2023-03-31-accounts

COMPANY REGISTRATION NUMBER: CE025334 CHARITY REGISTRATION NUMBER: 1194017

Fortress Study Group CIO

Financial Statements

31 March 2023

Fortress Study Group CIO

Financial Statements

Year ended 31 March 2023

	Page
Trustees' annual report (incorporating the director's report)	1
Independent auditor's report to the members	8
Statement of financial activities (including income and
expenditure account)	13
Statement of financial position	14
Statement of cash flows	15
Notes to the financial statements	16
The following pages do not form part of the financial statements
Detailed statement of financial activities	26
Notes to the detailed statement of financial activities	28

Fortress Study Group CIO

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 March 2023

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2023.

Chairman's Report

I write this as acting Chair on behalf of the Trustees. Fortress Study Group CIO has made steady progress during 2022/23 and in the 7 months since. In this first year as a Charitable Incorporated Organisation, membership has grown by around 12% and we have returned to international tours (run by 3rd parties) and a UK conference. We are already building on this in 2023/24 and I am confident that we can continue to grow in the coming year.

However, our Trustees and Committee are all volunteers, and 2023 has been a very challenging year personally with all the Trustees suffering family illness and/ or bereavement. We therefore fully understood when John Harris our Chair decided to resign for personal reasons on 14 June 2023. The Trustees and Management Committee wish to record their thanks for John Harris' major contribution to FSG and for his wise council.

During the year the core member offerings of FORT, Casemate and the Webinars have continued albeit publication of FORT continues to be about 12 months behind schedule. We have now delivered over 125 webinars to an audience in excess of 13,000.

Membership has recovered to 405 a level last seen in 2018 and it is noticeable that this growth is mostly in international digital membership underlining both the international reach of FSG and the attractiveness of digital membership. Overall, 33% of our members are now digital.

As we have made a surplus in this financial year our strategy to focus on cost control and member growth in 2023 in preference to raising subscriptions appears to have been rewarded. However, we will need to continue to carefully monitor costs and printing and postage, especially international postage costs are a particular concern, and it seems the first subscription increase since 2018 will now be necessary.

Membership growth is still a priority and we have developed a new flyer and intend to do more with social media to draw attention to the group and its work.

Two events identified in the last Chairman's report took place this year. First a third party organised tour of Scandinavia in May 2022 was attended by a number of members and colleagues from CDSG. Second we co-sponsored the English Civil War Fortress Symposium held in Newark during November 2022. This was a great success with a follow-up report of the proceedings co-authored by a Management Committee member and published in October 2023.

Since the year-end, (May 2023) a fellow society with which we share many members organised a tour for 20 to Germany and Poland. This was well attended with FSG members representing over half the attendees.

We have also returned to holding an Annual Study Conference. A 2023/2024 highlight has been our first UK Conference since 2018 which was held in Chatham during October 2023. We were joined by the International Fortress Council and their guests from Portugal and Korea and this lent a truly international feel to the weekend. We visited 16th century Tilbury Fort and its smaller companion the Gravesend Blockhouse. In Chatham we saw the 17th century and 18th century works at Amherst and the Chatham Lines. The 19th century and 20th century were represented by Forts Slough, Luton and Horsted. Chatham Historic Dockyard was also a major attraction. We were privileged to be allowed to visit Brompton Barracks to see the traces of the fortifications which are within the secure site. Overall, this was a successful conference and raised the profile of the FSG and fortifications more generally.

1

Fortress Study Group CIO

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2023

We have developed a new charitable grant application process and a priority for the coming year will be promoting this and awarding our first grants under the new arrangements which we intend to do in the first quarter of 2024.

We have a strong programme, of activity in planning for 2024 and we are starting to turn our attention to how we should mark 2025 which will be the 50th Anniversary of the founding of FSG.

