THE ROYAL ARTILLERY CHARITABLE FUND Incorporated under the Companies Act and Llmited by Guarantee REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 INCLUDING GROUP ACCOUNTS WITH THE ROYAL ARTILLERY ASSOCIATION (REGISTERED CHARITY NO 238197) and FINANCIAL STATEMENTS FOR THE ROYAL ARTILLERY CHARITABLE FUND (PERMANENT ENDOWMENT) (210202-18) and the ROYAL ARTILLERY BENEVOLENT FUND (210202-19) FOR THE YEAR ENDED 31 DECEMBER 2023 ARE INCLUDED UNDER A UNITING DIRECTION Registered Company No: 163205 Registered Charity No: 210202
CONTENTS Page Trustees and Administratlve Information Trustees Report 2-11 Report of the Auditors 12-15 ConsolSdated Statement of Financial Activities 16 Consolidated Statement of Income and Expenditure 17 8alance Sheets 18-19 Consolldated Cash Flow Statement 20 Noles to the Financial Statements 21-39
THE ROYALARTILLERY CHARITABLE FUND TRUSTEES AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2023 Presldent- The Master Gunner, St James's Park, Lieutenant General Sir Andrew Gregory KBE C8 DL Royal Artlllery Charitable Fund IRACFI Trustees - The members of the RACF Trustee Board during the year ended 31 December 2023 and up to the date of the approval of this report, were as follows'.- Chalrman Major General DM Cullen CB OBE Trustees Brigadler MN Pountaln CBE Colonel MB Bishop MBE VR Colonel RC ChrSstopher MBE Colonel CE Comport OBE TD DL Colonel CL Coton Colonel MAA Dort)an Colonel C Fletcher-wood OBE Colonel RA Forester Colonel RC Harmer ADC Colonel S l Hay Colonel BMD Ingham Colonel C Palmer Colonel MD Relph MBE Colonel G Taylor CBE Lieutenant Colonel S J Howe Major Ai Dines TD (Retired 12 June 20241 Major10 Leighton TD IRetired 12 June 2024 Warrant Officer Classl IRASMI L Sanders (Retlred 31 May 20241 Warrant Officer Class I IRASMI J Lightfoot (Appointed 31 May 20241 IRetired 4 September 20231 IAppolnted 20 September 2023. Retired 6 May 20241 IRetired 8 lune 20231 (Appointed 9 October 20231 (Appolnted 22 April 20241 (Appointed 22 November 20231 IRetSred 17 October 20231 (Retired 28, June 20231 A number of trustees are a150 involved in the governance of other charities referred to in thSs report. All trustees have made a declaration Ilsting any related parties and potential conflicts of Interest. Regimental Secretary Colonel (Retdl M G J Cèrter Finance Secretary Mrs B Hoblyn Profe5slonal Advlsors Bankers Lloyds 8ank PLC, 39 Plccadllly, London, WIV OAA Sollcitors Wi150ns, Alexandra House, St John's Street, Salisbury, Wiltshire, SPI 25B Auditors Saffery LLP, 71 Queen Victoria Street, London, EC4V 48E Investment Managers BlackRock Investment Management IUKI Ltd, 12 Throgmorton Avenue, London, EC2N 2DL Address Artillery House, Royal Artillery Barracks, Larkhill, Wiltshire SP4 8QT. Reglstered Company No 163205 RACF Reglstered Charlty No 210202 RAA Reglstered Charity No 238197 Page I
THE ROYAL ARTILLERY CHARITABLE FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Introduction The RACF Trustees submit thelr annual report for the year ended 31" December 2023 under the Companles Act 2006, together with the audited financial statements for that year. The accounts comply with the Companles Act 2(X)6, the charities, governlng documents and the relevant Statement of Recommended Practlce Ithe Charities SORP IFR510211. The RACF Is a company not for profit, limited by guarantee and not havlng share capital. It is governed by Its Articles of Association. The Tru5tees' Report incorporates the directors, report for Companies Act purposes. These accounts, including the comparatives, consolidate the results of The Royal Artillery Charltable Fund and, for the first time include, under its Group Accounts, its sub5idiaiy chaiity the Royal Artillery Association IRAAI. The RACF is the sole corporate trustee of the RAA and on the advice of our auditors, the RAA is now included as part of the RACF Group Accounts. Ob ects The objects of the RACF are to apply the charity's funds- In promotSng the eff iciency and Welfa of all ranks of the Royal Artilleryi whether Regular, Special ReseNe, Reserve orTemporary and; In relief and assistance of any past, present or future members of the Royal Artillery whether Regular, Special Reserve, Reserve or Temporary and their dependants, and families and dependants of any deceased members, who are in need of such relief and assistance by reason of poverty, disability, sickness. infirmity or otherwise. The objects of the RAA are to promote the efficlency of the Royal Artlllery by.. MaSntaining contact between past and present members of the Royal Artillery, fostering mutual friendshlp between them and providlng for social gatherings for them and,. Fostering esprit de corps, comradeship and the welfare o* the Royal Artillery and preserving its traditions. To relieve either generally or individually members of the RAA or past and present members of the Royal Artilleryi and their dependants, who are in condition5 of need, hardshlp or distress. anisation The duties of the RACF Board of Trustee5 are laid down in the Articles of Association. The Board members provide a skllls-based set of abilities and experience, with some representing the serving officers and soldiers of the Regiment. The RACF works closely with a number of other charities. in partlcular the Royal ArtSllery General Charitable Trust IRAGCTI and the Royal Artlllery Institution IRAII, whose objects also support and promote efficiency within the Royal Artillery. The Board of Trustees meets at least twice a year as part of the Royal Artillery Board of Management alongside the trustees of the RAI. Subordinate to the Board of Trustee5 are the Investment Committee, the Welfare Committee and a Finance and General Purposes Committee. These committees comprise trustees from both RAI and RACF and others who have been co-opted for their skills and knowledge so a5 to ensure that high quality advice may be provided to the RACF Board. The report5 of these committees form part of the agenda of the meetings of the RACF Board of Trustee5. The trustees form the membership of the RACF. The Master Gunnerfs Committee sels the strateglc framework for the Regiment and acts as an advisory board to the RACF Board of Trustees as required. The Chairman of the RACF is a member of the Master GuNne¢s Committee and updates the committee biannually on business undertaken by the Royal Artillery Board of Management. Page 2
THE ROYAL ARTILLERY CHARITABLE FUND TR STEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Governance In addition to the Artlcles of Assoclation, the Welfare, Investment and Finance & General-Purp05e committees have thelr own directives, which are reviewed and agreed regulayly by the trustee5. Powers delegated to the Secretariat are contalned In the directives. Direction to the RAA NEC is contained Sn the RAA Rules and GAIS. Secretariat policies, whlch are agreed by the trustees, are in plate in order to ensure smooth and effectSve running of the charities. The charities, risk register is reviewed annually by the trustees. The reglster follows the model recommended by the Charity Commission. Identified rlsks are managed as lald down in the Risk Management Plan. For specific items, detailed briefs are sent to the trustee5 SO they can conslder Issues in depth before meetings. Trustees also reteive regular reports on the value and movement of the charit$ investment portfolio, The Chairman of the trustees and the Regimental Secretary meet regularly (usually weekly) to discuss issues. Chari Commlsslon Govemance Code The RACF as one of the Royal Artillery charitles, comes under the umbrella of the Confederation of SeNice Charities Icobseol. Cobseo, in consultation with the Charity Commlssion, have produced 8 Service Charity toolkit based on the 2017 Charity Commission Governance gulde. The trustees carried out a self-assessment process using the toolkit in 2019. This enabled the Board to identlfy a number of enhancements which can be considered to improve governance. Thls Included a resolution to limit the tenure of trustees. A further self- assessment review was conducted in 2022. Overall thls showed an improvement since 2019 but