# **THE SALVATION ARMY UNITED KINGDOM AND IRELAND TERRITORY** 

# **THE SALVATION ARMY TRUST REPORT AND FINANCIAL STATEMENTS FOR THE UNITED KINGDOM IN THE YEAR ENDED 31 MARCH 2022** 

**CHARITY REGISTRATION NO: 214779 SCOTTISH CHARITY REGISTRATION NO: SC009359** 

## Principal Office 

Territorial Headquarters, 101 Newington Causeway, London SE1 6BN www.salvationarmy.org.uk 

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**CONTENTS** 

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|---|---|
|**NTENTS**|**Page**|
|Introduction from the Territorial Commander|3|
|Our Vision, Mission and Values|4|
|Objects of The Salvation Army Trust|6|
|Explaining our Strategy, Structure and Operation|7|
|Realigning Resource to Enable a ‘Flourishing’ and Effective Salvation Army|9|
|Illustrating the Work and Achievements of The Salvation Army Trust 2021/2022|14|
|Homelessness: Thinking Outside the Box|14|
|Just the Job for Unemployed People|17|
|Faith in Children and Young People|19|
|Care and Support for People in Need|21|
|A Rich Fulfilling Life for Older People|23|
|Real Opportunities for Disabled People|24|
|Ready in a Crisis|26|
|Pulling Together to Generate Income|27|
|A World of Good|35|
|Looking Forward as a Movement|37|
|Modern Slavery and Anti-Human Trafficking Statement|38|
|Our Approach to Fundraising|39|
|Reviewing Finances|45|
|Reserves Policy|48|
|Investing for the Future|48|
|Structure, Governance and Management|52|
|Risk Management|53|
|Subsidiary and Associated Companies|55|
|Recruitment and Appointment of Directors (Trustees)|56|
|Directors|58|
|Advisers|59|
|Independent Auditor’s Report|60|
|Financial Statements|63|



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## **INTRODUCTION FROM THE TERRITORIAL COMMANDER Commissioner Anthony Cotterill** 

The Salvation Army’s purpose can be summed up in four words: ‘Love God, Love Others’. These words come from the teaching of Jesus who, when asked ‘What is the greatest commandment?’ replied: ‘“Love the Lord your God with all your heart and with all your soul and with all your mind.” This is the first and greatest commandment. And the second is like it: “Love your neighbour as yourself.”’ (Matthew 22:37-39 _New International Version)._ 

As you read this report, I hope you will be inspired, as I am, with the countless examples of people who love God and love others. The people who are The Salvation Army – our church members and officers, our incredible employees, our generous volunteers, and the people who seek our help and then begin to feel part of the family – are energised by loving and serving others. Not everyone is a Christian, but Salvation Army people are united in finding joy and fulfilment in serving others – putting the needs of other people ahead of their own interests. 

The world increasingly needs The Salvation Army. The past few pandemic years have placed additional pressures on people and communities. Many are facing cost-of-living pressures, many are struggling with mental health, many are tired from constant uncertainty, many are unexpectedly finding themselves needing help from The Salvation Army. We could not do what we do without the generous backing of our financial supporters. A large amount of our funding comes from individual donors – people who trust us to do good with their money. Thank you for your generosity and confidence in us. We are determined to live up to the confidence you have entrusted to us. 

The year under review has been demanding and fulfilling. Our 625 corps (churches) are embedded into communities across the length and breadth of the United Kingdom. The community work of members and officers is an outpouring of their love for God. After the disruption of the pandemic, it is good to see people returning to worship in person – this gives us the energy and passion to love others. 

The pages of this Annual Report are full of examples of people and communities experiencing more of the fullness of life that God wants everyone and every place to enjoy. Although the next few years threaten economic uncertainty, The Salvation Army is hopeful and ready to step out in confidence as we ‘love God, love others’. 

Thank you for your help and support. May God bless you. 


**Commissioner Anthony Cotterill Territorial Commander of The Salvation Army in the United Kingdom and Ireland** 

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## **OUR VISION, MISSION AND VALUES** 

Our Vision and Mission Statements inspire and guide all the work we do as a church and as a charity. We refreshed our statements in 2021 to reaffirm our sense of purpose and direction for The Salvation Army in the United Kingdom, Ireland, the Channel Islands and the Isle of Man. The refreshed statements have been adopted across the territory, and their simplicity and boldness mean that all areas of the diverse work of The Salvation Army can be both anchored and inspired by them. 

## **Vision Statement:** 


This is ‘Our Vision’ for every part of The Salvation Army. It is inspired by the words of Jesus who said: ‘I have come that they may have life, and have it to the full’ (John 10:10 _NIV_ ). ‘Fullness of life for all with Jesus’ includes every aspect of Salvation Army life. We believe everyone can enjoy fullness of life with Jesus. It is aspirational – we are not there yet, but this is what we strive towards. 

## **Mission Statement:** 


The Mission Statement is built on five principles – or _**priorities**_ as we see them – which should act as the drivers for all we do, how we do it and why we do it, across the entire organisation. These short phrases communicate immense challenge, ambition and direction. When these priorities are present, The Salvation Army is working towards ‘Our Vision’ of ‘Fullness of life for all with Jesus’. Each of the five priorities of ‘Our Mission’ are rich in meaning and help us explain to 21st-century society why the Christian message and the work of The Salvation Army is relevant and desperately needed in our communities and nations. 

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## **OUR VALUES** 

Our values have been refreshed and refocused on the behaviours that should result from living out the values. Our values are for everyone involved in The Salvation Army and must be reflected in our behaviour and result in good relationships and increased wellbeing, and help us integrate what we do with how we do it. The basic standard of Christian behaviour, derived from our understanding of the character and action of God, is love; so we need continually to be drawn back to understand how God is asking us to live and work together to help us be faithful to our calling to be God’s people. 

**Boldness** – We will courageously and confidently share the good news, seek justice and reconciliation, nurture disciples of Jesus, serve others without discrimination, and care for creation. 

**Compassion** – We will serve with the unconditional love and grace of God as the pattern for our behaviour. 

**Passion** – We will bring our best selves, our God-given energies and convictions, to our work, service and learning, whether as officers, members, employees or volunteers. 

**Respect** – We will receive each person with the dignity of those created in the image of God, while seeking the transformation God. 

**Integrity** – We will be honest and transparent in all our dealings with each other and those we serve, being open about our motives and agendas. 

**Mutual accountability** – We will willingly and freely give full account for our actions to those we interact with and expect the same in return. 

## **Statement of commitment:** 

We have one simple statement to explain why we are here which frames all we are and all we do as a church and charity. Four words achieve this: 

## **‘Love God, Love Others’** 

This is based on Jesus’ greatest commandment in Matthew 22:37–39 to ‘Love the Lord your God’ and to ‘love your neighbour as yourself’. ‘Love God, Love Others’ underpins, inspires and motivates everything we do, in every part of The Salvation Army. 

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## **OBJECTS OF THE SALVATION ARMY TRUST** 

The Salvation Army’s principal objectives are the advancement of the Christian religion and pursuant thereto the advancement of education, the relief of poverty and other charitable objects beneficial to society or the community of mankind as a whole. 

The following groups benefit from the work of The Salvation Army Trust: 

- those who worship or participate in other activities at Salvation Army corps (churches) and community centres 

- vulnerable and disadvantaged members of society, including people experiencing homelessness, older and/or lonely people, children, young people and families, people dealing with issues of substance abuse 

- the wider community of society as a whole 

The Salvation Army takes a holistic approach, engaging with people’s physical, emotional and spiritual needs, offering its services without discrimination. 

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## **EXPLAINING OUR STRATEGY, STRUCTURE AND OPERATION** 

This is essential reading for anyone who wants to understand how The Salvation Army works and why we are so diverse. 

## **Our two principal charitable registrations:** 

The Salvation Army operates through two principal charitable trusts: The Salvation Army Trust and The Salvation Army Social Work Trust. This report and accounts outlines the work of **The Salvation Army Trust (Charity Registration number 214779)** , which is the charity registration through which we manage our programmes of engagement and support that are delivered through our local corps (churches) and our community centres. 

However, the work of The Salvation Army Trust does not represent the entirety of The Salvation Army’s work in the UK. Alongside the locally driven, locally responsive corps (church)-based operations which are reported here in this Report and Accounts, The Salvation Army operates centrally co-ordinated and centrally managed ‘social services’. Whilst this is still the ‘work’ of The Salvation Army, the finances of these operations are managed and reported on through a separate charity registration, **The Salvation Army Social Work Trust (Charity Registration number 215174)** which has its own Report and Accounts **.** The Salvation Army Social Work Trust accounts for residential programmes for homeless people, care homes for older people, residential detox centres, family centres, refuges for victims of domestic violence, safe houses and services for the victims and survivors of modern slavery and human trafficking and our Employment Plus services. These services are managed in a top-down model due to the vulnerability of the people needing help and because of statutory regulations and contract requirements. 

## **Summary of the purpose of The Salvation Army Trust** 

The Salvation Army Trust is the charity registration through which our corps (church)based community programmes and our congregational life are managed and accounted for. Because each community is different, our community work and expression will be different in each location. This is explained further later on. 

Inspired by our vision and mission statements: 

- We offer and are energised by Christian worship, teach Christian principles and encourage Christians to live out their faith in every aspect of life. We promote the Christian good news through various media including literature, music, digital media and personal evangelism. 

- We provide community programmes through corps (local churches) and in communities that are relevant to local needs, to assist people of all ages to enhance their quality of life, self-respect, personal development and relationships with others. We work alongside local communities to ensure that we are partnering with them and other agencies to meet local need. We do that through formal and informal activities. 

- We seek to influence policymakers, providing information on social issues affecting people on the margins of society. We seek to amplify these voices and help society be fairer, more caring and just. 

- 

- We train and equip current and future Salvation Army officers, staff and volunteers. 

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- We financially support **The Salvation Army Social Work Trust** in the full range of services it provides. 

- We support the international mission work of The Salvation Army, including development work and providing relief to those affected by disasters overseas. 

- We review and adjust our strategies and programmes to respond to changing needs. 

• We strive to achieve our vision of ‘fullness of life for all with Jesus’ in everything we do through five mission priorities: share the good news; serve others without discrimination; nurture disciples of Jesus; care for creation; seek justice and reconciliation. Operationally, we are prioritising transformation, integration and streamlining to increase our effectiveness and impact. 

## **The scale of the work of The Salvation Army Trust** 

The Salvation Army Trust works principally through 625 corps (churches) and community centres in the United Kingdom. 

England: 505 corps (includes Isle of Man and Channel Islands) Wales: 35 corps Scotland: 69 corps Northern Ireland: 16 corps 

A list of centres managed through The Salvation Army Social Work Trust is listed in the Report and Accounts for that trust. 

## **The work and delivery of The Salvation Army Trust** 

To ‘make sense’ of The Salvation Army, it is important to remember that The Salvation Army is first and foremost a church, but a church that delivers a colossal and diverse range of charitable services. Everything The Salvation Army does should positively contribute to making the world a better place – as God intends it to be. 

As a church, we have a network across the UK of over 625 local corps (churches) community centres. These are generally run by corps officers, who are trained and commissioned (ordained) Salvation Army ministers of religion. Each corps officer is accountable to his or her community but is operationally accountable to one of 14[1] divisional commanders who in turn report to the headquarters based in London. 

This strong community presence is the way in which we ensure we respond to local needs in local ways. What we do is generally decided on and delivered locally. The costs and delivery of this network of corps, and the infrastructure and the centralised operations that support it, is the subject of this Annual Report and Accounts for The Salvation Army Trust. 

> 1 For the year under review (2021/2022) the territory was structured into 22 divisions (The Salvation Army’s equivalent of a diocese) with a reduction to 20 during the year. The number of divisions will be consolidated down to 14 divisions by July 2023 following a structural review. 

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The Salvation Army is a church and charity that doesn’t just help people by providing immediate, practical support to overcome issues such as addiction, homelessness, social isolation or poverty; it also strives to address the reasons behind the suffering, with a view to effecting sustainable change in individuals and society at large. 

Therefore, what sets The Salvation Army apart from other organisations is the combined strength of our centrally co-ordinated social work services and the local responsiveness of our corps (churches) and community centres which are all playing their part to bring lasting change at a local and national level. 

