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2023-12-31-accounts

ANNUAL REPORT AND ACCOUNTS 2023

safa ssafa afa the Armed Forces '; charity Ssala ulars l 4eserves I Veterans l Famllles

CONTENTS

A MESSAGE FROM OUR NATIONAL CHAIR

Welcome to our 2023 Annual Report and Accounts

03 A message from our National Chair

04 SSAFA’s Governance Structure

05 SSAFA Committees

Regulars | Reserves | Veterans | Families

The Soldiers’, Sailors’, Airmen’s and Families’ Association - Forces Help

Queen Elizabeth House, 4 St Dunstan’s Hill London EC3R 8AD ssafa.org.uk

Registered Charity Numbers

210760 (England and Wales) SC038056 (Scotland) 149 (Gibraltar) 20222001 (Republic of Ireland)

Auditor

Moore Kingston Smith LLP, Statutory Auditor, Chartered Accountants, 9 Appold Street, London EC2A 2AP

Bankers

Coutts & Co

440 Strand, London WC2R 0QS

Royal Bank of Scotland Plc

West End Commercial Centre, 1st Floor, Argyll House, T/O 246 Regent Street, London W1B 3PB

Investment Managers

BlackRock Investment Managers Ltd, 12 Throgmorton Avenue, London EC2N 2DL

Solicitors

Withers LLP, 20 Old Bailey, London EC4M 7EG

I start my first annual overview as National Chair by saying both what a privilege it is to be a part of SSAFA, the Armed Forces charity and also by paying huge tribute to my predecessor in this role, Sir Gary Coward; his strategic leadership of the Charity for more than six years has been exceptional and the achievements of 2023 are his, not mine. Since I came into the role as National Chair in October, I have been able to observe the commitment and dedication of employees and volunteers, working together to help our beneficiaries and in partnership with many other charities as well as a range of public sector bodies; it is humbling to observe the lengths they go to for those we help.

During this year SSAFA assisted just under 54,000 people. The complexity of cases is increasing, with the cost of resolving a case rising from £860 in 2019 to over £1,600 - much more than the rate of inflation. In 2023, around £10.1m was delivered to those in need through SSAFA’s caseworkers, an increase of nearly £600k on the 2022 figure. Most of that money comes from the single Service benevolent funds and, in the Army’s case, the Regimental Associations; we could not do our work without their funds, but they could not deliver their support without our network of employees and volunteers – there is a very strong bond of partnership and collaboration to support our beneficiaries.

The pressure on SSAFA’s 2,500 volunteers is sizeable and in common with the whole charity sector, recruiting new volunteers is increasingly challenging. SSAFA cannot afford to stand still and we need to develop and modernise the organisation to reflect the changing needs of our beneficiaries and to reflect the expectations of our current and future volunteer force. We have commenced a trial of a new delivery construct under the Network Delivery Project, which is running in two regions and due to be completed at the end of this year. The trial aims to deliver the best support possible to our beneficiaries in an environment that properly supports volunteers and employees.

Our wide range of benevolent services continue to deliver superb support to the Armed Forces community, although we have regrettably decided to cease SSAFA’s Adoption Service due to changes in the national

adoption market and a lack of demand; however, we take great pride in the 332 children we have placed over more than 20 years and the families we have created. We were also delighted again to be awarded the contract to deliver Personal Support and Social Work to the Royal Air Force as well as seeing our Community Healthcare contract in Cyprus extended. These bring a degree of financial security to SSAFA, though you will note that the Charity traded at a deficit for the second year in succession; we have plans to address this in the future.

The accounts show that we ran an approximate £1m trading deficit during 2023 with deficits for 2024 and 2025 planned. Our reserve position is very strong and we are able to absorb this cost pressure. This provides the space and opportunity to examine the way in which we deliver our services and to grow our opportunities to fundraise and improve brand awareness and engagement.

I take great pride in the support SSAFA provides to service personnel, veterans and their families, just as it has done since it was established by Sir James Gildea over 139 years ago; we are a trusted source of support in their time of need.

We could not do this without the commitment of employees and volunteers, or the collaboration with our many charity partners as well as SSAFA’s individual and corporate supporters; on behalf of our beneficiaries, I thank you all very sincerely for what you do. It is greatly appreciated and never taken for granted.

Finally, I am delighted and honoured that His Majesty King Charles III has agreed to be our new Patron. The Monarch’s patronage continues SSAFA’s long-standing association with The Royal Family.

Sir Simon Bollom National Chair

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SSAFA’S GOVERNANCE STRUCTURE

This page provides an overview of SSAFA’s governance structure.

SSAFA is governed by a Trustee body, referred to as SSAFA Council, with our National Chair the Chairman of Council.

Officers of the Association (National Chair, National Vice Chair, Deputy National Chair and Honorary Treasurer) and Members of the Council are all Trustees. They are incorporated as a body operating under the Association’s Royal Charter. One third of our Trustees are required to retire each year but are eligible for re-election by the Association.

Trustees are ultimately responsible for all matters concerning governance, strategic direction, legal operation and financial probity. They exercise authority only when making a majority decision at a duly constituted meeting of Council, comprising between seven and 17 members.

Our Chief Executive, known as the Controller, is responsible to the Charity’s Trustees for the management of SSAFA’s global activities. The Controller chairs the Management Board, which oversees SSAFA’s wide range of activities in support of the Armed Forces community.

PATRON

DEPUTY NATIONAL CHAIR Colonel Stephen Oxlade HONORARY TREASURER Mr David Rowe COUNCIL MEMBERS Ms Michelle Alston (retired September 2023) Mr Nick Baughan Mr James Carleton (retired March 2023) Ms Alex Milner Mr Pravinkumar Navekar Air Vice-Marshal Charles Ness Ms Kate Pennell Brigadier Tim Seal Mrs Evelyn Strouts Lady Walmsley Mr Keith Marriott (from March 2024)

His Majesty King Charles III

PRESIDENT

HRH Prince Michael of Kent

VICE PRESIDENTS

The Lady Dannatt The Baroness Fookes Lieutenant Colonel Colin Hogg The Lady Walker Lady Sanders Mrs Wendy Burns Lady Hockenhull Lady Wigston (retired June 2023) Lady Knighton (from September 2023)

NATIONAL CHAIR

Lieutenant General Sir Gary Coward (retired October 2023) Sir Simon Bollom (from October 2023)

CONTROLLER

Lieutenant General Sir Andrew Gregory

NATIONAL VICE CHAIR

SSAFA COMMITTEES

SSAFA has a number of committees overseeing different work streams. Each is chaired by a Trustee with the intention of providing advice and support for our Council in governance in order to achieve the objectives of the charity.

The following committees meet on a quarterly basis:

Under the authority of Council, SSAFA operates three subsidiary companies:

For further information and governance details, please refer to page 13.

Kirsty Bushell SECRETARY AND CHIEF OPERATING OFFICER

Mr Simon Blum

SSAFA’s Council meets on a quarterly basis and ensures the Charity is carrying out its purposes for the benefit of our beneficiaries, is accountable, and complies with our governing documents and the law, as well as ensuring our resources are managed responsibly. There are also several standing Council agenda items which include; Safeguarding, Fundraising & Marketing Communications, Equality Diversity & Inclusion, as well as Data Protection and Information Management - which is managed by an independent Data Protection Officer.

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TRUSTEES’ REPORT

We, the Trustees, are pleased to present the annual Trustees’ Report and the consolidated financial statements of the Charity. These financial statements comply with SSAFA’s governing document, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Act (Gibraltar) 1962-12, the Charities Act 2009 (Republic of Ireland) and 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) (effective 1 January 2019).

OUR CHARITABLE OBJECT AND ACTIVITIES

FOR THE PUBLIC BENEFIT

SSAFA is a public benefit entity. The Trustees have given due consideration to the Charity Commission published guidance on the operation of the Public Benefit requirement, and confirm that SSAFA, the Armed Forces charity is a trusted source of support for serving personnel, veterans and their families in their time of need. There are only two criteria for assistance: eligibility and need.

Crucial to the successful delivery of all our charitable activities is a network of 2,519 volunteers across the globe. It is impossible to quantify the value of our volunteers’ contribution in monetary terms, and therefore no amounts are recorded in the financial statements.

DURING 2023, SSAFA’S SERVICES FOCUSED ON:

Welfare advice and support — our network of regional offices and branches in local communities and serving community teams on military bases offers practical, financial and emotional support. We help serving personnel, both regulars and reserves, veterans and their families, with everything from financial hardship to family breakdown.

also help veterans struggling with disability, sourcing practical items such as mobility aids or replacing household goods. Our free confidential helpline, Forcesline, provides a wide range of practical and emotional support to the Armed Forces community. We offer long-term accommodation for older and disabled veterans, and we have short-term accommodation available for families of injured service personnel, as well as for women and children affected by domestic abuse from families serving in the Armed Forces.

We run a series of support groups; ranging from families affected by injury or bereavement to those affected by the suicide of a loved one as well as a support forum, the Forces Additional Needs and Disability Forum (FANDF) for those in the military who have a family member with an additional need and/or disability. We also provide short break holidays for those Forces families with additional needs and disabilities. Until February 2024, we operated the UK’s only adoption agency specifically designed for Armed Forces serving personnel. It provided support throughout the adoption process, including family finding, link-making and post-adoption support.

Health and social care services — we provide

community health care across several countries and overseas territories around the world - Cyprus, Brunei, Gibraltar, Canada, Germany, Belgium, the Netherlands, Italy and Kenya; with Norway, Turkey, France, Portugal, and Spain amongst those receiving remote support. These services range from Ministry of Defence (MOD) contracted community healthcare in Cyprus to grant-inaid health visiting in Kenya and midwifery in Brunei. We also provide personal support and social work services (PS&SWS) to the Royal Air Force (RAF) in the UK under contract to the MOD.

DELIVERING AGAINST OUR 2023 AIMS

AND OBJECTIVES

In our 138th year we focused on continuing to ensure the needs of the Armed Forces community are met in an appropriate and timely way. We are a trusted source of support for serving personnel, veterans and their families in their time of need. We achieve this through an exceptional range of complementary services, designed

to meet specific beneficiary needs and delivered by skilled teams of employees and volunteers.

Our 2022-2027 strategy continues to enable us to become a yet more responsive, efficient and effective charity. Our five-year strategic plan and aims deliver this through:

1. Understanding need

2. Delivering consistent and effective support

3. Sustaining our resources

4. Raising our profile and strengthening our brand

5. Growing collaboration

We will continue to drive progress against our strategic objectives and meet beneficiary need against a backdrop of change. Our core services, which focus on the needs of our beneficiaries, are met either through our volunteer casework, through our ‘behind-the-wire’ serving community volunteers meeting serving communities’ needs, or through our specialist services. A significant element of the Charity’s activities is the granting of funds to eligible individuals, with many of those funds coming from our funders.

