Registered Number: 210829 NUFFIELD TRUST FOR THE FORCES OF THE CROWN FINANCIAL STATEMENTS 31 DECEMBER 2024 NUFFIELD TRUST FOR THE FORCES OF THE CROWN FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 CONTENTS Page Report of the Trustees Statement of Trustees, Responsibilities Independent Auditors, Report 8-11 Slatement of Financial Activities 12 Balance Sheet 13 Slalement of Cash Flows 14 Notes lo the Financial Statements 15-24 NUFFIELD TRUST FOR THE FORCES OF THE CROWN REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 REFERENCE AND ADMINISTRATIVE INFORMATION Trustees The Rt Hon Lord Arbuthnot of Edrom Vice Admiral Sir David Steel KBE DL Air Marshal Sir Baz North KCB 08E The Rl Hon Lord Geidl of Crobeg GCB GCVO OBE QSO John Chatfeild-Roberts Lieulenanl General Sir Tyrone Urch KBE General Secretaryloffice of the Charity Commander S E J David MBE RN (Rtdl Magdala Mill Lane Titchfield Hampshire P015 5RD Bankers Barclays Bank, Chellenham Branch. Cheltenham and North Cotswold Group, 128 High Street. Cheltenham, Gloucestershire GL50 1EL. Auditors Messrs Pitt Godden & Taylor LLP, Unit 3 Ambrose House, Meteor Court, 82rnett Way, Barnwood, Gloucester, GL4 3GG Sollcitorg Messrs Herbert Mallam Gowers, Solicitors of Oxford, 126 High Street, OX14DG. Investment Managers Bla¢kRock Inveslmenl Managemenl (UK) Ltd, 12 Throgmorton Avenue, London EC2N 2DL Jupiter Unil Trust Managers Ltd, The Zig Zag Building, 70 Wicloria Street, London, SW1 E 6SQ Evenlode Investment Management Ltd. IFSL, Marlborough House, 59 Chorley New Road, Bolton BL14QP. NUFFIELD TRUST FOR THE FORCES OF THE CROWN REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 TRUSTEE REPORT AND FINANCIAL STATEMENTS The Truslee Report and Financial Slalements for the year 151 January 2024 10 31st December 2024 have been prepared in accordance with the guidelines published by the Charity Commission. These guidelines are contained in the Slaletnenl of Recommended Practice.. Accounting and Reporting by Charities preparing Iheir accounts in accordance with the Financial Reporting Standard applicable in the UK ané Republic of Ireland (FRS 1021, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1Q21 and the Charities Act 2011. OBJECTIVES AND ACTtVlTIES FOR THE PUBLIC BENEFIT The objective of the Trust is to promote the welfare and efficiency of the Forces of the Crown either by the provision of facilities for recreation or by any other means The Trustees confirm that they comply with Ihe duly in the Charitses Act 2011 to have regard to Ihe Charily Commission's general guidance on public benefit when carrying out the Trusl's objective and aims and in grant making policy and awards. The Trust's primary aim is lo provide recreational and welfare amenities and facilities that are likely lo be of lasting benefit to the Armed Forces bul which are not provided by public funds and which are beyond the resources of other non-publiG funds The Trust further aims lo support units on operations and to benefit the maximum number of ServiGe personnel whilst being mirKJful of the needs of Smaller, less well-found sports asso¢ialions and isolated units. The Trust does not fundraise and, therefore, the Trustees aim for piudent stewardship of the Trusl's assets lo achieve Lord Nuffield's express wsh that the Trust be maintained for such lime as there is need. The Tiuslees judge that continuing restrictions on and shortfalls in the public funding of recreational facilities for the Am)ed Services mean that there will be 8 continuing, long-term need to meet. GRANT MAKING POLICY Under a Memorandum of Understanding be￿een the Trust and the three ￿Med SeNices, grant applicalions for non-public (charitable) funding are scrutinised by the ￿Med Service%, who make the decision on which might be suitable for funding from the Services, own charitable funds or by the Trusl for the public benefit of promoling the welfare and efficiency ofthe FOr￿S of the Crown. At their November meeting the Trustees make a funding allocation to the Armed Services for the forthcoming year. That allocation is then sutkdivided and paid to the Royal Navy, Army and Royal Air Force on a proportional basis relative to the Regular and Operational Reserve personnel numbers in each Service. Each of Ihe Services then applies for Major Grants1£15,001 to £50,000) from within their allocation. These applications are considered at the March Trustee meeling where the Trustees are joined by the serving Piincipal Personnel Officers of the Royal Navy. Army and Royal Air Force who are best qualified to advise on the relalive priority of the various applicalions received. Approved Major Grants are paid by the individual Services from within their allocation. The balance of each Service's allocation is available for Minor Grants {up to £15,000 or £30,000 for mini-buses) which oan be approved and paid by the individual Services from their allocations subject to the grant criteria agreed between the Trust and the Armed Services. NUFFIELD TRUST FOR THE FORCES OF THE CROWN REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 GRANT MAKING POLICY (Continuedl Over and above the annual allocalions to the Armed Services, the Trustees are also willing to c￿nsIder Capital Grants (over £50,QOQI for projects from any Service. subject only to the project's suitability and the availability of funds. The Trust also makes speoial granls as circumstances require and gives Operational Welfare Grants wilh the object of providing a quick and flexible response to meet the particular needs of those serving in the Regular or Reserve forces deployed in an emergency lo