Identified some areas for furthei review. A further review will be conducted in 2025. selection of Trustee5 of he RACF Board of Mana emen The Articles of Association state the prosS for the appointment of trustees. New trustees are appointed bv Resolutlon of the existing trustees. Trustees are normally seTving and retired members of the Royal Artillery. The Master Gunner St James's Park as President is an ex-officio member of the RACF and is the Head of the Regimental Family, but he is not a trustee. The President proposes the Chairman, who will normally have been a Colonel Commandant. The appointment of the Chairman is then approved by resolution of the existSng trustees. Trustees are selected for their skllls and experlence and their ability to understand and antlcipate the needs of the seNing and retired regiment. The trustees will normally include the Regimental Colonel, Colonel ReseNes, Commandant Royal School of Artillery, Commander 7 Air Defence Group, Deputy Commander 1st Deep Reconnaissance Strike Brlgade Combat Team, and the Royal Artillery Sergeant Major, who between them represent the interests of serving Gunner soldiers and officers. Veterans and family beneficiaries a represented by both servlng and retlred trustees. Cor orate Trustee The RACF Is the sole corporate trustee of the Royal Artlllery Charitable Fund (Perrnanent Endowment) IRACF IPEI1210202-181, the Royal Artillery Benevolent Fund IRABFI1210202-191, the Royal Artlllery Association IRAAI 12381971 and the Kelly Holdsworth Artillery Trust IKHATI12083591. The RAA have this year been included as part of the RACF group accounts as a subsidiary charity of RACF. They have also prepared a separate set of accounts for submission to the Charity Commission. Unltln Direetlon Under a uniting directlon the accounts of the RACF IPEI, and the RABF, a shown in these accounts. As indicated above the RAA funds have been included as part of the Group Accounts. Page 3
ThE ROYALARTILLERY CHARITABLE FUND TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Ke Mana ement Personnel The Regimental Secretary is the Chief Executive of the RACF and RAA and is responsible for- the day-to-dav management of the charities, business,. Implementing policies agreed by the trustees and,. the management of the charitles, staff. The Flnance Secretary 15 responslble to the Regimental Secretary for the accounting of funds and all financial records. The Welfare Secretary is responslble to the Regimental Secretary for processing all welfare applications and indivldual grants. The RAA Secretary is responsible for specific matters relatin8 to the Association. Revlew of Flnancial Activities The following details refer to the consolidated figure5 of the RACF and RAA for 2023 and 2022. The dlsaggregated figures for RACF and RAA can be seen on the balance sheet and notes at pages 18 and 28 to 37. The charities funds continue to be employed to support the efficiency and welfare of members of the Royal Artillery and to provide relief and assistance to pasti present or future members of the Royal Artillery. The results of the charities activities are summarlsed on page 16. In 2023 the charltles had an excess of expenditure over income before gain5 on investments of £18,29712022: £346,047 excess of Income over expenditurel. After investment galns of £l,990,00612022: losses of £4,090,240) there was a net increase of funds of £1,971,70912022'. net105s of £3,744,1931. Total income decreased by £213,330 to £1,577,315, mainly due to.. a decrease in declared legacies and other grants and donations. There were increases in Intangible intome Idue to salary increase51, increase RAA branch income and investment income (due to higher dividend payments) but these gains were offset by the decrease in legacieslNotlng that 2022 saw a significant single legacvl. Income from the Service Glving Scheme Increased by £3,867 to £261,641, which was 41.02% of income reived. There were 10 legacies totallin8 £156,231. This income reflects 2 accrued legacies of £29,715, which were notified in 2022 and still outstanding. There were an additional 171 donations, totalllng £47,426. Investment income aSs0 increased by £1,490 which was 9.18% higher than wa5 budgeted. There are four main income streams. They are.. Investment Income. Service Pay Giving Scheme ISPGSI, where all Serving personnel are encouraged to give part of their pay to the charities. Legacies. Donations. Expenditure on chailtable activities Increased by £150,549 to £1,462,20612022'. £1,311,6571. This wa5 due to increase in several areas- Grant5 to institution increased overall by £68K, most 5igniflcantly In support to regimental sport and betterment grants to the reglments. Salaries increased overall E44K, this was due to salary increase, cost of living awards. Event expenditure increased by £5,167. Support Costs increased overall by £26K, mainly due to cottage expenses and office cost due to the rebrandlng of the website. Grants from RACF to indivldual beneficiaries totalled £630,132, of which £178,146 was spent from the restricted RABF Funds, and the remaining £451,986 from the RACF12022: £624,416-. RABF £183,763, Page 4
THE ROYAL ARTILLERY CHARITABLE FUND rRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Revlew of Financial A¢tlvltle5 continued RACF £440,653). It 15 as5e55ed that thls Increase 15 a result of increased need forsupport during the cost of livlng Crisis and a general increase in inflation. Grants to regiments totalled £326,65412022-. £251,634). Thls was made up of.. of regimental Sndividual welfare cases - £83,501: annual regSmental welfare grants - £80,580,. sports - £80,280; Betterment grants- E46,452- battery grants - £35,841. The c05t5 of raising funds increased by £9,518 to £10,69612022- £1,1781. This was mainly due to the RACF sponsoring a team event. Funds raised by this event will be donated to the RACF. Charltable Activltles The RACF'S prlnclpal activities durSng the year were as follows: ProvisSon of assistance to those in need by reason of poverty, disability, sickness, Infirmity or otherwise- £630,132, of which the £178,146 was spent from the restricted RABF Fund5, and the remainSng £451,986 fmm the RACF. The prlme method of achieving thi5 object Is by making grants to individuals. Gunners in need, both servin8 and retired, and their dependant5, are identified In a variety of ways and Cases normally come from one of the following organisations.. Social Services, Soldiers Sailors Alrmen and Families Association ISSAFAI, Royal Brltlsh Legion IRBLI, Off icers Associat5on10A1, Unit Welfare Officers, RAA and other regimental charitie5. Once a Gunner, Dr his I her dependant, is identified as being in need, a trained external assessor, normally a member of SSAFA, OA or the RBL, interviews the potential recipient and then make5 3 report to the RACF. If the case involves a serving Gunner then the Unit Welfare Offlcer may initiate a report. The RACF and AABF then a55es5es the case report and allocates charitable fund5, in consultation with other eli8ible charltles If appropriate. The proportion found by the RACFIRABF can vary depending on circumstances and is not guaranteed. On average during the year it was 34% of the total.12022- 35%). The external a55essor decldes whether the need has been met. Funds to relleve need are paid through the almonising organisatlon rather than to the indlvidual. The RACF assisted 750 individual welfare cases in 2023 with grants totalling £554,69212022.. 747 cases), of which 10012022- 841 were serving members of the Reglment erants totalling £83,501. 50 other ineligible cases were declined, a5 they were either not Gunners orthe request for support was no longer needed or out of scope leg medical or le8al fees) or duplicatlons. In addition to the above, £72,42012022: £76,720) was pald in grants to 5312022: 561 Kellv Holdsworth beneficiaries and a further £30,14512022'. £33,100) in Chrlstmas grants to 380 12022- 3241 recipients. The total number of cases asslsted in 2023 were 1,18712022.. 1,2341. No case that Was assessed a5 eligible for and 5tlll requirlng assistance was declined. Among the 750 individual cases, the average gros5 grant was £877 per case. In most instances additional funds were granted by the RBL, Army Benevolent Fund IABFI, the OA and other military and civilian charities. Page 5