David Clarke

Trustee, Secretary and Acting Chair

2

Fortress Study Group CIO

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2023

Reference and administrative details

Registered charity name	Fortress Study Group CIO
Charity registration number	1194017
Company registration number	CE025334
Principal office and registered	4 Royal Chase
office	Dringhouses
	York
	North Yorkshire
	YO24 1LN
	England
The trustees
	Mr John Harris (resigned 14 June 2023)
	Mr David H Clarke
	Mr Nicholas J R Dougan
	Mr Charles Blackwood
Company secretary	David H Clarke
Auditor	Geoffrey Lee
	Chartered accountants & statutory auditor
	Whitefields, Daisy Lane
	Mill Hill
	Edenbridge
	Kent
	TN8 5DB
Bankers	Metro Bank PLC
	One Southampton Row
	London
	UK
	WC1B 5HA

Structure, governance and management

The Charity has a Governing Constitution which was approved by the Charity Commission in England and Wales. This outlines the objectives of the Charity and how decisions will be made. It further prevents the Charity from lawfully remunerating or granting benefits to trustees, management committee members or members whilst defining what the Charity may legitimately undertake.

3

Fortress Study Group CIO

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2023

Objectives and activities

The primary object of the CIO is to advance the education of the public in the study of all aspects of fortifications and their armaments, especially works constructed to mount or resist artillery.

In furtherance of these objects the Group may:

a. Campaign for the preservation, conservation, protection and recording of works of fortification as heritage assets and the landscape and historic settings in which they are located.

b. Advise governments, local authorities, other organisations and individuals on the restoration and management of forts and fortifications.

c. Encourage the study and distribution of knowledge concerning relevant elements such as the archaeology, design and comparative design evolution, history and historical impacts of post-medieval artillery fortification.

d. Publish and administer a website on artillery fortifications, together with a number of subsidiary and contributory sites.

e. Maintain a social media presence.

f. Publish annually a journal entitled FORT when possible.

g. Publish multiple times a year a magazine entitled CASEMATE when possible.

h. Coordinate visits to sites and museums with relevance to fortifications and their armaments throughout the World.

i. Offer grants and bursaries for publications that fall within the scope of the Group's aims.

j. Offer grants for specific projects to preserve or make available to the public artefacts or fortifications falling within the scope of the Group's aims.

k. Co-operate and collaborate with societies and groups having similar interests and objectives throughout the World.

l. Campaign for the preservation, conservation, protection and recording of works of fortification, including making representations to Planning Authorities, Heritage bodies, and other such organisations and collaborating with other organisations that have similar objectives.

m. Campaign for the preservation, conservation, and protection of landscape settings in which works of fortification are located and within which they are often concealed/contained, again making representations and collaborating as noted under k.

n. Recognise (with a celebratory plaque etc.) those organisations who have exceptionally well preserved and conserved artillery fortifications or who have sympathetically converted such fortifications to a new use.

o. Actively participate in the recording and scheduling of works of fortifications and their armaments.

4

Fortress Study Group CIO

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2023

Strategic report

The following sections for achievements and performance and financial review form the strategic report of the charity.

Achievements and performance

Our publications remain a key means of delivering our Object. Our magazine Casemate has been published on schedule with a good variety of high-quality content. Our peer reviewed journal, FORT 50 (2022) was delayed being finally despatched in November 2023. A significant proportion of the material for FORT 51 (2023) is available and so the hope is that edition will be published by summer 2024. The quality of FORT remains at a very high level and showcases fortification research from around the world.

Charitable activities have also included the webinars which are open to other societies. We have now delivered over 125 webinars with a total audience (live and YouTube) of over 13,000 and the programme is full to summer 2024.

The launch of the British Civil Wars Memorials Project was the realisation of one of our charitable activities from last year.

We continue to make progress in digitising and making available to members the Quarmby collection of postcards and records of visits to fortifications. With generous support from two FSG members the plan is to make this valuable resource available in a controlled manner to FSG members and researchers with low resolution versions of some of the material being put on the public side of the website. It is apparent however that the scale of the work to catalogue this collection is significant and we will be seeking volunteers from the wider membership.

We have developed new policies and processes for awarding charitable grants and our intention is to make the first grants in the 2023/24 financial year.

5

Fortress Study Group CIO

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2023

Financial review

The subsidiary company FSG Tours Ltd has been dormant throughout the year. Accordingly, all the income and expenditure was incurred through the charity.