OUR ACHIEVEMENTS AND PERFORMANCE IN 2023

Tailored support services — our wide range of services are designed to meet the specific needs of the Forces community and are run by SSAFA employees, with support from teams of volunteers. We mentor service leavers and their families as they transition from the military to civilian life, support veterans and their families in the criminal justice system, provide a support service to the UK Gurkha veteran community and, with Glasgow City Council, provide welfare and wellbeing support to members of the Armed Forces family in Glasgow. We

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SOCIAL CARE OPERATIONS

The Personal Support and Social Work Service (PS&SWS) RAF is an MOD contracted welfare service run by a team of skilled and qualified staff from a range of disciplines, providing support to the RAF community on base. In 2023 there was a 3% decrease to 5,084 service users being supported, with 3,396 consultations, 1,379 referrals and 309 personnel on recovery duty referrals. The main areas for referrals support were personal support, mental health and housing. The PS&SWS RAF contract has been renewed for a further five years from April 2024.

MEASURING AND EVALUATING THE IMPACT

OF OUR WORK

In line with the Charity’s strategic plan, demonstrating the impact of SSAFA’s services provided to our beneficiaries is key in allowing us to better understand the needs of the Armed Forces community and their families.

SSAFA’s approach to the measurement of these outcomes begins with developing a theory of change for each support service, which allows us to identify those outcomes we wish to explore. This forms the basis for an evaluation plan where we develop or use existing validated tools to demonstrate how we have helped our beneficiaries. We do this using a range of methods including outcome measures, feedback surveys, qualitative and economic studies, as our approach depends on the individual service’s need. SSAFA employs a continuous improvement approach when measuring impact which allows us to not only measure success, but also learn how we can improve so that we continually develop our services.

Where appropriate, external evaluators measure the outcomes and impact of our services, with methods including surveys, interviews and focus groups. Exploring the impact of our services is a high priority for SSAFA and we are continuing to identify ways in which we can measure and demonstrate how we make a difference.

OUR COMMITMENT TO ENVIRONMENTAL

SUSTAINABILITY

Since 2014, SSAFA has complied with the legal requirement to take part in the Energy Savings Opportunity Scheme (ESOS). Some of the savings identified by a qualified ESOS auditor have been completed, resulting in estimated savings of £1,077 per annum. Environmentally friendly savings outside of ESOS include transitioning to the use of green energy, improving insulation and boiler efficiency, and increasing the maximum allowance provided for lease cars to encourage selection of hybrid or fully electric vehicles. Online training, virtual meetings and home working practices have reduced the carbon footprint of SSAFA employees.

RAISING OUR PROFILE

SSAFA wants to be the ‘expert’ voice for the issues faced by the military community and seen as a trusted, passionate, professional support network and service provider. We will aim to grow and improve our brand presence to assist beneficiaries seeking help, target volunteers and employees who want to work for the Charity and grow one-off donors into life-long supporters of SSAFA.

FUNDRAISING FOR OUR WORK

In 2023, we raised £13.1 million (2022: £13.7 million) from donations, grants, legacies, events and trading activities, of which £1.7million (2022: £1.9 million) was raised by volunteers in their local communities.

Our Fundraisers used a variety of in-person and virtual methods of fundraising resulting in an overall events income of more than £1.8 million (2022: £1.9 million). Our challenge and in-aid fundraising raised more than £850,000 our highest ever figure in this area, with the London Marathon achieving £227, 293.

Legacy income of more than £4.1 million was bolstered by three significant legacies totalling more than £575,000. Legacies continue to be a significant source of our fundraising income and make up 38% of our total voluntary income.

Individual giving income increased 6.9% to £1.39 million; the gross revenue from direct debit donations increased to approximately £409,000 from £256,000 in 2022. Commercial partnerships raised more than £360,000, and Trading operations generated more than £250,000 in sales via the catalogue and online store.

Once again, we are incredibly grateful for the trusted and long-term relationships we have with many funders. We continued key strategic partnerships with many organisations including the Army Benevolent Fund, the Army Central Fund, The Royal British Legion, the Royal Navy and Royal Marines Charity, the RAF Benevolent Fund, and also Greenwich Hospital. We also continued to work closely with the Armed Forces Covenant Fund Trust, The National Lottery Community Fund, Glasgow City Council, and the Barbara Naylor Charitable Trust.

Major donors who make notable gifts are a vital part of ensuring we can continue to provide our vital projects and services. They support the strategic and transformational journeys that we need to take as the needs of the Armed Forces community evolve and change. This year, our most loyal and established major donors and philanthropy supporters funded programmes which contributed to future proofing our work as well as to various services and projects. We extend a sincere and heartfelt thank you to all our donors: individual, corporate, grant-givers and commercial partners, as well as other collaborating organisations, and those who wish to remain anonymous, for their support.

Particular thanks go to:

Amazon

Annington Management Armed Forces Covenant Fund Trust Army Central Fund BAE Systems Birmingham City Council Bluelight Cycling Club Boeing UK Cambridgeshire County Council Cambridgeshire Community Foundation Castanea Trust Derbyshire County Council Forces in Mind Trust (FiMT) Glasgow City Council Greenwich Hospital Hattons of London Haven Holidays Hertfordshire Community Foundation Landmarc Leicestershire County Council Leicester City Council Lord Barnby’s Foundation MBDA Muriel and Gershon Charitable Foundation

Nationwide Building Society

Norfolk and Waveney Integrated Care Board Norfolk County Council Nottinghamshire County Council Peter Dixon Charitable Trust RAF Benevolent Fund Renfrewshire Council Royal British Legion Royal Engineers Association Royal Navy and Royal Marines Charity Scott (Eredine) Charitable Trust Sodexo

Suffolk Carers Trust Suffolk Community Foundation The Army Benevolent Fund The Barbara Naylor Charitable Trust The Dr Olav and Mrs Kerr Charitable Trust The Inman Charity The Light Dragoons The MacRobert Trust

The National Lottery Community Fund The Queen Mary’s Roehampton Trust The Queen’s Royal Hussars The Royal Logistics Corps The Scottish Government Trinity House Maritime Charity and those who wish to remain anonymous.

LOOKING TO THE FUTURE

The continued cost-of-living crisis and the shortage of housing will mean many more in the Armed Forces community are facing hardship, so close attention to ensuring financial sustainability of the Charity is a priority for the Trustees and Senior Management team who will continue to closely monitor the impact of increased need on our income, expenditure, fundraising and communications.

We need to ensure that we continue to support our volunteers and employees, deliver outstanding services - both face-to-face and virtually - and strengthen our cross-sector collaboration. In order to future-proof our vital work our Network Delivery Project is being trialled in two regions with a view to ensuring a financially sustainable, consistent, timely and quality assured service to all our beneficiaries wherever they are, whenever they need it, across our UK footprint and in locations worldwide.

We need to meet the current and future, financial and social welfare needs faced by our serving and veteran

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communities. Many of these have been exacerbated and heightened by the cost-of-living crisis in our economy, society, and welfare services. Our Cost-of-Living Crisis Fund enables our critical front-line services to give immediate financial support to those who are struggling, and to relieve a major cause of their anxiety and stress.

We will continue to meet our contractual obligations to provide high-quality health and social care to the Armed Forces in the UK and overseas. We will respond to the reduction in contracted services income whilst maintaining our existing excellent standards of service, be creative in searching for solutions to fundraising activity and continue to be cost conscious.

Investment in fundraising and supporter engagement is vital to SSAFA’s future. Our fundraising strategy for 2022-2024 focuses on new supporter acquisition and engagement whilst ensuring our regional and community fundraising presence is strengthened.

We want to ensure we continue to raise awareness of our charity and our profile to drive external communications and generate the income needed in very challenging circumstances. We will still focus on our three communications objectives; raising awareness of the SSAFA brand and the different types of support we offer across the whole of the Armed Forces family, driving our fundraising and building our volunteer network through active recruitment.

FINANCIAL REVIEW

As required, the accounts have been prepared under Charity SORP (FRS 102). To meet the requirements of the Office of the Scottish Charity Regulator, a Statement of Activities (with supporting notes) has also been prepared for the Charity (as shown on page 21).

FINANCIAL OUTCOME

The Consolidated Statement of Financial Activities for the year shows that there was an overall deficit in the year before investment and actuarial losses of £1.0 million (2022: £1.4 million). This comprises a deficit on unrestricted funds of £1.3 million for the year (2022: £0.7 million deficit) and a restricted fund surplus of £0.2 million (2022: £0.6 million deficit).

Donations and legacies received in the year were £6.8 million (2022: £5.9 million) and £4.2 million (2022: £5.3 million) respectively. The costs of raising voluntary income were £876 thousand (2022: £844 thousand). The branches continue, through their volunteer network, to raise significant funds of £10.1 million (2022: £9.5 million) from service and other charities to assist a wide variety of Forces-related individuals in need. At 31 December 2023 £1.3 million (2022: £1.5 million) was being held as unalmonised grants for imminent distribution to the individuals for whom the funds were raised.

Health and welfare activities contributed £1.0 million (2022: £1.2 million) to the Group. This includes the activities of SSAFA Family Health Services, which is responsible under contract to the MOD for the delivery of health services. The group continues to provide the RAF Personal Support and Social Work Services in the UK. Whilst income and expenditure decreased significantly, the margin reflects improved cost management initiatives.

The pension fund balance was measured as an asset of £63 million (2022: £68 million) at the year end. The Trustees do not consider the Charity has a right to any future economic benefits from the scheme despite the asset position and therefore no asset or liability is recorded at the balance sheet date. Changes in the valuation reflect a decrease in discount rate from 4.9% to 4.6%.

INVESTMENT POLICY

SSAFA’s investment policy is to produce the best financial return within an acceptable level of risk. The investment objective is to generate a return in excess of inflation over the long term whilst generating an income to support the ongoing activities of SSAFA branches. SSAFA has a broad range of income sources that would allow it to continue with its activities were markets to fall. The key long-term risk is inflation, and the investment assets are invested to mitigate this risk. The Trustees understand that this is likely to mean that investment will be concentrated in real assets (equities and property) and that therefore the capital value will fluctuate. As a result they are prepared to take more than a moderate amount of risk. SSAFA’s investment assets can be invested widely and be diversified by asset class and by security. Asset classes can include cash, bonds, equities, property, hedge funds, structured products, private equity, commodities and any other asset that is deemed suitable as defined by the Charity Commission in CC 14. The Investment Policy has no ethical restrictions.

The majority of SSAFA’s funds are invested in the Armed Forces Charity Authorised Investment Fund, a fund specifically designed for service and ex-service charities. The objective of the fund is to achieve long term growth of both capital and income. Performance of the fund is measured against a benchmark constructed to represent a balanced portfolio of investments comprising UK and global equities, property and UK and overseas bonds. In 2023, the fund recorded a total return of 4.3%, which was below the benchmark. Dividends for the year were increased to 8.55p per unit.

RESERVES POLICY

Taking into account the long-term strategic plan that the Trustees agreed in 2018 and the analysis carried out since on the financial demands of providing a modern service that meets the needs of all stakeholders, the Trustees have agreed that the Charity needs to sustain its current level of reserves in real terms. This is made all the more necessary given the pressures on income from the unavoidable decline in health and social care contracts. The Charity’s reserves underwrite the day-to-day operation of the branch network as well as the many other capabilities SSAFA provides to its beneficiaries. The reserves are held in a combination of investment properties, listed investments and cash. The Trustees currently forecast that reserves will be used to cover annual deficits for the next five years if other sources of income do not increase to meet the rising costs of serving our beneficiaries’ needs. The Reserves Policy of sustaining current levels in real terms means, after completing the new strategy, that the Charity’s reserves should be able to fund annual core running costs in a crisis, as they will do in 2024. To do otherwise would put at risk the existence of the Charity. The Trustees have learnt from other charities that have not had a sustainable business model and not had sufficient reserves to maintain, over the long term, the vital service they deliver to their beneficiaries, many of whom have long term needs, when income falls.