THE ROYAL ARTILLERY CHARITABLE FUND TRUSTEES, REPORT FOR THE YEAR ENDE[> 31 DECEMBER 2023 Charitable Activitie5 contlnued Promotion of efficiency and Welfare: RACF Welfare grants totalllng £81K were made to 22 Regular and Reserve regiments l units, In order to help deal with individual cases and support unit welfare initiative5. Grant5 totalling £80.3K were made to Gunner sport from RACF, via the RAI, in order to a55iSt In the maintenance of fitness and morale. 44 Grants to totalling £35,841 were made from RAA to batteries to promote comradeshlp and esprit de corps12022.' 32 totalllng £29,163). 4 betterment grant totalling £46,452 was made from RACF to 3, RHA, 4 Regt RA and a jolnt nd grant to 19th 26 , 32 and 47, Regts RA, 26RA, 32RA and 47RA. ABF the Soldiers, Charity. ABF has supported a large number of Gunner cases. This yearthe RACF donated £79.5K to the ABF to assist them In making grants towards other smaller, specific purpose charitles that 5UPPOrt Gunners and their dependants. General. The RACF has provlslon, where approprSate, through the KHAT, to help with dependants. education costs when seNing Gunners die or are in need. The RABF owns four cottages, which house Gunners In need. The RACF also helps maintaln Gunner memorials. The RAA'S prlnclpal activltles durlng the year were as follow5.. Making grants to support comradeshSp and welfare,. raising and malntainin8 the profile of the RAA in order to Improve comradeship for Gunners, both seNing antl retired,. Providing SUPPOrt to members and; planning and organising national RAA events. Apart from 5UPPOrt to national RAA events, branches, staff and running costs, the RAA made 44 grants worth £35,841 to batterles to promote comradeship and esprit de corps12022: 32 totalling £29,163). No grants were made in support of branche512022: 1 totalling £7501. Grants are allocated to enhance the collective well-being of the Regiment and Its Individual members, seNing and retired, by supplementlng shortfa115 in fundlng on comradeship projects. Publlc Benefit The Objects of the charities are to promote efficlency,welfare, comradeship and esprit de corps within the 5ervlng Reglment and to asslst those in need who are serving or who have served their country through service In the Royal Regiment of Artillery, and their dependants. Inextricably linked with this Object is the aim of contrlbutlng to the public good by service to the Sovereign, the Country and all Its citizens. The RACF contributes considerable public benefit to the local and national community by relieving need among members of the reglmental farnily. This in turn maximises the likelihood of the charity's beneficiaries malntalning their place as valuable, self-sufficient members of the community who are able to make a positive contribution to sotlety. The charity works in tandem with the SSAFA, the ABF and the RBL. The trustees have taken due regard of the Charity Con)mission's guidance on Public Benefit. The charity has sufficient funds to support its future operations and deliver its charitable Objects. Research carfled out by the RBL has shown that there is still a very large ex-service community, however the number of ex-servicemen who saw 5ervlce in the Second World War and durins National Service will gradually (Ilminish over the next 10 years. In the future it Is assessed that, while the volume of case5 might reduce, the greater complexlty of needs ar15ing from service in the Iraq and Afghanistan campaigns, may increase the cost of Page 6
THE ROYALARTILLERY CHARITABLE FUND rRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Publlc Benefit continued providing support to those in need. It is also anticipated that the recent significant Increases In food and fuel costs may generate additional requests for support. Future Plans Based on an assessment that future Income w511 remain steady in the long term, the trustees aim to maintain current expenditure in order that RACF continues to support efficiency and welfare in the Royal Regiment and to provSde assistance to all members of the reglmental famlly who are in need. Should income levels drop significantly* trustees have the abllkty to generate additional fund5 by liquidating Investment assets, however this would need to be balanced by the requlrement to maintain Investment income for future generations. Work has commenced on improvlng the Association's ability to promote the RAA amongst the recently retlred and serving soldiers and to recruit new members. In 2020 the trustees agreed to earmark £1.8M of capital funds forfltture transfer to the Royal Artillery Museum IRAMI. Of this £3K was to have been in the form of a grant and £1.5M in the form of a loan. Although the offer of this sum wa5 Wlthdrawn followlng the retraction of the offer of a suitable site for the museum, the trustees are likely to conslder, making a similar level of funding available In the future once the conditions upon which the original offer was made are met. The CLtrrent situation Is that a revised plan has been approved in princlple tjy the Master Gunner's Committee and 8 new 51te approved by the Chlef of the General Staff. Trustees will be invited to reconsider a revised bid for funding In 2024. Resee$ Polic The trustees, policy is to maintain a sufficient level of reserves to.. provide a stable base and Income generation for the charities, continuing activities- generate sufficient funds to cover routine management and administrative cost5 and; enable the charities to respond to any emergency applications for grants which may arlse from time to time. The following figures show the combined funds of RACF and RAA. Disaggregated figures for the RACF can be found on pages 18 and 28 to 37 and details for the RAA reseNes can be found in the separate RAA accounts. Total funds for the charStles as at 31 Dember 2023 were £39,655,87512022.' £37,684,1661. Unre5trirted reserves of the RACF were £25,118,11912022.' £23,766,770) of whlch are all fe reserves. Re5trlcted Income funds for Benevolence were £5,526,76612022.. £5,228,265) of whlch a large proportion is represented by investments. Permanent Endowment were £7,038,66012022.. £6,721,957) of which 8 large proportion is represented by Investments. Designated Funds were El,972,33012022: £1,967,1741 of which £1,867,24612022: £1,862,090) is forthe purpose of the RAA and ihelr speclflc aim and objectives and £105,08412022.. £105,084) for the purpose of memorials. Our risk-based approach to determining our free reserves requirement 15 carried out, based on the anticipated future needs of the regimental famlly, and the management of financial risks, particularly the uncertainty of future income from other sources. The effect on the charit$ investment5 as a result of the situatlon in Ukraine demonstrates the benefit of malntalning strong resenjes In order to be able weather such market fluctuations whlle maintaining reqltired levels of investment Income. Page 7