1 April 2022 to 31 March 2023 was the first full year of operation of the FSG in it’s new form as a Charitable Incorporated Organisation, with a new website and new bank accounts. We started the year with some apprehension as to how many members would renew their memberships in the new system, While we were able, for the first time, to offer UK members the option of paying by direct debit through the website platform, the process for doing so was not entirely straightforward and may have deterred some.

Having budgeted conservatively, it has been very satisfactory to have achieved a decent surplus to be able to apply to our charitable activities. To summarise how that has been achieved:

1. Membership subscriptions were about £3,000 more than our conservative budget.

2. We received donations and achieved book sales of £1,756, having made no assumptions about such income in the budget. " We received a royalty payment of £1,889 from the Publishers Licensing Society. This was a very pleasant surprise, but amounts received have fluctuated significantly over the years and we do not know enough about how the amount is calculated to be able to rely on receiving such income annually.

3. The joint ECW study day that we ran with the Battlefields Trust brought in £2,540 in ticket sales. After paying for room hire, catering etc the event made a surplus of £1,338, which was shared with the Battlefields Trust.

4. Expenditure was largely kept within budgeted limits. Having conservatively budgeted for higher printing costs, these did not actually rise in the year as steeply as we had feared, and therefore we were able to cover the cost of reprinting the missing copies Fort 49 while still staying within the budgeted amount for printing and distribution.

5. The Group has had the benefit this year of not having had to pay for an Independent Examiner (auditor) and we should thank Geoff Lee for having completed this work on a pro bono basis. It is likely that we will have to pay for that service next year, which is likely to come to £1,000 or so.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

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Fortress Study Group CIO

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2023

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the applicable Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The trustees' annual report and the strategic report were approved on 16 November 2023 and signed on behalf of the board of trustees by:

David H Clarke Trustee and Secretary

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Fortress Study Group CIO

Independent Auditor's Report to the Members of Fortress Study Group CIO

Year ended 31 March 2023

Opinion

I have audited the financial statements of Fortress Study Group CIO (the 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In my opinion the financial statements:

• give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Basis for opinion

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of my report. I am independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Fortress Study Group CIO

Independent Auditor's Report to the Members of Fortress Study Group CIO (continued)

Year ended 31 March 2023

Other information

The other information comprises the information included in the annual report, other than the financial statements and my auditor’s report thereon. The trustees are responsible for the other information. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In my opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which i am required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, I have not identified material misstatements in the trustees' report.

I have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires me to report to you if, in my opinion:

• adequate accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by me; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• I have not received all the information and explanations I require for my audit.

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Fortress Study Group CIO

Independent Auditor's Report to the Members of Fortress Study Group CIO (continued)

Year ended 31 March 2023

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which my procedures are capable of detecting irregularities, including fraud is detailed below:

Copies of all bank statements during the period and subsequently up-to the last week before the Annual General Meeting together with Card Merchant statements over a similar time range were checked to verify completeness of income recognition. A review of income transaction recordings followed to ensure that classification as receivable or deferred income was accurate. With a membership year commencing on 1 April there was no need to exercise any judgement as transaction timing and membership records clearly defined receivable or deferred position of each transaction.

These same bank statements, for the period to the Balance Sheet date and the following period before the Annual General Meeting were checked against supplier invoices and expenses claims to ensure completeness of cost recognition. The review ensured that classification as paid costs and accrued costs was accurate. Discussions with the trustees ensured that the representations of accrued costs which remained unpaid at the date of the Annual General Meeting were reasonable.

Accordingly, these steps ensured that cash at bank, investments, debtors and creditors were not mis-stated. Prepayments were agreed to evidence of payment with calculations of the split of these costs over accounting periods being checked. Deferred income was determined from the completeness and accuracy checks on income. Accruals were determined from the completeness and accuracy checks on costs.

Therefore, the likelihood of undetected irregularities or fraud was remote.

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Fortress Study Group CIO

Independent Auditor's Report to the Members of Fortress Study Group CIO (continued)

Year ended 31 March 2023

As part of an audit in accordance with ISAs (UK), I exercise professional judgment and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Fortress Study Group CIO

Independent Auditor's Report to the Members of Fortress Study Group CIO (continued)

Year ended 31 March 2023

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Use of my report

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. My audit work has been undertaken so that I might state to the charity's members those matters I am required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for my audit work, for this report, or for the opinions I have formed.

