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2021-03-31-accounts

Trustees’ Report and Financial Statements for the year ended 31 March 2021

Registered Charity Number 1177107

Financial statements for the year ended 31 March 2021

INDEX

INDEX
Charity information ................................................................................................................................ 1
Report of the Trustees ........................................................................................................................... 2
Independent examiner’s report ............................................................................................................ 17
Statement of fnancial activities ............................................................................................................ 18
Balance sheet ......................................................................................................................................... 19
Statement of cash fows ........................................................................................................................ 20
Accounting policies ............................................................................................................................... 21
Notes to the fnancial statements ........................................................................................................ 24

Financial statements for the year ended 31 March 2021

CHARITY INFORMATION

Trustees

Captain Paul Quinn OBE RN (Retd) Alan Brooks David Evans . Lieutenant Steve Cass RN Jacqueline Curtis-Donnelly Bryony Johnson Michelle Mortlock Emeritus Professor Jan Walker OBE

Chairman, from 5 May 2020 Chairman, resigned 5 May 2020 Deputy Chairman Appointed on 29 October 2020

Appointed on 29 October 2020 Appointed on 29 October 2020 Appointed on 29 October 2020

Principal office

Building 25 HMS Excellent Whale Island Portsmouth Hampshire PO2 8ER

Registered Charity Number

1177107

Key Management Personnel

Anna Wright Bridget Nicholson Jane Williams

. Chief Executive Officer Director of Evidence and Strategy Director of Operations and Families Engagement

Independent Examiners

Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY

Bankers

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

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Financial statements for the year ended 31 March 2021

REPORT OF THE TRUSTEES

The Trustees have pleasure in presenting their annual report for the purposes of the Charities Act 2011, together with the accounts for the year ended 31 March 2021. In preparing this Annual Report and financial statement the Trustees have adopted the updated provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS102).

1. Structure, Governance and Management

The Naval Families Federation is established under a constitution as a Charitable Incorporated Organisation (CIO) Foundation charity, registered with the Charity Commission on 12 February 2018 with charity number 1177107.

The charity is governed by a CIO Foundation Constitution dated 19 January 2018. Governance is exercised by a board of trustees, the members of which are selected and appointed by the charity’s existing trustees having given regard to the skills, knowledge and experience needed. Members are appointed by a resolution of the trustees then in post. The trustees meet four times a year.

On appointment, new trustees are provided with a copy of the charity’s constitution, the latest set of accounts, the NFF Strategic Baseline Document and a copy of the Charity Commission’s guidance CC3 (The Essential Trustee). They are offered an Induction Day at Head Office with the NFF team in order to learn about the charity’s activities. All new trustees are offered training paid for by the charity.

Day-to-day management of the charity is delegated by the trustees to the Chief Executive Officer (CEO) and her team, whilst trustees remain closely involved in monitoring activities, receiving regular reports, giving guidance and authorising transactions. The CEO is supported by two Directors who manage the wider NFF team.

The trustees have considered any major risks, including developing a separate Fraud Risk Register, that might affect the charity and have developed policies to mitigate them. Risks are regularly reviewed by the Board. The current key challenges faced by the NFF are related to ensuring that the public and stakeholders have an accurate understanding of the organisation and its role, in order that it can carry out its activities effectively. This risk is mitigated through having a detailed and coherent Communications Strategy which is adhered to by trustees and staff. Initial induction and training encompass this, and trustees offer oversight. All trustees and staff are required to complete GDPR training. The risk of delayed payment of Grant-in-Aid is mitigated by holding sufficient reserves. This potential risk has informed the Reserves Policy. In addition, the trustees have considered the risks presented by the Covid-19 pandemic and have implemented a separate Covid risk register to address and mitigate these risks.

Trustees keep under review and ensure practices adopted by the charity are in line with the Charity’s values.

The remuneration of all staff is reviewed and set by the trustees by benchmarking against similar organisations.

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Financial statements for the year ended 31 March 2021

2. Objectives and Activities

The objects of the charity are:

a. The promotion of social inclusion and military efficiency, for the public benefit, by assisting in the prevention of serving Royal Navy and Royal Marines and their families being disadvantaged through military service, in particular by:

i. representing their experiences, views and concerns to central Government, Other Government Departments, the Ministry of Defence, the Royal Navy’s chain of command and other relevant Service and civilian stakeholders to inform policy and decision-making;

ii. providing them with information, advocacy and support to empower them to cope well with challenges arising from being part of an Armed Forces family;

iii. working in partnership with other organisations to support their well-being and to help them to thrive in their communities;

iv. supporting relevant research into the experiences and needs of Royal Navy and Royal Marines families to create an evidence base.

b. Such other charitable purposes for the general benefit of Royal Navy and Royal Marines families as the trustees from time to time think fit.

When selecting and planning the activities of the charity the trustees give due regard to the Charity Commission’s guidance on public benefit

Our Mission

“Speaking up for Naval Service families.”

The NFF exists to give Royal Navy and Royal Marines families a voice and representation to Ministers, Other Government Departments, the Chain of Command, and civilian service providers. It provides support and guidance on matters affecting the daily lives of Naval Service families, acting as an advocate when appropriate to resolve complex issues.

Our Vision

Our vision is for all Naval Service Families to:

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Financial statements for the year ended 31 March 2021

This vision provides a focus to enable the NFF to direct its activity across its head office and regional teams with the aim of achieving a common purpose. It will help the NFF to prioritise its activity and align its resources appropriately and provide the foundation for impact to be measured. It is intentionally challenging to reflect the standard of service that Naval Service Families deserve, and to inspire excellence in all that the NFF does.