THE ROYAL ARTILLERY CHARITABLE FUND TRUSTEES. REPORT FOR THE YEAR ENDED 310ECEMBER 2023 Reserves Polic contlnued Trustees review the level of re5eNes regularly to ensure funds are available to deliver welfare services and programmes, and to secure, as far as possible, future financial vlability. Our annual review of reserves Included ssessing the impact of the invasion of Ukraine and the cost of living crisis on our business plans, projected income and expenditure, and on our investments. Following that review, we determined that we should hold a minimum of £22,500,0001£21,000,0 RACF and £1,500,000 RAAI in free reserve5 to be assured that we are able to Sustain the 5UPPOrt we provide to the reESmental family in the long term as well as meet other obligations, irrespective of fluctuations In income and witkiout creatlng the need to actlvely fundraise. Thi5 sum, held as part of our investment portfolio, 15 judged to be capable of generating sufficient investment income to meet foreseeable needs. With free reserves of £26,973,440, they currently exceed thls minlmum reserve outline in the policy. The trustees are content that the additional funds we hold provide ability to dislnvest in order to support malor capltal projects if and when required, but in the meantime are held as investments generating additional income. In 2023 the Investment portfolio Eenerated £761,764 of Income for the charitie5 which represented 45% of total income received. Without this level of intome the charities, activitles would be slgnrficantly curtailed. Trustees believe that investments should be malntained at the current levels, in order to generate Income and provide for current needs whilst ensurlng the charities remain well placed to meet future requirements. The trustees recognise that they have no long term mandated liability for any particular level of financial grants or activity. They therefore have the abllity to reduce expenditure to match income in the event of income reducing. Investment Polic The trustees, Investment Committee meets twice a year to con51der the performan of the RACF'S investments which are managed on a discTetionary basis by BlackRock Investment Management IUKI Ltd. The Investment objective is to create sufficient income and capital growth to enable the charity to carry out their charitable objectives. The charity is expected to exist in perpetuity and investment5 are managed to meet the investment objective and ensure this sustainability. The charity's funds are invested on an aliquot proportion in the same funds as the other Gunner welfare l efficlency charities. Thi5 is in order to achieve economies of scale Sn relation to investment cost. The trustees have given the fund managers discretion to manage the portfolio withln an agreed rlsk profile and agalnst agreed benchmarks. This is contained in a written directive. At the bi-annual rlleetlng with the investment managers the Investment Committee conslders the state of the financial markets and measures the fund managers, on-going performance against specific agreed benchmarks, namely 25% FTSE All Share Index, 35% MSCI World ex UK Index, IO% MSC1 Emerging Markets Index, 7.5% FTSE All Stocks Gilt Index, 5% iBoxx Sterling Non-Gilts Index, IO% IPD UK All Balanced Funds Index, 5% AlternatNe (IA Sector Targeted Ab501ute Returnl and 2.5% Cash Isterling Overnight Index Average). Havlng compared performances over the last 1, 3 and 5 years, the Investment Committee are of the view that the investments have done reasonably well In relation to the market and relevant benchmarks over the longer term. While there is currently no case to prompt a change of Investment policy, the performance of the fund manager will be subject to further review this year. Page 8
THE ROYAL ARTILLERY CHARITABLE FUND TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Environmental Governan¢e and Social Considerations The RACF'S and RAA'S investments are not managed wlth any specific environmental, social and governance IESGI restrlctlons. However it is expected that the RA charities, investment managers have clearly defined ESG investment policies and that the Investment5 are managed by an investment company which is a signatory the UN Principles of Responslble Investment and whSch takes account of Envlronmental, Social and Governance IESGI factors in their research and Investment decision making process. Fundralsln The trustees are very clear that all fundraising must be legal, open, honest and respectful. The charlty does not actively engage in regular and organlsed fundraising, although it does receive donatlons and legacies. It receives the bull( of its income through investment5 and the Royal Artillery's 'service giving scheme,. The facility exists for individuals or organisations to make voluntary donations onllne. The charity does not work with any commerclal partner or professlonal fundraisers except in order to operate an online donation facility such 'Enthuse' and 'Jvst Giving, When donatlons are received, they are mainly as a result of advertisements on the Gunner website and publication5, and from open, group brSeflngs to members of the serving Reglment. In addition, regiments and other Gunner organisatlons are encouraged to enga8e in sponsored activities to raise funds. The charity does not solkit funds through dirert approache5 to individuals via mai15hots or online unless consent has been obtained. Regiments, units, RAA Branches and individuals who raise funds for the charity are provlded with sealed collectlon buckets. In the event of 3 complaint about any such activity, it is investigated by the Regimental secretary. INO complaints were received in 20231. As a charity that deals with vulnerable seNice personnel, veterans and their dependants, all staff are Bware of the requirement to treat everyone fairly and klndly wSth no intrusive or persistent requests or approaches forfunds or undue pressure to donate. Trustee Trainin Trustee responsibilitie5 and necessary training is taken very serlously. All new trustees are briefed by the Reglmental Secretary on their roles and responsibilities. They are provided with the Charity Commissioners handbook Yhe Essential Trustee" as well as the Articles of Association as part of their induction. Recent RACF accounts, rneeting minutes and policy documents are also provided. Trustee briefings and training take place, and members of the Board are encouraged to attend external trustee trainlng and Investment briefs. The trustees maintain a continuous oversight of the prlnclpal areas of the charity'5 operations and the major risks, which may arise in these areas. In the opinion of the trustees the charity has established resources and review systems which, under normal conditions, should allow the risks identlfied to be mitigated to an acceptable level. A risk management plan is produced and approved by trustees each year and managed actively by the trustees, the Regimental Secretary and his staff. Risk Mana ement The trustees maintain a continuous oversight of the principal are3s of the charltvs operatlons and the major risks, which may arise Sn these areas. In the opinion of the trustees the charity has established resources and revlew system5 which, under normal condition5, should allow the risks identified to be mitigated to an acceptable level. A risk managernent plan is produced and approved by trustees each year and managed actively by the trustees, the Regimental Secretary and his staff. The main risks are: Insufficient income to meet the need- This is managed by careful budgetin& the investment and reseNes poliry and by controlllng the level of support provided to beneficiaries. Page 9
THE ROYALARTILLERY CHARITABLE FUND TRUSTEE ' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Risk Mana ement continued Fraud.. Thi5 is guarded agalnst by having pollcies In place to ensure regular checks are made and that all transactlons are properly authorised by two signatories. Conflict of interest amongst trustee members. A register of trustee interests Is kept and updated annually. Al the start of committee and Bom meetings, trustees are reminded to declare any conflict arising from the agenda so that appropriate action can be taken. Reputational damage arising from activities such as inappropriate fundraising. This is mltigated by robust RAA Rules and General Administratlve Instructions IGAlsl and the monltoring of branch fundralslng attivities. Remuneratlon Poll No trustee Is pald for seryices as a trustee or related work, though travel and subsistence cost5 incurred as a trustee are reimbursed. The trustees review staff salaries annually, and take Into account the MOD pay award5 for similar grades, when recommending any pay Increases. Em The RACF aims to be an organisation for which employees enjoy worklng and where they feel 5UPPOrted, valued, empowered and developed. Employees are kept fully informed about the alms and ObjetteS of the charity and how It is achleving them. Employees are encouraged to contribute suggestions to hdp improve working processe5 and to achieve best practice. The charity is an equal opportunlties employer and