Every officer, member of staff and volunteer brings their own unique insight into the lives of the service users and communities they serve, to inform the work that we do and help us prioritise which reforms we will campaign for on behalf of the marginalised and vulnerable. 

## **Explaining our distinctive organisational approach to strategy** 

‘Fullness of life’ is a scripturally-inspired goal which now forms the heart of our vision statement. The Salvation Army is a diverse, responsive, agile Christian church and charity. Because we live and work in the communities we serve, we fully recognise that each community is different and consequently the needs of each community are different. 

Our approach is to encourage effective and flexible activities focused on helping people experience life in all its fullness across all the communities in the UK where we have a local presence. 

The UK Salvation Army therefore deliberately does not have a prescriptive approach to directing its delivery at corps or centres or a directive top-down strategy. Instead, we prioritise local responses to local needs as the way we choose to work across the UK. The size, scale and professionalism of The Salvation Army can be underestimated because of this strategic decision. 

This report highlights how this approach has enabled us to respond powerfully, quickly and in an agile and flexible – and above all, a locally relevant – way to the latter stages of the pandemic and how we emerged from that time with renewed energy and agility. 

## **Integrated locally** 

Together the two Annual Reports and Accounts provide a comprehensive account of the work of The Salvation Army in the United Kingdom. At a local level, The Salvation Army across both trusts is encouraged to work together to bring lasting change at local as well as national level – we call this _‘integrated mission’_ . 

## **Integrated internationally** 

In a wider context, The Salvation Army works in more than 130 countries, on every continent, often in the forgotten corners of society. Our breadth of experience and hierarchical structure enables lessons learnt in one place to benefit people with similar challenges thousands of miles away. The rapid expansion of our work with victims and survivors of modern slavery and human trafficking is a good example of this strategic advantage. 

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## **Resourcing, support and oversight** 

The local diversity of The Salvation Army’s operations is facilitated through centrally coordinated support services – such as HR, finance, property, IT, PR and fundraising, with some of these support functions also located in divisional (regional) headquarters. This approach enables us to be efficient and effective in the use of resources. 

In addition, there are staff whose role is to learn lessons from local programmes, pilot schemes, share resources and successful outcomes from innovation and experience, with other Salvation Army operations to help us achieve our mission across The Salvation Army as effectively as possible. This approach helps to drive up the quality of our services to people who are often poor, marginalised and vulnerable. 

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## **REALIGNING RESOURCE TO ENABLE A ‘FLOURISHING’ AND EFFECTIVE SALVATION ARMY** 

## **The work and delivery of the Structure Co-ordination and Design Project 2022** 

Ensuring appropriate oversight and support and operational freedoms to more than 600 diverse and locally responsive Salvation Army churches and community centres is challenging. Add to that over 100 residential and non-residential social work centres, and the challenge of ensuring the most effective allocation of resources is truly demanding. 

The Salvation Army has never been a static organisation, and over its 150+ year life has been constantly evolving to match efficiency and effectiveness with changing times and changing needs. Over the last two years, the entire UK Salvation Army has engaged in a structured, extensive and disciplined process to look at how the people and resources we have can be marshalled and structured more effectively, with one goal: to enable our ‘frontline’ operations – our local mission delivery units, whether they are corps or social work centres – to ‘flourish’. 

By ‘flourishing’ we mean that every expression of The Salvation Army should actively be engaging with the five mission priorities (our Mission Statement) in order to achieve our vision. 



This significant task, termed _**The Structure Co-ordination and Design Project**_ , has been focused on three desired outcomes: 

- **Transformation** : Increase the capacity of locally-based Salvation Army work to contribute to the five mission priorities (share the good news; serve others without discrimination; nurture disciples of Jesus; care for creation; seek justice and reconciliation). 

- **Integration** : Build strong and effective collaboration between all aspects of Salvation Army work in a geographical area. 

- **Streamlining** : Design appropriate, effective, efficient and sustainable structures and processes that enable local mission to flourish. 

Starting in 2021 and over a two-year period, the Structure Co-ordination and Design Project conducted probably one of the most extensive pieces of internal research we have ever executed. The principal goal was to provide answers to the simple question: ‘What (change) is needed to enable our local mission to flourish?’ The process was deliberately designed to be ‘bottom-up’. Consultations were carried out within all the then 20 divisions, and at all headquarters, both territorial and divisional. 

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The principal premise we worked to is this: A combination of effective _**oversight**_ of the right things, combined with the allocation of adequate resources and _**support**_ **,** and the effective _**release**_ of our local mission delivery expressions from unnecessary control, should result in communities and people flourishing. 

The strength of this simple model is that it dovetails into the way The Salvation Army has always worked. We respond locally and meaningfully to local need in local ways. Organisational structures, administrative and decision-making processes can become burdensome and inefficient. At its best, The Salvation Army is often more local organism than top-down organisation. Therefore, rooting and starting our thinking and planning for change in ‘local’ was the most sensible and potentially the most powerful way forward. 

The outcome can be outlined as a series of significant changes to the way we work: 

_**Release:**_ We engaged and continue to engage in extensive rethink of how resources need to be marshalled and how the local delivery points can be ‘released’ to be as free as possible to decide on and deliver what they perceive is needed in terms of service and services. One outcome is, and will continue to be, a review of effectiveness, and how investment directed more freely to where increased investment will deliver significant change for people and communities. 

_**Oversight:**_ Effective oversight is vital for compliance and governance. Oversight ensures we are doing the right things in the right ways. However, the design process also looked at where supervision and some forms of oversight are unnecessary or could be released to be done locally, not centrally. We have a strong spirit of accountability in The Salvation Army and the releasing of some aspects of oversight will mean more local ownership. 

_**Support:**_ We need to continue to ensure that the support that is needed to enable local mission delivery to flourish is available, but in the right ways. This means adequate funding streams, support for raising awareness locally, support for training and innovation and local growth. We are developing more practitioner-based and peer-to-peer support. This is helping to reduce the cost of support and improve the quality by encouraging people to learn from fellow practitioners. 

**Streamlining** was also one of the three goals of this process, and a significant branch of this project looked at our divisional structure and how best can our 650 corps and community centres be clustered and supported divisionally (regionally). Consultations were under way during the year in review here, but the outcome, announced in Autumn 2022, was a reduction from 20 to 14 divisions and a reshaping of the role of the divisional leadership team to ensure the effective application of the principle of support and oversight and release. Critical to this thinking was also to ensure divisional headquarters and staff work with territorial headquarters and staff to form one integrated system of support and oversight. 

A further cultural intention with this project has been to move away from seeing change as something that is effected once, to a culture of continual improvement. All aspects of The Salvation Army’s operations are therefore actively encouraged to submit proposals for how improvements, innovations and changes can be introduced to enhance local mission delivery. 

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The changes that this project introduces will most likely be felt in 2023 at the earliest. As this is a significant strategic development, it will be reported on in subsequent Annual Reports and Accounts. 

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## **ILLUSTRATING THE WORK AND ACHIEVEMENTS OF THE SALVATION ARMY TRUST 2021/2022** 

Because The Salvation Army’s approach is to not have a tightly defined ‘top down’ corporate strategy and instead to prioritise local response to local need, and to ensure there is adequate funding for that to happen, illustrating all that The Salvation Army has achieved across the UK would be a colossal task. 

Therefore, this report highlights some of the developments we have implemented in the last year as we work to deliver our mission and strive to achieve our vision. We are blessed to have the resources to operate in this way and we believe – and know – that our approach helps transform the lives of thousands of people every day. 

## **HOMELESSNESS: THINKING OUTSIDE THE BOX** 

Home is important for our health and happiness. Without a safe and stable place to call home, life can quickly fall apart. The Salvation Army is at the forefront of efforts to reduce homelessness and support homeless people, with a range of services including many community-based initiatives. 

During the year, we continued to be at the forefront of developing innovative solutions to tackle homelessness and its root problems. 

## **Sleeping safe and sound** 

We know that most rough sleepers have multiple health problems as sleeping on the streets is dangerous and tough on the body. During the year, we piloted cutting-edge popup accommodation for rough sleepers in York, called NAPpad 20. 

As well as keeping people warm and dry, these innovative pads also checked if someone had stopped breathing and could prompt a call to emergency services. They were designed by Protectal Ltd with The Salvation Army, using microwave technology. 

The pop-up accommodation also offered homeless people an informal setting to meet with our support team to explore more permanent housing and support options. Rachael Maskell, MP for York Central, described the NAPpad as an ‘innovative solution to provide dignity and independence in a safe environment for some of York’s most vulnerable residents’. 

Former rough sleeper Jay, 19, said: ‘The technology to make sure you are safe is amazing. On the streets, if you can’t breathe nobody knows, nobody knows where you are and nobody can call for help. This will be life-saving.’ 

## **Piecing together a solution to homelessness** 

In a pioneering move, we joined forces with award-winning developer Hill Group and Citizens UK to create the SCH Partnership. To mark its launch in June 2021, we unveiled the SoloHaus, a modular home which is furnished and ready to move into. 

The homes have running costs of less than £5 a week and are designed to Future Homes Standards, exceeding building regulations for energy efficiency and sound insulation, and with a design life of 60 years. 

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These modular houses help tackle homelessness and rough sleeping, while making people feel part of their community. The Partnership started work on setting up supported accommodation projects in Southend, Basildon and Bristol. We called on the Government, local authorities and landowners to support this innovative programme. 

Lieutenant-Colonel Drew McCombe, Secretary for Mission, said: ‘Modular housing is a more cost-effective, and better-quality alternative to temporary accommodation.’ 

## **God-given idea: the Care Kitbag** 

Married couple Pat and Richard Thorpe, soldiers (members) from Norwich, were inspired to create a Care Kitbag while praying for a way to help homeless people who were being discharged from hospital during the pandemic. 

Pat explained: ‘We thought, what if we could provide a bag of basic toiletries and things, which could be accessible at the hospital. That way, if someone who was experiencing homelessness came in, they would at least have a bag of items to take out with them.’ 

The couple also included a message of hope, a prayer and a list of other organisations that could help them too. After setting up at the hospital, the scheme quickly expanded. Care Kitbags were also given out through St Martins Housing Trust, Pathways, the YMCA and Shelter. 

## _Care Kitbag checklist_ 

- Soap and shower gel 

- A flannel 

- Deodorant 

- Shampoo 

- Toothbrush and toothpaste 

- Brush or comb 

- Tissues 

- Breakfast bars 

- Hat, scarf and gloves 

- Dark coloured socks 

- Underwear 

## **Warm welcome in cold weather** 

In November 2021, as the temperature dropped, The Salvation Army mobilised to make sure people were not forced to sleep on freezing streets. Many of the communal style shelters were not Covid-safe, but the church and charity adapted services to meet local need to provide a network of support across the country. This included giving out hot meals and warm clothing, providing access to showers and a place to sleep, plus advice and other outreach services. 

The Salvation Army’s Director of Homelessness Services, Lorrita Johnson, said: ‘Living on the streets is no place for anyone and even more so as the cold weather bites.’ 

## _**Round-up of examples**_ 

- In Cardiff, The Salvation Army went out on foot from 5.30 pm to 8.30 pm every evening to reach out to people who were homeless or in need. Access to rough sleeper accommodation and first aid, warm clothing, harm reduction advice, and chaplaincy and advocacy services were also provided. 

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- In Basildon, the local Salvation Army corps provided hot meals, access to a shower and signposting to other agencies for additional help. They also hosted a meal on Christmas Day (with social distancing and a booking system in place), run by a team of volunteers. 

- In Wisbech, The Salvation Army offered hot meals for homeless and vulnerable people in the community from 6-7 pm every Tuesday and Thursday. 

- In July 2021, a last-minute donation from St Saviour’s Housing Association in Southend secured a project for specially designed modular homes, to help rehabilitate people experiencing homelessness. 

The Salvation Army joined forces with Citizens UK and housing developer Hill Group to set up the SHC Partnership which started work on the project in the seaside town and other locations around the country. Captain Tracey Bale of the Southend Citadel said: ‘St Saviour’s was closing down and wanted to give us £100,000. As I read the letter I stood there in shock. But this was confirmation from God that he had the situation in hand and wanted the project to go ahead.’ As well as providing accommodation, support workers will also work closely with residents helping them to adjust to their new lives. Tracey said she believes the project will make a big difference in Southend, a town that ranks eighth on the list of the UK’s 10 worst homeless hotspots. 