The elements of the vision are further defined below:

• Naval Service. All uniformed, Regular and Reserve, Royal Navy and Royal Marines personnel.

• Families . The NFF recognises the significant diversity of personal circumstances and family dynamics of modern Naval Service personnel. The NFF supports individual currently serving personnel and their families, as defined in policy. It also extends appropriately tailored support to long-standing unregistered partners, parents/stepparents and siblings/stepsiblings of currently serving personnel. The benefits of strong, supportive relationships with wider families and with the community are recognised by the NFF, and the organisation will continue to respond flexibly and personally, within the constraints of finite resources.

• Those in positions of power. All organisations and stakeholders whose policies and/or actions have an impact on Naval Service families, including Central Government; Local Government; the Royal Navy; and civilian service providers.

• Valued and treated with fairness and respect. A serving person’s service is likely to have considerable impact on their family, for example periods of anxiety and stress, separation, mobility, school moves, issues around employment and healthcare, and/or living away from established support networks. The support, resilience and resourcefulness of families is essential to the Naval Service’s ability to retain its highly trained personnel, and to its ability to maintain Operational Capability. The NFF wants Naval Service families to feel that their contribution is acknowledged and valued. The Armed Forces Covenant acknowledges the vital role played by families in supporting our Armed Forces, and states that they deserve our respect and support, and fair treatment. Families of members of the Naval Service should face no disadvantage compared to other citizens in the provision of public and commercial services. Special consideration is appropriate in some cases, especially for those who have given the most such as the injured and bereaved.

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Financial statements for the year ended 31 March 2021

resourceful and resilient. It seeks to support and represent them when resilience alone is not enough, to hold stakeholders and service providers to account where disadvantage exists, and to advocate on behalf of families who have been treated unfairly. The NFF seeks to empower family members to thrive and enjoy good quality of life, and to make sound choices for their well-being. It contributes to this by providing easy access to sources of accurate, authoritative and up-to-date information and guidance, and by educating stakeholders and service providers about how best to ensure fair treatment for families.

3. Our Values

The Naval Families Federation is:

• Respectful. We value family members, whatever their link to the Naval Service, and recognise the important contribution they make by supporting their serving person. We are approachable, inclusive, non-judgemental, and ready to listen.

• Constructive. We work constructively with everyone, recognising the importance of understanding the perspective of others, and seeking to act as a ‘critical friend’ to the Naval Service and other organisations.

Strategic Objectives

The main activities undertaken in furtherance of the charity’s objects for the public benefit for FY20/21 represent current strategic priorities and provide a focus for work towards the fulfilment of the Vision, as well as a framework to enable progress to be assessed. The outcomes can be considered under five key headings: development; marketing; informing; diversifying; and measuring.

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Financial statements for the year ended 31 March 2021

effectively promoted and marketed to RNRM families, the Chain of Command, key stakeholders, and potential funders, increasing awareness of the organisation.

• Informing. Accessible and relevant information and guidance is made available to RNRM families through a range of platforms, particularly social media such as Facebook, Twitter, and Instagram.

• Measuring. The NFF can measure and report on its key performance indicators. It can use the supporting management information to improve its services and to ensure that it delivers impact.

4. Achievements and Performance

Response to Covid-19.

a. Working practices were adapted and reviewed throughout the period of the pandemic to enable the NFF to continue to engage with RNRM families and deliver its outputs. As directed by HM Government staff were required to work from home for the majority of the time. Risk assessments were carried out prior to staff returning to work in the offices. Flexibility around childcare and home-schooling was offered for those staff that required it. Additionally, staff were supported with an online Tai Chi lesson; an online session with a resilience coach; offered the mindfulness Headspace App; each sent a fruit basket and a small gift to encourage relaxation e.g., candle, bath oil etc. Online team meetings three times a week allowed the senior management team to monitor staff morale and judge level of stress due to additional commitments such as home-schooling.

b. To be able to work efficiently from home the NFF sought and received £9k funding from RNRMC Emergency Covid Fund to become cloud-based using MS Teams.

c. The NFF adapted in order to support families throughout the pandemic. Initially, there was a great deal of engagement with the Chain of Command on behalf of anxious family members. This allowed the NFF to offer reassurance to families that thorough safety procedures were in place on board HM ships and informed the Chain of Command about the concerns that families had.

d. 7 Pre-deployment briefs, 26 Divisional Officers’ (DOs) courses, 2 Establishment Warrant Officers’ (EWO) Courses and 3 Commanding Officers’ Designate (CODC) courses were adapted as required throughout the pandemic, reaching almost 1000 serving personnel. Casework for 182 individual families affected by Covid-19 and other issues (accommodation, education etc.) was delivered.

e. Several projects were delivered to support the resilience of RNRM families and recognise the fact that not only were spouses managing without their partner but that they were also managing without extended family for childcare support whilst having to work from home and home-school. Many spouses of serving personnel have key worker status, as nurses, doctors, and teachers etc.:

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Financial statements for the year ended 31 March 2021

i. Brighten Your Day was funded by Annington Trust (£25K) and invited those families affected by Covid-19, either due to deployment or Covid-19 duties, to select items from a list on Amazon that would support their resilience and enhance their coping strategies e.g., 3-month craft subscription for children, a slow cooker, a yoga mat etc. More than 1200 families were supported by this project.

ii. Winter Glow was a follow-on project to Brighten Your Day, also funded by Annington Trust (£25K). This project recognised the very challenging ships programming that would be happening during lockdown over the winter period. It was refined so that several spouseowned businesses were invited to offer products that would support resilience. This had the effect of supporting both spouse-owned businesses, some of which had struggled due to the pandemic, and also RNRM families. The project provided 1163 families with resources.

iii. Separation and Divorce As evidence pointed to an increase in separation and divorce due to the pandemic the NFF created a bespoke Separation/Divorce online resource that would support families with information regarding RN allowances etc. During the period, the resource had 1270 visits and the Separation/Divorce webpages had 749 visits.

iv. Domestic Abuse Informed development of MOD policy on Domestic Abuse. Alongside information to support the victims of domestic abuse the NFF added a panic button to the webpages.

v. Overseas A new page on the NFF website was developed to support overseas families with updates on Covid-19 and BREXIT information.