areas of conflict or disaster. Additionally, the Trust makes an allocation to The Ulysses Trust which then considers and approves grants foi Reservists or Reserve formations undertaking acjventurous activity. Grants made and the annual allocations are one-off donations lo the applicants. all of which are charities in their own right. ACHIEVEMENTS AND PERFORMANCE The Charills Trustees have had due regard lo the Charity Commission's guidance on public benefil. In 2023 the Trustees allocated £1,679,976 for grants to be paid out in 202412023.. £2,126,150) and £71.424 for administration {2023'. £73,184). Since 1939, grants paid out by the Trust for the direct benefit of those seNing in the Armed Forces total some £74 million which would be valued al some £342 million at present day value. Two Special Grants (lo the Boleh Trust, Operation Christmas Box), one Capilal Grant, and 165 Major and Minor Grants were awarded from the Trust's allocations to the Services, and 55 Reservist grants were made by the UIy5ses Trust. For information, a full list of grants made by the Trust or from delegated allocations is appended to Ihis report. Grants were made to HM Ships and Naval E5tablishments- Royal Marine Units; Army Garri50ns and Units and RAF Stations an¢J Establishments {including Reserve Unilsl worldwide and to individual Sports Associations, SeNice Sports Clubs or teams from all three Services. All grants made were institutional and made to recipient formations with charitable stalus. The total number of unilslassociations supported in 20241220) was an increase from 2Q231196) reflecting Ihe increasing demand for Trust support within the Armed Forces. The Trust has achieved ils objective and m&asures its aims fLtrther by feedback from recipient units, their Commanding Officers and higher levels of the chain of command, including from the three servi￿ Prinejpal Personnel Officers. NUFFIELD TRUST FOR THE FORCES OF THE CROWN REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 FINANCIAL REVIEW The Tnjsl receives its funding solely from its investrnent portfolio and bank interest. The Ttust monitors monthly reports from the Investment Managers and the Trustees meet fomally with the Fund Managers twice a year to review the pertormance of Ihe Trusl Funds and to ensure that investments held have been acquired in accordance wth the powers of the Tru51ees and any directions they have given. Investment policy is reviewed annually by the Trustees. In mid 2023 the Trustees appointed two new Fund Managers. splitting the portfolio evenly between the Iwo. The new Fund Managers are Evenlode Investment Management Ltd and Jupiter Asset Management Ltd. BlackRock. the previous Fund Managers, rctain a small investment portfolio for the Trust in their Property Management Fund Icirca £2.2MI. This could not be closed immeijiately due to financial regulatory reasons. It is anticipated this fund will not be closed before end_2025. The Trustees aulhorised the Fund Managers to hold any investment defined under the Financial SeNices Act 1986, subject only to the proviso that such investment and ils degree was permrtted by regulations or operational guidance given by the Charily Commission, within a prudent, widely diversified portfolio The Trust does not sel environmental, social or governance IESGI policies for its portlolio, bul adopts the overarching ESG poli¢ies set by its Investment Fund Managers The performance of the Trust's portfolio is evaluated against a bespoke composite index. In a period ol major global stock markel volatility across 2024 due to the continuing economic impact of volatile interest rates and inflation, US Elections and Gontinuing confiicts in easlein Europe and the Middle East, the porttol¢o's investments reluined as follows.. Individually. BlackRock Property Fund saw a return of 4.46%, Jupiter saw a negative return of -10/0 against the benchmark of 17.50A. Evenlode saw a return of 1.8% against the benGhmark of 19.1 %. The Twstees also benchmark the Trust's &year rolling average capital value against its 1998 capital value adjusted for CPI IRPI before 2018) and capital grant expenditure. On that basis, the Trust's average capital value was £1.86 million above the benchmark (2023.. £3.48 million). At 31 De￿mber 2024 the Trust's inveslments were valued at £46,029,015 {BlackRock £2111,714; Juprter £22.329,923-, Evenlode £21,587,378)12023= £47,274,808) arter the wrthdrawal of £670,000 for grants and administration. On a dividends receivable basis, as required by the SOFA, the Trust's income for the year was £1,076,20812023.' £1,121,177). This income comprised investment and propety income. The lolal investmenl management fees for 2024 were £265.48512023: £197,883) prior to the rebate. RESERVES In May 1997 the Charity Commission confirmed that both the capital and in¢ome of the fund could be expended on furthering the objects of the Charily. Given the slruGlured nature of the Trust's grant-making procedures ar¢d the ability of the Trust to apply both capital and income to meet need, the Trustees do not designate specific reserye funds. The total amount of reserves held at 31 December 2024 was £45.118.673 (2023: £46,468,982) as there is no restriction in pla￿. The amount of free cash resetves were £985,894 (2023.. £880,559). NUFFIELD TRUST FOR THE FORCES OF THE CROWN REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 RISK MANAGEMENT The Trustees at their meeting on 15th November 2024 reviewed Ihe major risks to which the Gharity was exposed and were satisfied that procedures had been established lo manage these risks. The major risk arising