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## **JUST THE JOB FOR UNEMPLOYED PEOPLE** 

The Salvation Army is a refuge of resources and support for people facing unemployment. In the wake of the pandemic, unemployment rates are relatively low. But finding a stable job that pays enough can be hard, due to low pay and zero-hours contracts. 

The examples below show how we continue to help people to become job-ready, to get a job and stay in work. We help people cope practically and emotionally with being unemployed, as well as tackling its root causes. 

## **Kickstarting careers – Charlie’s story** 

The Salvation Army placed scores of young people in jobs to help them gain valuable work experience as part of the Government’s Kickstart scheme. 

Kickstart opportunities are open to people aged 16 to 24 years old who claim universal credit and are at risk of long-term unemployment. Each person has a dedicated Salvation Army employability professional to support them and to help them seek employment at the end of their contract. The Kickstart scheme is an integrated scheme between corps and Employment Plus within The Salvation Army Social Work Trust. 

Charlie Buckingham is among 85 young people we supported last year. He joined The Salvation Army as a community support worker at Sheerness. His job involved working with the food bank and supporting the launch of a community service run from a bus. 

Charlie had been put on furlough in his previous job during the pandemic and was eventually let go. He was eager to get another job in order to support his family. Talking about his new job Charlie said: ‘It was completely different from anything I had ever done before. The best thing is that what I am doing is meaningful. It makes a difference and is helping people in my area. I am not just a number on a bit of paper, I am helping to make my community a better place.’ 

## **Extra support from Employment Plus** 

The Salvation Army’s Employment Plus service offers tailored support to help people become job-ready, with the aim of helping them find work and stay employed. During the year, we launched a weekly Employment Plus service at Crewe. Services such as this are started initially using funding from The Salvation Army Social Work Trust. However, once set up they are maintained and supported using funds directly from the corps. 

Corps officer Major Steven Watson and his team at Crewe had already been supporting people who had lost their jobs, with food parcels and fuel vouchers. Unemployment was also having a devastating effect on families pushing them into poverty and increasing social exclusion. 

Major Watson said: ‘The Salvation Army has been expanding its Employment Plus service across the UK and we’re delighted that we can offer this to the community in Crewe as well. Our advisers are friendly and compassionate, offering help with CVs, job searches and interview techniques.’ 

Elsewhere Employment Plus has been praised as a ‘fantastic scheme’ by Sunderland MP Julie Elliott who visited the Community Project centre in Southwick. 

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## **Regaining purpose and belonging** 

When Dawn Turner’s son left the British Army he had a breakdown. But Dawn – a nursing professional – couldn’t get an appointment for her son for six months. So Dawn and her partner Perminder Kundi (Bob) started Stepway, a charity that helps army veterans return to civilian life. 

Stepway partnered with The Salvation Army in Worcester and opened its first drop-in centre using one of the rooms at the corps. Veterans joined in activities and got support, and also the option to complete a programme developed by Dawn built around mental health awareness. 

About 65 people successfully completed the programme and have gone back into employment or education or now volunteer for the charity, including Tina Dales. 

Tina was medically discharged and said she ‘felt like damaged goods, feeling low and lost’. At Stepway she found a sense of belonging and a way forward. Tina said: ‘At last I have found my purpose again.’ 

## **Stepping up** 

Dawn and Bob reached out to other Salvation Army corps to see if they were interested in collaborating. Oldbury corps officers Captains Beverley and Carl Wardley were happy to get involved and Stepway now has a base in the West Midlands too. 

Captain Carl Wardley said: ‘Our work fits together well, as both organisations have a heart for all people. We provide some of our land for a community garden project as well as access to our buildings so that people can meet and feel safe. We are also able to offer pastoral support to veterans.’ 

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## **FAITH IN CHILDREN AND YOUNG PEOPLE** 

We believe young people have unbridled potential: potential to dream, to lead, to restore and rebuild communities. Yet the pandemic put unprecedented restraints on them. Rites of passage, from being in a Nativity play to attending music festivals, were missed. Their ability to socialise and find their own identity was lost. For the most vulnerable, a difficult life became even more challenging. 

We adapted and innovated our services during Covid-19 to support young people. Last year, as we emerged from the pandemic, we opened up more opportunities for young people to reach their potential – as the examples below illustrate. 

## **Rebuilding activities and hope** 

Aston 614 in Birmingham has provided weekly activities for up to 40 children, young people and families since 2006. During lockdown we introduced online activity sessions alongside others for discussions about mental health, racism, gang violence and social justice. 

During the year the young people who took part completed Arts Awards in comic book creation, music production, animation, and content creation for YouTube. 12-year-old Kudzy told us: ‘I’ve been able to do what I love – which is drawing and animation – and got a certificate for it.’ 

We partnered with other community organisations to start a weekly Positive Minds group. In after-school drop-in sessions, young people from ages 5 to 18 took part in activities in a safe and friendly environment. 

Through these activities young people connected with The Salvation Army and our ministry, which focuses on restoration, rebuilding and renewal through Jesus. Aston 614 continues to be a peaceful place where young people can come and leave their worries at the door. 

## **Still ahead of its time after 140 years** 

Our children’s magazine _Kids Alive!_ marked its 140th anniversary in August 2021. It was launched in 1881 as the _Little Soldier_ , and started running comic strips in 1928. 

The church and charity celebrated the occasion by releasing rarely-seen comic strips and front covers from our archives. Young readers marked the anniversary by raising funds for The Salvation Army’s vital work in communities up and down the country. 

Steven Spencer, Director of The Salvation Army’s International Heritage Centre, said: ‘In the early 1880s children were only just beginning to attend school in large numbers and the era was dominated by Victorian paternalistic attitudes towards children. And yet The Salvation Army had seen the need to create a magazine just for them to learn and read the stories of other children and their faith in God.’ 

Rebecca from Kent, whose three children are avid readers, said: ‘The magazine has a nice family feel to it and we’ve always felt part of a _Kids Alive!_ community that cares.’ 

Top facts 


First issue – Saturday 27 August 1881 


Continued printing throughout both world wars and two pandemics 

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## Iconic editions include: 

The Queen’s Diamond and Golden Jubilees Experience of evacuees during the Second World War ABBA featured on the front cover in the 1970s 

## **Compassion for young families** 

Last Christmas, one in five adults under 30 said they would have to rely on charity, and over half of them have children. For example, Catherine, a full-time mum to a six-weekold baby and an 18-month-old toddler, said her partner was out of work and their family was struggling for essentials like nappies, baby milk, washing powder and groceries. 

The Office for National Statistics figures showed that this age group is more likely to be in low-paid, low-security jobs with more of their income going on housing. They are also more likely to have suffered financially due to the pandemic as a higher proportion worked in industries that shut down or put furloughed staff on reduced wages. 

As a practical response, for Christmas 2021 The Salvation Army distributed gifts to nearly 100,000 children from vulnerable families. Lieutenant-Colonel Dean Pallant, Secretary for Communications, said: ‘Christmas should be a time of joy, but there will be no Christmas cheer for those young adults who are struggling to make ends meet and worried about how much longer they can keep a roof over their head.’ 

For a longer-term solution, The Salvation Army called for more support, including protection from food poverty during the school holidays for families with children and an expansion of free childcare provision so parents can afford to work. 

## **Back to summer camp!** 

After months of being apart, young people were thrilled to attend summer schools and junior camps across our divisions. The schools and camps gave children opportunities they may not otherwise have been able to afford. They explored spiritual themes and took part in worship too. 

Central East – Young people went on a pilgrimage, walking three routes over three days and covering 30 miles. Each route provided natural spaces to explore and experience God. 

North East England – Young people explored creative and musical abilities together, which just wasn’t possible during the pandemic. Their inner spark grew during the week fuelled by worship and Bible study. 

Severn and Somerset – 20 children and staff came together to explore The Wonder Zone. They discovered more about the world and God who created it. They also reflected on their place in the world and making the right choices. 

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## **CARE AND SUPPORT FOR PEOPLE IN NEED** 

We follow the example of Jesus, treating vulnerable people in our communities with deep compassion and respect. Our work in communities across the UK enables us to respond to local needs in an agile and tailored way, so we can meet changing and emerging needs across the UK. Our work is diverse and effective as can be seen from the following examples. 

## **Banking on our support** 

Last year the number of meals we provided, to people struggling to afford food since lockdown started, hit two million. For around one in five people it was the first time they had sought charitable support at food banks and hubs. 

During the pandemic we established 22 regional food hubs across the UK, where we bulk bought food from wholesalers to help our local centres and churches meet the demand. As we moved out of lockdown, more people struggled to cope as the economic impact of the pandemic started to bite. 

Examples from around the territory this year: 

- Leeds Central Salvation Army church dished up its 10,000th takeaway meal. 

- Portsmouth Salvation Army delivered Food and Fun at Home packs to children during Easter holidays. 

- Preston Salvation Army gave out food vouchers to struggling families. 

- Stornoway Salvation Army handed out food parcels to feed 150 people a day. 

- Isle of Wight Salvation Army gave out 350 toys and parcels to families in need at Christmas. 

## **Innovating our services** 

_Talk, Cook and Eat_ – has helped up to 50 families in Oldham to cook healthy meals while staying connected. They had been struggling with cooking, but also with eating alone so they liked sitting together and socialising too. 

At the start of the pandemic, people received a bag of ingredients and made different meals. They watched demonstration videos on Facebook, took part in quizzes and won ‘practical prizes’ like cooking equipment which had been donated by Ultimate Products. 

This year the families continue to share recipes they made using food from charity Fareshare, which redistributed surplus food to charities, and Salvation Army donations. One mum Lisa said: ‘It’s made such a difference for me. There is always something different in the bags, things I would not normally buy like celeriac, asparagus or fennel. I love that my daughter is able to try all of this.’ 

## **More than a food hub** 

In Swindon, Salvation Army leaders expanded the remit of their food hub to include longterm budgeting help, employability, training, wellbeing and life skills. People who came for a food parcel in crisis received wider support to help them become more independent. Captain Theresa Torr said: ‘We see the same people coming back to us for food, time and time again, and we think that this is a good way to help in the long term.’ 

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## **Wear with pride** 

The Salvation Army and its local partners offered families in Cannock pre-loved school uniforms for free, helping over 400 children get ready for the new school term. The ‘preloved market’ stocked everything from blazers, shirts, trousers and skirts to PE kits and shoes for children aged 3 to 16 years of age. Captain Lydia Bartlett, leader of The Salvation Army in Cannock, said: ‘The coronavirus pandemic has had a devastating impact on our communities and we all know how expensive school uniforms can be even at the best of times. So many parents have thanked us for running this market, and while we can help we will continue to do so.’ 

At our Shipley Salvation Army Corps, volunteers at our uniform bank processed, washed and prepared 20 sacks of donated school uniforms each week to meet growing demands from families. Last summer the corps supported 79 families, providing 748 items over three months. 

## **Friendship on call** 

To help support vulnerable and isolated members of the community in Launceston, The Salvation Army launched a telephone befriending service. Its aim was to reach out to even more people who may be lonely, anxious or worried and would appreciate a phone call. 

The service was the idea of Mary Butler, who has been a Salvationist for more than 50 years. Mary said: ‘I kept praying and believing the Lord would show me a way that I could reach out in some way. This has proved such a blessing and has opened an opportunity to listen and to pray with people. This has been a great comfort to them and a real blessing to me.’ 

Salvation Army church leader Captain Susan Tidball said: ‘Loneliness and isolation were prevalent in our community even before the pandemic. There is a real need – a basic human need – for personal contact for the sake of people’s health and wellbeing.’ 

## **Health and hope at church hall** 

The Salvation Army corps in Stowmarket became an NHS vaccination centre during the roll-out of the Covid-19 jab. Major James Lloyd, the local church leader, said: ‘It’s only right that we offer our building which we have been blessed with to help in the fight against this deadly disease that has caused so much loss and devastation in our communities for more than a year.’ The centre vaccinated 500 people a day. Church leaders offered pastoral support to NHS staff, volunteers and members of the public who needed some emotional support. Other members of the corps helped to direct traffic and patients. 