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Financial statements for the year ended 31 March 2021

vi. Time, on my Watch Funded by the Armed Forces Covenant Fund Trust, the NFF delivered a creative project to address social isolation and invite feedback from RNRM families in a completely new and untried way. There were just over one hundred submissions of photos, poems, and other artwork to the project. However, it was the accompanying explanations from family members that were incredibly poignant and revealed the experiences of RNRM families during periods of separation and as a result of the pandemic. The artist, Tim Mann, with whom the NFF is working on this project will produce a book to inform senior stakeholders and others about RNRM families’ feedback. During the preparation of the bid the NFF was invited to be the partner charity in this year’s ADOBE@s Annual Graphic Design competition. As a result, the NFF had a wonderful design for a poster to invite families to participate in the Art Project.

vii. NFF Book Project Additional funding of £15K was sought from RNRMC to continue to deliver the highly successful NFF Book Project for families. In addition to books to support separation, which was exacerbated by the pandemic for many, children’s books to address bereavement were included. A variation was sought in order to extend the book offer to schools. This has been tremendously successful with more than 700 schools with large numbers of RNRM service children having received the books together with information about parental separation to help them to support RNRM service children.

viii. Separation resource for NHS The NFF was invited to share what is known about separation with the families of NHS staff that were living away from their families due to the pandemic. The bespoke resource, Working Away from Home, was shared with NHS staff via a webinar that was delivered to 10,000 people. It was also shared with RNRM families for their use.

ix. Headspace Working in partnership with the RN, on World Mental Health Day on 10 October, the NFF began delivering a one-year pilot offering the mindfulness App, Headspace, to RNRM families. 3000 licences were acquired, 1032 of which had been taken up by the end of the FY. The RN recognised the additional strain that was being experienced by RNRM families due to the pandemic and were keen to fund a pilot to offer upstream mental health support. The NFF is monitoring uptake closely to measure the impact to inform future decision making by the RN.

Informing policy and decision-makers

a. Childcare . Having had more than 2000 respondents, the highest response rate of the three Services, to our Childcare Survey, the NFF was pleased to be able to present an interactive online report to the MOD and other stakeholders highlighting the specific challenges faced by RNRM families around childcare. The MOD confirmed that this would inform delivery of the Governments Manifesto pledge to improve wraparound childcare for Armed Forces families. Trustees were delighted to note the Integrated Review announcement that £1.4B would be allocated to support childcare over the next decade.

Both my husband and I are strongly It’s hard for me (mum, civilian) to work when considering our Service because of the husband is deployed and it’s half term – I repeated difficulties we are encountering don’t have enough annual leave to cover the in accessing childcare which is suitable to school holidays. support our service.

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Financial statements for the year ended 31 March 2021

b. Covenant into Law . The CEO NFF acted as the Families Federation representative at 3rd sector stakeholder meetings held by the MOD Covenant Team with the aim of informing the development of the Covenant into Law strand of the Armed Forces Act. In addition, the CEO presented written and oral evidence to the House of Commons Defence Select Committee enquiry into the Armed Forces Act.

c. Impact of Separation and need for review of Harmony guidelines . The CEO presented feedback from RNRM families, together with significant research into the impact of separation on family wellbeing, to the Chief of Defence People. Feedback from families showed that the pandemic

was exacerbating the impact of separation on RNRM families. This highlighted the need for a review of the Harmony guidelines and the significant disparity between the three Services. CDP reported that this issue would be considered as part of a review of deployment length and a full review of allowances.

d. Other oral evidence . Other oral evidence was presented to the National Audit Office (NAO) to inform their inquiry into ‘Single Living Accommodation (SLA) for the Armed Forces’; to the HCDC to inform their inquiry into ‘Women serving in the Armed Forces’, and to the Armed Forces Pay Review Body (AFPRB) to inform their annual recommendations to the government on pay to the Armed Forces.

Communications

a. NFF Reach. Awareness of the support offered by the NFF amongst RNRM families increased from 60% to 63% during the year (Tri-Service Families Continuous Attitude Survey 2019). This has been achieved through focussed social media activity. The NFF website had 154,443 visits, with an average of 12,870 visits per month. The peak occurring in June with 25,615 visits.

b. Immigration Advice. The NFF became regulated by the Office of the Immigration Services Commission (OISC) in May with a member of the team qualifying to give Level 1 immigration advice. Between May and the end of the year free OISC-qualified advice was given in more than 90 individual cases. This has saved non-UK and Commonwealth serving personnel and their families a great deal of money and avoided their following an incorrect immigration route. Additionally, a one-stop shop for immigration advice for Non-UK and Commonwealth families was established working collaboratively with a local immigration solicitor and the Chain of Command for the NFF website. Within 24 hours of the launch, a non-UK family member sought advice from the newly developed webpages and reportedly saved £5K through identifying the

Thank you for your immense support during the visa application process of my wife.

I have no words to express my gratitude to you for all the guidance you gave to me during that period.