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GRANT MAKING

Assistance from the unrestricted funds may be used only to relieve the need, suffering and distress of those eligible for our help, as described in the Objects of SSAFA. The Regulations of SSAFA do not permit our funds to be used for gifts, grants or subscriptions to charities, hospitals, schools or other funds, societies or institutions.

FUNDRAISING POLICIES

SSAFA carries out its core fundraising activities through a dedicated team of paid professional fundraisers managed from its London office, and through registered volunteers who engage in small-scale fundraising activities to help support branch-level activities.

SSAFA’s central fundraising team generates income through a mix of grant, donation, contract, sponsorship and commercial activities. It also oversees regional and branch-level fundraising activities and provides support, training and guidance to its volunteer fundraisers to ensure that the Fundraising Code is followed, and that best practice and legal fundraising standards are applied consistently across the organisation.

As part of its activities to recruit individual supporters, SSAFA utilises payroll giving schemes and face-to-face fundraising on private sites. SSAFA engages three specialist Professional Fundraising Organisations (PFOs) to represent the Charity to support payroll giving and two PFOs to represent the Charity for face-to-face activity. All such agreements are subject to legal contract, including how data is collected, stored, processed and shared. SSAFA’s merchandise and trading activities are managed through SSAFA Forces Help Enterprises Limited. Sponsorship and/or cause affiliated marketing partnerships are managed through commercial participation agreements.

MANAGING AND SAFEGUARDING DATA

SSAFA is dedicated to safeguarding the personal data entrusted to us by our volunteers and supporters, while ensuring strict adherence to rigorous governance and risk management standards. This includes obtaining the necessary permissions from supporters before collecting and using their personal data and giving supporters clear choices on how they receive communications from us.

We provide training to employees and volunteers on data protection and privacy. This includes guidance on how to handle personal data, how to spot and report suspicious activity and how to respond to a data breach. We regularly review and update our data protection policies to ensure they remain compliant with any changes to data protection laws.

In addition, privacy considerations are now embedded at the start of all new projects, ensuring data protection principles are at the forefront of project design. As part of our commitment to maintaining the trust of our supporters we conduct a due diligence exercise on all third-party suppliers and data sharing agreements are in place with third-party organisations who support SSAFA’s fundraising activities. This ensures that we only work with reputable suppliers who share our values and commitment to data protection. The confidentiality, integrity and availability of supporter data are of the utmost importance to the Charity, and we are fully committed to implementing measures to ensure that supporter data is kept safe and secure at all times.

STRUCTURE, GOVERNANCE AND MANAGEMENT GOVERNING DOCUMENT

The Soldiers’, Sailors’, Airmen’s and Families’ Association - Forces Help, operating as SSAFA, the Armed Forces charity was established in 1885 under Royal Charter. SSAFA’s Charter and Rules and Regulations were extensively revised in 2013 and approved by Council in January 2014. The Charter allows the Trustees to establish Regulations for the day-to-day management of the Charity. SSAFA is registered as a charity in England and Wales (Number 210760) in Scotland (Number SCO38056), in the Republic of Ireland (Number 20002021) and in Gibraltar (Number 149).

TRUSTEE INDUCTION AND TRAINING

Regulations require that each Trustee attends an introductory briefing. Each Trustee must attend formal annual training including Data Protection, Safeguarding and Diversity & Inclusion.

MANAGEMENT PAY

The Governance Committee is responsible for reviewing and deciding any salary increases applicable to all employees including all levels of management. The Charity does not operate a performance related salary or bonus scheme. Any proposed changes to management pay will consider the remuneration of comparable internal roles and external roles in similarly sized charities.

SSAFA’s median gender pay gap remains low at 2.25% (2022: 1.47%) and continues to be considerably lower than the national median gender pay gap of 14.3% (2023 ONA ASHE).

SUBSIDIARY CHARITIES

The Charity has two subsidiary Charities: The Royal Homes, regulated under a Charity Commission Scheme in 1998 and the Aircrew Association Charitable Fund, regulated under a Charity Commission Scheme in 2012. Both are administered as part of SSAFA as a result of these schemes, and their results are included within the results of the Charity.

SSAFA OPERATIONAL ENTITIES

Under the authority of Council, SSAFA operates three subsidiary companies. Each company is run for the benefit of the Charity by paid employees who fill the key posts of Managing Director, Chief Operating Officer and Company Secretary, and includes Trustees as additional external members of the Board. Each Company reports as required to Companies House.

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OTHER CHARITABLE JURISDICTIONS

In order to operate in Scotland, SSAFA has been registered with the Office of the Scottish Charity Regulator Register of Charities under number SC038056. In order to operate in Gibraltar, SSAFA has been registered with the Charity Commissioners for Gibraltar Register of Charities under number 149. In order to operate in the Republic of Ireland, SSAFA has been registered with the Charities Regulator under number 20002021.

RISK MANAGEMENT

The Controller’s Management Board meets monthly and reviews the Risk Register to ensure compliance. The Risk Committee reviews the Risk Management Policy and Register at each meeting. Areas of significant risk are reported to Council at each meeting. Council then seeks assurance from the Controller that all mitigating action is being or has been taken. In addition, Council formally approved the appointment of Mazars LLP as internal auditors and agreed a risk-focused internal audit plan with them, covering a variety of areas (including finance) across the organisation. The reviews have identified that financial sustainability is the main financial risk for both the Charity and its subsidiaries.

PRINCIPAL RISKS AND UNCERTAINTIES ARE

MANAGED BY:

• detailed contract planning. A principal financial risk facing the Charity’s subsidiary, SSAFA Family Health Services, is related to the expiry of the contract with the MOD to provide healthcare to HM Forces in Germany following the drawdown of personnel back to the UK. The Company’s Board is monitoring the situation and continuing to look for new opportunities;

• ensuring that branches’ and serving communities’ volunteers have appropriate financial and other training and support available to them to aid them with the raising, recording, monitoring and the distributing of funds in delivering assistance to SSAFA’s many beneficiaries.

The Group has some transaction and currency exchange rate risk given its international spread of activities. The objective of the Group in managing its liquidity risk is to ensure that it can meet its liabilities when they fall due. The Group expects to meet its financial obligations through operating cash flows. In the event that operating cash flows would not cover all the Group’s financial obligations, Council is comfortable that suitable credit facilities are available.

The Group may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. Certain Group entities are subject to risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by strong on-going customer relationships.

Council is content that measures are in hand to manage and minimise all significant risks.

AUDITOR

The Trustees believe it is good practice to re-evaluate their professional advisers periodically but have also informed Moore Kingston Smith LLP that its proposals to be re-appointed will be welcomed.

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees are responsible for preparing the annual Trustees’ Report and the financial statements in accordance with applicable law and regulations.

The Charities Act 2011 and regulations made thereunder,

the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities Act 1962-12 (Gibraltar) and the Charities Act 2009 (Republic of Ireland) require the Trustees to prepare financial statements for each financial year.

The Trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and the Group, and of the incoming resources and application of resources, including the income and expenditure, of the Group for that period.

In preparing these financial statements the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s and Group’s transactions, and disclose with reasonable accuracy at any time the financial position of the Charity and the Group and enable them to ensure that the financial statements comply with the Charities Act 2011 and regulations made thereunder, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charity (Accounts and Reports) Regulations 2008, the Charities Act (Gibraltar) 1962-12 , the Charities Act 2009 (Republic of Ireland) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and the Group and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by Council on 18 June 2024 And signed on 18 June 2024 by

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INDEPENDENT AUDITOR’S REPORT

To the Trustees of The Soldiers’, Sailors’, Airmen’s and Families’ Association – Forces Help (SSAFA)

OPINION

BASIS FOR OPINION

We have audited the financial statements of SSAFA, the Armed Forces charity (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023 which comprise the Group Statement of Financial Activities, the Charity Statement of Financial Activities, the Group and Parent Charity Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance 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.

In our opinion the financial statements:

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we 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 we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the parent 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.

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

OTHER INFORMATION

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

In connection with our audit of the financial statements, our responsibility is 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are 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 we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE

REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report.

We have nothing to report in respect of the following matters where the Charities Act 2011 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees’ Responsibilities Statement set out on page 15, the Trustees 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 group’s and parent 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 group or parent charity or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under sections 151 of the Charities Act 2011 (England and Wales), 50 of the Charities Act 2009 (Republic of Ireland) and 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts.

Our 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 our 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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our 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 purposes of expressing an opinion on the effectiveness of the group and parent charity’s internal control.

• 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 group and parent charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charity to cease to continue as a going concern.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

We 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 we identify during our audit.

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the parent charity.

Our approach was as follows:

regulatory requirements applicable to the Charity and considered that the most significant are the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher 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.

USE OF OUR REPORT

This report is made solely to the Charity’s Trustees, as a body, in accordance with Section 154 of the Charities Act 201, Section 50(1) of the Charities Act 2009 (Republic of Ireland), and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters we are required 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 Charity and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Moore Kingston Smith LLP

Statutory Auditor

Date: June 2024 19

9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023
Notes Unrestricted
Funds		 Restricted
Funds		 Total
2023
Unrestricted
Funds
2022
Restricted
Funds
2022
Total
2022
£’000 £’000 £’000
£’000
£’000
£’000
INCOME FROM:
Donations and legacies 1 8,385 2,591 10,976
9,129
2,031
11,160
Charitable activities
Contributions — Service/other charities 2 - 10,124 10,124
-
9,528
9,528
Health and welfare 2 6,150 413 6,563
5,991
428
6,419
Care and accommodation 2 477 554 1,031
421
546
967
Adoption services 2 465 -
465
237
-
237
Total charitable activities 7,092 11,091 18,183
6,649
10,502
17,151
Other trading activities
Fundraisingactivities 1,672 91 1,763
1,799
86
1,885
Commercial activities 299 -
299
679
-
679
Total trading activities 1,971 91 2,062
2,478
86
2,564
Investments 3 1,933 99 2,032
1,483
106
1,589
Other income 4 867 -
867
571
-
571
Total income 20,248 13,872 34,120
20,310
12,725
33,035
EXPENDITURE ON:
Raising funds
Fundraisingactivities 5 3,414 -
3,414
3,443
-
3,443
Raisingvoluntaryincome 5 876 - 876
844
-
844
Other tradingactivities 5 156 -
156
240
-
240
Total raising funds 4,446 -
4,446
4,527
-
4,527
Charitable activities
Supportingclients 5 10,294 12,188 22,482
9,749
11,986
21,735
Health and welfare 5 5,176 378 5,554
4,816
393
5,209
Care and accommodation 5 1,122 1,010 2,132
1,402
979
2,381
Adoption services 5 458 50 508
562
-
562
Total cost of charitable activities 17,050 13,626 30,676
16,529
13,358
29,887
Other expenditure 5 25 - 25
2
-
2
Total expenditure 21,521 13,626 35,147
21,058
13,358
34,416
Net(losses)/gains on investments 10 (2,123) 15 (2,108)
(4,355)
(522)
(4,877)
Net(expenditure)/income before fund transfers (3,396) 261 (3,135)
(5,103)
(1,155)
(6,258)
Transfer between funds 11 (196) 196 -
26
(26)
-
Other recognisedgains and losses
Actuarial losses on defned beneftpension 23 (87) -
(87)
(36)
-
(36)
Net movement in funds (3,679) 457 (3,222)
(5,113)
(1,181)
(6,294)
RECONCILIATION OF FUNDS
Total funds brought forward 17 50,769 5,988 56,757
55,882
7,169
63,051
Total funds carried forward 17 47,090 6,445 53,535
50,769
5,988
56,757