is committed to tralning and developing its Staff. Trustee5' Llablll The trustees are the members of the RACF and the liability of the members for the debts of the RACF is Ilmited to an amount not exceeding one pound. Statement of Trustee5' Re5 onsibllltles The trustees (who are also directors of the RACF for the purpose5 of Company lawl are responsible for preparing the Trustees, Report and ihe financial statements in accordance with applicable charity and company law and Unlted Kingdom Accounting Standards Iunited Klngdom Generally Accepted Accountlng Prartice IUK GAAPI. The Company and charity law applicable In England & Wales and UK GAAP requires the trustee5 to prepare flnancial statements for each financial year which give a true and fair view of the state of affairs of the charitable company. This includes details of income and expenditure and the appllcatSon of resources for the period. In preparing these financial statements, the t1115tee are required to: select sultable accounting policies and then apply them consistentlyi adhere to the methods and principles in the Charities Statement of Recommended Practlce (Charlties SORP IFRS 10211,. make judgements and estimates that are reasonable and prudent: state whether applicable accounting standards have been followed, subject to any material departure5 which are to be disclosed and explained in the financial 5tatements,' prepare the financial statements on a golng-concern basis, unless It Is Inappropriate lo presume that the charity will continue in business. The trustees are also SpOnSIble for safeguarding the a55ets of the charityi including taklng reasonable steps to prevent and detect fraud and other irregularitles. Page 10
THE ROYAL ARTILLERY CHARITABLE FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Statement as to Dlsclosure of Information to Auditors The financial statements have been prepared in accordance with the accounting policie5 set out in notes to the accounts and comply wlth: the Companie5 Act 2006; the charlty's governlng document- the Charities Acts 2011 and,. the SORP applicable to charities preparing their accounts in accordance with the Financial Reporting standard appllcable in the UK and Republic of Ireland IFRS 1021 Icharities 50RP IFRS 10211. In so far as the trustees are aware.. there Is no relevant audit information of which the charitable company's auditor Is unaware,. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audlt infom)ation and to establish that the auditor is aware of that information. Thls report has been prepared under the speclal provislons of Part IS of the Companles Act 2006. On behalf of the trustees li & •)L June 2024 Major General DM Cullen CB OBE Chalrman RACF Board of Management Page 11
THE ROYAL ARTILLERY CHARITABLE FUND INDEPENDENT AUDITORS REPORTTO THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Opinion We have audited the financial statemerits of the Royal Artillery Charitable Fund Ithe'parent charStable companVI and its subsidiary Ithe'group'l forthe ye8r ended 31 December 2023 whlch comprlse the Consolidated Statement of FSnancial Activitles, Con501idated Statement of Income and Expenditure, Consolidated Balance Sheet, Charity Balance Sheet, Consolidated Cash Flow Statement and notes to the flnanclal Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparatlon is applicable law and United Kingdom Accounting Standards. including Flnancial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practicel. In our opinion the financial Statements: give a true and fair view of the state of the affairs of the Eroup and the parent charitable company as at 31 December 2023 and of the group's incomin8 resources and appllcation of resources, Including its income and expenditure, for the year then ended; have been properly prepared in accordance wlth United Kingdom Generally ACpted Accounting Practice,. and have been prepared In accordance with the requirements of the Companies Act 2006. Basls for opln5on We condutted our audlt in accordance with International Standard5 on Auditing IUKI IISAS IUKII and appllcable law. Our responsibilities under those standards are further described in the Auditorf5 responsibilitie5 for the audit of the financial statement5 section of our report. We are independent of the group and parent charltable companv in ac¢ordan¢e with the ethical requirements that are relevant to our audit of the financial statements in the UK, Including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities In accordance with these requirements. We believe that the audit evidence we have obtained Is sufficient and appropriate to provide a basis for our opinion. Concluslons relatinB to going concern In audltlng the financial statements, we have concluded that the trustees, use of the going concern basls of accounting in the preparation of the financial Statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintles relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve month5 from when the financial statements are authorised for issue. Our responsibilities and the responsibllities of the tmstees with respect to going concern are described In the relevant sections of this report. Other information The trustees are responsible forthe other Inforrnation. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our Page 12
THE ROYAL ARTILLERY CHARITABLE FUND INDEPENDENT AUDITORS REPORTTOTHETRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 opinSon on the financial statements does not cover the other information and, except to the extent otherwise expllcltly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility 55 to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencie5 or apparent material misstatements, we are requlred to detem)Ine whether thls glves rise to a material mlsstatement In the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of thls other Information; we are requlred to report that fact. We have nothing to report in tkiis regard. Other matters preserlbed by the Companies Act 2006 In our opinion, based on the work undertaken In the course of the audit: the information given in the Trustees, Annual Report which Includes the Dlrectors, Report for the financial yearforwhich the flnanclal statements are prepared is consistent with the financial statements,. and the TrLJStees' Annual Report which includes the Directors, Report has been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the Ilght of the knowledge and understandlng of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Annual Report. We have nothlng to report In respect of the followlng matters where the Companie5 Act 2006 require us to report to you If, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us,. or the parent charitable company flnancial statements are not In agreement with the accounting records and return5. or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanatlons we require for our audit; or the twstees were not entitled to prepare the financial Statements in accordance wlth the small companies regime and to take advantage of the small companies exemptlon in preparing the Trustees, Annual Report and the Strategic Report. Re5POll5ibilitie5 of trustees A5 explained more fully in the Statement of Tru5tees' Responsibilities Set out on pages 10-11, the trustees (who are also the directors of the parent charitable company for the purposes of company lawl are responslble 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 the flnanclal 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 group and the pant charitable companws ablllty to continue as a going concern, dlsclosing, as applltable, matters related to going Page 13