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Financial statements for the year ended 31 March 2021

This was very shocking to a lot of my friends I’m still very happy with my decision of calling and colleagues concerning the type of visa the NFF on that very day when I was given applied for. I personally believe that the your number to reach you for the necessary accuracy of all information and documents guidance on visa applications for partners of through your guidance made this happen. Commonwealth members of the Armed Forces.

correct immigration route. A video introduced the NFF’s new immigration support.

c. Branding and Messaging. A review of the key branding message and marketing of the NFF was carried out by PR firm, MindWorks. This resulted in a new strapline and focus on ‘Championing RNRM families’. A full audit of the NFF website has been carried out and adjustments made to improve accessibility.

d. The Resources Trailer. The pandemic hampered progress in delivery of an NFF branded vehicle to raise the public profile of the charity and improve interaction with families at Families Days and Homecomings. However, progress was made, and whilst there was no opportunity to attend families’ events during the year, the vehicle arrived in the UK and was ready to be ‘wrapped’ by the end of the financial year.

e. Video Business Cards. To compliment the ‘Prosecco Van’ the NFF has produced a credit card sized video containing a brief explainer film with the same cartoons as on the ‘Prosecco Van’. These will be given to RNRM families once families’ events are allowed again.

f. Individual Casework. A significant part of the NFF’s role is championing individuals who have come to the end of the road with a complex and challenging issue. Families presented 364 such cases, many of which involved multi-agency engagement, on behalf of Service Personnel and families, and extended timelines to resolve. Lack of face-to-face time with families during this year has meant fewer cases being raised with the NFF. The most challenging cases required many phone calls/emails/meetings. 30% of all enquiries related to Immigration Issues, with Accommodation (highest in FY 19/21) and Relationship Breakdown being the next highest categories with 16% and 10% respectively. There were also more than 245 requests for signposting.

g. Response to the Living in Our Shoes Report. The NFF coordinated a response to the Living in Our Shoes Report from the RNRM charity sector. More than 40 stakeholders participated providing written or online feedback. The feedback was offered to the MOD and FiMT to inform the initial stocktaking process of what was being delivered by the RNRM third sector and which charities might be suitable for further focus group work. The NFF was pleased to note that NFF’s Parenting Guide and spouse employment project with Barclays in Helensburgh were highlighted in the report.

h. Transition support. The NFF issued a revised Transition Guide for Families in Jan 21.

i. Strengthening Families – By Your Side. Developed with RNRMC in partnership with the RN, King’s Active Foundation, Home-Start UK and Relate, this project is supported over the next three years from the Armed forces Covenant Fund. The NFF’s role is to support communication

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Financial statements for the year ended 31 March 2021

with RNRM families and promote the offer through funding of £10K over the three years. We are also providing resources to inform the service providers about the needs of dispersed and non-UK families.

j. Stakeholder Engagement.

Engagement has continued online, and, besides the Royal Navy, our key stakeholders and interlocutors have included: the Secretary of State for Defence; the Minister for Defence Personnel & Veterans; Ministers in other Government Departments who have the lead for delivering the Armed Forces Covenant; the House of Commons Defence Select Committee; the Devolved

Administrations and Local Government. We have also engaged with service deliverers such as Amey for the maintenance of Service Family Accommodation and worked closely with the sector’s other charities. Engagement is typically on a monthly or termly basis.

k. ERS Silver Award. The NFF was awarded the Ministry of Defence Employer Recognition Scheme (ERS) Silver Award 2020.

Strategic Government Issues

The NFF, in exercising its primary role, has influenced, and advised the Royal Navy and Government authorities to change policy to improve support to families.

a. A member of NFF staff received training to be able to formally evaluate the bids for the next Service Families Accommodation maintenance contract (FDIS). The NFF produced a short video explaining the nature of RNRM family life to inform bidders.

b. Trustees were delighted to note that the Government pledged an additional £200M to upgrade service family accommodation and single living accommodation as the NFF has offered evidence of need for this over several years.

c. The NFF has provided data and advocacy in relation to immigration issues experienced by non-UK and Commonwealth families in order to inform the Home Office and Cabinet Office about issues such as the Minimum Income Threshold.

d. The NFF worked closely with NHS England to inform and help launch their Armed Forces Families Engagement programme to better understand the health needs of the military community. This included facilitating online sessions with the NFFs Super Panellists.

e. This included facilitating online sessions with the NFFs Super Panellists.

f. Invited by the MOD to inform them of the policy implications of a second lockdown e.g.,

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Financial statements for the year ended 31 March 2021

impact on families located overseas.

g. NFF evidence informed the DfE to make amendments to the Schools Admission Code to support in-year admissions of Service children.

h. Responding to the intention to widen the experience of the Trustee Board the NFF recruited four new trustees, some of whom had experience of advocacy at the higher levels of Governments cross-departments. Also, those with direct and current experience of the issues facing Naval Service families.

Strategic Issues for Royal Navy Command

The NFF has analysed the impact of the COVID-19 pandemic on the health and wellbeing of RNRM families and offered feedback to Royal Navy Command. This has informed:

a. The Headspace App pilot which the NFF is delivering in partnership with the RN.

b. The RN’s decision to offer families trips to theme parks etc. via Eventbrite in lieu of previous support from the Families Welfare Grant which cannot be used during the pandemic due to the inability to hold large events such as homecomings and families’ days.

Third Sector Influence

Invited to inform RNRMC’s Strategic Funding Committee and their planned projects to support RNRM families for the next 3-5 years.