Geoffrey Lee Chartered accountants & statutory auditor Whitefields, Daisy Lane Mill Hill Edenbridge Kent TN8 5DB

16 Nov 23

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Fortress Study Group CIO

Statement of Financial Activities (including income and expenditure account)

Year ended 31 March 2023

					Period from
					7 Apr 21 to
		Year	to 31 Mar 23		31 Mar 22
		Unrestricted	Restricted
		funds	fundsTotal funds		Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	5	2,396	–	2,396	1,002
Charitable activities	6	19,967	–	19,967	60
Other trading activities	7	2,594	–	2,594	15
Investment income	8	13	34	47	–
Other income	9	–	–	–	69,671
		────────	────	────────	────────
Total income		24,970	34	25,004	70,748
		════════	════	════════	════════
Expenditure
Expenditure on charitable activities	10,11	17,208	–	17,208	4,367
Other expenditure	12	1,827	–	1,827	403
		────────	────	────────	───────
Total expenditure		(19,035)	–	(19,035)	(4,770)
		════════	════	════════	═══════
		────────	────	────────	────────
Net income and net movement in	funds	5,935	34	5,969	65,978
		════════	════	════════	════════
Reconciliation of funds
Total funds brought forward		39,478	26,500	65,978	–
		────────	────────	────────	────────
Total funds carried forward		45,413	26,534	71,947	65,978
		════════	════════	════════	════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 16 to 24 form part of these financial statements.

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Fortress Study Group CIO

Statement of Financial Position

31 March 2023

		2023	2022
	Note	£	£
Fixed assets
Investments	16	500	500
Current assets
Debtors	18	810	1,213
Cash at bank and in hand		77,034	77,249
		────────	────────
		77,844	78,462
Prepayments and accrued income		4,460	1,220
Creditors: amounts falling due within one year
Trade creditors		–	3,426
Amounts owed to group undertakings		500	500
		────────	────────
		500	3,926
		────────	────────
Net current assets		81,804	75,756
		────────	────────
Total assets less current liabilities		82,304	76,256
Accruals and deferred income		10,357	10,278
		────────	────────
Net assets		71,947	65,978
		════════	════════
Funds of the charity
Restricted funds		26,534	26,500
Unrestricted funds		45,413	39,478
		────────	────────
Total charity funds	21	71,947 ════════	65,978 ════════

These financial statements were approved by the board of trustees and authorised for issue on 16 Nov 23, and are signed on behalf of the board by:

Nicholas JR Dougan Trustee and Treasurer

The notes on pages 16 to 24 form part of these financial statements.

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Fortress Study Group CIO

Statement of Cash Flows

Year ended 31 March 2023

	2023	2022
	£	£
Cash flows from operating activities
Net income	5,969	65,978
Adjustments for:
Government grant income	(1,295)	–
Other interest receivable and similar income	(47)	–
Accrued (income)/expenses	(3,072)	6,675
Changes in:
Trade and other debtors	347	(2,433)
Trade and other creditors	(3,459)	7,029
	───────	────────
Cash generated from operations	(1,557)	77,249
Interest received	47	–
	───────	────────
Net cash (used in)/from operating activities	(1,510)	77,249
	═══════	════════
Cash flows from investing activities
Acquisition of subsidiaries	–	(500)
	───────	────────
Net cash used in investing activities	–	(500)
	═══════	════════
Cash flows from financing activities
Proceeds from loans from group undertakings	–	500
Government grant income	1,295	–
	───────	────────
Net cash from financing activities	1,295	500
	═══════	════════
Net (decrease)/increase in cash and cash equivalents	(215)	77,249
Cash and cash equivalents at beginning of year	77,249	–
	────────	────────
Cash and cash equivalents at end of year	77,034	77,249
	════════	════════

The notes on pages 16 to 24 form part of these financial statements.