from the performance of the investment portfolio and manager has been mitigated by using hedging policies and diversification of asset classes. The Trust receives monthly reports from the inveslmenl manager and a regular review of investment policies and perfonmance is undertaken. This is underwritten by a written management agrèement. The Trust retains expert investment managers and the Trust's money is held separately from the Fund Manager's own, PLANS FOR FUTURE PERIODS As previously stated, the Trustees see a long-lerm need lo continue grant-making activity in support of the moraSe of the Armed Servicks in furtheran¢e of the late Lord Nuffield's endowment and express wishes. The Trustees seek the advice of the Principal Personnel Officers and the Central Funds of the Armed Services on the nature and extent of future grant requirements. For 2025 the Trustees approved grants of £1,890.407, which included the annual allocations lo the Services and Resetves of £1,087,790 as well as £802,617 for Capital and special projects. £72,220 was allocated for administrative costs (less than 4% of lotal expenditure). STRUCTURE, GOVERNANCE AND MANAGEMENT The Trust is an unincorporated trust founded by the late Lord Nuffield in 1939 and originally operated under Ihe terms of a Trust Deed made on the 14th october 1939. This was superseded by a Charity Commissioners, Scheme that was sealed on 13th February 1997. The Trust Deed provides lor 6 Trustees, 3 Of whom should be officers or former officers of the Regular Armed Forces and 3 of whom should be persons who have a special knowledge of commerce, industry or rinance. This structure reflects the original wishes of the Trust's founder. Trustees are appointed by the Board of Trustees and normally may serve until the age of 70 but, exceptionally. may serve beyond that age by Special Resolution of the 8oard of Trustees. There are no sub-committees of the Board. From 19th March 2013, by Special Resolution of the Board, Trustees appointed in the Category of officers or former officers of the Regular Armed Force5 may setve only for a maximum of 10 years. No new Trustees were appointed In 2024. New Trustees receive an induction pack which outlines the history, structure, objects and prO￿d￿reS of the Charity. In addition, new Trustees receive copies of the previous yearfs Minutes of Meelings and Trustee Report and Financial Slalemenls plus Charily Commisslon publications relevar)I to their duties with Ihe Trust and their prior experien￿ of Trustee duties. Trustees receive no remuneration and Trustee travel expenses are reported in the Notes to the Accounts. Potential conflicts of inlerest are declared at each Trustee meeting and where Trustees have an interest in or association with potential grant recipients Ihey lake no part in the grant decision. NUFFIELD TRUST FOR THE FORCES OF THE CROWN REPORT OF THE TRUSTEES {Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT - (contlnued) The Trustee Board meets twice per year and all matters relatsng to the Trust's activities are decided by the Board, other than the following delegalions.. The day-to-day administralion of the Trust. the processing of grant applications and the administration of grants is delegated lo the General Secretary within a budget sel and monitored by the Board. The processing and approval ol Minor Grants and the payment of Major Grants approved by the Board are delegated to the Aimed Services (see Grant-making Policy). The General Secretary is the Trust's sole employee and the Trust is administered from the General Secretatys home. The General Secretary is employed under a contract benchmarked against the REWARD SuNey of Charitable Salanes and comparator military salaries and benefits. Triennial reviews are carried out with the remuneration benchmarked against charilable salary suNeys and comparator military salaries and benefits. The current General Secretary decided not lo lake a Defined Contribution Pension, but instead receives 12% Increase in salary in lieu. As part of ils Granl-making activity, the Trust cooperates with Armed Services, unit charities, the major Central Charitable Funds of the 3 Armed Services and olher ￿rned Services-relaled charities. NUFFIELD TRUST FOR THE FORCES OF THE CROWN STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees are responsible for preparing Ihe Report of Ihe TrLAslees and Ihe financial stalemenls in accordance with applicable law and United Kingdom Accounting Standard5 (United Kingdorn Generally AC￿pted Accounting Practice}. The law applicable to ¢harilies in England and Wales requires the Trustees to prepare financial statements for èach financial year which give a true and fair view of the slate of affairs of the Charity and cf ils incoming resour¢es and application of resources for that period. In preparing these financial statements, the Trustees are required to: select suitable a¢counting policies and then apply them consistently; observe the methods and principles in the applicable Charities SORP, make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards and statements of recommended practice have been followed subject to any material departures disclosed and explained in the financial ststemenls; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Chanly will continue in business. The Truslees are responsible for keeping accounting records which disclose with reasonable accuracy al any time the financial position of the Charily and enable them lo ensure that the financial statements comply ￿1th the Charilies Act 2011, the applicable Charities (Accounts and Reports) Regulalions. and