from fvndral•lng Unrostrlcted RestrlctBd funds funds 2021 2021 Total funds 2021 Car park Fleld and stable rental Tower admls8ion Café income Shop income Othar incom& 2,150 2.164 1,145 423 2,150 2,164 423 6,613 755 6,613 755 Total 2021 7,368 5.882 13,250 Unrnstrfct•d Rastrlctsd fvnds funds 2020 2010 Tot•1 funds 2020 Car park Fleld and stsble rent81 Tower admi881(In Café Incom8 Shop Income other Income 3,052 2,158 1,310 715 3,052 2,158 1.310 715 4,321 5,205 4,321 4,477 728 Total 2020 8.798 7,963 18,761 P8g8 14
Thg Mgrclan Reglm•ntal Charlty Nots8 to the tln•n¢l•l 8tatwnent• For tho year ondgd 31 March 2021 Invgstmont Income Unr8strlct8d Rostrlctod funds fund• 2021 2021 T4)tal funds 2021 Investment Income Deposf( account inlerggt 58,496 24 10.117 88.613 29 Totsl 2021 58,520 10.122 68.642 Vnrostflctgd . RoBlrlcted funds funds 2020 2020 Total funds 2020 . Investment incom8 Deposit account intsr8St 81,313 103 12,056 28 93,369 129 Total 21)20 81,416 12,082 93,498 Exptndlture on rnlslng fund8 Investment manag•mont Unrnstrlcted R•slrlctsd funds funds 2021 2021 Tot•l fundB 2021 Investment man8g8m8nl f988 15,536 2,348 17,884 Unro8trfcted R•8tctod fund$ funds 2020 2020 Tot•1 funds 2020 Investment management fees 16,309 2,451 18,760 Page 15
Tha Merclan Reglment•l Charity Notss to tho financlal •tatemont• For tha year ended 31 March 2021 Expendlture on r•l8lng funds Icontlnued) Fundralslng tradlng gxpensos Unmstrlctod ReBtflcted funds lunds 2021 2021 ya funds 2021 Wag88 and salarles Social Security ¢osts Pellsion costs Events Goods for resale Crlch sile Equlpment and chattels 21,999 1,824 473 21,999 1,824 473 586 9,955 9,386 1,843 9.955 9.386 1,843 36,680 9.386 46,066 UnT•Strlct•d R•$trlcted tunds funds 2020 2020 Totsl fund• 2020 Wages and salari8$ Soci818ecurity costs Penslon costs Goods for re88le Crlch sllè EquSpmenl 8nd chatt81s 25,741 1.441 25,741 1,441 388 8,506 4,196 4,196 19,611 19.611 55.687 4,196 59,883 Page 18
Thè.Mèrcl•n Reglmontal Chavlty Notes tg thg flnanclal $t•t•bn8nts For tho yoar •nd8d 31 March 2021 Analy8h of expendlturo on charltable actlvltS08 Actlvl¢l unfJ•rtaken dlrectly 2021 Support Total fund¥ 2021 2021 Furtherance of thg charivs objects 93,438 5,333 98,771 Actlvllle• undèrtaken dlr•ctly 2020 Support ¢o•ts 2020 Total fvnds 2020 Furtheranc8 of the charivs obl8cts 131,493 6.691 138,184 Analysis of diroct co•t• Tot•1 fund• 2021 Total funds 2020 staff costs DeprecSatlon MarkeUn9 Heritage co8t8 RMAS offlcèr GIA for Worcester Museum Eaglg journal costs RHQ costs Othgr dlrect oosts 17.228 3,505 26,208 16,873 2,700 37,769 8,821 5',452 653 20.01)0 8.173 9,151 4,642 26,085 17,165 93,438 131,493 Pag8 17
Thè Alerclan Reglmentsl Charlty Notes to th• flnanclal statements For the year ènded 31 March 2021 Analysls of 9xp9ndlrO on charltabl• actlv5tles {contlnu•d) Analysls of support costs Total lund 2021 Total fund# 2020 Insurance RHQ administration Other support costs Legal and professional Governance 2.022 481 2,290 663 687 131 2,920 2,300 5.333 6,691 Not Incom•ll•xpendltur•) Th1$ Is stated after chargin9: 2021 2020 Depraciation of tangible fixgd assets Pension contributions Independent examinerf5 feè 3,S06 76S 2.300 2.700 671 2.280 Pa 18
Th• M•rclan Reglmontsl Charlfy Nots8 to tho flnanclal *tataments For the ygar end•d 31 March 2021 2021 2020 W8ge8 and salarle8 Soc181 $8curlty costs Penslon costs 37.941 2,818 765 41.371 2.401 671 41.524 44,443 The 8ver8ge number of persons employed by the CIO during the year wa8 as follows.. 2021 2020 Sta No employee reIVed remuneration amounting to moré than £60,000 In ellher year. 10. Tru8ts••' r•munwation and exponses During the year, no Trustees recalved any remunarall¢M or other b8nefits (2020- £NIL). Dudng the year, no Trustee exp8n88s hava been Incurred (2020- £NIL). Page 19
Tho Me1•n R•glmental Charlty Notes to Iho financial $tatsm•nts For tho yo•r ended 31 March 2021 11. TAnglbl• flxèd aBBets Crockory Equlpmgnl and cutlgry Total Cost At 1 April 2020 6,879 27,000 33,879 At 31 Marth 2021 6,879 27,000 33,879 Depreclatlon At 1 April 2020 Charge for the year 16,200 2,700 18,200 3,500 At 31 M8rch 2021 806 18,900 19,706 Net book valu• Al 31 March 2021 6,073 8.100 14.173 At 31 March 2020 . 8,879 10,800 17.679 Page 20