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Fortress Study Group CIO

Notes to the Financial Statements

Year ended 31 March 2023

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 4 Royal Chase, Dringhouses, York, North Yorkshire, YO24 1LN, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Debtors

Short term debtors are measured at transaction price, less any impairement. Loans receivable are measured inially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any cash at bank and cash in hand.

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Creditors

Short term trade creditors are measure at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Going concern

There are no material uncertainties about the charity's ability to continue.

Cash at bank and in hand

Cast at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Consolidation

The charity is not required to prepare consolidated accounts in accordance with the Charities Act 2011, and has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the entity and its dormant subsidiary undertaking comprise a small group.

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Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3. Accounting policies (continued)

Judgements and key sources of estimation uncertainty

In the application of the CIO's accounting policies, which are described both above and below, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that may not be readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period if the revision affects the current and future periods.

in the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

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Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3. Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Investments

Fixed asset investments are initally recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

18

Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3. Accounting policies (continued)

Financial instruments (continued)

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Limited by guarantee

The charity is Limited by Guarantee. The liability of any member of Fortress Study Group CIO is nil.

5. Donations and legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Donations
Donations from members	236	236	1,002	1,002
Donations from third parties	215	215	–	–
Legacies
Sales of books bequeathed to FSG	650	650	–	–

19

Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

5. Donations and legacies (continued)

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Grants
Gift Aid on Subscriptions	1,295	1,295	–	–
	───────	───────	───────	───────
	2,396	2,396	1,002	1,002
	═══════	═══════	═══════	═══════

6. Charitable activities

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Membership Subscriptions	17,427	17,427	60	60
Membership Study Days	2,540	2,540	–	–
	────────	────────	────	────
	19,967	19,967	60	60
	════════	════════	════	════
Other trading activities
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Sales of books donated	705	705	5	5
Copyright Royalties on FSG
publications	1,889	1,889	2	2
Sales of FSG Fort journal	–	–	5	5
Sales of FSG Casemate journal	–	–	3	3
	───────	───────	────	────
	2,594	2,594	15	15
	═══════	═══════	════	════
Investment income
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2023
		£	£	£
Bank interest receivable Gordon Fordyce	Fund	–	34	34
Bank interest receivable General Funds		13	–	13
		────	────	────
		13	34	47
		════	════	════
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2022
		£	£	£
Bank interest receivable Gordon Fordyce	Fund	–	–	–
Bank interest receivable General Funds		–	–	–
		────	────	────
		–	–	–
		════	════	════

7. Other trading activities

8. Investment income

20

Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

9. Other income

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
General funds - transferred on closure of FSG
(charity 288790)	–	–	–
Gordon Fordyce Restricted Fund -transferred on
closure of FSG (charity 288790)	–	–	–
	────	────	────
	–	–	–
	════	════	════
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
General funds - transferred on closure of FSG
(charity 288790)	43,171	–	43,171
Gordon Fordyce Restricted Fund -transferred on
closure of FSG (charity 288790)	–	26,500	26,500
	────────	────────	────────
	43,171	26,500	69,671
	════════	════════	════════

10. Expenditure on charitable activities by fund type

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
FSG Fort journal publication	6,107	6,107	–	–
FSG Casemate journals publication	7,007	7,007	–	–
FSG Website and webinars	2,043	2,043	942	942
Membership Study Days	1,817	1,817	–	–
Support of societies and groups having
similar interests and objectives
throughout the world	234	234	–	–
Quamby Collection preservation and
conservation	–	–	3,425	3,425
	────────	────────	───────	───────
	17,208	17,208	4,367	4,367
	════════	════════	═══════	═══════

21

Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

11. Expenditure on charitable activities by activity type

	Activities
	undertaken	Total funds	Total fund
	directly	2023	2022
	£	£	£
FSG Fort journal publication	6,107	6,107	–
FSG Casemate journals publication	7,007	7,007	–
FSG Website and webinars	2,043	2,043	942
Membership Study Days	1,817	1,817	–
Support of societies and groups having similar
interests and objectives throughout the world	234	234	–
Quarmby Collection preservation and conservation	–	–	3,425
	────────	────────	───────
	17,208	17,208	4,367
	════════	════════	═══════

12. Other expenditure

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Governance costs - Stripe processing
costs	391	391	113	113
Governance costs - Go Cardless
processing costs	90	90	7	7
Governance costs - software licenses	–	–	199	199
Governance costs - T & O insurance	1,247	1,247	84	84
Governance costs - Public Liability
insurance	75	75	–	–
Governance costs - Bank charges	11	11	–	–
Governance costs - Regulatory
Compliance costs	13	13	–	–
	───────	───────	────	────
	1,827	1,827	403	403
	═══════	═══════	════	════

13. Independent examination fees

The auditor is an honorary auditor with nil audit fee.

