REGISTERED CHARITY NUMBER: 1177359
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
FOR
HEADQUARTERS VOLUNTEER CADET CORPS
HEADQUARTERS VOLUNTEER CADET CORPS
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
| Page | ||
|---|---|---|
| Report of the Trustees | 1 to | 3 |
| Independent Examiner's Report | 4 | |
| Statement of Financial Activities | 5 | |
| Balance Sheet | 6 | |
| Notes to the Financial Statements | 7 to | 12 |
| Detailed Statement of Financial Activities | 13 to | 14 |
HEADQUARTERS VOLUNTEER CADET CORPS
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
The trustees present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
OBJECTIVES AND ACTIVITIES
Objectives and aims
Our charitable objective, as set out in our constitution, is:
- To help and educate children between the ages of 9 and 18 years through their leisure time activities, so as to develop their physical, mental and spiritual capacities, that they might grow to full maturity as adults and members of society and that their conditions of life may be improved, employing the traditions of and practices of the Royal Navy and Royal Marines to achieve this.
Our vision is to:
- Offer an inclusive, supportive, and safe environment in which our cadets and adult volunteers can thrive and unlock their potential.
Significant activities
The VCC undertakes a range of activities to deliver public benefit in accordance with its purposes. This includes indoor and outdoor instruction in a range of activities from our uniformed instructing staff - including naval general training, command, musical, and display team training. In addition, we offer swimming, marksmanship, sports competitions, fieldcraft and the Duke of Edinburgh Award.
HQVCC acts as an umbrella for all our constituent units and facilitates and enables the delivery of our organisational wide purposes and objectives.
Public benefit
Public benefit is provided by the development of the physical, mental, and social capacities of young people through their activities as cadets.
The trustees have referred to the Charity Commission's guidance on public benefit - including 'Public benefit: the public benefit requirement (PB1)' and 'Public benefit: running a charity (PB2)' - when reviewing the charity's aims and objectives and in planning its current and future activities.
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance as stated above.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
In 2022/2023 the Volunteer Cadet Corps undertook its first full year of normal activity since the Covid-19 pandemic. We held a national annual camp which saw cadets and volunteers from across the country come together in Devon for adventurous training and various outdoor activities. Our participation in the Duke of Edinburgh Scheme continued with more cadets participating in the Scheme and learning lifelong skills.
We continue to focus on developing the resilience and capacity of our units to broaden and enhance the cadet experience as we look longer term to open additional units in parts of the country that are currently without a VCC presence.
Page 1
HEADQUARTERS VOLUNTEER CADET CORPS
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
FINANCIAL REVIEW
Financial position
The charity's income for the year ended 31st March 2023 totalled £128,988 (2022: £58,965) against expenditure of £102,543 (2022: £44,776) leading to a surplus of £26,445 (2022: £14,189).
Funds carried forward into 2023-24 amount to £118,746 (2022: £92,301) of which £13,591 is restricted (2022: £22,280) and £105,155 is unrestricted (2022: £70,021).
Principal funding sources
The Volunteer Cadet Corps is currently part funded by the Royal Navy through a Memorandum of Agreement under which annual capitation grants are disbursed to Headquarters Volunteer Cadet Corps to contribute to the cost of the VCC's core activities. These grants are supplemented by the donations and grant income from trusts to ensure that the HQVCC has the capacity to facilitate a full range of cadet activities for the VCC units. The trustees are confident that this funding arrangement continues to be sustainable and that grant funding from the Royal Navy will be available for the 2023-24 year and beyond.
Reserves policy
The charity is focused on holding sufficient financial reserves to manage the impact of the discontinuation of the federated adventurous training grant in 2024/2025 and the need to fund ongoing activity associated with the summer camp and other adventurous training.
In addition, the charity - mindful of its future growth strategy - will hold funds of around £5,000 for each new projected unit to act as a start-up fund. Considering the inflationary environment, these allocations may need to be increased further.
To provide for sufficient day-to-day expenditure the reserves policy has been amended so that the charity will now seek to maintain operational reserves amounting to at least 3 months of regular annual expenditure. Reserves - unrestricted funds less the value of unrestricted fixed assets and stock held - at 31st March 2023 amounted to £84,566, representing 9.9 months of expenditure at current levels. The trustees are therefore satisfied that sufficient reserves are available and that current levels, while high, are suitable given the charity's future plans.