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## **A RICH FULFILLING LIFE FOR OLDER PEOPLE** 

People are living longer, with greater activity, engagement and productivity. We believe it is important for every person to live life with enjoyment, and to feel safe and valued. 

During the pandemic we found innovative ways of keeping in touch with older people who were alone and isolated. This year we blended these virtual alternatives with our established daycare centres, lunch clubs and other in-person services, to help even more older people lead rich and fulfilling lives. 

## **Singing by heart** 

Singing is a great way for people to feel engaged, uplifted and part of a group.  During the pandemic The Salvation Army in Wrexham had to close their dementia-friendly activities, including monthly Singing By Heart sessions. Karen Edwards, community manager said: ‘When we realised that the closure was going to last for much longer than we originally anticipated, we took Singing By Heart into the care homes virtually.’ After a trial with one care home, the sessions were so popular that they ran fortnightly. The songs ignited memories for older people which they loved to share. There were many conversations and much laughter, and also prayers and readings. 

Karen said that the corps was once again filled with joy and laughter. ‘It was really good to see people interacting with each other and the team, and feeling that they are not on their own,’ she added. As restrictions lifted, in-person sessions began and others joined the group remotely. 

## **Welcome return for Joyce** 

Joyce had been attending get-togethers on Monday and Friday at The Salvation Army’s Elderly People’s Day Care service in Sudbury since 2016. During lockdown she was low, but was so much happier again when the centre reopened in August 2021. Joyce said: ‘Everyone is very friendly and great company. I do things like painting and knitting, and just talking to people.’ Pam, Joyce’s daughter who volunteers for the service every Monday, said: ‘It’s good for meeting people and making new friends. If my mother didn’t come to the day centre, she’d just be at home supported by her carer and family members.’ 

Kathryn Pettitt, co-ordinator at Sudbury, said: ‘We have an activity session in the morning. We also run chair-based exercise classes and bingo. There really is something for everyone, and if people can’t manage it we’ll change it round so they can.’ 

## **Daily Hope on call** 

Since its launch in April 2020, the Daily Hope phone line has received more than 550,000 calls. During this year in review, around 20,000 older people called each month for hopeful comment and peaceful reflection. 

As well as messages and hymns for older people, Daily Hope started to include regular reflections from The Salvation Army’s Older People’s Ministries too. 

Andrew Wileman, Assistant Director of Older People’s Ministries, said: ‘The phone line provides spiritual sustenance to thousands of older people each day. Our “Songs of the Faith” series has been really well received on Facebook, and we are delighted to be able to share these devotional insights further through the Daily Hope phone line.’ 

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## **REAL OPPORTUNITIES FOR DISABLED PEOPLE** 

We believe that everyone should be treated as an equal regardless of an individual’s disabilities. We make sure that people with disabilities are given real opportunities to take part in activities and we run specialist programmes for people with a learning disability. Here are some highlights from this year. 

## _**In his Hands**_ **at our Enabled Summer School** 

Enabled is a Salvation Army programme for people with learning disabilities, where they can truly be themselves and be accepted. 

As many people with learning disabilities were still shielding due to Covid, we decided not to hold the usual Enabled Summer School of Arts in Cheltenham but to hold an online Summer School at Home for the second time. 

During the week, 64 virtual sessions were broadcast on the Enabled Facebook group, YouTube and Zoom. The theme was _In his Hands_ and the key Scripture was ‘I have engraved you on the palms of my hands’ (Isaiah 49:16). The Salvation Army song ‘I’m in his hands’ featured in the choral, music and worship sessions. Each day began with worship, with sessions led by Enabled members and supporters including Majors Paul and Christine Kingscott. 

In daily ‘This is Me’ sessions, Enabled members and supporters gave insights into their lives, their achievements and the challenges they had faced. The fellowship sessions included a Bible study, Godly Play, a faith talk and an art-based Bible study. 

Other sessions included art, photography, crafts, mindfulness, open house, drama and a magic show. Highlights were a talent show and a virtual disco held over Zoom, with many dancing for three hours. 

## _**What participants said:**_ 

## Rachael - Nottingham 

‘Everybody is treated the same whoever they are and encouraged to join in and try new things. Enabled is like a family who love and support each other.’ 

## Mary – Knottingley 

‘I was not able to watch much of the summer school when it was broadcast, but had a lot more time the next week to catch up. That’s one of the bonuses of having it online! What I saw was excellent, especially the worship and “This is Me” sessions.’ 

## James – Sudbury 

‘Enabled means that I can relax in fellowship with others. It has given me the confidence to get involved and know I can achieve stuff, both at Enabled and within my corps.’ 

## **Connections and reflections** 

Our Fresh Expression Team continued to connect with people in all sorts of ways to create opportunities for spiritual wellbeing, as part of our recently opened Strawberry Field Centre for people with learning disabilities in Liverpool. 

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At Easter, after a Facebook Live reflection, the team took a handmade cross to individuals in the community who had agreed to join them. They stood in the street together, shared a reflection and then had a few moments to pause at the cross. One family who had been shielding for the past year were blessed as they stood outside their house. 

Volunteers crafted Easter bunnies and delivered them to homes. One woman cried as she was ‘so overwhelmed by the kindness shown from Strawberry Field’. On Easter Sunday a reflection by team member Karen Carter was posted on social media and presented on Premier Radio and BBC Radio Merseyside. 

## **Easter people** 

In April 2021, more than 170 Enabled members across the territory joined for a virtual weekend of fun and fellowship, taking part in 18 interactive sessions. 

On Easter Sunday, Chief Secretary Colonel Paul Main and Territorial Secretary for Leader Development Colonel Jenine Main led worship. They helped delegates experience the senses of Easter by listening to video clips, singing songs, feeling a silver coin, smelling and eating bread, eating a grape and smelling and touching a wooden cross. This proved to be a powerful way to experience the Easter story. 

As well as joining in worship, participants shared their experiences of living with a learning disability. Mandy and Tristan Lanceley were among them. Mandy spoke about her early years spent wearing body braces and in traction, as well as having surgery to correct her scoliosis. Tristan is a talented musician and graduate of the Brit School, despite being unable to read music. 

Commenting about the weekend, Tristan said: ‘Thank you for a fun and uplifting weekend. We joined together through the powerful love of God and the love we have for each other.’ 

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## **READY IN A CRISIS** 

As a Christian church with a strong social conscience, we seek to alleviate distress wherever it is found and to fulfil a crucial role during and after a major emergency. This year, the church and charity had another busy year responding to storms, floods, fires and other incidents. 

## **In action at emergencies** 

In Kent – Salvation Army church leaders and volunteers helped people in Ashford, Kent, after an explosion destroyed two houses in May 2021. Major Bramwell Hayes and Captain Rhonda Hayes from Ashford Salvation Army delivered refreshments to the local authority rest centre set up at St Mary’s Church, Willesborough, for nearby residents evacuated from their homes. 

In Lancashire – We supported 999 workers and residents who were evacuated from their homes in the early hours after a suspected gas explosion in Heysham. Tragically a twoyear-old boy died and four people were injured. The Salvation Army’s emergency response vehicle team arrived at 4.45 am. About 80 firefighters, 40 police officers, 15 paramedics, 40 council staff and 90 residents were given food and drink at the scene. 

Major Nigel Tansley, who runs the church and charity’s emergency response vehicles across the north west, said: ‘We were also able to offer a listening ear to those who needed it. I spent most of the time speaking with fire crews and people whose homes had been damaged. It was a distressing situation and our thoughts and prayers are with everyone affected.’ 

Around the country – Our emergency response teams, including officers and volunteers, mobilised to offer help in the aftermath of Storm Eunice in February 2022. Homelessness centres in St Helens, Blackburn, Coventry and London gave emergency beds to dozens of rough sleepers. In Stockport, the Army provided food, drink and emotional support to fire crews, mountain rescue teams and Hazardous Area Response Team paramedics. 

The Army also distributed hot drinks and food to more than 60 homes in the village of Botesdale, Suffolk, where a tree crashed through a power line and left residents without electricity for three days. 

In Essex – Salvation Army leaders welcomed a new partnership with Essex County Fire and Rescue Service to support firefighters at large-scale incidents. Similar partnerships already operate with other fire and rescue services in the UK. Ryan Ainger, Operational Policy Station Manager at Essex County Fire and Rescue Service, said: ‘On behalf of our Service, I’d like to thank The Salvation Army for their support, which will make a big difference to our firefighters.’ 

In Wales – The Salvation Army Emergency Response Unit supported a multi-agency, reallife training exercise that took place in March 2022 at the Severn Tunnel Junction. This included providing refreshments for over 100 firefighters from the South Wales Fire and Rescue Service. Adrian Clee, Territorial Emergency Response Officer, said: ‘It’s helpful to take part in these exercises, to give volunteers an opportunity to practise and to see the work that we do during an emergency response.’ 

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## **PULLING TOGETHER TO GENERATE INCOME** 

As a church and charity, The Salvation Army has to generate its own income. A proportion of our income is given through church membership, but significant amounts are secured in other ways. We could not do what we do without the amazing generosity of the UK public. In this section we illustrate some of the ways in which we have achieved this in the last year to help sustain the services that we offer across the UK for some of the most marginalised people. 

## **Charity shops re-open** 

Salvation Army charity shops in England and Scotland reported record sales after reopening in May 2021 following the easing of Covid-19 restrictions. Some charity shops are run by our local corps (churches and community centres). Others are managed by our wholly-controlled subsidiary trading company. 

We have not often featured the work of charity shops in our report, but it is a very visible and important part of our presence across the UK. Though some safety measures were still in place, shops run by our corps reported customers queuing out of the doors. Stores run by Salvation Army Trading Company (SATCoL) reported first-day trading sales that broke previous records and received double the usual volume in donations. Donating and shopping in a charity shop is a great way to support the church and community. 

Debbie Charles, Territorial Community Engagement Lead for The Salvation Army, who works closely with corps charity shops, said: ‘Our charity shop managers, corps officers and volunteers have done a fantastic job of keeping the community involved even while they’ve been shut.’ 

## **Tonnes of support** 

Through our partnership with Asda, The Salvation Army received a tonne’s worth of clothing, textiles and bric-a-brac from generous customers each week at its Drop and Shop site at the supermarket’s sustainability store in Middleton, Leeds. 

Kirk Bradley, Salvation Army Trading Company’s Head of Corporate Partnerships, said: ‘By donating to the Drop and Shop or our clothing banks, people are supporting the work being done across the country to help some of the most vulnerable people in our communities. Providing essentials like hot meals for rough sleepers, food parcels for struggling families and doorstep friendship for isolated older people has been invaluable during the pandemic.’ 

## **Valuable volunteers – Sue’s story** 

When Sue, a regular volunteer at our Penrith Corps, lost her partner four years ago she found the church very supportive and it helped her through that bad time. It was during this year that Sue clocked up over ten years as a volunteer, serving hot meals to vulnerable and isolated people. She said: ‘It’s giving something back via The Salvation Army who have helped me out in times of need.’ 

When we asked what she liked about volunteering, Sue replied: ‘I enjoyed having regular conversations with people who would drop off donations, getting to know them and thanking them for what they were doing.’ She added: ‘We’re a good group, we’re very friendly and muck in together, and for me it’s about company. There are six of us, we’re such good friends and help each other out and have a laugh. It’s hard work but rewarding.’ 

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## **Running to raise funds** 

In October 2021 Headteacher Seb Gray and Assistant Head Jo Ball, of Laurance Haines School in Watford, were among those who ran the Virgin Money London Marathon to raise vital funds for The Salvation Army. Seb and Jo had formed strong links with the local corps, which grew stronger during the pandemic when the corps supported families at the school and in the community with food parcels, housing and pastoral care. The school organised different fundraising events, including a ‘Break the Rules’ day, pupils running a daily mile and bake sales to help the pair reach their £5,000 target. 

Seb said: ‘The Salvation Army has become a really proud partner for us throughout the pandemic.’ Jo added: ‘I’ve always had the ambition to run a full marathon, so to be able to cross it off my bucket list – and run for The Salvation Army – is great.’ 

## **Giving the joy of toys** 

In November 2021, toy retailer The Entertainer joined forces with The Salvation Army to launch The Big Toy Appeal – a campaign aimed at giving as many children as possible the joy of opening a present on Christmas Day. 