CHARITY STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDED 31 DECEMBER 2023
Notes Unrestricted
Funds
£’000		 Restricted
Funds
£’000
Total
2023
£’000
Unrestricted
Funds
2022
£’000
Restricted
Funds
2022
£’000
Total
2022
£’000
INCOME FROM:
Donations and legacies 1 9,443 2,591
12,034
9,754
1,808
11,562
Charitable activities
Contributions — service/other charities 2 - 10,124
10,124
-
9,528
9,528
Health and welfare 2 - 413
413
-
428
428
Care and accommodation 2 477 554
1,031
421
546
967
Adoption services 2 465 -
465
237
-
237
Total charitable activities 942 11,091
12,033
658
10,502
11,160
Other trading activities — Fundraising 1,672 91
1,763
1,843
86
1,929
Investments 3 1,930 99
2,029
1,481
106
1,587
Other Income 4 5,543 -
5,543
5,339
-
5,339
Total income 19,530 13,872
33,402
19,075
12,502
31,577
EXPENDITURE ON:
Raising funds
Fundraisingactivities 5 3,385 -
3,385
3,439
-
3,439
Raisingvoluntaryincome 5 874 -
874
838
-
838
Total raising funds 4,259 -
4,259
4,277
-
4,277
Charitable activities
Supportingclients 5 9,967 12,188
22,155
9,054
11,648
20,702
Health and welfare 5 988 378
1,366
894
393
1,287
Care and accommodation 5 1,121 1,010
2,131
1,400
979
2,379
Adoption services 5 458 50
508
562
-
562
Total cost of charitable activities 12,534 13,626
26,160
11,910
13,020
24,930
Other expenditure 5 3,792 -
3,792
3,834
-
3,834
Total expenditure 20,585 13,626
34,211
20,021
13,020
33,041
Net(losses)/gains on investments 10 (2,123) 15
(2,108)
(4,313)
(488)
(4,801)
Net(expenditure)/income before fund transfers (3,178) 261
(2,917)
(5,259)
(1,006)
(6,265)
Transfers between funds 11 (196) 196
-
34
(34)
-
Other recognisedgains and losses
Actuarial(losses)/gains on defned beneftpension 23 (87) -
(87)
(36)
-
(36)
Net movement in funds (3,461) 457
(3,004)
(5,261)
(1,040)
(6,301)
RECONCILIATION OF FUNDS
Total funds brought forward 17 50,245 5,988
56,233
55,506
7,028
62,534
Total funds carried forward 17 46,784 6,445
53,229
50,245
5,988
56,233

The Charity Statement of Financial Activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

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CONSOLIDATED GROUP AND CHARITY BALANCE SHEETS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDED 31 DECEMBER 2023
As at 31 December Notes Group
2023
£’000
Group
2022
£’000
Charity
2023
£’000
Charity
2022
£’000
FIXED ASSETS
Tangible assets 12 7,140
7,352
7,140
7,352
Investments 13 37,040
39,891
37,050
39,901
Total fxed assets 44,180
47,243
44,190
47,253
CURRENT ASSETS
Investments 14 1,262
-
1,262
-
Debtors 15 4,797
5,227
4,731
4,674
Stock 12
25
-
-
Cash at bank and in hand 6,887
8,409
6,048
8,104
12,958
13,661
12,041
12,778
-
Creditors: Amounts falling due within oneyear 16 (3,603)
(4,147)
(3,002)
(3,798)
Net current assets 9,355
9,514
9,039
8,980
Net assets excluding pension liability 53,535
56,757
53,229
56,233
Defned beneftpension scheme liability 23 -
-
-
-
NET ASSETS 17 53,535
56,757
53,229
56,233
FUNDS
Unrestricted funds —general 17 45,644
49,255
45,338
48,731
Unrestricted funds — designated 17 1,446
1,514
1,446
1,514
Unrestricted funds —pension reserve 17 -
-
-
-
Total unrestricted funds 17 47,090
50,769
46,784
50,245
Restricted funds 17 6,445
5,988
6,445
5,988
TOTAL FUNDS 17 53,535
56,757
53,229
56,233

Approved by Council on 18 June 2024 and signed on 18 June 2024 by:

Sir Simon Bollom National Chair

Mr David Rowe Honorary Treasurer

The accompanying accounting policies and notes on pages 24 to 47 form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDED 31 DECEMBER 2023
Notes 2023 2022
£’000 £’000
Net cash used in operating activities A (3,239) (3,181)
Cash fows from investing activities
Dividends, interest and rents from investments 3 2,032 1,589
Proceeds on disposal of fxed assets 704 608
Net cash disposed of on disposal of subsidiary - (325)
Purchase of investments 13,14 (1,269) (42)
Proceeds from sale of investments 13 750 55
Net cash used in investing activities 2,217 1,885
Cash infows from fnancing activities
New borrowings - 500
Repayment of borrowings (500) (5,000)
Change in cash and cash equivalents in theyear (1,522) (5,796)
Cash and cash equivalents at 1 January 8,409 14,205
Cash and cash equivalents at 31 December 6,887 8,409
Notes to the Consolidated Statement of Cash Flows 2023
£’000		 2022
£’000
A. Reconciliation of net expenditure to net cash fow from operating activities
Net expenditure (3,135) (6,258)
Adjustments for:
Depreciation 12 127 169
Proft on disposal of fxed assets (619) (522)
Losses on investments 10 2,108 4,877
Dividends, interest and rents from investments 3 (2,032) (1,589)
Decrease in stock 13 4
Decrease in creditors 16 (44) (224)
Pension contributions 23 (87) (135)
Change inpension liability 23 - 99
Decrease in debtors 15 430 398
Net cash used in operating activities (3,239) (3,181)
Analysis of changes in net funds At 1 January Cash fows At 31
2023 December
£’000 £’000 2023
£’000
B. Analysis of cash and cash equivalents and net debt
Cash 8,409 (1,522) 6,887
Borrowings
Debt due within oneyear (500) 500 -
(500) 500 -
7,909 (1,022) 6,887

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ssafa.org.uk 23

PRINCIPAL ACCOUNTING POLICIES

The principal accounting policies are summarised below

Branch and committee accounts (including those overseas) have been included in the Charity’s and consolidated financial statements on a receipts and payments basis but adjusted for any accruals or prepayments where material.

BASIS OF PREPARATION

The consolidated financial statements have been prepared under the historical cost convention, with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2021) second edition issued October 2021 and the Financial Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

CHARITY STATEMENT OF CASH FLOWS

The Trustees have taken the exemption available under Para 1.11 of FRS 102 not to present a separate Charity Statement of Cash Flows.

GOING CONCERN

The financial statements have been prepared on the basis that the Charity is a going concern. The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. The Charity had £47.1 million in unrestricted funds at 31 December 2023. The Trustees therefore consider that the Charity has adequate resources to sustain operations for the foreseeable future.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2021) second edition issued October 2021 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Charity has access to a Revolving Credit Facility (RCF) to ensure that it can meet all its liabilities in the event of reduced incoming cash flows. The Trustees therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

INCOME

All income whether restricted or unrestricted is recognised in the Consolidated Statement of Financial Activities when the Group has entitlement to the funds, the amount can be quantified reliably and it is probable that the income will be received.

The financial statements are prepared in the Group’s functional currency, Sterling (£) and are stated in £’000s.

The Charity constitutes a public benefit entity as defined by FRS 102.

BASIS OF CONSOLIDATION

The financial statements consolidate those of the Charity, its subsidiary undertakings and its shares in joint ventures drawn up to 31 December each year. The results and balance sheets of the subsidiaries controlled by the Charity have been consolidated on a line by line basis. Control is achieved where the Charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Donations and other income generated from fundraising are recognised gross on a receivable basis. In the event that the donation is subject to conditions that require a level of performance before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met or the fulfilment of those conditions is wholly within the control of the Charity and it is probable that those conditions will be fulfilled in the reporting period.

Donated services and gifts in kind are recognised as income when the Charity has control over the item or service, any conditions associated have been met, the receipt of economic benefit from the use by the Charity is probable and when economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the time of the Charity’s many volunteers is not recognised. However, refer to the annual Trustees’ Report for details of their substantial contribution to the Charity.

Legacies are recognised once the receipt of the legacy becomes probable and quantifiable. Pecuniary legacies are usually recognised at the point that probate is granted. For residuary legacies, this will usually be at the earlier of cash receipt or when confirmation has been received from the representatives of the estates that payment will be made or property will be transferred and once all the conditions attaching to the legacies have been fulfilled. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material (see note 19).

Investment income is recognised when receivable.

Grants receivable from service funds and other charities for specific cases, which have not been almonised at the end of the year, are accrued and included as current liabilities. These amounts will be paid in the following year or returned to the relevant providers.

Fundraising income arises from a mixture of events and activities undertaken on a central and branch-wide basis and is recognised when receivable.

Health and welfare includes income generated from the provision of health and social care services to British Forces personnel and their dependants around the world. In calculating revenue on contracts, the Group makes certain estimates in respect to the compliance with performance-related indicators which the

contracts are subject to. A different assessment may result in a different value being determined for revenue.

Care and accommodation income is generated through the provision of these services to the Charity’s beneficiaries at a number of residential homes and cottages held by the Charity, and income from residential fees and other services is recognised when the income has been earned.

Adoption income arises through the provision of an adoption agency service for placing children with military families and is recognised when placements have been secured.

Other income includes credit interest on the defined pension asset.

EXPENDITURE AND THE BASIS OF

ALLOCATION OF COSTS

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings within the costs of raising funds and charitable activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources. Direct costs, including directly attributable salaries, are allocated on an actual basis to the key strategic areas of activity.

Costs of raising funds are those incurred in attracting voluntary income (including through the holding of events, appeals and other fundraising initiatives), and those incurred in generating income from trading activities.

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ssafa.org.uk 25

COSTS OF CHARITABLE ACTIVITIES INCLUDE THE FOLLOWING:

Grant payments made to or on behalf of individuals in the furtherance of the Charity’s charitable object.

Grant-aided activities relate to costs associated with providing health and social care services to British Forces personnel and their dependants in far commands.

Health and welfare expenditure includes the direct costs of the welfare department at central office, with allocated communication and marketing costs, volunteer support costs (including training), branch and committee case work costs and branch office and staff costs in the provision of advice and assistance to those in need. This expenditure relates to the core services to British Forces personnel and their dependents around the world.

Care and accommodation expenditure primarily relates to the running costs of the Charity’s homes and other accommodation, and the care services provided to the Charity’s beneficiaries therein.