14. Trustee and volunteer costs

The charity has no formal employees. Staffing functions are undertaken by volunteers who are either trustees, or members of the management committee or simply members. The volunteer costs and benefits for the reporting period are nil.

15. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by any of the trustees, any member of the Management committee or any member.

16. Investments

With the closure of the Fortress Study Group (288790), the shares in the subsidiary FSG Tours Ltd were transferred to the new charity.

22

Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

17. Investment entities

Subsidiaries and other investments

		Percentage of	Percentage of
		Class of share	shares held
	Subsidiary undertakings
	FSG Tours Ltd	Ordinary	100
18.	Debtors
		2023	2022
		£	£
	Trade debtors	810	1,213
	Prepayments and accrued income	4,460	1,220
		───────	───────
		5,270	2,433
		═══════	═══════

19. Deferred income

	2023	2022
	£	£
Amount deferred in year	3,570 ═══════	3,603 ═══════

Deferred income comprise member subscriptions and member event receipts received in advance.

20. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2023	2022
	£	£
Recognised in income from donations and legacies:
Government grants income - Gift Aid	1,295	–
	═══════	════

21. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
					At
		At		31 March 202
	1	April 2022	Income	Expenditure	3
		£	£	£	£
General funds		39,478	24,970	(19,035)	45,413
		════════	════════	════════	════════
					At
		At			31 March 202
	7	April 2021	Income	Expenditure	2
		£	£	£	£
General funds		–	44,248	(4,770)	39,478
		════	════════	═══════	════════

23

Fortress Study Group CIO

Notes to the Financial Statements (continued)

Year ended 31 March 2023

21. Analysis of charitable funds (continued)

On the closure of the charity Fortress Study Group (288790) the balance of the General Fund was paid to this new charity.

Restricted funds

Restricted funds
					At
		At			31 March 202
	1	April 2022	Income	Expenditure	3
		£	£	£	£
Gordon Fordyce Restricted Fund		26,500	34	–	26,534
		════════	════	════	════════
					At
		At			31 March 202
	7	April 2021	Income	Expenditure	2
		£	£	£	£
Gordon Fordyce Restricted Fund		–	26,500	–	26,500
		════	════════	════	════════

On the closure of the charity Fortress Study Group (288790) the balance of the Gordon Fordyce Restricted Fund was paid to this new charity.

22. Analysis of net assets between funds

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
Investments	500	–	500
Current assets	55,770	26,534	82,304
Creditors less than 1 year	(10,857)	–	(10,857)
	────────	────────	────────
Net assets	45,413	26,534	71,947
	════════	════════	════════
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
Investments	500	–	500
Current assets	53,182	26,500	79,682
Creditors less than 1 year	(14,204)	–	(14,204)
	────────	────────	────────
Net assets	39,478	26,500	65,978
	════════	════════	════════

23. Analysis of changes in net debt

			At
	At 1 Apr 2022 Cash flows		31 Mar 2023
	£	£	£
Cash at bank and in hand	77,249	(215)	77,034
Debt due within one year	(500)	–	(500)
	────────	────	────────
	76,749	(215)	76,534
	════════	════	════════

24

Fortress Study Group CIO

Management Information

Year ended 31 March 2023

The following pages do not form part of the financial statements.