Providing Christmas presents for children can place additional pressure on families where budgets are already incredibly stretched. Many families already turn to charities like The Salvation Army for support, using food banks and other donations to help them through the Christmas period. 

The Big Toy Appeal encouraged customers to pick up an extra toy to donate when they visited The Entertainer stores or online shop. For every toy donated by customers, The Entertainer donated a toy, doubling the number of donations. The target was to reach 100,000 toys. 

Gary Grant, Founder and Executive Chairman at The Entertainer, said: ‘At The Entertainer we believe that childhood is a right, not a privilege. We are so grateful for the generosity of our customers. Each year our Big Toy Appeal supports an ever-increasing number of families, with over 60,000 toys donated so far.’ 

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## **SEEKING JUSTICE AND RECONCILIATION** 

Throughout the Old and New Testaments, the call for us to do justice is clear. ‘Commit yourselves to seeking justice. Make right for the world’s most vulnerable – the oppressed, the orphaned, the widow’ (Isaiah 1:17 _The Voice_ ). 

Standing against injustice can be as simple as supporting a vulnerable neighbour or providing food for someone who cannot afford what they need. Yet certain groups, individuals and issues continue to be under-represented. While it is easy to stand back and criticise from afar, it is much more effective to engage and offer a different perspective as we strive towards fullness of life for all with Jesus – as these examples of our work show. 

## **Speaking up for vulnerable people** 

At the end of September 2021, furlough was due to finish and the full impact of the pandemic was yet to be felt. Unemployment was expected to rise and push more people on to dependence on Universal Credit. As one of the signatories of the Joseph Rowntree Foundation’s _Keep Our Lifeline_ campaign, we urged the Government to reconsider ending the Universal Credit uplift of £20 at the month end. 

Before the pandemic, many people had been struggling in the Universal Credit system. We had been urging the removal of the five-week wait for Universal Credit, which was forcing many people to take out a bridging loan to survive. We had noticed an increase in people using food banks to feed their families, so they could pay back Universal Credit accrued debt. 

Lieut-Colonel Dean Pallant, Secretary for Communications, said: ‘The furlough scheme, the Universal Credit uplift, rental eviction protection and the “Everyone In” drive to shelter rough sleepers has protected millions from illness and extreme poverty during the pandemic. We agree with the emphasis on creating jobs and developing skills. However, removing the Universal Credit uplift at the same time as the furlough scheme ends, risks pushing more vulnerable people into poverty.’ 

## **Caring for God’s amazing creation** 

The Salvation Army UK and Ireland Territory is already a part of the Climate Coalition. During the year we revised our vision and mission statements to make ‘Care for creation’ one of five mission priorities. 

In November 2021, Salvation Army churches and centres took climate action to ensure that care for the world remains a top priority in the wake of the COP26 climate conference in Glasgow. Lieut-Colonel Carol Bailey, The Salvation Army’s Secretary for Scotland, joined with other faith leaders in the country to call for urgent action in limiting the effects of climate change and to highlight the critical importance of decisions made at COP26. In addition, General Brian Peddle, The Salvation Army’s international leader, announced the church and charity’s updated International Positional Statement on Caring for the Environment, to act as guiding principles for The Salvation Army around the world. 

At least ten Salvation Army churches in the UK and Ireland committed to being ‘eco churches’ – with ‘caring for the world’ running through all they do, including the Forest of Dean and Watford. 

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- The Salvation Army also launched a range of resources to support churches, young people and children in their love of the outside world and to encourage climate action – including: ▪ ‘Get OWT!’ for toddler groups – encouraging toddlers and their carers to learn to love the outdoors, run by ten Salvation Army churches and ten churches of other denominations 

- Climate-focused resources for children and young people: ‘Witness with the World’ is aimed at young people’s groups, and ‘Explore It’ for younger children 

- A new Bible-based small group resource for adults titled ‘Big Questions for Small Groups: The Environment’ 

## **Understanding People, Understanding Places** 

During the year we published a report aimed at influencing the Government’s Levelling Up agenda, _Understanding People, Understanding Places_ . It was the biggest social mapping exercise in The Salvation Army’s recent history. Our headline finding was that a third of England’s most deprived areas would not benefit from the Government’s £4.8 billion Levelling Up fund. 

## Key findings: 

- The Government prioritised 93 areas, but our report identified a further 45 in urgent need of investment. 

- Our analysis showed a number of high-priority coastal areas missed from the calculations – including the North West, East Midlands and South West – which should have been high priority. 

- The Government’s analysis of need was mainly based on unemployment figures, whereas we analysed the local labour market in more detail – showing the impact of zero hours contracts, seasonal employment and shrinking traditional industries on finding stable work. 

- Lack of access to childcare was one of the key barriers to people finding work. 

- The Government broke England down into 315 areas of which 93 were deemed a priority for funding. We broke the areas down into 345 areas and prioritised 116 areas as in most need of investment. 

Rebecca Keating, The Salvation Army’s Director of Employment Services, said: ‘We want to encourage the Government to listen to the communities who need their help. Look up from the spreadsheet and see what we are seeing on the ground.’ 

## We called on the Government to: 

- Reconsider how funding is allocated from the Levelling Up fund, with coastal communities being recognised as an investment priority. 

- Develop a new plan of investment in accessible childcare to allow people to access work and training opportunities. 

- Engage with communities to identify what investment will best ‘Level Up’ these areas. 

- Invest in skills and employment support, to help individuals out of low-skill, low-wage employment. 

## **Speaking out against racism** 

In July 2021, Italy won the UEFA European Football Championship final beating England by 3-2 on penalties at Wembley Stadium. The occasion was soured by unacceptable racist abuse suffered by England footballers. Racism is fundamentally incompatible with the Christian conviction that all people are made in the image of God and are equal in value. The Salvation Army believes that racism is contrary to God’s intention for humankind. 

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Territorial Commander Commissioner Anthony Cotterill issued the following statement: 

‘The racist abuse suffered by England footballers following the final of the Euros was totally unacceptable and has been rightly widely condemned. This team of young men have inspired us both on and off the pitch with their strength and conviction to make the world a better place.’ 

Commissioner Cotterill asked people to stand in solidarity with England’s footballers and to gather friends, family and fellow Salvationists and use the Let’s Talk About Racism materials to come together and learn how to fight racism. 

## **Working towards justice and reconciliation in respect of LGBTQ+ people** 

The Salvation Army is committed to learning with and supporting people irrespective of human sexuality and gender identity. During the year under review, we published a statement confirming we wish to be open, hospitable and welcoming to all people and rejected ‘conversion therapy’ (https://www.salvationarmy.org.uk/conversion-therapy). 

A new resource was launched aimed at helping give youth workers the tools and knowledge to make all young people feel safe, happy and loved when they engage with our churches, no matter their gender or sexuality. The resource helps youth workers understand something of what it’s like to be a LGBTQ+ teen in the Church, to give a vocabulary to be able to engage in conversations around the issues they may be facing, and to give youth workers some advice on how to approach pastoring LGBTQ+ young people. 

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## **LIVING AS DISCIPLES** 

More than 1.5 million people around the world worship every week at The Salvation Army. We are a Christian church and the spiritual home for many people who don’t attend worship on a Sunday. As disciples of Jesus Christ we give ourselves fully to the work of the Lord. In the examples below we show how faith in God lives in our people and in the good work they carry out for others. 

## **Raising children’s leaders** 

During the year we continued to equip and develop our youth and children’s leaders to perform their roles effectively through _Raise,_ our innovative online training course. 

Delivered through The Salvation Army’s iLearn portal, _Raise_ prepared all prospective volunteer children’s leaders for their work with children, with other leaders and with families within a Salvation Army context. They undertook nine short modules, covering relevant topics such as faith development of children, leadership skills, pastoral awareness, working with families, programme planning, children in the community and online children’s ministry. 

From _Raise_ , we are growing a new generation of vibrant, passionate leaders for children – creating space and opportunities for children to encounter God for themselves, grow in faith and be active participants in mission and service. 

## **Messengers of Grace** 

Every summer we ordain and commission the cohort of cadets who have completed their training and formation for full-time officership in The Salvation Army, mostly at our residential training college in London. Every such session across the world is given the same name to guide and inspire and identify them. This year the session name was Messengers of Grace. 

The commissioning (ordination) event in July 2021 was a mixture of live and pre-recorded elements, and proved to be a moving, inspiring and joyful occasion. William Booth College Principal Lieut-Colonel Judith Payne welcomed the cadets’ family members and a small number of invited guests, as well as many more watching the live stream. She said: ‘The Messengers of Grace will be commissioned and sent out to join the amazing Army of God’s people, ready to serve the needs of the people around, sharing the good news of grace that they themselves have received.’ 

The 19 cadets entered the college assembly hall and took their places. People at home were able to sing, though those in the hall were unable to do so because of Covid-19 restrictions. Each cadet gave a statement connected with the verse ‘By the grace of God I am what I am’ (1 Corinthians 15:10) – for example, ‘I am a witness for Jesus’, ‘I am growing daily’ and ‘I am sent to love’. 

Cadets still in training formed a circle around the Messengers of Grace and prayed silently as photos of them appeared on the screen. Viewers were invited to share prayers on social media. The session’s dedication song, ‘Covenant of Grace’, was presented on video. During the first two verses the cadets were shown individually kneeling in prayer, before gathering outside on the quad to sing the final verse and chorus. 

The session then recited the Army’s 11 Doctrines and promised to live by them, serve others and be faithful officers. In the moving moments that followed, the cadets stepped 

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forward one by one to be commissioned and hear Bible verses specially chosen for each of them. 

## **Post-pandemic papers** 

As lockdown eased, many Salvationists reached out to their communities by reinstating or increasing their _War Cry_ and _Kids Alive!_ newspaper orders to sell in high streets across the UK. Rachel Frost, community mission facilitator at Buckhaven in Fife, said: ‘The corps decided to increase paper orders to include the young people who attended our kids clubs. These young folk now receive a _Kids Alive!_ in their weekly packs and have particularly enjoyed the puzzles and the stories.’ Corps also welcomed participating in renewed ministry on the streets. Rachel said she found there was a fresh interest in Salvation Army publications and quite often they would run out of copies of the papers. 

Swanage Corps in Dorset has also increased order for publications. Major Katrina Greetham explained that their _War Cry_ herald Graham was looking forward to getting back to serving his people. She said: ‘During lockdown Graham delivered copies each week to the regular customers who live within walking distance. That means he kept in contact, even if it was just by putting the papers through their letterboxes.’ 

Over the year many other corps have worked tirelessly to support the Army’s publications ministry. As the Covid-19 restrictions gradually eased and public places opened up again, the Publishing Department looked to consolidate these efforts with the launch of the ‘Herald’s Challenge’. The challenge encouraged corps to come up with new and creative ways of selling and distributing more papers. 

## **Spreading the good news** 

In March 2022 we entered the final stages of building a new territorial website, salvationist.org.uk: a go-to digital space for people linked to The Salvation Army, providing stories, devotional and mission resources and information about events and learning opportunities. It sits alongside our main website which is aimed more at public audiences. 

We wanted people to be involved in its development, and so during December and January we invited people to apply to be part of a group that would meet once a quarter to share ideas for content and user experience. It included people of all ages, from various local contexts and countries in the territory, with different ethnicities and with lived experience of disability. It also included those with various connections to The Salvation Army – officers, soldiers, adherents, attendees and volunteers. 

## **Messages of hope** 

At the outset of the pandemic, when it was suggested that Commissioners Anthony and Gillian Cotterill, leaders of The Salvation Army in the UK and Ireland, shared weekly messages on YouTube and in _Salvationist_ magazine, they thought it might be for just a few weeks. However, during the year they delivered 58 such messages. 

Commissioner Anthony said: ‘When we started, the purpose of the messages was to encourage people to trust God and to take hold of opportunities. This allowed us to thank people at the front line of ministry and service too.’ Commissioner Gill added: ‘Not forgetting corps and community centres, and all who have adapted their ways of working and been really innovative.’ 

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Moving into a new phase of the pandemic, the couple were mindful that there were still challenging days ahead, and that many communities were really suffering and needed their prayers. Anthony said: ‘We’ve encouraged people to take time out to reflect, reassess and plan, and not to assume that we’re going back to how things were 18 months ago.’ 