Adoption expenditure relates to staff and sessional staff costs together with departmental running costs and facilitation of the Adoption Panel.

Support costs include central functions, such as management, finance, human resources and information technology. Governance costs are those associated with running the Charity, including Council and Committee expenses, audit and other costs associated with constitutional and statutory requirements. Support and governance costs are

allocated across the categories of costs on the basis of staff numbers engaged in the activities therein as shown in note 6. The administrative charges for the provision of grant-aided activities and the provision of health and welfare services are calculated in accordance with the contractual agreements and directly charged to the relevant cost categories.

TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets (excluding investment properties) are stated at cost and depreciated in equal instalments from either the date of purchase or the date brought into use at the following rates:

Land Nil Freehold buildings 50 years Long leasehold buildings 50 years Furniture and fittings 5 years IT equipment 3 years Motor vehicles down to 10% Over 3 years

Additions to furniture, fittings and IT equipment valued at less than £2,000 are fully written off as revenue expenditure in the year of purchase unless they form part of a larger-scale project.

INVESTMENT PROPERTIES

Investment properties for which fair value can be measured reliably on an ongoing basis are measured at fair value annually with any change being recognised in the Consolidated Statement of Financial Activities.

IMPAIRMENT OF ASSETS

At each year end, fixed assets are reviewed to determine

whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared to its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Statement of Financial Activities.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Consolidated Statement of Financial Activities.

INVESTMENTS

Listed investments are included at bid price (which is deemed to be market value) at the balance sheet date and the Consolidated Statement of Financial Activities shows net investment gains and losses arising from revaluation of the investment portfolio and disposals during the year. Realised gains and losses on investments are calculated as the difference between the sales proceeds and their market value at the start of the year or their subsequent cost and are charged or credited to the Statement of Financial Activities in the year of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on market value at the year end.

Investments in subsidiaries are held at cost less impairment in the individual Charity financial statements.

Social investments include investment in other charities which have charitable objects in common with SSAFA and are measured at cost less impairment in the financial Statements of both the individual Charity and the Group.

Amounts held on short-term deposit with banks with maturity dates of between three months and a year are recognised at cost in current asset investments.

FINANCIAL INSTRUMENTS

Both Group and Charity have only financial assets and financial liabilities of a kind that qualify as basic financial instruments.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

STOCKS

Stocks are stated at the lower of cost and net realisable value.

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

CREDITORS AND PROVISIONS

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

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using an appropriate discount rate. The unwinding of the discount is recognised as a finance cost in the surplus or deficit in the period it arises.

26 ANNUAL REPORT AND ACCOUNTS 2023

ssafa.org.uk 27

FUNDS ACCOUNTING

Unrestricted funds

General funds are unrestricted funds that are available for use at the discretion of Council in furtherance of the objectives of the Charity.

Designated funds are unrestricted funds set aside at the discretion of Council for specific purposes. Details of designated funds held are given in note 17.

A pension reserve is shown separately within unrestricted funds to reflect the long-term, non-liquid nature of the pension liability.

Restricted funds

Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose and the restriction means that the related funds can only be used for the specific activities. Details of restricted funds held are given in note 17.

Except for The Royal Homes fund, no interest on cash balances is allocated to restricted funds, and no overheads or support costs are allocated except where material costs are incurred by a specific fund. Interest earned on restricted funds and most overhead and support costs if reasonably allocated are considered to be of low value. For both unrestricted and restricted funds, both the income and any investment gain or loss have been allocated to the individual funds holding the investment.

Any Gift Aid recovered on donations is treated as part of the related gift in either unrestricted or restricted funds respectively, unless the donor or the terms of the appeal have specified otherwise.

OPERATING LEASES

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risk and rewards of ownership of the leased assets to the Group. All other leases are classified as operating leases.

Rentals payable under operating leases are charged to the Consolidated Statement of Activities on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the Group recognises annual rent expense equal to amounts owed to the lessor.

FOREIGN CURRENCY

The individual financial statements of each Group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purposes of the consolidated financial statements, the results and financial position are presented in Sterling (£).

In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates to the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items that are measured in terms of the historical cost in a foreign currency are not retranslated.

Exchange differences are recognised in the Consolidated Statement of Financial Activities in the period in which they arise.

CONTRIBUTIONS TO PENSION SCHEMES

The Group operates a defined benefit pension scheme that requires contributions to be made to a separately administered fund.

Scheme assets are measured at fair values. Scheme liabilities are measured annually on an actuarial basis using the projected unit method, and are discounted at appropriate high-quality corporate bond rates of equivalent currency and term of the scheme liabilities. The net surplus or deficit is presented separately from other net assets on the balance sheet. A net surplus is recognised only to the extent that it is recoverable by the Group.

The current service cost and costs from settlements and

curtailments are charged against operating surplus. Past service costs are recognised over the period in which the benefit changes vest.

Interest on the scheme liabilities and the expected return on scheme assets are included in net interest payable.

The discount rate for the liabilities and the expected return on the assets is the same and is based on yield curve of high-quality corporate bonds.

Actuarial gains and losses are reported as recognised gains and losses in the Consolidated Statement of Financial Activities.

The Group also operates defined contribution schemes which are multi-employer schemes for which the assets and liabilities cannot be identified separately for the Group members. Pension costs charged in the Consolidated Statement of Financial Activities represent the contributions payable by the Group in the year.

TAXATION

The Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable object.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

In the application of the Group’s accounting policies, which are described above, Council are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.

CRITICAL JUDGEMENTS IN APPLYING THE GROUP’S ACCOUNTING POLICIES

NHS defined benefit pension scheme

The Group does not have sufficient information to account reliably for its share of the defined benefit obligation and plan assets and has therefore accounted for the scheme as a defined contribution scheme.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

Accrued legacy income

The Group adopts a prudent approach to accounting for legacies to which it is entitled but which have not been realised as cash. For those legacies where there is uncertainty surrounding the measurement of the assets due to a lack of estate accounts no provision is made. Where estate accounts exist but include properties which are not . All estate values are estimated net of administration fees of 5% (2022 - 5%).

Defined benefit pension

The Charity estimates the pension liabilities to the members of the defined benefit local government scheme based on assessments set to market conditions at the year end. The estimates are sensitive to the discount rates and life expectancy assumptions. A discount rate change of 0.1% would result in a change in the valuation of the liability of £1 million and a 1 year change in the life expectancy would result in a change of £4 million.

Corporation tax is chargeable on the profits generated by the subsidiary companies. These liabilities are recorded in the subsidiary company financial statements and relief against liabilities claimed on distribution of the profits to the parent charity.

Irrecoverable value-added tax is allocated to the category of expenditure to which it relates.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Restricted Total
Unrestricted
Restricted
Total
Funds Funds 2023
Funds
Funds
2022
1. DONATIONS AND LEGACIES £’000 £’000 £’000
£’000
£’000
£’000
Group
Donations 4,266 2,559 6,825
4,040
1,830
5,870
Legacies 4,119 32 4,151
5,089
201
5,290
8,385 2,591 10,976
9,129
2,031
11,160
Charity
Donations 5,324 2,559 7,883
4,665
1,607
6,272
Legacies 4,119 32 4,151
5,089
201
5,290
9,443 2,591 12,034
9,754
1,808
11,562

The Charity received donations from its subsidiary companies of £1,490,000 in respect of 2023 results (2022: £1,243,000).

Unrestricted Restricted
Total
Unrestricted
Restricted
Total
2. INCOME FROM CHARITABLE ACTIVITIES Funds Funds 2023
Funds
Funds
2022
Group £’000 £’000 £’000
£’000
£’000
£’000
Contributions from services and charities for individuals - 10,124 10,124
-
9,528
9,528
Communityhealth and social services — overseas - 413 413
-
428
428
Health and welfare contracts 6,150 -
6,150
5,991
-
5,991
Group health and welfare 6,150 413 6,563
5,991
428
6,419
Care and accommodation contributions
SteppingStone Homes 272 - 272
225
-
225
Residential homes and cottages 108 - 108
103
-
103
Royal Homes - 554 554
-
546
546
Other 97 - 97
93
-
93
Group care and accommodation contributions 477 554 1,031
421
546
967
Adoption income 465 - 465
237
-
237
Total income from charitable activities 7,092 11,091 18,183
6,649
10,502
17,151
Charity
Contributions from services and charities for individuals - 10,124 10,124
-
9,528
9,528
Community health and social services — overseas - 413 413
-
428
428
Care and accommodation contributions
SteppingStone Homes 272 -
272
225
-
225
Residential homes and cottages 108 -
108
103
-
103
Royal Homes - 554 554
-
546
546
Other 97 - 97
93
-
93
Charity care and accommodation contributions 477 554 1,031
421
546
967
Adoption income 465 -
465
237
-
237
Total income from charitable activities 942 11,091 12,033
658
10,502
11,160

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDED 31 DECEMBER 2023
Unrestricted Restricted
Total
Unrestricted		 Restricted Total
3. INCOME FROM INVESTMENTS Funds Funds 2023
Funds		 Funds 2022
Group £’000 £’000 £’000 £’000 £’000 £’000
Listed investments 1,099 99 1,198 1,047 106 1,153
Bank deposits and unquoted investments 27 -
27		 5 - 5
Rental income 807 -
807		 431 - 431
Total investment income 1,933 99 2,032 1,483 106 1,589
Charity
Listed investments 1,099 99 1,198 1,047 106 1,153
Bank deposits and unquoted investments 24 - 24 3 - 3
Rental income 807 - 807 431 - 431
Total investment income 1,930 99 2,029 1,481 106 1,587
Unrestricted Restricted
Total
Unrestricted		 Restricted Total
4. OTHER INCOME Funds Funds 2023
Funds		 Funds 2022
Group £’000 £’000 £’000 £’000 £’000 £’000
Disposal of fxed assets 619 - 619 522 - 522
Other fnance income on defnedpension surplus 213 - 213 - - -
Other income 35 - 35 49 - 49
Total other income 867 - 867 571 - 571
Charity
Disposal of fxed assets 619 - 619 522 - 522
Management charges to subsidiaryundertakings 838 - 838 838 - 838
Salarycharges recharged to subsidiary 3,838 - 3,838 3,979 - 3,979
Other fnance income on defnedpension surplus 213 - 213 - - -
Other income 35 - 35 - - -
Total other income 5,543 -
5,543		 5,339 - 5,339

30 ANNUAL REPORT AND ACCOUNTS 2023

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Activities Support
undertaken costs Total Total
5. EXPENDITURE directly (see note 6) 2023 2022
Group £’000 £’000 £’000 £’000
Raising funds
Fundraisingactivities 3,370 44 3,414 3,443
Raisingvoluntaryincome 76 800 876 844
Other tradingactivities 156 - 156 240
3,602 844 4,446 4,527
Charitable activities
Supportingclients 19,983 2,499 22,482 21,735
Provision of ‘Grant Aided’ activities 348 30 378 393
Health and welfare 4,358 818 5,176 4,816
Care and accommodation 1,881 251 2,132 2,381
Adoption services 406 102 508 562
26,976 3,700 30,676 29,887
Other expenditure 25 - 25 2
Total resources expended 30,603 4,544 35,147 34,416

Fundraising includes the cost of ‘attracting’ all voluntary income into the Charity.