25

Fortress Study Group CIO

Detailed Statement of Financial Activities

Year ended 31 March 2023

		Period from
	Year to	7 Apr 21 to
	31 Mar 23	31 Mar 22
	£	£
Income and endowments
Donations and legacies
Donations from members	236	1,002
Donations from third parties	215	–
Sales of books bequeathed to FSG	650	–
Gift Aid on Subscriptions	1,295	–
	───────	───────
	2,396	1,002
	───────	───────
Charitable activities
Membership Subscriptions	17,427	60
Membership Study Days	2,540	–
	────────	────
	19,967	60
	────────	────
Other trading activities
Sales of books donated to FSG	705	5
Copyright Royalties on FSG publications	1,889	2
Sales of FSG Fort journal	–	5
Sales of FSG Casemate journal	–	3
	───────	────
	2,594	15
	───────	────
Investment income
Bank interest receivable Gordon Fordyce Fund	34	–
Bank interest receivable General Funds	13	–
	────	────
	47	–
	────	────
Other income
General funds - transferred on closure of FSG (charity 288790)	–	43,171
Gordon Fordyce Restricted Fund -transferred on closure of FSG (charity
288790)	–	26,500
	────	────────
	–	69,671
	────	────────
	────────	────────
Total income	25,004	70,748
	════════	════════
MM

26

Fortress Study Group CIO

Detailed Statement of Financial Activities (continued)

Year ended 31 March 2023

		Period from
	Year to	7 Apr 21 to
	31 Mar 23	31 Mar 22
	£	£
Expenditure
Expenditure on charitable activities
Membership Study Day – venue rent & catering	1,817	–
Quarmby Collection - preservation and conservation costs	–	3,425
Heritage Body – donation	50	–
FSG Fort journal 50 - design costs	750	–
FSG Fort journal 50 and Casemate journals – printing costs	7,135	–
FSG Fort journal 50 and Casemate journals – distribution costs	4,322	–
FSG Website - domain name costs	20	–
FSG Website - hosting costs – Siteground, Whitefuse and AWS	1,778	942
FSG Webinar – Zoom costs	245	–
Heritage Body - subscriptions	184	–
Reprint Fort 49 - printing costs	861	–
Reprint Fort 49 - distribution costs	46	–
	────────	────────
	17,208	4,367
	────────	────────
Other expenditure
Governance costs - Stripe processing costs	391	113
Governance costs - Go Cardless processing costs	90	7
Governance costs - software licenses	–	199
Governance costs - T & O insurance	1,247	84
Governance costs - Public Liability insurance	75	–
Governance costs - Bank charges	11	–
Governance costs - Regulatory Compliance costs	13	–
	───────	────
	1,827	403
	───────	────
	────────	───────
Total expenditure	(19,035)	(4,770)
	════════	═══════
	────────	────────
Net income	5,969	65,978
	════════	════════

27

Fortress Study Group CIO

Notes to the Detailed Statement of Financial Activities

Year ended 31 March 2023

		Period from
	Year to	7 Apr 21 to
	31 Mar 23	31 Mar 22
	£	£
Expenditure on charitable activities
FSG Fort journal publication
Activities undertaken directly
FSG Fort journal 50 - design costs	750	–
FSG Fort journal 50 - printing costs	3,100	–
FSG Fort journal 50 - distribution costs	1,350	–
Reprint Fort 49 - printing costs	861	–
Reprint Fort 49 - distribution costs	46	–
	───────	────
	6,107	–
	───────	────
FSG Casemate journals publication
Activities undertaken directly
FSG Casemate journal - printing costs	4,035	–
FSG Casemate journal - distribution costs	2,972	–
	───────	────
	7,007	–
	───────	────
FSG Website and webinars
Activities undertaken directly
FSG Website - domain name costs	20	–
FSG Website - hosting costs -Siteground, Whitefuse and AWS	1,778	942
FSG Webinar - Zoom costs	245	–
	───────	────
	2,043	942
	───────	────
Membership Study Days
Activities undertaken directly
Membership Study day - venue rent & catering	1,817	–
	───────	────
Support of societies and groups having similar interests and	objectives throughout the world
Activities undertaken directly
Heritage body - donations	50	–
Heritage body - subscriptions	184	–
	────	────
	234	–
	────	────
Quamby Collection preservation and conservation
Activities undertaken directly
Quarmby Collection - preservation and conservation costs	–	3,425
	────	───────
	────────	───────
Expenditure on charitable activities	17,208	4,367
	════════	═══════

28