**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:
1. accounting records were not kept in respect of the Trust 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 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...
Page 9
**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...
Page 11
**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
Page 13
**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
Page 14