In June 2021, the couple decided they needed to do the same. They paused their weekly video message and took time to pray, reflect and reassess where they were. Gill said: ‘In time we might come back in a new format, and maybe even a new line-up. But now that we’re able to, we will be leading our first face-to-face meetings for some time.’ 

## **A spiritual hub for COP26** 

In Autumn 2021 The Salvation Army’s community church in the heart of Glasgow became a spiritual base for people attending the COP26 climate change conference. The aim was to provide a cross-denominational opportunity for conversation and signposting to services, meetings and church events for all interested in climate change aspects. 

Scott, who leads The Salvation Army church in Anderston with his wife Loretta, said: ‘We were right next to the main conference venue and were there every day from 8 am to 8 pm to provide hot meals and support for those attending the conference, as well as the many pilgrims in the city.’ 

The Army also hosted Nourish Scotland, a charity focusing on food policy and food justice, so we designed a menu that contained sustainable and ethical produce. Our aim was to educate the people we fed about how these sorts of items can be incorporated into daily life. 

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## **A WORLD OF GOOD** 

## **Introduction – overview** 

The Salvation Army is an international Christian church worshipping and working in 133 countries. During the year, we continued to support the international mission work of The Salvation Army, including development work and providing relief to those affected by disasters overseas, as these examples show. 

## **Rallying to support Afghan refugees** 

The Salvation Army has continued its long history of supporting refugees by helping Afghan nationals who arrived in the UK following evacuation in August 2021. Around 10,000 refugees came here over the course of this year and, along with other charities, we provided a range of support. Examples include: 

Heathrow – At the start of the evacuation, Majors Stephen and Christine Perkins, Salvation Army officers serving as chaplains at Heathrow, joined a huge team at the airport in response to the crisis. 

Noticing there were many children arriving, the couple appealed to The Salvation Army’s nearby church in Staines who loaned them toys and games. Major Stephen said: ‘The children were very sombre and subdued, but they really came to life when we played and interacted with them. It was a very humbling experience and we felt privileged to play our part as Salvation Army chaplains. We were present for each of the days over 12 hours.’ 

Northampton – The Salvation Army worked with other organisations to support 155 refugees who arrived in the town in September 2021. They set up a distribution hub to meet the group’s immediate needs with clothing and other items. 

Other locations – Salvation Army volunteers from Ilford supported a donation centre at Redbridge Town Hall. Our churches in Watford, Stocksbridge, Ramsgate, Swindon, Feltham, Twickenham, Teddington, Hoxton and Crewe are among those who supported refugees arriving in their areas. 

## **Protecting Ukrainian refugees** 

As Salvation Army people and programmes in Ukraine, Russia, Poland, Romania, Moldova and other European countries responded with humanitarian aid, our network of modern slavery specialists also addressed the risk of refugees being exploited in the chaos of war. 

Galina Chetroi, Modern Slavery and Human Trafficking Response Consultant for The Salvation Army, said: ‘People were scared, anxious to protect their children and worried for their husbands, dads and brothers who were left back home. In all that, the last thing on their minds was human trafficking and that it could happen to them.’ 

We provided practical assistance and shared information (translated into Ukrainian) to alert those fleeing about their rights and risks. We also used our contacts to get women and children to a safe place. On top of this, we shared updates from the frontline with anti-trafficking networks. 

Major Kathy Betteridge, Director of Anti Trafficking and Modern Slavery for The Salvation Army in the UK and Ireland, said: ‘We must now do everything in our power to prevent new people becoming victims, especially as criminal networks are already well established in countries close to Ukraine such as Romania.’ 

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Inside Ukraine – shortly after the conflict began, a Salvation Army Major received a message that 22 babies had been born in the subways in Kyiv. More than 15,000 people, mainly women and children, had taken refuge there to escape the fighting. The Salvation Army provided nappies, hygiene products and formula for the mothers, some of whom gave birth prematurely because of the stress. We also provided emotional support for the women and their families as they sought refuge. 

Inside the UK – The Salvation Army welcomed the Government’s Homes for Ukraine scheme, which allowed Ukrainians fleeing war and destruction to come to the UK. 

## **Vaccines - share and share alike** 

The Salvation Army’s leader in the UK and Ireland joined global faith leaders calling for an end to vaccine hoarding by wealthy nations to ensure people in all corners of the world can be protected from Covid-19. 

In April 2021, Territorial Commander Commissioner Anthony Cotterill signed a statement, along with 144 other religious leaders, calling for the fair distribution of vaccine doses to low and middle-income countries. It also called for the production and distribution of vaccines to be ramped up to meet global demand. 

The religious leaders’ statement gathered by Christian Aid said: ‘If one part of the world is left to suffer the pandemic, all parts of the world will be put at ever-increasing risk. The access of people to lifesaving Covid-19 vaccines cannot be dependent on people’s wealth, status or nationality.’ 

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## **LOOKING FORWARD AS A MOVEMENT:** 

2021/2022 can be best described as a year of recovery, renewal and realignment. 

It was the year our churches opened up once again for in-person worship. This happened at differing paces across the UK, but there was an overriding sense of joy as we found new ways to worship under the differing restrictions. Being ‘back together’ was a wonderful feeling felt across our corps in the UK. However, the pandemic has meant changes to numbers. We are committed to maintaining and regrowing our church membership and our worshipping congregations. ‘Church’ is all about relationships, and moving into 2022/2023 we will continue to explore new ways of building active congregations and offering worship and the exploration of faith to as many groups as possible. As an example, we are committed to maintaining our investment in Core Recovery, aimed at offering a form of worship to people who have experienced homelessness and addictions. 

We will continue to serve our communities with commitment and conviction that this is what we need to do. At the time of writing, the cost-of-living crisis is biting hard and the practical programmes we run in towns and cities across the UK are needed more than ever, from community supermarkets to breakfast and after-school clubs, from baby banks and school clothing banks to food banks and ‘warm places’. We commit to providing the funding to allow our local centres to decide what they need to do and to release them to meet need, without discrimination or judgement. 

We will continue to invest in our grant to The Social Work Trust to add value to the local authority and government funding to allow us to give the best possible support to the service users we look after. 

We will continue our ongoing commitment to find ways to enable our corps and centres – our local mission delivery – to flourish. As part of this, we are committed to ongoing adaptation, change and the reallocation of the investment of funding and resource to ensure it is applied to where the outcomes will be greatest and most keenly needed. 

We will continue to invest in our digital presence to ensure we are building awareness and future support from the audiences we need to engage with. We commit also to help shape government policy and challenge policies in support of the people who are at the very heart of our mission. 

We are excited about the future, and we commit to challenge ourselves constantly at local level to ensure we are identifying the areas of community work and ministry that are needed and to which we can add the most value. Many people see us as the understanding and responsive heart of the community, and that is what we intend always to be – agile and responsive, wise and understanding, strong and principled, focused on enabling fullness of life for all, with Jesus. 

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## **MODERN SLAVERY AND ANTI HUMAN TRAFFICKING STATEMENT** 

As The Salvation Army in the United Kingdom and Ireland Territory, we hold a zerotolerance stance on acts of modern slavery and human trafficking and on any breach of our Ethical Policy and will not condone any such action by our contractors, suppliers or consultants. We take this issue very seriously and are committed to preventing acts of modern slavery and human trafficking from occurring within our supply chain. Our Procurement Ethical Policy is integral to all supplier contracts and sets out the overall standards surrounding human rights, child labour, discrimination, corruption, bribery or other financial impropriety, legal compliance and ethical conduct with which our suppliers must comply. 

A Supplier Ethical Declaration is referenced in the standard purchase terms and conditions of The Salvation Army, and compliance is a contractual requirement for all suppliers operating under these standard terms and conditions. In addition, all suppliers and contractors submitting tender responses must confirm their agreement and acceptance of the terms and conditions and sign the ethical declaration and apply these standards to their own supply chains. 

Our Procurement Unit continually reviews its supply base, examining suppliers in those areas that represent the highest risk of modern slavery, particularly in spend areas relating to temporary labour, cleaning, catering, linen, branded goods and building services. Where possible, trade and industry best practice standards are used as the benchmark and The Salvation Army has adopted the use of Constructionline for tendering and selecting building suppliers. 

Due to the importance of training and education in the fight against modern slavery, the Procurement Unit has partnered with Stronger Together to deliver training to members of its team on identifying potential victims of modern slavery. All members of the Procurement team complete the Chartered Institute of Purchasing and Supply ethical procurement assessment annually. 

The Procurement team holds regular Helping The Salvation Army Buy Better training seminars for stakeholders where ethical supply chain issues are covered. The Procurement team has also hosted a supplier conference with a specific focus on providing education on combating supply chain labour abuses. The commitment to ensuring ethical supply chain standards is also embedded in the recently adopted Salvation Army Fiscal Stewardship Principles and the Procurement Unit will be asked to report against these standards regularly. 

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## **OUR APPROACH TO FUNDRAISING** 

## **Context:** 

The Salvation Army Trust, which is the charity registration through which our church and community-based operations are run, relies very heavily on income generated by fundraising and the continued support of individuals through gifts in Wills to keep our diverse services alive and operating across the UK. 

We meet the constant challenge of raising these funds in different ways: 

- Local Salvation Army corps (churches) and community centres are expected to actively fundraise within their church membership and in their wider community to support their community programmes. 

- Salvation Army church members give generously as part of their personal commitment to God, to their corps and to the wider Salvation Army. 

- In addition, there is a centrally co-ordinated fundraising operation which manages the disciplines of national fundraising programmes and provides additional resources and support to corps-based fundraising, and provides support to members of the public who want to raise funds for The Salvation Army. Principal activities of this are commented on below. 

- We also actively but sensitively ask members and supporters to consider including The Salvation Army in their Will. 

Fundraising for the financial year 2021/2022 was influenced by the pandemic and the ways in which we responded are illustrated below. 

## **Relationship between The Salvation Army Trust and The Salvation Army Social Work Trust** 

Fundraising for The Salvation Army’s overall work across both its charitable trusts is carried out under the registration of The Salvation Army Trust and therefore fundraising activity, income and expenditure are accounted for in this Report. 

The Salvation Army Social Work Trust funds our centrally managed residential services for homeless and older people, as well as other centrally co-ordinated programmes such as our modern slavery services, Employment Plus service, and programmes for people with addictions and disabilities. Almost all government funding is accounted for in The Salvation Army Social Work Trust which has a separate charity registration and consequently a separate set of Report and Accounts which form a ‘sister’ publication to this. They are filed under charity registration number 215174 (England and Wales) and SCO37691 (Scotland). 

A proportion of fundraised income in The Salvation Army Trust is granted to The Salvation Army Social Work Trust each year as part of the planned budgeting process, in line with our objects. This grant helps to meet the cost of the additional support we offer to our service users, on top of government and local authority funding. Our fundraising appeals to the public feature the work of The Salvation Army across both trusts so there is absolute transparency that the funds donated go to support the work we illustrate in 

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public appeals. The Gift Aid collected on behalf of The Salvation Army Trust and The Salvation Army Social Work Trust is compliant with the HMRC requirements. 

## **Corps-based (church) giving and local fundraising:** 

The UK Salvation Army has 625 corps and community centres across the UK. Each corps or centre will develop programmes and services that are geared to meeting the needs of the people in the community, so there is huge diversity across the UK. Each local Salvation Army centre is expected to find ways to raise funds to support their local work as much as it can. This is achieved in several ways. 

**Church membership giving** totalled £16.6 million in the year ended 31 March 2022, an increase of £0.35m over 2021/2022. This may well be a result of more congregational worship resuming as pandemic restrictions eased. It is a substantial offering and this income from church members helps to sustain the local life of The Salvation Army as a church and meet as much of the operating overhead as it can. Despite the suspension of and restrictions on congregational worship because of Covid, members continued their giving in a spirit of generosity. 

In addition, **local fundraising by our corps (churches)** delivered approximately an additional £19m (public donations) which helps fund the practical support that is needed in the communities that The Salvation Army serves, examples of which are described in the narrative of this Report. Christmas carolling in town centres and street collecting are two of the familiar ways in which corps raise funds. The onset of coronavirus put a stop to most public fundraising, but many corps turned to digital ways of fundraising early in the pandemic and using tools such as JustGiving were able to continue to raise funds for local coronavirus impact relief work, such as food parcels. 