Research

a. NHS Barriers to Mobility project. The NHS awarded £103K to enable the three Families Federations in a joint project to commission research by Anglia Ruskin University to identify the barriers to healthcare for mobile families and to make robust recommendations about how these barriers might be overcome for families. The project is expected to complete towards the end of 2021 and inform the recommendations made in the Living in our Shoes report and the NHS England Armed Forces Families Engagement Report.

The NFF has provided advisory support to the following studies that are being conducted by Kings Centre for Military Health Research (KCMHR):

• WoW Study - The Wellbeing of Women during and after pregnancy. This is research into maternal mental health. Findings from the study will be used to help those providing care to spouses and partners of UK Armed Forces personnel, including NHS and Defence healthcare professionals, Armed Forces charities, community and welfare teams, and perinatal health organisations. It is hoped that this will lead to improvements in services for spouses and partners of Service personnel during and after pregnancy.

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Financial statements for the year ended 31 March 2021

• Trajectories of mental health and wellbeing among children/adolescents from UK military families – a PhD study that will: measure mental health trajectories among children from military families in the UK; compare the prevalence of mental health outcomes between children from military, first responder and civilian families; and explore influences on the mental health and well-being of children from military families.

Other Projects

a. Forces Families Jobs. Despite a downturn during the pandemic the online partner employment and training platform, www.ForcesFamiiesJob.co.uk has gone from strength to strength, ending the year with 4884 live jobs, 4748 family members registered and 864 employers. It also had 59 training providers registered.

b.Thriving Lives Toolkit. The NFF continues to be a key contributor to the work of the stakeholder group, SCiP Alliance (Service Children’s Progression Alliance). This group launched the Thriving Lives Toolkit for schools to enable them to self-assess and ascertain how well they are supporting Service children. It will help schools to understand how they might best use the Service Pupil Premium to offer pastoral support to RMRM Service children.

c. Spouse employment course. Working with Barclays the NFF facilitated a highly successful spouse employment course which resulted in X spouses gaining employment. The NFF produced a leaflet as a resource to inform other such initiatives to support military spouses.

d. Service Family Accommodation upgrades. The NFF worked with Amey to facilitate delivery in situ of upgrades to service families’ accommodation in the base ports.

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Financial statements for the year ended 31 March 2021

5. Financial Review

In this third year of operations as a charity, the Trustees are pleased to report a sound financial performance.

The trustees are most grateful to RNRMC for agreeing to offer to provide the ‘back-office’ functions of payroll and management accounting to the NFF at no cost from April 2021. The NFF was grateful to Greenwich Hospital for providing funding to support these functions for the threeyear period after the charity stood up.

Income for FY20/21 was £671,205 predominantly Grant-in-Aid £520,705 to fund core activity. Other grants amounted to £150,500, with £138,500 taken in as Restricted Funds for specific projects. The balance carried forward of £233,406 has a Restricted component of £50,326 which funds ongoing projects to be delivered in future years.

a. Costs. 66.6% (69.4% in FY 19/20) of expenditure was on salary-related items with other expenditure supporting the main charitable effort of the NFF such as website, IT, Homeport magazine and travel.

b. Reserves. The Trustees policy is that the charity should hold unrestricted reserves equivalent to 2 months G-i-A payment to mitigate against the risk of a business continuity failure at MOD(N). At the balance sheet date the charity’s reserves were £158,096.

c. G-i-A. The MOD(N) have agreed a 5-year funding agreement which allows a 2% cost of living adjustment year on year. The programme ensures funding until 2022/2023. Following MOD direction as an ALB no cost-of-living adjustment was given this year.

d. Grants. FY20/21 has seen progress on spending grants given in previous FY.

6. Plans for FY21/22 and beyond

The following are the Trustees’ intentions for FY21/22:

a. Establish a new normal post COVID-19 for the NFF in terms of both how it conducts its business on a day-today basis and how it engages with families.

b. Inform, support, and hold to account the MOD and OGD to deliver the Living in our Shoes recommendations.

c. Inform, support, and hold to account the MOD via the Armed Forces Families Steering Group for delivery of the Families Strategy.

d. Analyse the impact of the COVID-19 pandemic on the health and wellbeing of RNRM families.

e. In partnership with the other Families Federations and relevant stakeholders develop a Partner Employment Pathway App.

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Financial statements for the year ended 31 March 2021

by Anglia Ruskin University into the barriers to mobility for Armed Forces families.

g. Increase awareness of the Strengthening Families offer to improve uptake in year 2 of the project.

k. Establish a programme of visits with the trailer resource to homecomings, families’ days and other family events throughout the year.

7. Statement of trustees’ responsibilities

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

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

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Financial statements for the year ended 31 March 2021 Naval Families F E A I l O N departures disclosed and expla ined in the financial statements., prepare the financial statements on the going concern basi5 unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the chartty and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the constitution. 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 irregularities. The trustees are responsible for the ma intenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom govern ing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by the Trustees and signed on their behalf. Captain Paul Quinn OBE RN IRetd) (Chairman) Date ￿ 31 16