FUTURE PLANS
There are ambitious plans to expand the size and geographical scope of the VCC's activities in the coming decade under proposals to grow the number of individual cadet units. Up to 17 different potential units are being considered at Royal Navy and Royal Marines sites across the UK, with an initial phase of growth from 2024/2025 onwards during which 6 new units may potentially be established subject to approval by the Royal Navy.
As the umbrella charity for the VCC, HQVCC will have a crucial role in planning and implementation, along with being responsible for ensuring the success and sustainability of the new VCC units. The trustees consider that these plans would constitute a substantial expansion of the HQVCC's charitable activities and significantly increase the number of young people benefiting from the charity, allowing the charity to continue delivering on its core objectives.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a constitution and constitutes an unincorporated charity.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1177359
Page 2
HEADQUARTERS VOLUNTEER CADET CORPS
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
Principal address
Royal Navy Cadet Forces Training Centre Building 175, HMS Excellent Whale Island Portsmouth PO2 8ER
Trustees
L K Colpitts J Strong A Hearn C R Spratt
Independent Examiner
Sedulo London Limited 605 Albert House 256-260 Old Street London EC1V 9DD
13 January 2024 Approved by order of the board of trustees on ............................................. and signed on its behalf by: ........................................................................ C R Spratt - Chair
Page 3
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HEADQUARTERS VOLUNTEER CADET CORPS
Independent examiner's report to the trustees of Headquarters Volunteer Cadet Corps
I report to the charity trustees on my examination of the accounts of Headquarters Volunteer Cadet Corps (the Trust) for the year ended 31 March 2023.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
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 believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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 matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Emma Houghton ACCA
Sedulo London Limited 605 Albert House 256-260 Old Street London EC1V 9DD
Date: .............................................18 January 2024
Page 4
HEADQUARTERS VOLUNTEER CADET CORPS
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 36,883 Charitable activities 3 Duke of Edinburgh 575 Other Cadet Activities 772 Summer Camp 18,820 Investment income 2 172 Total 57,222 EXPENDITURE ON Charitable activities Duke of Edinburgh 8,068 Other Cadet Activities 21,548 Summer Camp 3,328 Total 32,944 NET INCOME 24,278 Transfers between funds 10 10,856 Net movement in funds 35,134 RECONCILIATION OF FUNDS Total funds brought forward 70,021 TOTAL FUNDS CARRIED FORWARD 105,155 |
Restricted funds £ 71,766 - - - - 71,766 213 44,729 24,657 69,599 2,167 (10,856) (8,689) 22,280 13,591 |
31.3.23 Total funds £ 108,649 575 772 18,820 172 128,988 8,281 66,277 27,985 102,543 26,445 - 26,445 92,301 118,746 |
31.3.22 Total funds £ 56,555 120 2,309 (20) 1 58,965 3,286 41,490 - 44,776 14,189 - 14,189 78,112 92,301 |
|---|---|---|---|
The notes form part of these financial statements
Page 5
HEADQUARTERS VOLUNTEER CADET CORPS
BALANCE SHEET 31 MARCH 2023
| Unrestricted fund Notes £ FIXED ASSETS Tangible assets 6 14,402 CURRENT ASSETS Stocks 7 6,187 Debtors 8 3,473 Cash at bank 85,983 95,643 CREDITORS Amounts falling due within one year 9 (4,890) NET CURRENT ASSETS 90,753 TOTAL ASSETS LESS CURRENT LIABILITIES 105,155 NET ASSETS 105,155 FUNDS 10 Unrestricted funds Restricted funds TOTAL FUNDS |
Restricted funds £ - - - 13,591 13,591 - 13,591 13,591 13,591 |
31.3.23 Total funds £ 14,402 6,187 3,473 99,574 109,234 (4,890) 104,344 118,746 118,746 105,155 13,591 118,746 |
31.3.22 Total funds £ 1,361 - 3,270 89,770 93,040 (2,100) 90,940 92,301 92,301 70,021 22,280 92,301 |
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 13 January 2024 ............................................. and were signed on its behalf by:
............................................. C R Spratt - Chair
The notes form part of these financial statements
Page 6
HEADQUARTERS VOLUNTEER CADET CORPS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
These financial statements are prepared in sterling, which is the functional currency of the charity. monetary amounts in these financial statements are rounded to the nearest £.