Salvation Army church membership also actively engage in two main annual fundraising drives: the **Self–Denial Appeal** and the **Big Collection** . 

The annual **Self-Denial Appeal** in February and March 2022 helps fund Salvation Army work in overseas territories. In 2022 the appeal raised £981k, a decrease of £259k compared to the 2021 appeal. This is likely due to membership numbers in corps still not returning to normal throughout 2021/22. 

The Salvation Army **Big Collection** is an annual public campaign in September, whereby church membership actively raises funds to support our Social Work Trust, supporting programmes for people experiencing homelessness, older people, and people needing help with addictions. Against a total of £733k raised in September 2020, in 2021 we raised a total of £503k. Whilst public fundraising could take place again, the pandemic and change in fundraising landscape resulted in a reduced amount of house-to-house collecting taking place. Despite this, income was still 69% of the previous year. 

## **National Fundraising:** 

Our centrally co-ordinated fundraising programme sensitively deploys many disciplines of fundraising in order to generate income for the work of The Salvation Army. Because the proportion of our donated income that derives from direct debits and regular giving schemes is small at around 10 per cent of cash donations, the donations and legacies that are received during the financial year are the ongoing lifeblood of our organisation. 

The funds raised from national fundraising programmes go directly in the form of grants and mission support funding to enable corps to work within their communities where there 

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are insufficient funds locally. Funds raised also help meet the cost of refurbishing our buildings and emergency repairs to ensure they are compliant and fit for the delivery of community programmes. Funds raised will also form the annual grant across to The Salvation Army Social Work Trust to provide additional services for our work with people who are homeless, older people and people with addictions. 

## **Appeals to the public:** 

In 2021/22 we saw incredible generosity. We received a total of £72.9m in donations from the public. As noted above, approximately £19.2m was raised locally by individual Salvation Army corps, and the remainder, approximately £53.7m, was secured by national and centrally co-ordinated fundraising activities, summarised below. Furthermore, we received a total of £66.3m in legacies. 

As the pandemic subsided and the country re-opened we were unsure how donations would be affected, but we were incredibly grateful that in difficult economic times supporters and the general public continued to give so generously. Total public and supporter donations in response to our national appeals programme for 2021/22 was £53.7m. This was a drop from the exceptional £66.9m raised during 20/21 but is significantly up on the £42m raised in 19/20. This total includes regular giving and Gift Aid income. 

All appeals to our supporters raised significantly more than expected, with many supporters choosing to donate online. The national Christmas appeal continued to be our most important fundraising moment raising £23.7m. Of this total, £14m came from our incredibly loyal and generous supporters, while almost £260k donations came from supporters who gave to us centrally for the first time. 

The Salvation Army would want to put on record here its sincere appreciation of the support that our donors and the public have given during a year of continual change. 

## **Legacies:** 

We are deeply grateful to those people who remember us in their Will with a bequest. This is a hugely important income stream in support of our work, and protecting and sensitively encouraging this income is an important task. 

We received a total of £66.3m (£57.4m in unrestricted legacies and £8.9m in restricted legacies) in legacies during 2021/22, an increase of £17.9m compared with legacy receipts in 2020/21. Tracking indicates that around 67 per cent of our legacies comes from our existing supporters, and approaching these supporters as well as the public with a sensitive suggestion to consider leaving a gift in their Will is an important part of protecting the future of this very important income pipeline. 

We took part in Free Wills Month in October 2021 and March 2022 which raised our visibility to the wider public, as did our first-ever legacy door-drop campaign. We also ran campaigns on Facebook throughout the year promoting our online free Will writing partnership with Bequeathed. In August we wrote to our supporters asking them to consider leaving us a gift in their Will which resulted in significant response. Enquiries continued to increase over the year, and we take a sensitive and a strong personal approach to enquiry handling and stewardship. 

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## **Grant-making trusts and foundations** : 

Grant-making foundations and charitable trusts provide a vital contribution to many of our projects. We would like to express our sincere gratitude for their support. During 2021/22, we received over £2.5 million from charitable trusts and foundations in support of more than 200 local Salvation Army projects across the UK and internationally. The grants have contributed to the running costs of vital support projects including community food stores, debt advice and employment services. 

As an example, with support from charitable trusts and foundations The Salvation Army in East Ham, London, has opened the first Salvation Army community food store. The store called Community Corner is a low-cost supermarket open every Tuesday and Wednesday, which is helping 30 families in the local area. Each week a household gives a £3 donation towards their food and household items, and can take 30 items that they choose themselves. The service we offer is friendly and holistic with most of the families also receiving additional support through other Salvation Army services such as debt advice, employment help and children’s groups. 

We are supporting families facing many issues, including those living in debt, survivors of domestic violence, people with mental health issues, refugee families and people who have no recourse to public funds. 

Grants have also contributed towards the costs of refurbishing or creating new centres and the salaries of project staff. As an example, funding from charitable trusts and foundations has supported the renovation of the ground floor and gardens of Ashbrook, a Victorian house in North Edinburgh bought by The Salvation Army in 1928. After it closed its doors as a Lifehouse over nine years ago, our generous supporters have helped us to breathe new life into the property and create a great resource for the local community. Ashbrook now offers a community, dementia-friendly café, training and catering facilities, a therapeutic garden and volunteering opportunities. 

## **Corporate giving:** 

2021/22 was a fruitful year for corporate fundraising. We received £10,000 from Pickfords last autumn in support of the Partnership Trophy – a football tournament for those who have experienced homelessness. We also received £10,000 from Alpha Labs and £66,000 over three years from Clearly Drinks to fund Employment Plus work in Sunderland. Howden’s Joinery also gifted £25,000 for work with homeless people, split among three of our drop-ins: Pottergate in Norwich; 10 Princes Street in London; and Niddry Street in Edinburgh. 

Furthermore we received a generous £100,000 from our new partner Newcross Healthcare to support our emergency response in Ukraine, coupled with a further £6,000 donated through their employee fundraising efforts. 

Christmas 2021 saw us complete our third year of partnership with The Entertainer for the Big Toy Appeal and reach nearly 75,000 toys donated. Finally, our Christmas Carol Concert provided an excellent opportunity to secure sponsorship from The Entertainer (£20,000), McLaren (£20,000) and Knox Cropper (£20,000). We wish to offer our grateful thanks for the generous support of all our corporate partners. 

**Other fundraising** :  We continued to develop relationships with people who wanted to ‘do something’ to raise funds for The Salvation Army, especially in support of our pandemic response. We explored ways of supporting corps with their locally-based fundraising and 

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we benefited from the increased contributions from individuals who participated in the Covid-adapted sporting challenges and individuals who fundraised in their own way in order to support us. Much of their contribution is channelled locally, but we would want their combined support to be recognised as it generates significant income. 

## **Our Fundraising Approach** 

The ethos of our approach is that fundraising activities must reflect our values and should be carried out in a manner that the public and our supporters and funders would expect of The Salvation Army – sensitive, courteous, sincere and genuine. 

We have an active fundraising presence in digital media and on our website and we regularly review our Privacy Notices and Privacy Statements to ensure we operate in compliance with GDPR. 

We do not use professional fundraising agencies such as outbound telemarketing agencies or face-to-face/street fundraising agencies to fundraise on our behalf. Our public, street and house-to-house cash-collection fundraising operations are normally carried out by members and volunteers drawn from and connected with our congregations. 

We do use a bureau to handle some inbound telephone donations in peak periods and to call back people who have texted us or otherwise contacted us in order to donate when we cannot handle such calls in-house by our own staff. This is usually only at Christmas when call volumes are high. Call handling is monitored, and we set high standards for the way callers are spoken to. 

The term ‘professional fundraiser’ also encompasses individuals who participate in some challenge and mass participation fundraising events. These relationships are managed centrally with due diligence as to clarity and transparency in terms of an agreement between The Salvation Army and the participant who is fundraising for us. Advice is provided regarding the correct solicitation statements that the fundraiser should use when asking for sponsorship or donations. 

## **Fundraising Standards** 

We subscribe by annual levy to the Fundraising Regulator and thereby work to the standards of the Code of Fundraising Practice. 

We are not aware of any failures to comply with the standards set by other regulatory bodies. We are members of the DMA – the Data and Marketing Association – and as members we are expected to uphold the highest levels of compliance and standards. We are corporate members of the Institute of Fundraising and fundraising managers are individual members. 

## **Fundraising on our behalf** 

Where people or organisations offer to fundraise on behalf of The Salvation Army, we aim to ensure that a contract or agreement is in place and that the relationship, performance and delivery are overseen either locally or centrally. 

## **Monitoring of Fundraising** 

During this year under review, we updated and strengthened our internal processes and policies to ensure we have the highest ethical standards in accepting donations. 

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Salvation Army officers and corps treasurers will monitor fundraising carried out locally by members of the local congregation and by volunteers. Any donation in excess of £5,000 from a single source or related sources is reviewed and assessed by headquarters in line with our donations acceptance policy. Centrally we have a briefing and monitoring programme to assess the performance of our telephone bureau handling inbound donation calls and to ensure the quality of the calls meets our standards for sensitivity and kindness. 

Trustees are briefed on the requirements of CC20 and how these requirements are being met as part of their duties in relation to fundraising. 

## **Complaints** 

In the financial year under review, The Salvation Army received 58 complaints about our fundraising compared with a total of 136 complaints in 2020/2021. 

There was an increase in the number of complaints between the 2019/2020 and 2020/2021 financial years (from 83 to 136) and we attributed this to the significant increase in our fundraising activities in 2020 to enable us to meet the increased demand for our services during the pandemic. It is encouraging to see that in the 2021/2022 financial year, the number of complaints we have received is lower than the two previous financial years. We always strive to fundraise respectfully, and we believe the relatively low number of complaints we receive each year reflects our sincere and sensitive approach to fundraising and how we communicate with our supporters and members of the public. 

Any complaints we receive are handled in accordance with our Complaints Policy, which is based on the recommended standards set by the Fundraising Regulator. Our Policy is accessible on our website: 

https://www.salvationarmy.org.uk/sites/default/files/resources/202005/Complaints%20document-2020.pdf 

## **Protecting People in Vulnerable Circumstances** 

Within our fundraising ethos, we take the protection of people in vulnerable circumstances very seriously. As a church and charity working locally and nationally with some of the most vulnerable and marginalised people in communities across the UK, and with a brand that is synonymous with kindness, sensitivity, sympathy, deep understanding and tolerance, we aim to fundraise in the most considerate ways we can and take appropriate action briskly when we are made aware of vulnerabilities. We have a specific Policy created in collaboration with our fundraising, supporter care and compliance teams to ensure we treat all our donors fairly, sensitively and respectfully. We provide dedicated training for our fundraising staff to ensure this Policy is understood and put into practice. Because we do not use external bodies or ‘professional fundraisers’ to fundraise on our behalf, we are very much in control of how fundraising appeals are carried out. 

Our supporters and the charitable giving public generally make an essential, vital contribution to the life and work of The Salvation Army. The relationship we have with our supporters is precious to us. Therefore, the intentional spirit of our fundraising is based on what we feel it is fair, ethical and appropriate to ask for. Our behavioural values of integrity, accountability, compassion and respect are not only at the heart of our mission as a church and charity but are also the driving forces for the way in which we fundraise. 

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## **REVIEWING FINANCES** 

The Accounts have been prepared in accordance with the Charities SORP and Financial Reporting Standard 102 (FRS 102). 

Our main sources of income are as follows: 

|Legacies<br>Donations from the public<br>Donations from members<br>Grants<br>Trading income<br>Investment income<br>Other income|**2022**<br>**2021**<br>**£m**<br>**£m**<br>66.3<br>48.4<br>72.9<br>79.9<br>16.7<br>16.3<br>4.8<br>16.5<br>95.1<br>58.6<br>4.5<br>2.8<br>21.8<br>15.5<br>|
|---|---|
||**282.0**<br>**238.0 **|



## **Voluntary income** 

Voluntary income (including legacies, donations and grants from trusts and foundations) represents 57% of our total income and we continue to be deeply and sincerely grateful to the individuals who have remembered us in their Wills, which is a crucially important, sustaining income stream. Donations from members represent the weekly or planned giving by soldiers and other members of The Salvation Army to their local Salvation Army corps (church). 