Firiancial statements for the year ended 31 March 2021 Naval Families F E D ￿ < A I l O N INDEPENDENT EXAMINER'S REPORT Independent ExamineWs Report to the Trustee$ of Naval Families Federation I report to the charity trustees on my exam ination of the accounts of the charity for the period ended 31 March 2021 which are set out on pages 18 to 29. Re5pon$ibilities and basis of report As the charity's trustees you are responsible for the preparat.ion of the accounts in accordance with the requirements of the Charities Act 20111'the Act'l. I report in respect of my examination of the charity's accournt5 carried out under settion 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charrty Commission under section 14515llbl of the Act. Independent examiner's Statement Since the charitys gross income exceeded £250.000 your examiner must be a member of a body l isted in section 145 of the Act. I confirm that l am qualified to undertake the examination because l am a member of Institute of Chartered Accountants in England and Wales, which is one of the l isted bodies. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to bel ieve that in any material respect.. accounting records were not kept in respect of the charity as required by section 130 of the Act,. or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the appl icable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2QX)8 other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matter5 in connection with the examination to which attention should be drawn in thi5 report in order to enable a proper understanding of the accounts to be reached. Geo rost Bsc (Hons) FCA Blue Spire Limited Cawley Priory South Pal lant Chichester West Sussex P019 1SY Date 17

Financial statements for the year ended 31 March 2021

STATEMENT OF FINANCIAL ACTIVITIES

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Total
EXPENDITURE ON:
Charitable activities
2
Total
Net Income/(expenditure)
Transfers between funds
13
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
13
Total funds carried forward
13		 Unrestricted
Funds
£
532,705
532,705
472,595
472,595
60,110
(34)
60,076
123,004
183,080		 Restricted
Funds
£
138,500
138,500
135,963
135,963
2,537
34
2,571
47,755
50,326		 2021
Total
Funds
£
671,205
671,205
608,558
608,558
62,647
-
62,647
170,759
233,406		 2020
Total
Funds
£
550,393
550,393
598,658
598,658
(48,265)
-
(48,265)
219,024
170,759

None of the Charity’s other activities were acquired or discontinued during the period.

The Charity has no recognised gains or losses other than those dealt with in the statement of financial activities.

18

Financial statements for the year ended 31 March 2021 Naval Families F E D ￿ R A I l O N BALANCE SHEET AS AT 31 MARCH 2021 2021 2010 Note FIXED ASSETS Tangible fixed a888ts 24.984 37,￿6 CURRENT ASSETS Debtors Cash at bank and In ha Total current assets 1.81T 164.018 165.835 222,903 222.903 CURRENT LIABIUTIES Creditor¥.' amurrts falling due wkhin orÉ year 14,481 32.412 Net current assets 2(A.422 133.423 Total assets less Current l￿bilit￿$ 233.4( 170.759 Net 88set8 2￿,4 170.759 E FUNDS OF THE CHARITY Restricted fuTrI6 13 ,326 47.755 Fixed ast degnaled fund Unr8StriGttd oeneral •Jnds Total unrestii¢le fund$ 13 13 24.984 758.096 37,33S 183.09) 123,QM)4 Total charity funds 233.4 170,759 The notes on pages 24to 29 form part ofttEse accourts. Approved by the Trustees aTh4 ￿gned on thwr behalr. uinn OBE RN IRetdl Ichairrnanl Dale 31 19

Financial statements for the year ended 31 March 2021

STATEMENT OF CASH FLOWS

£
£
Net cash provided by (used in) operating activities (see below)
58,885
Cash flows from investing activities
Purchase of tangible fixed assets
-
Net cash provided by (used in) investing activities
-
Change in cash and cash equivalents in the year
58,885
Cash and cash equivalents at the beginning of the year
164,018
Cash and cash equivalents at 31 March
222,903
Cash and cash equivalents consist of:
Cash at bank and in hand
222,903
Cash and cash equivalents at 31 March
222,903
Reconciliation of net income to net cash flow from operating activities
£
£
Net income/(expenditure) for the year
62,647
Adjusted for:
Depreciation charges
12,352
Decrease/(increase) in debtors
1,817
Increase/(decrease) in creditors
(17,931)
(3,762)
58,885
2021
2021		 £
£
1,862
49,354
(49,354)
(47,492)
211,510
164,018
164,018
164,018
£
£
(48,265)
12,018
44,928
(6,819)
50,127
1,862
2020
2020		 £
£
1,862
49,354
(49,354)
(47,492)
211,510
164,018
164,018
164,018
£
£
(48,265)
12,018
44,928
(6,819)
50,127
1,862
2020
2020
1,862

20

Financial statements for the year ended 31 March 2021

ACCOUNTING POLICIES

General information, scope and basis of the financial statements

The Naval Families Federation is a registered charity, established as a Charitable Incorporated Organisation (CIO), in England and Wales. The address of the principal office is given in the charity information of these financial statements and the nature of the charity’s operations and principal activities are detailed in the trustees’ report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the Charity has control over the item. Fair value is determined on the basis of the value of the gift to the Charity. For example the amount the Charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

21

Financial statements for the year ended 31 March 2021

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the Charity.

Support cost allocation

Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with use of the resources.

The analysis of these costs is included in Note 3.

VAT

The Charity is not registered for VAT and is unable to recover VAT incurred. On this basis costs are recorded inclusive of VAT within the SOFA.

Taxation

The Charity is an exempt Charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the Charity’s activities.

Fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Computer equipment 33 1/3 % straight line Office improvements 20% straight line

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

22

Financial statements for the year ended 31 March 2021

Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand.

Operating leases

Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term.

Employee benefits

When employees have rendered service to the Charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity makes contributions on behalf of employee’s to their own personal pension arrangements.

Fund accounting policy

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Further details of each fund are disclosed in Note 13.

Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

The Trustees believe there is no material uncertainty over the charity’s ability to continue as a going concern arising from the COVID-19 pandemic.