Going concern
At the time of approving the financial statements and having a due regard to the impact of the economic climate, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Therefore, the Trustees continue to adopt the Going Concern basis of accounting in preparing the financial statements.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% straight line Computer equipment - 25% straight line
Stocks
Stocks are valued at cost and represent the value of uniforms and badges purchased by the charity for distribution to cadets but yet to be issued and so held in inventory.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
continued...
Page 7
HEADQUARTERS VOLUNTEER CADET CORPS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
2. INVESTMENT INCOME
| 2. | INVESTMENT INCOME | ||
|---|---|---|---|
| 31.3.23 | 31.3.22 | ||
| £ | £ | ||
| Deposit account interest | 172 | 1 | |
| 3. | INCOME FROM CHARITABLE ACTIVITIES | ||
| 31.3.23 | 31.3.22 | ||
| £ | £ | ||
| Duke of Edinburgh Payments | 575 | 120 | |
| Mess Dinner Tickets | (192) | 2,106 | |
| Sales of Uniforms, Badges & Other Items | 250 | 203 | |
| Activity Fees from Units | 714 | - | |
| Summer Camp | 18,820 | (20) | |
| 20,167 | 2,409 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.
Trustees' expenses
Expenses totalling £1636 were paid to 4 trustees in the year ended 31 March 2023 in relation to their operational activities as volunteer officers of the HQVCC (2022: £1,567 paid to 4 trustees).
No expenses were paid to trustees in respect of their duties as trustees in the year ended 31 March 2023 nor the year ended 31 March 2022.
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted Restricted fund funds £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 38,555 18,000 Charitable activities Duke of Edinburgh 120 - Other Cadet Activities 2,309 - Summer Camp (20) - Investment income 1 - Total 40,965 18,000 EXPENDITURE ON Charitable activities Duke of Edinburgh 3,286 - Other Cadet Activities 41,490 - |
Total funds £ 56,555 120 2,309 (20) 1 58,965 3,286 41,490 |
|---|---|
continued...
Page 8
HEADQUARTERS VOLUNTEER CADET CORPS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
| 5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted Restricted fund funds £ £ Total 44,776 - NET INCOME/(EXPENDITURE) (3,811) 18,000 RECONCILIATION OF FUNDS Total funds brought forward 73,832 4,280 TOTAL FUNDS CARRIED FORWARD 70,021 22,280 6. TANGIBLE FIXED ASSETS Plant and Computer machinery equipment £ £ COST At 1 April 2022 429 1,049 Additions 14,583 - Disposals (317) (699) At 31 March 2023 14,695 350 DEPRECIATION At 1 April 2022 59 58 Charge for year 515 88 Eliminated on disposal (33) (44) At 31 March 2023 541 102 NET BOOK VALUE At 31 March 2023 14,154 248 At 31 March 2022 370 991 |
Total funds £ 44,776 14,189 78,112 92,301 Totals £ 1,478 14,583 (1,016) 15,045 117 603 (77) 643 14,402 1,361 |
Total funds £ 44,776 |
|---|---|---|
| 14,189 78,112 |
||
| 92,301 |
continued...
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HEADQUARTERS VOLUNTEER CADET CORPS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
| 7. | STOCKS | ||||
|---|---|---|---|---|---|
| 31.3.23 | 31.3.22 | ||||
| £ | £ | ||||
| Uniform Stock | 6,187 | - | |||
| 8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||
| 31.3.23 | 31.3.22 | ||||
| £ | £ | ||||
| Trade debtors | 752 | 240 | |||
| Other debtors | 250 | - | |||
| Prepayments and accrued income | 2,471 | 3,030 | |||
| 3,473 | 3,270 | ||||
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||
| 31.3.23 | 31.3.22 | ||||
| £ | £ | ||||
| Trade creditors | 1,290 | - | |||
| Other creditors | 3,600 | 2,100 | |||
| 4,890 | 2,100 | ||||
| 10. | MOVEMENT IN FUNDS | ||||
| Net | Transfers | ||||
| movement | between | At | |||
| At 1.4.22 | in funds | funds | 31.3.23 | ||
| £ | £ | £ | £ | ||
| Unrestricted funds | |||||
| General fund | 70,021 | 24,278 | 10,856 | 105,155 | |
| Restricted funds | |||||
| Connaught Grant - Air Rifles | 18,000 | (4,409) | - | 13,591 | |
| Connaught Grant - Field Gun Repair | 2,880 | (2,880) | - | - | |
| Connaught Grant - Radios | 1,400 | - | (1,400) | - | |
| MOD - Adventurous Training | - | 9,456 | (9,456) | - | |
| 22,280 | 2,167 | (10,856) | 13,591 | ||
| TOTAL FUNDS | 92,301 | 26,445 | - | 118,746 |
continued...