Activities Support
undertaken costs Total
Total
directly (see note 6) 2023
2022
Charity £’000 £’000 £’000
£’000
Raising funds
Fundraisingactivities 3,341 44 3,385
3,439
Raisingvoluntaryincome 76 798 874
838
3,417 842 4,259
4,277
Charitable activities
Supportingclients 19,663 2,492 22,155
20,702
Provision of 'Grant Aided' activities 348 30 378
393
Health and welfare 170 818 988
894
Care and accommodation 1,881 250 2,131
2,379
Adoption services 406 102 508
562
22,468 3,692 26,160
24,930
Other expenditure -payroll costs for subsidiarycompanies 3,792 - 3,792
3,834
Total resources expended 29,677 4,534 34,211
33,041

Fundraising includes the cost of ‘attracting’ all voluntary income into the Charity.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

5. EXPENDITURE cont.

Unrestricted Restricted
Total
Unrestricted		 Restricted Total
SUPPORTING CLIENTS - WELFARE AND GRANTS PAYABLE Funds Funds 2023
Funds		 Funds 2022
Group £’000 £’000 £’000 £’000 £’000 £’000
Casework 9,588 11,506 21,094 8,942 10,694 19,636
Specialist services 582 682 1,264 310 954 1,264
MilitaryWives Choirs 124 - 124 497 338 835
10,294 12,188 22,482 9,749 11,986 21,735

All grants were paid to or on the behalf of eligible individuals.

Unrestricted Restricted
Total
Unrestricted		 Restricted Total
SUPPORTING CLIENTS - WELFARE AND GRANTS PAYABLE Funds Funds
2023
Funds		 Funds 2022
Charity £’000 £’000
£’000		 £’000 £’000 £’000
Casework 9,261 11,506
20,767		 8,744 10,694 19,438
Specialist services 582 682
1,264		 310 954 1,264
MilitaryWives Choirs 124 -
124		 - - -
9,967 12,188
22,155		 9,054 11,648 20,702
2023 2023 2023
2023
2023
2022		 2022 2022
OTHER EXPENDITURE Unrestricted Restricted Total Unrestricted Restricted Total
Group £’000 £’000
£ ‘000		 £’000 £’000 £’000
Loan interest 25 - 25 2 - 2
25 - 25 2 - 2
2023 2023 2023 2022 2022 2022
OTHER EXPENDITURE Unrestricted Restricted Total Unrestricted Restricted Total
Charity £’000 £’000 £ ‘000 £’000 £’000 £’000
Payroll costs for subsidiaries 3,767 - 3,767 3,832 - 3,832
Loan interest 25 - 25 2 - 2
3,792 - 3,792 3,834 - 3,834

The administrative charges for the provision of ‘grant-aided’ activities and the provision of health and welfare services charge include support costs and are calculated in accordance with the contract agreements.

32 ANNUAL REPORT AND ACCOUNTS 2023

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

6. SUPPORT COSTS
Management
£’000
Finance
£’000
Human
Resources
£’000
Information
Technology
£’000
Facilities
£’000
Governance
£’000
Total
2023
£’000
Total
2022
£’000
Group		 6. SUPPORT COSTS
Management
£’000
Finance
£’000
Human
Resources
£’000
Information
Technology
£’000
Facilities
£’000
Governance
£’000
Total
2023
£’000
Total
2022
£’000
Group
Raising funds
27
56
158
266
286
51
844
807
Charitable activities
Grantspayable
82
166
468
788
846
149
2,499
2,359
Care and accommodation
8
17
47
79
85
15
251
312
Adoption
3
7
19
32
35
6
102
117
120
246
692
1,165
1,252
221
3,696
3,595
Health and welfare services
818
818
Grant-aided activities
30
30
Total support costs
4,544
4,443
Management
£’000
Finance
£’000
Human
Resources
£’000
Information
Technology
£’000
Facilities
£’000
Governance
£’000
Total
2023
£’000
Total
2022
£’000
Charity		 Management
£’000
Finance
£’000
Human
Resources
£’000
Information
Technology
£’000
Facilities
£’000
Governance
£’000
Total
2023
£’000
Total
2022
£’000
Charity
Raising funds
27
54
158
266
286
51
842
801
Charitable activities
Grantspayable
82
159
468
788
846
149
2,492
2,343
Care and accommodation
8
16
47
79
85
15
250
310
Adoption services
3
7
19
32
35
6
102
117
120
236
692
1,165
1,252
221
3,686
3,571
Health and welfare services
818
818
Grant-aided activities
30
30
Total support costs
4,534
4,419

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDED 31 DECEMBER 2023
7. NET EXPENDITURE 2023 2022
This is stated after charging/(crediting): £’000 £’000
Feespayable to the Charity’s auditor
Audit of the Charity’s accounts 49 46
Audit of subsidiaries 24 30
Total audit fees 73 76
Non-audit fees: Taxation compliance services 5 5
Depreciation of tangible fxed assets 127 169
Expenditure on fxtures, fttings & equipment written of 112 201
Proft on disposal of fxed assets (619) (522)
Amountspaid under operatingleases(see below) 60 60
2023 2022
The Group’s future minimum operating lease payments are as follows: £’000 £’000
Within oneyear 74 71
In two to fveyears inclusive 60 65
2023 2022
The Charity’s future minimum operating lease payments are as follows: £’000 £’000
Within oneyear 61 46
In two to fveyears inclusive 60 52
Non MOD MOD
Total
Non MOD		 MOD Total
2023 2023
2023
2022		 2022 2022
8. EMPLOYEE AND STAFF COSTS
Staf costs during the year were as follows:		 £’000 £’000
£’000
£’000		 £’000 £’000
Wages and salaries 9,282 3,187
12,469
9,214		 2,972 12,186
Social securitycosts 866 263
1,129
900		 271 1,171
Otherpension costs 747 198
945
679		 213 892
Total staf costs 10,895 3,648
14,543
10,793		 3,456 14,249
Agencylocums and other contractors 510 232
742
433		 191 624
Total labour costs 11,405 3,880
15,285
11,226		 3,647 14,873

Redundancy costs of £162,000 (2022: £70,000) are included above. These are recognised when a constructive obligation arises. At the year end redundancy costs of £87,000 (2022 - £nil) were accrued.

2023 2022
Governance costs include: £’000 £’000
Council, AGM & Committee expenses 3 3
Annual reports 3 5
Audit 73 76
Legal andprofessional 80 74
Apportionment of employee costs 62 60
221 218

In addition, a great amount of time is donated by thousands of volunteers throughout the world. Trustees and employees are extremely grateful for this support without which the Charity would be unable to provide such a comprehensive range of services to beneficiaries. Due to the costs involved in quantifying this the Trustees do not consider it possible to reflect this in the financial statements.

Non MOD MOD
Total
Non MOD		 MOD Total
2023 2023
2023
2022		 2022 2022
The number of employees paid by the Charity whose Number Number Number Number Number Number
emoluments, excluding employer’s pension contributions,
exceeded £60,000 in the year were as follows:
£60,001 to £70,000 7 -
7		 7 - 7
£70,001 to £80,000 2 - 2 3 1 4
£80,001 to £90,000 2 1 3 2 - 2
£90,001 to £100,000 2 - 2 1 - 1
£130,001 to £140,000 - -
-		 1 - 1
£140,001 to £150,000 1 -
1		 - - -

34 ANNUAL REPORT AND ACCOUNTS 2023

ssafa.org.uk 35

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 202

8. EMPLOYEE AND STAFF COSTS Cont.

The key management personnel of the Charity comprise the Controller and the members of the Management Board. The cost of employing management personnel for the Charity was therefore £816,000 (2022: £809,000).

The average number of UK contracted staff throughout the year for the Group and the Charity, analysed by activity, was:

MOD MOD
Non-MOD Contracts*
Total
Non-MOD		 Contracts* Total
2023 2023 2023
2022		 2022 2022
Number Number Number Number Number Number
Voluntaryincome 3 - 3
3		 - 3
Raisingfunds 54 - 54 52 - 52
Grantspayable 169 - 169 160 - 160
Care and accommodation 17 - 17 21 - 21
Adoption services 7 - 7 8 - 8
Health and welfare - 104 104 - 105 105
Communityhealth andgrant-in-aid - 8 8 - 8 8
Management and support 33 - 33 36 - 36
Total staf numbers 283 112 395 280 113 393

9. TRUSTEE REMUNERATION

Lady Walmsley has a controlling interest in Ashbourne Strategic Consulting Limited, a company which received fees of £nil (2022 - £12,000) from the Charity for her role as Chair of the London Carol Concert Committee as approved by Trustees.

Other Trustees are not remunerated. They are reimbursed expenses or amounts are paid on their behalf for attending meetings and duties directly related to their duties as Trustees.

11. TRANSFER OF FUNDS Unrestricted
2023
£’000
Restricted
2023
£’000

Total
2023
£’000
Unrestricted
2022
£’000
Restricted
2022
£’000
Total
2022
£’000
Other transfers (196)
196		 -
34
(34)
-
Total transfers - charity (196)
196		 -
34
(34)
-
Military Wives Choirs -
-		 -
(8)
8
-
Total transfers -group (196)
196		 -
26
(26)
-
Freehold Long leasehold Motor IT, furniture
Total
12. TANGIBLE FIXED ASSETS properties properties vehicles & equipment £’000
Group and Charity £’000 £’000 £’000 £’000
Cost
At 1 January2023 7,736 966 20 1,175 9,897
Disposals (105) - (20) - (125)
At 31 December 2023 7,631 966 - 1,175 9,772
Depreciation
At 1 January2023 1,008 343 19 1,175 2,545
Charge foryear 111 16 - - 127
Eliminated on disposal (21) - (19) - (40)
At 31 December 2023 1,098 359 - 1,175 2,632
Net book value
At 31 December 2023 6,533 607 - - 7,140
At 31 December 2022 6,728 623 1 - 7,352

In 2023 total expenses of £8,000 (2022 £6,000) were paid for 9 Trustees (2022 - 7).

Trustee indemnity insurance is held as part of a wider policy covering staff and volunteers. The premium for Trustee insurance cannot be separately identified but is estimated at £2,500 (2022 - £2,500)

10. NET (LOSSES) /GAINS ON INVESTMENTS Unrestricted
Restricted
Total		 Unrestricted Restricted Total
Group £’000
£’000
2023		 £’000 £’000 2022
£‘000 £’000
Unrealisedgains/ (losses)on listed investments 47
15
62		 (4,364) (488) (4,852)
Fair value adjustment on investmentproperties (2,170)
-
(2,170)		 51 - 51
Net assets disposed of on disposal of subsidiarycharity -
-
-		 (42) (34) (76)
Total net(losses)/gains on investments (2,123)
15
(2,108)		 (4,355) (522) (4,877)
Unrestricted
Restricted
Total		 Unrestricted Restricted Total
Charity £’000
£’000
2023		 £’000 £’000 2022
£‘000 £’000
Unrealisedgains/(losses)on listed investments 47
15
62		 (4,364) (488) (4,852)
Fair value adjustment on investmentproperties (2,170)
-
(2,170)		 51 - 51
Total net(losses)/gains on investments (2,123)
15
(2,108)		 (4,313) (488) (4,801)

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ssafa.org.uk 37

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDED 31 DECEMBER 2023
Group
Group
Charity		 Charity
13. INVESTMENTS 2023
2022
2023		 2022
Investments comprise: £’000
£’000
£’000		 £’000
Freehold investmentproperties 7,771
9,942
7,771		 9,942
Listed investments 29,008
29,700
29,008		 29,700
Social investment 261
249
261		 249
Investments in subsidiaries -
-
10		 10
37,040
39,891
37,050		 39,901
Investmentproperties at fair value Group
Freehold
£’000
Charity
Freehold
£’000
As at 1 January 2023 9,942
9,942
Decrease in fair value inyear (2,171)
(2,171)
As at 31 December 2023 7,771
7,771

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13. INVESTMENTS Cont. 2023
Social investments £’000
At 1 January 2023 249
Investment 12
At 31 December 2023 261

Social investments are represented by the Military Wives Choirs Foundation, a Charity incorporated in England & Wales. Until 31 December 2022 SSAFA was the sole member of the Foundation, when it resigned and the Trustees of the Foundation became its members. The Military Wives Choirs Foundation runs over 70 choirs across the United Kingdom and overseas where there is a British military presence and provides welfare through singing to women in military families.