23

Financial statements for the year ended 31 March 2021

NOTES TO THE FINANCIAL STATEMENTS

1. Donations and legacies

1. Donations and legacies
Grant in Aid
Other grant income and donations		 Unrestricted
Funds
£
520,705
12,000
532,705		 Restricted
Funds
£
-
138,500
138,500		 2021
Total
Funds
£
520,705
150,500
671,205		 Unrestricted
Funds
£
510,495
12,098
522,593		 Restricted
Funds
£
-
27,800
27,800		 2020
Total
Funds
£
510,495
39,898
550,393

2. Charitable activities

LIBOR Book Project
Pompey Military Kids
e-Learning Research
Forces Families Jobs
Annington Trust Projects
Headspace
Time, on my Watch
RNRMC Strengthening Families
Wages and salaries
Travel costs
Communication
Support and governance costs (note 3)		 Unrestricted
Funds
£
-
-
-
128
-
50
-
-
396,925
2,171
39,320
34,001
472,595		 Restricted
Funds
£
8,539
-
-
-
40,639
45,000
3,125
25
8,627
-
29,473
535
135,963		 2021
Total
Funds
£
8,539
-
-
128
40,639
45,050
3,125
25
405,552
2,171
68,793
34,536
608,558		 Unrestricted
Funds
£
-
-
-
-
-
-
-
-
393,659
30,881
53,523
35,952
514,015		 Restricted
Funds
£
4,236
349
2,400
19,095
-
-
-
-
21,737
7,783
28,164
879
84,643		 2020
Total
Funds
£
4,236
349
2,400
19,095
-
-
-
-
415,396
38,664
81,687
36,831
598,658

3. Support and governance costs

3. Support and governance costs
Office expenses
Insurance
Training
Legal fees
HR advice and support
Bank charges
Subscriptions
Accountancy
Consultancy
Depreciation
Governance costs:
Trustee training and meeting costs
Independent examiner's fees		 Unrestricted
Funds
£
2,029
2,103
313
-
3,240
125
1,092
10,817
600
12,352
130
1,200
34,001		 Restricted
Funds
£
-
-
35
-
-
-
-
-
500
-
-
-
535		 2021
Total
Funds
£
2,029
2,103
348
-
3,240
125
1,092
10,817
1,100
12,352
130
1,200
34,536		 Unrestricted
Funds
£
3,733
1,723
2,683
240
1,584
60
209
10,800
1,206
12,018
496
1,200
35,952		 Restricted
Funds
£
640
-
-
-
-
-
239
-
-
-
-
-
879		 2020
Total
Funds
£
4,373
1,723
2,683
240
1,584
60
448
10,800
1,206
12,018
496
1,200
36,831

24

Financial statements for the year ended 31 March 2021

4. Independent examiner's fees

4. Independent examiner's fees
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Examination 1,200 - 1,200 1,200 - 1,200
Other services 10,817 - 10,817 10,800 - 10,800

5. Staff costs and information

5. Staff costs and information
Gross salaries
Employer's NI
Employer's pension		 2021
£
348,841
28,686
28,025
405,552		 2020
£
356,145
30,891
28,360
415,396

One (2020: One) employee received employee benefits, inclusive of social security costs but excluding pension contributions, in the range £60,000 - £70,000 during the year.

Staff numbers

The average number of employees, calculated on an average headcount basis and analysed by function, was:

Charitable activities, management and governance

2021
13
13		 2020
13
13

Pension scheme

The Charity contributes to defined contribution pension scheme on behalf of its employees. The pension cost is charged to the Statement of Financial Activities in the period it is due. The total amount of contributions charged in the year under review were £28,025 (2020: £28,360). At the balance sheet date £4,456 (2020: £4,438) was due in respect of these contributions.

The number of employees to whom pension contributions are accruing:

Charitable activities, management and governance

2021
13
13		 2020
13
13

6. Related party transactions

During the period under review none of the charity's trustees received remuneration nor were reimbursed any expenses. Meeting costs of £30 (2020: £396) were met by the charity in the year.

During the year under review the charity's key management personnel, as detailed in the charity information page, received employee benefits inclusive of salary, social security and pension contributions amounting to £157,219 (2020: £155,836). Expenses reimbursed to key management personnel incurred in the performance of their duties amounted to £1,109 (2020: £5,854). In addition £15 (2020: £4,656) of travel, accommodation and other related expenses were met on behalf of key management personnel.

25

Financial statements for the year ended 31 March 2021

7. Fixed Assets

Cost
Brought forward
Additions during year
Disposals in year
Carried forward
Depreciation
Brought forward
Charge for the year
Disposals in year
Carried forward
Net book value brought forward
Net book value carried forward		 Computer
equipment
£
18,606
-
-
18,606
6,202
6,202
-
12,404
12,404
6,202		 Office
improvements
£
30,748
-
-
30,748
5,816
6,150
-
11,966
24,932
18,782		 Total
£
49,354
-
-
49,354
12,018
12,352
-
24,370
37,336
24,984

8. Debtors

Other debtors
9. Creditors: Amounts falling due within one year
Accruals
Deferred income (see note 10)
Pensions payable
Other taxes and social security		 2021
Total
Funds
£
-
-
2021
Total
Funds
£
1,700
-
4,456
8,325
14,481		 2020
Total
Funds
£
1,817
1,817
2020
Total
Funds
£
7,073
12,000
4,438
8,901
32,412

10. Deferred income

10. Deferred income
Greenwich Hospital - Accounting support 2020/2021 Brought
forward
£
12,000
12,000		 Released
in year
£
(12,000)
(12,000)		 Deferred
in year
£
-
-		 Carried
forward
£
-
-

26

Financial statements for the year ended 31 March 2021

11. Commitments under operating leases

11. Commitments under operating leases
Not later than one year
Later than one year and not later than five years
During the year under review £672 was recognised as an expense in respect of this lease.
The charity had total future minimum lease payments in respect of a lease for office equipment, for the
following periods, amounting to:		 2021
Total
Funds
£
672
672
1,344		 2020
Total
Funds
£
672
1,344
2,016