Page 10
HEADQUARTERS VOLUNTEER CADET CORPS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
10. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Connaught Grant - Air Rifles Connaught Grant - Field Gun Repair Connaught Grant - Carol Concert MOD - Adventurous Training Connaught - Summer Camp TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Restricted funds Connaught Grant - Air Rifles Connaught Grant - Field Gun Repair Connaught Grant - Radios TOTAL FUNDS |
Incoming resources £ 57,222 - (80) 1,000 65,846 5,000 71,766 128,988 |
Resources Movement expended in funds £ £ (32,944) 24,278 (4,409) (4,409) (2,800) (2,880) (1,000) - (56,390) 9,456 (5,000) - (69,599) 2,167 (102,543) 26,445 Net movement At in funds 31.3.22 £ £ (3,811) 70,021 18,000 18,000 - 2,880 - 1,400 18,000 22,280 14,189 92,301 |
|---|---|---|
| At 1.4.21 £ 73,832 - 2,880 1,400 4,280 78,112 |
Net movement in funds £ (3,811) 18,000 - - 18,000 14,189 |
continued...
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HEADQUARTERS VOLUNTEER CADET CORPS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
10. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 40,965 | (44,776) | (3,811) |
| Restricted funds | |||
| Connaught Grant - Air Rifles | 18,000 | - | 18,000 |
| TOTAL FUNDS | 58,965 | (44,776) | 14,189 |
Transfers between funds represent the value of tangible fixed assets moved from restricted to unrestricted funds when assets have been purchased from a restricted fund grant but are held for a general and not a restricted purpose.
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2023 nor the year ended 31 March 2022.
Page 12
HEADQUARTERS VOLUNTEER CADET CORPS
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| 31.3.23 | 31.3.22 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 279 | 51 |
| Grants | 108,370 | 56,504 |
| 108,649 | 56,555 | |
| Investment income | ||
| Deposit account interest | 172 | 1 |
| Charitable activities | ||
| Summer Camp | 18,820 | (20) |
| Duke of Edinburgh Payments | 575 | 120 |
| Mess Dinner Tickets | (192) | 2,106 |
| Sales of Uniforms, Badges and Other Items | 250 | 203 |
| Activity Fees from Units | 714 | - |
| 20,167 | 2,409 | |
| Total incoming resources | 128,988 | 58,965 |
| EXPENDITURE | ||
| Charitable activities | ||
| Band Instruction | 2,363 | - |
| Travel & Meetings | 5,891 | 3,094 |
| Uniform & Badges | 5,931 | 28,944 |
| DBS Checks | 756 | 876 |
| Events | 3,122 | 2,394 |
| Welfare | 1,223 | 340 |
| Expenditure on Units | 25,874 | 329 |
| Equipment for Activities | 12,198 | - |
| Membership & Subscription Fees | 2,580 | - |
| Training Materials | 768 | - |
| Grant Funds Disbursed to Units | 5,041 | - |
| Activity Costs | 26,742 | 2,849 |
| Allocation of Support Costs | 10,054 | 5,950 |
| 102,543 | 44,776 |
This page does not form part of the statutory financial statements
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HEADQUARTERS VOLUNTEER CADET CORPS
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| 31.3.23 | 31.3.22 | |
|---|---|---|
| £ | £ | |
| Other | ||
| Insurance | 2,212 | 1,050 |
| Office Expenses | 1,473 | 1,260 |
| Gifts & Awards | 136 | 194 |
| IT Software and Consumables | - | 712 |
| Advertising & Marketing | 91 | 517 |
| Repairs & Maintenance | 2,800 | - |
| Asset Disposals | 939 | - |
| Plant and machinery | 515 | 59 |
| Computer equipment | 88 | 58 |
| Allocation of Support Costs | (8,254) | (3,850) |
| - | - | |
| Governance costs | ||
| Accountancy and legal fees | 1,800 | 2,100 |
| Allocation of Support Costs | (1,800) | (2,100) |
| - | - | |
| Total resources expended | 102,543 | 44,776 |
| Net income | 26,445 | 14,189 |
This page does not form part of the statutory financial statements
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