Subsidiary undertakings

The freehold investment property, a part of the freehold SSAFA Headquarters property was revalued at 31 December 2023, based on a valuation undertaken by Jones Lang Lasalle, an independent valuer with recent experience in the location and classes of the investment properties being valued. The valuation was prepared in accordance with the RICS Valuation - Professional Standards, January 2014 as published by the Royal Institution of Chartered Surveyors on the basis of Fair Value for current use. NatWest Bank plc holds a charge over the property against which the Revolving Credit Facility is secured.

As set out in note 3, property rental income earned during the year was £807,000 (2022: £431,000). The freehold investment property is leased out under operating leases and the leasehold investment property formed part of a wider contractual arrangement. Direct operating expenses arising on the freehold investment property generated rental income in the year of £ 175,000 (2022 - £91,000).

At the balance sheet date, the Charity had contracted with tenants for the following future minimum lease payments:

2023 2022
£’000 £’000
Within oneyear 392
405
In two to fveyears inclusive 1,114 849
Listed investments Total
£’000
Group:
Market value:
At 1 January2023 29,700
Acquisitions 7
Receipts from disposals of investments (761)
Realised and unrealisedprofts on revaluation 62
At 31 December 2023 – Group 29,008
Investment in subsidiary 10
At 31 December 2023 – Charity 29,018
Historical cost at 31 December 2023 23,229
2023 2022
£’000 £’000
Listed investments are represented by:
Armed Forces CharityAuthorised Investment Fund Units 28,841
29,529
United Kingdom – Equities 167 171
29,008 29,700
Investments within the portfolio which amount to more than 5% of total holdings as at 31 December 2023 were: 2023 2022
£’000 £’000
Armed Forces Charity Authorised Investment Fund 28,841
29,529

As at the balance sheet date, the Charity owned the entire ordinary share capital (where applicable) of the following subsidiary undertakings:

Name Holding Activity
SSAFA Family Health Services Limited by guarantee Health and welfare services
SSAFA Forces Help Enterprises Limited 10,000 £1 ordinary shares Sale of merchandise
SSAFA CMS Limited 100 £1 ordinary shares Casework management system

Details of the subsidiaries’ profit and loss accounts are as given below. These undertakings (excluding the charitable subsidiary) donate their taxable profits to the Charity each year.

The assets and liabilities of each subsidiary as extracted from the latest financial statements were:

SSAFA Family
SSAFA Forces Help		 SSAFA CMS SSAFA CMS
Health Services
Enterprises Limited		 Limited
2023
2022
2023
2022		 2023 2022
£’000
£’000
£’000
£’000		 £’000 £’000
Total assets 715
799
209
349		 295 111
Total liabilities (520)
(357)
(92)
(252)		 (293) (109)
195
442
117
97		 2 2
Represented by:
Share capital -
-
10
10
-
-
Reserves 195
442
107
87		 2 2
195
442
117
97		 2
2
The results for theyear were:
Income 6,207
5,991
352
606		 442 377
Expenditure (5,072)
(4,843)
(224)
(268)		 (442) (376)
Net income/(expenditure) 1,135
1,148
128
338		 - 1
Donation to charityunder Gift Aid (1,382)
(888)
(108)
(365)		 - -
Reserves brought forward 442
182
87
114		 2 1
Retained in subsidiary 195
442
107
87		 2 2

38 ANNUAL REPORT AND ACCOUNTS 2023

ssafa.org.uk 39

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

14. CURRENT INVESTMENTS

Short-term treasury deposits

----- Start of picture text -----
Short-term
treasury
deposits
2023
£’000
As at 1 January 2023 -
Additions 1,262
As at 31 December 2023 1,262
----- End of picture text -----

Group
Group
Charity		 Charity
2023
2022
2023		 2022
15. DEBTORS
£’000
£’000
£’000		 £’000
Trade debtors
685
964
389		 244
Amounts owed bysubsidiaryundertakings
-
-
304		 347
Other debtors
44
61
-		 4
Prepayments and accrued income
4,068
4,202
4,038		 4,079
Total debtors
4,797
5,227
4,731		 4,674

Amounts owed by Group undertakings are repayable on demand and no interest is payable. All amounts are due within one year.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Balance at Incoming Resources Other Transfers Balance at
17. FUNDS 1 January 2023
£’000		 resources
£’000		 expended
£’000		 movements
£’000		 £’000 31 December
2023
£’000
General funds 49,255 20,029 (21,233) (2,124) (283) 45,644
Designated funds
Carmichael Walker Fund 400 6 (9) 1 - 398
Royal Patriotic Fund 1,114 - (66) - - 1,048
Total designated funds 1,514 6 (75) 1 - 1,446
Pension reserve - 213 (213) (87) 87 -
Total unrestricted funds 50,769 20,248 (21,521) (2,210) (196) 47,090
Restricted funds
Welfare and casegrants 518 1,069 (1,102) - -
485
Housing 452 81 (78) - - 455
UK Armed Forces and other charities - 10,124 (9,994) - (130) -
UK Armed Forces ‘grant-aided’ activities - 413 (378) - (35) -
The Royal Homes 1,468 606 (932) 8 267 1,417
Miscellaneous branch funds 2,355 236 - 7 94 2,692
Adoption services 150 - (50) - - 100
Welfare funds 1,045 1,343 (1,092) - - 1,296
Total restricted funds — Charity and Group 5,988 13,872 (13,626) 15 196 6,445
Total funds - Group 56,757 34,120 (35,147) (2,195) -
53,535
General funds
SSAFA FamilyHealth Services (442) (194)
SSAFA Forces HelpEnterprises Limited (80) (110)
SSAFA CMS Limited (2) (2)
Total funds — Charity 56,233 53,229
Group
Group
Charity		 Charity
16. CREDITORS
2023
2022
2023		 2022
£’000
£’000
£’000
Amounts falling due within one year:		 £’000
Bank loans
-
500
-		 500
Trade creditors
371
723
359		 552
Other tax and social security costs
490
508
471		 506
Other creditors
481
333
268		 219
Unalmonised grants
1,289
1,464
1,289		 1,464
Accruals and deferred income
972
619
615		 557
Total creditors
3,603
4,147
3,002		 3,798

The Charity has a revolving credit facility with Natwest ending on 31 December 2025 to borrow up to £5 million, which is secured against freehold property. At the year end there were no amounts borrowed agaisnt this facility (2022 - £500,000).