THE ROYAL ARTILLERY CHARITABLE FUND INDEPENDENT AUDITORS REPORTTOTHE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 concern and using the golng concern basis of accounting unles5 the trustees elther intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Audltorfs responslbllltles for the audlt of tho financlal statements We have been appointed as auditors under the Companies Act 2006 and report Sn accordance wlth regulation5 made under that Act. Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audlt conducted in accordance with ISAS IUKI will always detect a material misstatement when it exist5. Mi55tatements can arise from fraud or error and are considered rnaterial 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 regulation5. We design procedures in line wilh our responsibilities, outlined above. to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to whith these are capable of detecting irregularities, including fraud are detailed below. Identifying and assessing risks related to irregularlties.. We assessed the susceptibility of the group and parent charitable compan(s financial statements to material mi5Statement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensurlng these tontrols operated a5 intended. We evaluated possible incentives and opportunitie5 for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance In the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate. Laws and regulations of direct significance in the context of the group and parent charitable company InclL¢de The Companie5 Act 2006 and guidance issued by the Charity Commission for Englarbd and Wales. Audit response to risks identified- We considered the extent of compliance with these law5 and regulation5 as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable tompany's records of breaches of laws and regulations, minutes of meetings and correspondence wlth relevant authorities to identify potential material misstatements arisinB. We discussed the parent charitable company's policies and procedures for compllance with laws and regulations with members of management responsible for compliance. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any in5tance5 of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of busines5. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner'5 review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regu12tions and fraud. Page 14
THE ROYAL ARTILLERY CHARITABLE FUND INDEPENDENT AUDITORS REPORTTOTHETRUSTEES FOR THEYEAR ENDED 31 DECEMBER 2023 There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations Is from the event5 and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material mStatement due to fraud Is hlgher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. www.frc.or auditorsre5 onsibilities. This description forms part of our audltor's report. Use of our report This report is made solely to the parent charitable compan¢s members, as a body, In accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken 50 that we mSght state to the parent charitable company's members those matters we are requiretl to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company's members as a bodyi for our audit work, for this report, or for the opinions we have formed. Cara Turtington Iseni Statutory Audltorl for and on behalf of Saffery LLP Chartered Accountants Statutory Audltors 71 Queen Victoria Street London EC4V 4BE Date: Saffery LLP 15 eligible to act as an auditor in term5 of seclion 1212 of the Companies Act 2006 @ J Uno 107-+ Page 15
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THE ROYAL ARTILLERY CHARITABLE FUND CONSOLIDATED SUMMARY OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Total Income 1.577,315 1,790,645 Total Expenditure 1,574,411 1,423,398 Unrealisedlrealised gains and losses on.. Revaluation of Investments 1,652,102 13,395,717) Net Income for the year 1,655,006 13,028,4701 Total Income tomprised of £1,376,890 unrestritted funds and £200,425 for restricted funds. A detailed analysis of income and expenditure by source is provided in the Statement of Financial Activities. Expenditure comprises £1,373,987 for unrestricted funds and £20D,425 for restricted funds and excludes the pem)anent endowment funds. The revaluatlon of Investments excludes the permanent endowment funds. The summary Income and expenditure account is derived from the Statement of Financial Artlvitie5 on page 16 which together with the notes to the financial statements on pages 21 to 38 provide full information on the movement during the year on all funds of the charity. Page 17
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THE ROYAL ARTILLERY CHARITABLE FUND CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Net cash used in operating activities 1434,9831 1633,1641 Cash flows from investin activities Dividends, interest and rents from investments Purchase of Investments Proceeds from sale of investments 761,764 127,088,560) 27,151,278 715,274 16,286,3311 6,223,31K) Net cash generated in Investlng attlvltles 824,482 652,243 Net increase in cash & cash equivalents Cash and cash equivalents at the beEinning of the year 389,499 2,087,485 19,079 2,068,406 Cash and Cash equivalents at end of the year 2,476,984 2,087,485 Notes to the ¢ash flow statement Reconclllatlon of net movement In lunds to net cash flow from operating actlvltles 2023 2022 Net movement in funds IGainsl/losses on Investments Investment incorne Investment aliquot changes Decreasellincreasel In debtor5 Intrea5elldecreasel In credftors Depreciation charge 1,971,710 11,990,0061 1761,7641 13,744,193) 4,090,240 1715,2741 323,770 106 21,200 1187,7421 197,4011 21,2(X) Net cash used in operatlng activities 1434,9831 1633,1641 Analysis of cash and cash equlvalents and net debt Atljan 2023 Cash flow At 31 Dec 2023 Cash on short term deposit Cash current account Cash balance held in investments Cash held by branches Net cash provlded by operatlng actlvities 1,812.777 28,677 7,373 238,658 2,087,485 108,696 122,003 139,751 19,049 389,499 1,921,473 150,680 147,124 257,707 2,476,984 Page 20
THE ROYAL ARTILLERY CHARrrABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 l. Accountlng policies The Royal Artillery Charitable Fund is a company limited by guarantee incorporated in England and Wales. The gistered office 15 Artillery House, Royal Artlllery Barracks, Larkhill, Salisbury, SP4 8QT. Basis of accountlng The financlal statements have been prepared under the historic c05t convention, with the exception of listed investments which are included at their market value. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their account5 in accordance with the Financial Reportlng Standard applicable in the UK and Republic of Ireland Icharites SORP IFRS 10211 and the Flnancial Reporting Standard applicable in the Unlted Kingdom and Republic of Ireland IFRS 1021 the Companies Act 2006 and UK Generally Accepted Accounting Pyattice. The Royal Artillery Charitable Fund constitute5 a public benefSt entity as defined by FRSIO2. These accounts present the results of The Royal Artillery Charitable Fund and its subsidiary charity the Royal Artillery Associatlon. The $It$ have been consolidated on a line by line basls. Golng Concern The trustees have a reasonable expectation that the RACF has adequate resources to contlnue In operatlonal existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial Statements. Subscriptions and donatlons Subscriptions and donations have been included on the basis of amounts recelvable during the year. Legacy income Income from legacies is taken to the Statement of Financial Actlvities when received or recelpt Is probable and the value can be measured with sufficient reliability. Interest and dlvldends on inve5tment5 Income from Investments including interest on short tem) deposits are included on a receivable basis. EKpendlture and support costs Expenditure is recognised in the period in whlch It Is Incurred and includes attributable VAT whith cannot be recovered. Supports cost5 are those costs which have not been directly allocate to an activlty of the charities but nevertheless support these actwities. Grant expenditure Grants payable are payments made in furtherance of the charitable objects of the charltles. These are accrued once the reciplent has been notified of the grant award. The notificatlon glves the recipient a reasonable expectatlon thal they will receive the grant. Page 21