the provisions of the trust deed. They are also responsible for safeguardin9 the assets of the Charity and hence for taking reasonable sleps for the prevention and detection of fraud and other irregularities. Approved by the Trustees on Sl I.KArLk 2oLS and signed on their behalf by.. The Rl Hon Lord Arbuthnot of Edrom INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE NUFFIELD TRUST FOR THE FORCES OF THE CROWN FOR THE YEAR ENDED 31 DECEMBER 2024 Oplnion We have audited the financial statements of The Nuffield Trust for the Forces of the Crown for the year ended 31 December 2024 which comprise the Statement ol Financial Activities. the Balance Sheet and the related notes. The financial reporling framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reportsng Standard 102 Tre Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Gener211y Accepted Accounting Practice>, In our opinion, the financial stalemenls.. Give a Irue and fair view of the slate of Ihe chariws affairs as at 31 December 2024, and of its incoming resources and application of resources. for the year then ended., have been properly prepared in accordance wrth United Kingdom Generally Accepted Accounting Practs'ce., and have been prepared in accordance with the requirements of the Charities Act 2011. Basis of oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) IISAS IUK}i and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for Ihe audit of the accounts section of our report. We are independent of Ihe chanty in accordance wilh Ihe ethical requirements that are relevant to our audit of Ihe accounts in the UK, including the FRC'S Ethical standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe thal the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Twstee's use of the going Concern basis of ac¢ounling in the preparation of the financial statements is appropriate. 8ased on the work we have performed, we have not identified any matenal uncertainties relating to events or conditions that. individually or collectively, may cast significant doubt on Ihe charity's ability lo continue as a going concern for a period of at least hvelve months from when the financial statement5 are authorised for issue. Our responsibilities and the responsibilities of the Trustees wth respect lo going concern are described in the relevant sections of this report. other infomiation 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 Dther infonnalion. Our opinion on Ihe accounts does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. In doing so, consider whether the other information is rnalerially inconsistent with the financial gtatements or our knowledge obtained in the course of the audit, or otherwise appears to be malerially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work wè have perfomed, we Gonclude that there is a material misstalemenl of this other infomiation. we are requifed tD report that fact. We have nothing to report in this regard. INDEPENDENT AUDITORS. REPORT (Continued) TO THE TRUSTEES OF THE NUFFIELD TRUST FOR THE FORCES OF THE CROWN FOR THE YEAR ENDED 31 DECEMBER 2024 Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulalions 2008 requires us to report to you if. in our opinion: the inforrnation given in the finan¢ial statements is inconsistent in any material respect w7th the Trustees, Report: or sufficienl accounting records have not been kept. or the financial stalemenls are not in agreement with the accounting records and returns., or we have nol received all the information and explanation5 we require for our audit. Responsibilitie5 of the Trustees As explained more fully in the Slalemenl of Trustees, Responsibilities set out on page 7, the Trustees are responsible for the preparation of financial statements and for being satisfied Ihal they give a true and fair vlew, and lor such internal control as the Trustee's determine is necessary lo enable the preparallon of financlal statements that are free from material misstatemenl, whether due to fraud or error. In preparing the financial slalemenls, the Trustees are responsible for assessing the Charitls ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Trustees either intend to cease operalion8, or have no realislic allernative but to do so. Auditors, responsibilities for the audit of the financial statements We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effecl thereundei. Our objectives are to obtain reasonable assurance about whether the financsal slalements as a vthole are free from material misslalemenl, whether due lo 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 ac¢ordan¢e with ISAS {UKI will always delect a material misslatemenl when it exists. Misslalemenls Can arise from fraud or error and are ¢onsidered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities including fraud, are inslances of non-compliance with laws and regulations. We design procedures in line wilh our responsibilities, outlined above, to detect material misstatements in respect ol irregularities, including fraud. The exlent to our procedures are capable of detecting l￿egUlarl11es, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud. and non-compliance with laws and regulations. was as follows= Wè Identified the laws and regulations relevant to the charty from discussions with Ihe secretary and from our knowlèdge of granl-making charities in similar sectors_ The laws that we consider may have a direct material effect on the financial slalements or the operation of the charity include the Charities Act 2011, employment. & data protection. INDEPENDENT AUDITORS. REPORT