12. Analysis of net assets between funds

Fixed assets
Current assets
Current liabilities
Net assets at 31 March		 Unrestricted
Funds
£
24,984
172,077
(13,981)
183,080		 Restricted
Funds
£
-
50,826
(500)
50,326		 2021
Total
Funds
£
24,984
222,903
(14,481)
233,406		 Unrestricted
Funds
£
37,336
118,080
(32,412)
123,004		 Restricted
Funds
£
-
47,755
-
47,755		 2020
Total
Funds
£
37,336
165,835
(32,412)
170,759

13. Analysis of net movement in funds

Restricted funds
Membership Scheme
Information Scheme
RNRMC Book Project
Annington Trust
Strengthening Families
IT Migration
Armed Forces Covenant
Headspace Project
Total
Unrestricted funds
Designated funds: Fixed assets
General Fund
Total
Total funds		 Total funds
brought
forward
£
11,189
36,566
-
-
-
-
-
-
47,755
37,336
85,668
123,004
170,759		 Incoming
resources
and gains
£
-
-
15,000
50,000
10,000
9,000
9,500
45,000
138,500
-
532,705
532,705
671,205		 Outgoing
resources
and losses
£
(5,940)
(14,132)
(9,976)
(45,273)
(3,483)
(9,034)
(3,125)
(45,000)
(135,963)
(12,352)
(460,243)
(472,595)
(608,558)		 Transfers
£
-
-
-
-
-
34
-
-
34
-
(34)
(34)
-		 Total funds
carried
forward
£
5,249
22,434
5,024
4,727
6,517
-
6,375
-
50,326
24,984
158,096
183,080
233,406

Description of restricted funds

Membership Scheme Libor funded project to raise awareness of support to RN/RM families and create a ‘through-life’ relationship with them. The project will increase awareness of the NFF’s work and encourage participation in surveys. It will help to communicate to families that their contribution is valued. It will provide families with information to support their resourcefulness and resilience.

Information scheme

Libor funded project to develop online e-learning packages to inform National Service providers of the particular needs of the RN/RM community and produce films and printed material highlighting support available to RN and RM families.

27

Financial statements for the year ended 31 March 2021

13. Analysis of net movement in funds (continued)

RNRMC Book Project Funding received from RNRMC to provide books to Royal Navy and Royal Marines families during periods of parental deployment.

Annington Trust Funding received from Annington Trust to run the Brighten Your Day and Winter Glow initiatives to provide Royal Navy and Royal Marines families with resources to support resilience, enhance coping strategies and bring a bit of cheer in difficult times.

Strengthening Families Funding received from RNRMC to provide a comprehensive support package to service families, looking at the gap between support available to dispersed families to those living on or near base ports, whenever and wherever they need it.

IT Migration Funding received from RNRMC to meet the costs of a IT service review and migration to new platforms to enhance the charity's ability to support its beneficiaries.

Armed Forces Covenant Funding received from The Armed Forces Covenant Fund Trust to capture what Royal Navy and Royal Marines families are doing with their time and what it means to them, through poetry, drawings and photographs, with professional artist Tim Mann to create an exhibition. Headspace Project Funding received from the Ministry of Defence for the development of the Headspace App for Royal Navy and Royal Marines families as a platform for mindful living.

14. Comparative analysis of net movement in funds

14. Comparative analysis of net movement in funds
Restricted funds
Membership Scheme
Books
Information Scheme
RBL
Forces Families Jobs
Pompey Military Kids
Total
Unrestricted funds
Designated funds: Fixed assets
General Fund
Total
Total funds		 Total funds
brought
forward
£
17,728
8,312
77,836
-
-
-
103,876
-
115,148
115,148
219,024		 Incoming
resources
and gains
£
-
2,000
-
-
25,000
800
27,800
-
522,593
522,593
550,393		 Outgoing
resources
and losses
£
(6,539)
(10,729)
(39,295)
(878)
(25,602)
(1,600)
(84,643)
-
(514,015)
(514,015)
(598,658)		 Transfers
£
-
417
(1,975)
878
602
800
722
37,336
(38,058)
(722)
-		 Total funds
carried
forward
£
11,189
-
36,566
-
-
-
47,755
37,336
85,668
123,004
170,759

28

Financial statements for the year ended 31 March 2021

15. Comparative statement of financial activities

INCOME AND ENDOWMENTS FROM:
Donations and legacies
Total
EXPENDITURE ON:
Charitable activities
Total
Net Income/(expenditure)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward
16. Analysis of net debt
Cash and cash equivalents
Total net debt		 2019
£
(211,510)
(211,510)		 Note
1
2
14
14
14
Cash flows
£
47,492
47,492		 Unrestricted
Funds
£
522,593
522,593
514,015
514,015
8,578
(722)
7,856
115,148
123,004
2020
£
(164,018)
(164,018)		 Restricted
Funds
£
27,800
27,800
84,643
84,643
(56,843)
722
(56,121)
103,876
47,755
Cash flows
£
(58,885)
(58,885)		 2020
Total
Funds
£
550,393
550,393
598,658
598,658
(48,265)
-
(48,265)
219,024
170,759
2021
£
(222,903)
(222,903)

29

Naval Fam.iies F E D E R A T l O N nff.or9.uk 02392 654374 contactus@nff.org.uk Building 25. HMS EXCELLENT, Port5rn0Uth, P02 8ER REgi5tsrEdchartyin England& IValv5 11177104