THE ROYALARTILLERY CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Grant expenditure continued Provisions for grants are made when the intention to make a grant has been communicated to the reclpient but there is uncertainty as to the tlming of the grant or the amount of grant payable. Flxed asset investments Investments are stated at market value. The unrealised movement in market value from one year to another Is recognised in the statement of financial activities. TanBible Fixed assets Freehold properties are stated at deemed cost and are depreciated over their estimated useful lives of 50 years. Land is stated at deemed cost and is not depreciated. Cash and cash equwalents Cash and cash equivalent5 include cash in hand, deposits held at call with banks and other short-teml liquid investments with original maturities of three months or less. Flnanclal Instrument5 The charities only have financial assets and financial Ilabilities of a kind that qualify as basic financial Snstruments. Basic financial instruments are initially recognised at transaction value and 5ubsequentty measured at their settlement value with the exception of bank loan5 which are subsequently measured at amortised cost using the effective interest method. Trade and other debtors are reco8nised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provlslons are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estlmated rellably. Creditors and provisions are normally re¢ogn15ed at their settlement amount after allowing for any trade discounts due. Fund accountlng Unrestrlcted funds are available to use to further any of the purposes of the charities. Designated funds are unrestrlcted funds of the charlties which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for partlcular areas of the charity's work or speciflc projects being undertaken by the charitie5. The permanent endowment fund relates to funds received over the years from the Investment Portfolio where the capital received needs to be retained for the long term. Penslons Staff are enrolled In a NEST pension scheme. Contrlbutions are charged in the Statement of Financial Actlvities a5 they become payable. Page 22
THE ROYALARTILLERY CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Crltlcal estimate5 and judgements and key sources of estlmatlon uncertalntv In the application of the charities, accounting pollcies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of asset5 and liabilities that are not readily apparent from other sources. The estimates are recognised in the period in which the estimate is revised where the revision affects only that perlod, or in the period of the revision and future period5 where the revision effects both current and future periods. There are no crltical estimatesi judgements or key sources of estimation untertalnty In 2023 or 2022. 2. 2023 Donations and lega¢5es inc SPGS Unrestrlcted Restrlcted Permanent Endowment Total 2023 Officers, subscriptions Soldiers, subscriptions Retired Donations Income tax recoverable (gift aid) Donation5 and Grants Intangible Incorne- Wages in Kind Legacies 108,251 153,390 19,318 8,544 47,426 144,648 156,231 108,251 153,390 19,318 8,544 47,426 145,740 156,231 1,092 637,808 1,092 638,900 2022 Donatlons and legacies inc SPGS Comparlson Unrestrlcted Restricted Permanent Endowment Total 2022 Off icers, subscriptions Soldlers, subscriptions Retired Offlters Donations Income tax recoverable (gift aid) Donations and Grant5 Intangible Income- Wages in Kind Legacies 105,415 152,359 19,945 7,406 65,011 136,688 451,031 105,415 152,359 19,945 7,406 65,011 137,733 451,031 1,045 937,855 1,045 938,900 Page 23
THE ROYAL ARTILLERY CHARITABLE FUND NOTESTO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 DECEMBER 2023 3. 2023 Investment Income Unrestricted Restricted Permanent Endowment Totsl 2023 Investments 571,797 571,797 189,967 189,967 716,764 716,764 2022 Investment Income Com arison Unrestrlcted Restricted Permanent Endowment Total 2022 Investments 536,104 536,104 179.170 179,170 715,274 715,274 4. 2023 Other Income Unrestricted Restrlcted Permanent Endowment Total 2023 Interest reiVed on short term deposits Event income Merchandise income Christmas card income Alanbrooke Club 22,256 2,547 154 766 19571 24,766 22,256 2,547 154 766 19571 24,766 2022 Other Income Com ari50n Unrestrlcted Restricted Permanent Endowment Total 2022 Interest received on short term dep051ts Event income Merchandise income Christmas card income Registration fees Alanbrooke Club 649 2,782 144 773 3,733 19551 7,126 649 2,782 144 773 3,733 19551 7,126 Page 24
THE ROYAL ARTILLERY CHARITABLE FUND NOTE5 TO THE FINANCIAL STATEMENTS Contlnued FOR THE YEAR ENDED 31 DECEMBER 2022 5. 2023 Cost of Raisln Funds Unrestrlcted Re5trlcted Permanent Endowment Total 2023 Fundraising costs 10,696 10.696 10.696 10,696 2022 Cost of Raisin Funds Com arlson Unrestrlcted Restrlcted Permanent Endowment Total Fundraislng costs 1,178 1,178 1,178 1,178 Page 25
THE ROYAL ARTILLERY CHARrrABLE FUND NOTES TO THE FINANCIAL STATEMENTS contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 6. 2023 Charitsble Activities Unrestricted Restrlcted Permanent Endowment Total 2023 Welfare Welfare grants individual cases Welfare grants to instltutlon5'. Gunner Magazine Royal Artillery Sports Army Benevolent Fund Other Grants: Regiments and Batteries Regimental Welfarelcomradeship RAM Betterment Grants Awards General grants RA Memoria15 Events RA Assembly NMA Gunner Sunday 1,187 12022.. 1,2341 451,986 178,146 630,132 10,000 80,280 79,500 10,000 80,280 79,500 80,580 35,841 40,OOCI 46,452 1,733 9,750 11,137 80,580 35,841 40,000 46,452 1,733 9,750 11,137 14.564 5,220 1,399 868,442 14,564 5,220 1,399 1,046,588 178,146 Support Cost to Charltable Actlvitles.. Wages and salaries Employers Pension Contribution Employers Nationals Insurance Wages and salaries in kind 124,596 12.240 12,105 144,648 293,589 124,596 12,240 12,105 145,740 294,681 1,092 1,092 Insurance PrSntin& stationery and advertlslng Office cost linc. publicity & postage, IT) T&S Branch travel Misc Training Bank charges Cottage expenses Depreciation (Cottages) Audit and accountancy fees Legal and professional fees Total silPPOrt costs 2023 Totsl Expenditure 2,523 1,549 20,600 17,014 12,539 1,108 95 604 2,523 1,549 20,600 17,014 12,539 1,108 95 604 21,187 21,200 18,378 4,140 415,618 1,462,206 21,187 21,200 18,378 4,140 372,139 1,240,581 22,279 200,425 21,2(X) 21,200 Page 26
THE ROYAL ARTILLERY CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS Continued FOR THE YEAR ENDED 31 DECEMBER 2023 2022 Charltable Activities Com arlson Unrestricted Restrlcted Permanent Endowment Total 2022 Welfare Welfare grants individual cases Welfare grants to institutions: Gunner Magazine Royal Artillery Sports Army Benevolent Fund Other Grants: Regiments and Batterles Regimental Welfarelcomradeship RAM Betterment Grants Award5 General grants RA Memorials Events RA Assembly NMA Gunner Sunday 1,234 12021-. 10311 440,653 183,763 624,416 5,000 50,378 89,(K)O 5,000 50,378 89,000 81,000 29,163 47,200 9,8LK) 1,639 3,650 10,891 81,000 29,163 47,200 9,800 1,639 3,650 10,891 10,717 3,615 1,684 784,390 10,717 3,615 1,684 968,153 183,763 Support Cost to Charltable Activities.. Wages and salarie5 Employe Pension Contribution Employers Nationals Insurance Wages and salaries in kind 97,856 10,324 4,532 136,688 249,400 97,856 10,324 4,532 137,733 250,445 1,045 1,045 Insurance Prlntln& statlonery and advertlsing offi cost linc. publicity & postage, IT) T&S Branch travel Mlsc Bank charges Cottage expen5e5 Depreciation ICottage51 Audlt and accountancy fees Legal and professional fees Total support costs 2022 Total Expenditure 2,523 793 12,147 13,242 12,325 2,035 623 2,523 793 12,147 13,242 12,325 2,035 623 4,658 21,200 19,926 3,587 343,594 1,311,657 4,658 21,200 19,926 3,587 316.691 1,100,991 5,703 189,466 21,200 21,200 Page 27