Tho Mercian Regimental Charlty Noto$ to the flnan¢lal statomgntl For tho year and 31 March 2021 12. Flxed as801 Inve•tments Usted Inve¥tm•nts Market Value At 1 Aprll 2020 Addltlon8 Dlspo$als Cash Iradlng movgm8nts Rèvaluations 2,514077 485,797 {452.7911 {65,0141 512,708 At 31 March 2021 2,994777 Not book value At 31 March 2021 2,9W777 At 31 Mah 2020. 2.514.077 Invg$tmgDts at markot valuo Gompri8e: 2021 2020 Listed investments Cash and cash equlvalents 2.917,303 77,474 2.386,756 127.321 2,994777 2,514.077 P8g6 21
Thg M•wl•n Roglmontal Charlty Notos to the flnanclal 8tatèm•nt8 For tho y•ar andod 31 March 2021 13. D•btor• 2021 2020 Trade debtors Other debtors Prepayments and ac(¥ued Income 22,737 22.236 458 9,106 15.113 32,287 37.807 14. Crodltors: Amount8 falllng due wlthln ono yoar 2021 2020 Trade credltors Accruals and defgrred Income 22,925 15,435 22,929 15.435 IncILed In credltors Is deferred Income of £1,423 {2020 - £1,588) In respect of fleld rantsl In¢om6 8nd fundraising 8vents planned for the noxt flnanclal year. Page 22
Tho Merclan Roglm•ntsl Ch•rlty Not•s to th8 Ilnanclal 8latoments For the year ended 31 March 2021 15. Statem•nt of funds Stat•m•nt of funds . currgnt yoar 8alanc8 at 31 March 2021 8alanca at 1 Aprll 2020 Galnsl {Lossesl Income Expondlturo Unr•strfctod fun General Funds 2,275,992 130,385 (129.7091 423,898 2,700,566 R••trlctod funds Rfj¥tricted Funds- Crlth 354,712 27,013 (33,0121 74,686 423.399 Total of lund8 2,630,704 157.398 (162.7211 498,584 3,123,965 Tho specifi¢ purpos8s for which the funds are to be applled are as follows.. Rostrlctgd Fund- Crfch Th8 Mereian Reglmental War Memorial 15 siknaled in Crich, Derby8hire. Annually a pllgrima98 is held at the sile. Ther818 a bungalow on si19, vthich is occupied by the Warden who Is employed by Ihe Mercian Reglm6nlal Charlty. The Restricted fund pays lor all 8ssoc4aled costs for Crlch, whlch Snclude wogos for the wgrden. utllty bllls for the towar and any neco98ary TgP8lrs and grounds malntenance exp8ndltuTe. ncome comes in for Crrch through vlsltors p8rkSng their cars on sits and entry fees balng paSd lo go up in th8 tower. The warden runs 8 coffee Shop ol which a rent IS P8id to the charity each month. Rent Is 81so recelved for tho18ttlng out of fkrylds whlch amounts to £2,164 per financial y88r. Stat•m•nt of funds . prlor yoar Balance at 31 March 2020 Balanu •t 1 Wl 2Q19 GaSnsl (Losses) Inoomo Expendlturtr Unrestrlct•d fvnds General Fynds 2,547,726 149,496 1192,3551 {228.875) 2,275,992 Re8trlctsd fund$ Restricted Funds - Cd¢h 394,079 24,411 (24,472) 139,3061 354,712 Total of fund8 2,941,805 173,907 1216,8271 (268,1811 2,630,704 Page 23
Th• M•rclan Rgglmontsl Ch•rlty Notes lo Ihg flnan¢lal st8tsmonts For thg yoar •ndert 31 March 1011 16. Anal1$ of n•t a*sèts botw•èn funds . Analy818 of not •880ts between funds - curront y•ar Unr•strlctod R•s¢rlctod funds funds 2021 2021 Totsl funds 2021 Taroibl8 fixed assets Flxod asset Investments Current 8S8ets Credltors due w6thln on8 year 14.173 2.594,858 112.563 (21.028) 14,173 2,994,777 137,944 {22,929) 399,919 25.381 11,901) Total 2,700,566 423,399 3,123,965 Analy818 af n•t as¥•ts botW08n funds- prlor yg•r Unrnstrlcted RMtrld•d funds lund• 2020 Total fund• 2020 T8nglbl8 fixed a88ets Flxed asset Investments Current assets Credltor8 due wilhln one year 17,679 2,184,899 87,492 (14,0781 17,679 2,514,077 114,383 115,4351 329,178 26.891 11,3571 2,275.992 354,712 2,630.704 17. Pan8lon commltments The charity operates a dèfin8d contributson penslon scheme. The assets of th8 scheme are held 8ep8rately from thosè ol the charity in On independentty admlnlslered fund. The pension cost charg8 represents conlribullon¥ payable by the charity to the fund and amountèd to £765 (2020 £6711- No afflounts woro outstandlng at glther balance 8h881 data. The pension expense is allocated to reslri¢led funds on the ba818 that one member of staff is 8mploy8d to work al the Crich site and thoT6fore that employee's penslon cost Is treated as restricted. 18. Relatsd party trnnsactlons Thorg Wgro no relatgd party transactlon8 requlrlng di8closur6 in the reportlng pertoJ. Page 24