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Balance at Incoming Resources Other
Transfers
Balance at
17. FUNDS (continued) 1 January
2022		 resources
£’000		 expended
£’000		 movements
£’000		 £’000
31 December
2022
£’000 £’000
General funds 54,280 20,298 (20,916) (4,298) (109)
49,255
Designated funds
Carmichael Walker Fund 452 12 (7) (57) -
400
Royal Patriotic Fund 1,150 - (36) - -
1,114
Total designated funds 1,602 12 (43) (57) -
1,514
Pension reserve - - (99) (36) 135
-
Total unrestricted funds 55,882 20,310 (21,058) (4,391) 26
50,769
Restricted funds
Welfare and casegrants 976 849 (1,302) (5) -
518
Housing 397 98 (43) - -
452
UK Armed Forces and other charities - 9,528 (9,493) - (35)
-
UK Armed Forces ‘grant-aided’ activities - 428 (394) - (34)
-
The Royal Homes 2,116 603 (978) (273) -
1,468
Miscellaneous branch funds 2,320 421 (211) (210) 35
2,355
Adoption services 100 50 - - -
150
Welfare funds 1,119 525 (599) - -
1,045
Total restricted funds — Charity 7,028 12,502 (13,020) (488) (34)
5,988
MilitaryWives Choirs Foundation 141 223 (338) (34) 8
-
Total restricted funds -group 7,169 12,725 (13,358) (522) (26)
5,988
```````
Total funds - Group 63,051 33,035 (34,416) (4,913) -
56,757
General funds
SSAFA FamilyHealth Services (182) (442)
SSAFA Forces HelpEnterprises Limited (107) (80)
SSAFA CMS Limited (1) (2)
Share ofjoint venture - -
MilitaryWives Choirs Foundation (227) -
Total funds — Charity 62,534 56,233

Funds are held for use for the following purposes:

General funds

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDED 31 DECEMBER 2023
18. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS General
2023
Designated
2023
Restricted
2023
Total
2023
Fund balances at 31 December 2023 are represented by: £’000
£’000
£’000
£’000
Tangible fxed assets 6,841
-
299
7,140
Investments 33,745
353
2,942
37,040
Net current assets 5,058
1,093
3,204
9,355
Total net assets between funds 45,644
1,446
6,445
53,535
General Designated Restricted Total
2022 2022 2022 2022
Fund balances at 31 December 2022 are represented by: £’000 £’000 £’000 £’000
Tangible fxed assets 7,050 - 302 7,352
Investments 36,479 352 3,060 39,891
Net current assets 5,726 1,162 2,626 9,514
Total net assets between funds 49,255 1,514 5,988 56,757

19. CONTINGENT ASSETS

The Charity exchanged contracts for the sale of a plot of land during the year with a contracted sale price of £2.9 million. The sale is due to complete in June 2024.

20. CONTINGENT LIABILITIES

The Charity had no contingent liabilities either at 31 December 2023 nor at 31 December 2022.

21. CAPITAL COMMITMENTS

The Group had no capital commitments either at 31 December 2023 nor at 31 December 2022.

22. BANK GUARANTEE

The Charity has guaranteed overdraft facilities for its charitable trading subsidiary, SSAFA Family Health Services, up to £1 million. As additional security, the bank holds a debenture over the assets of SSAFA Family Health Services.3

23. RETIREMENT BENEFITS

2023
2022
£’000 £’000
Local Government Pension Scheme 87
135
Aviva GroupPersonal Pension Plan 865 751
NHS Pensions Scheme 5 7
Total contributions 957 893

General funds are available for use at the discretion of Council to further the Charity’s objectives.

Designated funds

Carmichael Walker Fund — for use on charitable activities in the North East of England.

Royal Patriotic Fund — having accepted the funds and obligations of the Royal Patriotic Fund Corporation on 27 May 2011, the assets attaining have been designated for the purposes of the Royal Patriotic Fund Corporation.

Restricted Funds

Welfare and case grants - includes funding received from the Armed Forces Covenant Fund for four projects, Short Breaks, Mutual Support, Mental Health First Aid and Mentoring.

Homes from Home Appeal - to provide funding for families visiting injured servicemen and women at Norton House UK Armed Forces and other charities - contributions received from these bodies to provide grants to individuals for welfare purposes UK Armed Forces-Grant Aided - received under grant in aid to reimburse the costs incurred in the provision of Community Health and Social Services The Royal Homes - a charity providing residential facilities linked with the Charity’s activities under a Charity Commission Scheme in 1998 Miscellaneous branch funds - funds which have been received by branches for specific use in their local areas Welfare funds - income or capital received which may only be applied in the provision of welfare services to eligible individuals in need Included under this heading is The Aircrew Association Charitable Fund, a subsidiary charity.

Aviva Group Personal Pension Plan

SSAFA operates a defined contributions pension scheme for the benefit of SSAFA’s employees. The assets of the scheme are administered by Trustees in a fund independent from those of the Charity. The charge for the year represents those contributions payable to the scheme in respect of the accounting period.

SSAFA had 318 active members in the scheme as at 31 December 2023 (2022: 334) and total pension scheme contributions outstanding at the year end amounted to £81,000 (2022: £80,000).

NHS Pensions Scheme

Following the transfer of staff to SSAFA from the MOD, SSAFA currently participates in the NHS Pensions Scheme. The NHS Pension Scheme is an unfunded multi-employer defined benefit scheme. The assets of the scheme are administered by NHS Pensions in a fund which is independent of SSAFA. The charge for the year represents those contributions payable to the scheme in respect of the accounting period. Entry into this scheme is strictly limited to employees transferring to SSAFA from the NHS and at 31 December 2023, the Association had 1 (2022:1) active members in this scheme.

The pension scheme contributions outstanding at the end of the accounting period amounted to £1,000 (2022: £1,000).

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

23. RETIREMENT BENEFITS (continued)

Local Government Pension Scheme (LGPS)

SSAFA participates in a defined benefit scheme with contributions paid by the employer. The scheme is a multi-employer scheme administered by the London Pension Fund Authority (LPFA) and is only open to certain categories of SSAFA’s employees. The scheme is closed to new members.

At 31 December 2023 the Association had 13 active members (2022: 16).

The last actuarial valuation of the scheme was at 31 March 2022 using the projected unit method and the attained age method, dependent on the fund being valued. At the valuation date the market value of the LPFA assets was £7,420m in comparison to the actuarial value of benefits that had accrued to members of £5,950m. Accordingly, as at 31 March 2022, there was a surplus of £1,470m. Although the London Pension Fund Authority is a multi-employer scheme, it has been able to allocate assets and liabilities relating to SSAFA Forces Help and these are disclosed below.

The employer contributed 11.7% during the year and the employee contribution rate ranges from 5.5% to 10.5% depending on the full-time annual rate of pay.

At 31 December 2023 the valuation was updated in accordance with FRS 102 and in line with the assumptions used in the 2023 scheme valuation. The major assumptions used by the actuary were:

Assumptions as at 31 December 2023
31 December 2022
%p.a. %p.a.
RPI increases 3.2% 3.2%
CPI increases 2.8% 2.8%
Salaryincreases 3.8% 3.8%
Pension increases 2.8% 2.8%
Discount rate 4.6% 4.9%

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

23. RETIREMENT BENEFITS (continued)

Reconciliation of defned beneft obligation: 2023
£’000		 2022
£’000
Opening defned beneft obligation 71,427 123,562
Current service cost 143 311
Interest cost 3,371 2,252
Change in fnancial assumptions 2,757 (51,220)
Change in demographic assumptions (3,176) -
Experience gain on defned beneft obligation 12,871 157
Contributions by Scheme participants 50 53
Estimated benefts paid (net of transfers in) (3,931) (3,688)
Closing defned beneft obligation 83,512 71,427
Reconciliation of fair value of employer assets: 2023
£’000		 2022
£’000
Opening fair value of scheme assets 139,076 145,173
Interest on assets 6,654 2,653
Return on assets less interest 3,486 (3,227)
Administration expenses (70) (189)
Other actuarial gains/(losses) 1,127 (1,834)
Contributions by employer (including unfunded) 87 135
Contributions by scheme participants 50 53
Estimated benefts paid (net of transfers in and including unfunded) (3,931) (3,688)
Asset ceiling-restriction on recognising surplus (62,967) (67,649)
Closing fair value of employers assets 83,512 71,427

Mortality assumption

The post-retirement mortality tables are based on Club Vita analysis. These base tables are then projected using the CMI 2022 model allowing for a long-term rate of improvement of 1.25% per annum.

The actual loss on plan assets over the year ended 31 December 2023 was £10,140,000 (2022: £574,000 gain).

Assumptions: members will exchange half of their commutable pension for cash at retirement and active members will retire at one retirement age for all tranches of benefit, which will be the pension-weighted average tranche retirement age. No members will take up the option under the new LGPS to pay 50% of contributions for 50% of benefits.

Assets

The estimated asset allocation as at 31 December 2023 is as follows:

31 December 2023 31 December 2022
%p.a. %p.a.
Equities 59% 56%
Target Return Portfolio 17% 19%
Infrastructure 12% 13%
Property 10% 10%
Cash 2% 2%
Total 100% 100%

None of the fair values of the assets shown above include any of the Group’s own financial instruments or any property occupied by, or other assets used by the Group.

Statement of fnancialposition as at 31 December 2023 2023
£’000		 2022
£’000
Fair value of scheme assets(bid value) 146,479
139,076
Present value of funded obligations (83,512) (71,427)
Asset ceiling- restriction on recognisingsurplus (62,967) (67,649)
Netpension liability - -

At the year end the actuarial valuation was a surplus of £62,967,000. The Trustees consider the Charity has no right to any future economic benefits from the scheme despite the asset position and have not recognised an asset in the financial statements.

2023 2022
Fair value of the plan assets at the reporting period end £’000 £’000
Equities 86,946 77,704
Gilts 25,371 26,949
Other bonds 17,222 17,533
Property 14,207 13,501
Cash 2,733 3,389
146,479 139,076
Defned beneft costs recognised in the Statement of Financial Activities 2023
£’000		 2022
£’000
Interest on liabilities 3,371 2,252
Interest on assets (3,584) (2,653)
Service cost 143 311
Administration expenses 70 189
Defned beneft costs recognised in the Statement of Financial Activities - 99

The net interest on the net defined benefit asset comprises interest cost on the defined benefit obligation and interest income on plan assets excluding the effect of any surplus that is not recoverable in accordance with paragraph 28.22 of FRS 102. Therefore the net interest is restricted to £213,000

to £213,000
2023 2022
Comprehensive Income movement £’000 £’000
Return of fund assets in excess of interest (3,486) 3,227
Other actuarial gains on assets
Change in fnancial assumptions		 (1,127)
2,757		 1,834
(51,220)
Change in demographic assumptions (3,176) -
Experience gain on defned beneft obligation 12,871 157
Asset cap (7,752) 46,038
Net loss 87 36

44 ANNUAL REPORT AND ACCOUNTS 2023

ssafa.org.uk 45

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

23. RETIREMENT BENEFITS (continued)

25. RELATED PARTY TRANSACTIONS

Reconciliation of opening and closing defcit: 2023
£’000
2022
£’000
Surplus/(defcit) at beginning of the year 67,649
21,611
Current service cost (143)
(311)
Past service cost -
-
Employer contributions 87
135
Other fnance Income 3,283
401
Actuarial gains/(losses) (7,839)
46,002
Asset ceiling-restriction on recognising surplus (62,967)
(67,649)
Administrative expenses (70)
(189)
Defcit at end of the year -
-

The Charity had the following transactions with its wholly owned subsidiaries

The Charity had the following transactions with its wholly owned subsidiaries
2023 2022
£’000 £’000
Management fees charged to SSAFA Forces Help Enterprises Limited 20 20
Donation received from SSAFA Forces Help Enterprises Limited under Gift Aid 108 365
Amount due from SSAFA Forces Help Enterprises Limited 6 129
Salary and management charges to SSAFA Family Health Services 4,675 4,797
Donation received from SSAFA Family Health Services under Gift Aid 1,382 888
Amount due from SSAFA Family Health Services 297 219
Salary costs recharged to SSAFA CMS Limited 187 193
Amounts charged from SSAFA CMS Limited 113 103

Sensitivity Analysis

Sensitivity Analysis
The following table sets out the impact of a small change in the discount rate £’000s £’000s £’000s £’000s £’000s
or mortality assumptions:
Adjustment to discount rate 0.5% 0.1% 0% -0.1% -0.5%
Present value of total obligation 78,375 82,442 83,512 84,606 89,223
Projected service cost 131 144 147 151 166
Adjustment to long term salary increase 0.5% 0.1% 0% -0.1% -0.5%
Present value of total obligation 83,542 83,518 83,512 83,506 83,483
Projected service cost 148 147 147 147 147
Adjustment to pension increases and 0.5% 0.1% 0% -0.1% -0.5%
deferred revaluation
Present value of total obligation 89,269 84,618 83,512 82,427 78,295
Projected service cost 166 151 147 144 130
Adjustment to life expectancy assumptions +1 Year None -1 Year
Present value of total obligation 87,341 83,512 79,865
Projected service cost 153 147 142

Guarantor:

The Charity is the Guarantor of a £1 million overdraft facility provided to SSAFA Family Health Services by Royal Bank of Scotland.

26. POST BALANCE SHEET EVENTS

During the year the Charity triggered its exit from the defined benefit pension scheme with the Local Government Pension Scheme. The Charity formally exited on 31 March 2024.

24. FINANCIAL ASSETS AND LIABILITIES

Group 2023
£’000
2022
£’000
Financial assets 37,886
39,134
Financial liabilities 3,113
3,639
Charity 2023
£’000
2022
£’000
Financial assets 37,011
38,406
Financial liabilities 2,531
3,292

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ssafa.org.uk 47

SSAFA, the Armed Forces charity is a trusted source of support for serving personnel, veterans and their families in their time of need. Our teams of trained volunteers and employees provide practical, emotional and financial assistance to the Armed Forces community enabling them to thrive.

SSAFA understands that behind every uniform is a person. And we are here for that person and their family, any time they need us and in any way they need us.

NEED TO TALK?

SSAFA’s Forcesline is a free and confidential helpline providing advice and information for serving personnel, reserves, veterans and their families, and is completely independent of the chain of command.

Call 0800 260 6767 Lines open 09.00 to 17.30 weekdays

Visit ssafa.org.uk/forcesline

To make a donation to support our Armed Forces family:

Visit ssafa.org.uk/give

SSAFA Queen Elizabeth House, 4 St Dunstan’s Hill, London EC3R 8AD Phone: 020 7463 9200 Web: ssafa.org.uk | X: @SSAFA Facebook: SSAFA | Instagram: ssafa_armedforcescharity Registered as a charity in England and Wales Number 210760 in Scotland Number SC038056 and in Republic of Ireland Number 20232001. Established 1885.