THE ROYAL ARTILLERY CHARITABLE FUND NOTES TOTHE FINANCIALSTATEMENTS contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 6. Charltsble Activities continued The average number of persons employed by the Fund durlng the year was.. 2023 Number 2022 Number Office and administration There were no employee5 With emoluments above £60,000. The following payments were made to Key Management Personnel: £16.02112022.. £13,894). One trustee received out of potket expenses of £1,156 in 202312022.. NILI. This was as a result of all meetings being conducted online. 7. 2023 Tan Ible Fixed asset Grou and RACF Unrestricted Restricted Permanent Endowment Total 2023 Cottage Homes 1,081,2LK) Deemed cost at 31 December 2022 1.081,200 At 31 December 2022 1,081,200 1,081,200 Depreciation at l January 2022 Charge for the year At 310ecember 2022 190,800 21,200 212,OOD 190,800 21,200 212,000 Net book value at 31 December 2023 869,200 869,200 Net book value at 31 December 2022 890,400 890,400 Page 28
THE ROYAL ARTILLERY CHARITABLE FUND NOTESTO THE FINANCIAL STATEMENTS contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 8. 2023 Flxed Asset Investments 8a. Grou Urericted Restricted Permanent Endowment Total 2023 uoted investments Market value at l January Net additions at cost Sales proceeds Net realisedlunrealised 8ain5 Aliquot Changes Cash Commitments 23,368,136 18,459,004 118,501,663) 1,353,602 iii 95,059 5,153,222 4,070,640 14,080,049) 298,500 5,833,446 4,607,966 14,618,616) 337,903 34,354,804 27,137,610 127,200,328) 1,990,005 iii 139,752 20,963 23,730 Market value at 31 December 24,774,137 5,463,276 6,184,429 36,421,842 Hlstorlcal value at 31 December 22,529,038 4,968,180 5,623,979 33,121,197 Investment Investment5 Bank Settled Account Bank Unsettled Account Cash Breakdown 24,674,063 68,855 31,219 24,774,137 5,441,208 15,184 6,884 5,463,276 6,159,447 17,188 7,794 6,184,429 36,274,718 101,227 45,897 36,421,842 8b.RACF Unrestrlcted Restricted Permanent Endowment Total 2023 uoted investments Market value at l January Net additions at cost Sales proceeds Net realised/unrealised gains Aliquot Changes Cash Commitments 22,310,008 17,623,166 117,663,894) 1,292,310 5,153,222 4,070,640 14,080,0491 298,500 5,833,446 4,607,966 14,618,6161 337,903 33,296,676 26,301,772 126,362,559) 1,928,713 90,754 20,963 23,730 135,447 Market value at 31 December 23,652,343 5,463,276 6,184,429 35,3(Kl,048 Hlstorical value at 31 December 22,023,788 4,968,180 5,623,979 32,615,947 Investment Investments Bank Settled Account Bank Unsettled Account Cash Breakdown 23,556,801 65,737 29,805 23,652,343 5,441,208 15,184 6,884 5,463,276 6,159,447 17,188 7,794 6,184,429 35,157,456 98.109 44,483 35,300,048 Page 29
THE ROYALARTILLERY CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 The following holdlngs exceeded 5% of the total portfollo value at 31 December 2023 and are Considered material for the 2023 group and Charity accounts- Group 11,353,004 9,694,362 4,709,893 3,742,801 1,884,187 RACF 11,003,331 9,395,776 4,559,013 3,627,523 1,826,154 BLK Char UK EQ Fund A Inc133.05%1 BlackRock Dev Mkt Sust Equity128.22%1 BlackRock Char UK Bond Fund A Inc113.71%1 BFM-BLK Emerglng Markets110.90Qhl TACTOPP FD X ACC15.49%1 All of the holdings listed are in collective investment vehicles as opposed to single securities. 2022 Fixed Asset Investments 8c. Grou Unrestrlcted Restrlcted Permanent Endowment Total 2022 uoted Investments Market value at l January Net additions at Cost Sales proceeds Net realisedlunrealised gain5 Aliquot Changes Cash Commitments Market value at 31 December 26,107,109 4,275,962 14,233,089) 12,782,181) 161 341 23,368,136 5,745,016 955,162 1933,4951 1613,5361 6,529,394 1,055,207 11,056.7161 1694,5231 38,381,519 6,286,331 16,223,300) 14,090,240) 161 500 34,354,804 75 5,153,222 84 5,833,446 Hlstorical value at 31 December 23,068,341 5,087,108 5,758,607 33,914,056 Investment Investments Bank Settled Account Bank Unsettled Account Cash Breakdown 23,363,122 3,800 1,214 23,368,136 5,152,115 839 268 5,153,222 5,832,194 949 303 34,347,431 5,588 1,785 34,354,804 5,833,446 8d. RACF Unrestricted Restricted Pemianent Endowment Total 2022 uoted Investments Market value at l January Net additions at cost Sales proceeds Net realisedlunrealised gains Aliquot Changes Cash Commitments 24,924,958 4,079,782 14,041,4111 12,653,640) 5,745,016 954,570 1933,4951 1612,9441 6,529,394 1,054,537 11,056,7161 1693,8531 37,199,368 6,088,889 16,031,622) 13,960,4371 161 484 325 75 84 Market value at 31 December 22,310,008 5,153,222 5,833,446 33,296,676 Page 30
THE ROYAL ARTILLERY CHARITABLE FUND NOTES TOTHE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 DECEMBER 2023 Investment Investments Bank Settled Account Bank Unsettled Account Cash 8reakdown 22,305,221 3,628 1,159 22,310,008 5,152,115 839 268 5,153,222 5,832,194 949 303 5,833,446 33,289,530 5,416 1,730 33,296,676 9. Debtors Total 2023 Total 2022 Group Total 2023 Total 2022 RACF Royal Artillery Association Income tax repayments Accrued SeTvice Glvlng Income Sundry Debtors Legacies Receivable 34,918 2,498 25,998 28,778 2,668 25,435 2,514 30,025 2,696 28,803 29,715 62,254 354,524 386,023 29,715 93,129 354,524 411,405 10. Current Asset Investments Total 2023 Total 2022 Group Total 2023 Total 2022 RACF Short term deposits Ilncl investment balancel 1,921.472 1,812,777 1,397,705 1,218,593 11. Credltors Total 2023 Total 2022 Group Total 2023 Total 2021 RACF Amounts falling due within one year: Accrua15 27,280 27,280 27,173 27,173 22,590 22,590 23,240 23,240 Page 31
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THE ROYAL ARTILLERY CHARITABLE FUND NOTES TOTHE FINANCIAL STATEMENTS ¢ontinued FOR THE YEAR ENDED 31 DECEMBER 2023 13. 2023 Anal Is of net assets between funds Grou Current year- Group Tanglble Fixed Assets Investments Current assetsllliabilitiesl 2023 Net Total Restrlcted funds: RABF 5,463,276 5,463,276 63.490 63,490 5,526,766 5,526,766 Permanent Endowment: RABF RACF 869,2(K> 4,643,785 1,540,644 6,184,429 18,8481 16,1211 114,9691 5,504,137 1,534,523 7,038,660 869,200 Unrestricted tunds.. RACF 23,652,343 1,465,776 2S,118,119 Desl8nated funds.. Memoria15 RAA 105,084 745,453 850,537 105,084 1,867,246 1,972,330 1,121,793 1,121,793 869,200 36,421,841 2,364,834 39,655,875 2023 Anal $55 of net assets between funds RACF Current year- RACF Tanglble Fixed Assets Investments Current assets/lliabilitiesl 2023 Net Total Restrlcted funds.. RABF 5,463,276 5,463,276 63,490 63,490 5,526,766 5,526,766 Permanent Endowment: RABF RACF 869,200 4,643,785 1,540,644 6,184,429 18,8481 16,1211 114,9691 5,504,137 1,534,523 7,038,660 869,200 Unrestrlcted funds.. RACF 23,652,343 1,465,776 25,118,119 Designated funds: Memorials 105,084 105,084 869,200 35,300,048 1,619,381 37,788,629 Page 36
THE ROYAL ARTILLERY CHARITABLE FUND NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 DECEMBER 2023 2022 Anal isof rior ear net assets between funds Grou contlnued Prior year- Group Tanglble Fixed Assets Investments Current a55etsllliabilitiesl 2022 Net Total Restrlcted funds.. RABF 5,153,222 5,153,222 75,043 75,043 5,228,265 5,228,265 Permanent Endowment: RABF RACF 890,4LK) 4,380,238 1,453,208 5,833,446 973 12,8621 11,8891 5,271,611 1,450,346 6,721,957 890,400 Unrestrlcted funds: RACF 22,310,008 1,456.762 23,766,770 Deslgnated funds: Memorials RAA 105,084 803,962 105,084 1,862,090 1,058,128 890,400 34,354,804 2,438,962 37,684,166 2022 Anal Sis of nor ear net assets between funds RACF Prior year- RACF Tanglble Flxed Assets Investments Current assetsllliabilitie51 2022 NetTotal Restricted funds- RABF 5,153,222 5,153,222 75,043 75,043 5,228,265 5,228,265 Permanent Endowment: RABF RACF 890,400 4,380,238 1,453,208 5,833,446 973 12,8621 11,8891 5,271,611 1,450,346 6,721,957 890,400 Unrestricted funds: RACF 22,310,008 1,456,762 23,766,770 Deslgneted funds.. Memorials 105,084 105,084 890,400 33,296,676 1,635,000 35,822,076 Page 37
THE ROYAL ARTILLERY CHARITABLE FUND NOTES TO THE FINANCIAL STATEMEMrs contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 15. Related Parties Income of £261,64112022: £257,774> was received from the Royal Artillery General Charltable Trust IRAGCTI. Both Charities a have a number of trustees in common. Thls Income relates to accrued Income from the Service GivinE Scheme, which were voluntary contributions from seiCe personnel. Details of donations between connected entitie5 are disclosed in note 6. At the year end, balances due to and from related entities are disclosed in notes 9 and 11. Page 38
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