## **Trading income** 

Trading income comprises: 

- Corps trading activities, mainly charity shops (£10.4 million). Net trading income is £4.3 million, compared with net trading expenditure of £1.3 million in 2021. 

- Income of trading subsidiaries: The Salvation Army General Insurance Corporation (£21.1 million) and The Salvation Army Trading Company (£63.5 million). There has been an increase in net trading income to a surplus of £7.6m from a deficit of £9.0m: 

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Expenditure has increased from £199.2 million to £226.7 million. 

|Cost of raising donations and legacies<br>Cost of trading activities<br>**Total cost of raising funds**<br>Charitable activities:<br>Church and evangelism programmes<br>Community programmes<br>International programmes<br>Training programmes<br>Youth and young people’s programmes<br>Grant to Social Work Trust<br>**Total charitable activities**<br>Financing activities<br>**Total expenditure**|**2022**<br>**2021**<br>**£m**<br>**£m**<br>13.6<br>13.4<br>83.1<br>68.8<br>**96.7**<br>**82.3**<br>40.1<br>39.2<br>53.0<br>49.1<br>4.6<br>6.3<br>5.3<br>4.6<br>2.3<br>1.8<br>23.6<br>16.0<br> <br>**128.8**<br>**117.0 **<br>1.2<br>-<br>**226.7 **<br>**199.2 **|
|---|---|



## **Costs of raising donations and legacies** 

This represents the costs of our central Fundraising Department and the cost of our appeals and other costs associated with raising funds. 

## **Church and Evangelism Programmes** 

This represents Christian worship and the teaching and promotion of the Christian message at our corps, regionally and nationally. 

## **Community Programmes** 

Programmes organised by our corps to meet the needs of their local community are increasing in scale and diversity, and are described elsewhere in this Report. 

## **International Programmes** 

This represents grants to The Salvation Army International Trust, overseas projects funded by the UK Territory and the costs of the International Development Unit. 

## **Training Programmes** 

This represents the costs of William Booth College which trains people to become Salvation Army officers and runs education and learning programmes for employees and officers. 

## **Youth and Young People’s Programmes** 

This represents national programmes including The Salvation Army’s work with young people and young adults. 

## **Grant to The Salvation Army Social Work Trust** 

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This represents the financial support provided to our social programmes for those in need. This includes work with the homeless, older people, unemployed people and victims of human trafficking. 

Net income (2021: income), which includes gains on investments of £14.0 million (2020: £36.5 million gain), was £69.2 million (2020: £75.3 million income). 

Total funds as at the year end were as follows: 

|Endowment funds<br>Restricted funds:<br>Property fund<br>Corps funds<br>Legacy reserves<br>Trust funds<br>Specific donations<br>Unrestricted funds:<br>Non-charitable trading funds<br>Designated funds<br>General reserve<br>Total funds|**2022**<br>**2021**<br>**£m**<br>**£m**<br>**16.4 **<br>**17.6**|
|---|---|
||344.3<br>332.0<br>52.2<br>50.2<br>76.8<br>73.6<br>2.4<br>2.4<br>15.4<br>10.5|
||**491.2 **<br>**468.7 **|
||21.7<br>19.6<br>195.0<br>158.5<br>51.4<br>42.1|
||**268.1**<br>**220.2**|
|||
||**775.7 **<br>**706.5**|



## **Endowment Funds** 

The endowment funds are represented by investments in William Leech (Investments) Limited and in the Common Investment Funds and the movement is due to the overall decrease in market value of those investments. The capital value of the funds is retained but the income is applied to fund our work. 

## **Restricted Funds** 

The property fund represents property assets owned by The Salvation Army for operational purposes and hence is not available for expenditure. 

Corps funds represents funds generated by corps. These are restricted for use in their local area. 

Other restricted reserves represent funds given by donors for specific purposes. 

## **Unrestricted Funds** 

Non-charitable trading funds are profits retained in the subsidiary companies to provide working capital for their trading operations. 

Designated funds are set aside by the directors for specific purposes, principally the acquisition of officers’ quarters and major maintenance work on the property portfolio. Salvation Army officers (active and retired) are provided with accommodation. Funds have been set aside to enable the purchase of suitable properties as they are required. Funds 

47 



have also been set aside to fund the work required on corps properties as part of our continuing planned maintenance rolling five-year programme. Funds are also designated to finance new mission initiatives, contribute to Officers and Employees Pension Funds, fund Field Service Training and various approved standalone programmes. All designated reserves are reviewed annually for obsolescence with surpluses being transferred back to general reserves. 

## **RESERVES POLICY** 

Our reserves policy focuses on the level of general reserves. 

We rely on donations, legacies and grants to fund our activities. These can be uncertain and fluctuate from year to year. They represented 57 per cent of our total income for the year ended 31 March 2022. We need reserves to ensure that the operation of our church and community programmes can continue in the event of fluctuations in voluntary income and unexpected expenditure. We also want to be able to provide for the new and innovative opportunities that may appear to further the mission of The Salvation Army Trust. 

The reserves policy takes into account the risks faced in light of the current economic climate, and in that respect, the reserves policy will be reviewed by SATCo in the coming financial year. 

As at 31 March 2022 the charity had general reserves of £51.4 million which is just above the target range of £29.9m to 49.2m. As we face the current economic crisis with spiralling costs and high inflation, the Trust is in a good position to manage this crisis, maintaining its mission and support for the most vulnerable people in our society. 

Due to the high level of the general reserve, this enabled the Trust’s Board of Directors to make designations of £1.6m and £0.5m to a new ‘Innovation’ fund and to a corps recovery fund respectively. Further designations were made to existing funds, including £4m to bolster the funds available for urgent property works and £1m to fresh expressions of mission to continue these works. 

## **INVESTING FOR THE FUTURE** 

The charity holds its investments in The Salvation Army Common Investment Funds. These funds were set up under Schedule 2 of The Salvation Army Act 1980 to act as common investment schemes for certain Salvation Army Trusts. 

The Salvation Army Common Investment Fund (No 1) consists of permanent endowments which are restricted by the wishes of the donor. In most cases the income is to be used for restricted purposes. The Salvation Army Common Investment Fund (No 2) is operated for those Salvation Army Trusts without permanent endowments. Both funds are managed by The Salvation Army Trustee Company. Cazenove Capital Management manages CIF1 and 50 per cent of CIF2, whilst Sarasin & Partners LLP manage 50 per cent of CIF2. 

The funds are subject to The Salvation Army Act 1980 and the following guidelines: 

- the principal aim is to invest in a manner consistent with the promotion of the objects of The Salvation Army 

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- investments should be made on longer-term considerations rather than in the pursuit of short-term gains 

- investments may be held in stocks, shares, debentures and other securities quoted on a recognised stock exchange, in government, municipal and public utility stocks and in bank deposit accounts 

- investments may be made in collective investment schemes, including those holding real estate assets 

- no direct investment may be made in unquoted securities in the UK or overseas 

- there will be no investment in companies which derive a material amount  of their revenues (% indicated) from the following activities: 

   - the production of alcohol (5%) 

   - the sale, together with any production, of alcohol (10%) 

   - the production of tobacco (5%) 

   - 

   - the sale, together with any production, of tobacco (10%) 

- the manufacture of whole weapons, weapon platforms and weapon systems (no minimum limit) 

- the manufacture or sale of strategic parts for weapons systems (10%) 

- the business of gambling or providing access to such businesses (5%) 

- the production of adult entertainment services or providing access to such services (1%) 

- 

   - the publication or wholesale of pornographic magazines or newspapers (1%) 

- Investment managers are expected to exclude companies whose activities might reasonably be expected to increase poverty or act against the relief of poverty. The investment managers are required to monitor companies in the portfolios to ensure best practice in corporate governance, employment conditions and environmental sustainability. 

The Funds’ benchmark and ranges of distribution are as follows: 

|**Asset Class**|**Benchmark**|**Range**|
|---|---|---|
||**%**|**%**|
|Equities:|||
|Global|100|+/-10|
|Bonds|0|+10|
|Cash|0|+10|
||100||



The aims and objectives of the Common Investment Funds are as follows: 

## **CIF1** 

Fund strategy is: 

- to preserve the value of the fund, adjusted for real inflation 

- to maintain a steady annual income stream 

The performance objective of the Fund is to achieve an annual total return which exceeds the composite benchmark below by at least 1.25 per cent per annum, gross of fees, measured over rolling three-year periods, commencing 1 January 2011. 

49 



|**Asset Class**|**Performance Benchmark**|
|---|---|
|UK Equities|FTSE All-Share|
|Europe (ex-UK) Equities|FTSE All World Developed Europe (ex-UK)|
|Emerging Markets Equities|FTSE All World Emerging Markets|
|Asia Pacific Equities|FTSE All World Developed Asia Pacific|
|United StatesEquities|S&P500|
|Property|IPDUK Property|



## **CIF2** 

The Fund strategy is to aim for capital growth rather than income. The performance objective of the Fund, excluding cash and gilts under lien, is to achieve an annual total return which exceeds the composite benchmark below by at least 1.25 per cent per annum, gross of fees, measured over rolling three-year periods commencing 1 January 2011. 

|**Asset Class**|**Performance Benchmark**|
|---|---|
|UK Equities|FTSE All-Share|
|Europe (ex-UK)Equities|FTSE All WorldDevelopedEurope (ex-UK)|
|Emerging Markets Equities|FTSE All World Emerging Markets|
|Asia Pacific Equities|FTSE All World Developed Asia Pacific|
|United States Equities|S&P 500|
|Property|IPDUK Property|
|Cashand gilts underlien|FTSEGilts under5 years|



Performance for the year compared to the benchmark was as follows: 

||**CIF1**|**CIF2**|
|---|---|---|
||**%**|**%**|
|Annual total return (gross of fees)|5.3|6.1|
|Benchmark return|13.6|13.6|



For the year to 31 March 2022 CIF 1 and CIF 2 underperformed compared to global market benchmark. The performance is being monitored on a regular basis through discussions with the respective investment fund managers. 

50 



In absolute terms the performance of the Common Investment Funds for the year was as follows: 

||**CIF1**|**CIF1**|**CIF1**|**CIF2**|**CIF2**|**CIF2**|
|---|---|---|---|---|---|---|
||**2022**|**2021**|**2020**|**2022**|**2021**|**2020**|
||**%**|**%**|**%**|**%**|**%**|**%**|
|(Decrease)/Increase in capital<br>value of fund|6.8|22.3|-9.3|17.1|25.5|-8.4|
|Averagenetincomereturn|0.4|0.5|1.7|0.7|0.8|2.1|



51 



## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The United Kingdom and Ireland Territory is under the command of a Territorial Commander, appointed by The General and responsible to him/her for the day-to-day administration of Salvation Army work throughout the British Isles, including the Channel Islands, the Isle of Man and the Republic of Ireland. 

The Salvation Army’s assets in the United Kingdom are held by The Salvation Army Trustee Company (SATCo), a company limited by guarantee, registered in England (No 00259322) with its registered office at 101 Newington Causeway, London SE1 6BN. The governing document of The Salvation Army Trust is The Salvation Army Act 1980, as amended. Under Section 12(1)(a) SATCo is appointed as the sole ordinary trustee of the trusts listed in Schedule 5 to that Act. 

The two main trusts under which The Salvation Army operates in the United Kingdom are: 

- The Salvation Army Trust, whose accounts are contained in this Report; and 

- The Salvation Army Social Work Trust, Charity Registration No 215174 in England and SC037691 in Scotland. 

## **Connected Trusts** 

SATCo is the trustee of a number of connected charitable trusts which are concerned with specific aspects of the Army’s work. 

## The Salvation Army Social Work Trust 

Governing instrument: Deed Poll dated 30 January 1891 and a supplementary deed dated 26 March 1969. Charity registration No 215174 in England and SC037691 in Scotland. 

The objects of The Salvation Army Social Work Trust are to promote the charitable work of The Salvation Army, as SATCo shall think fit, in one or more of the following ways: 

- the relief of poverty, sickness, suffering, distress, incapacity or old age 

- the advancement of education 

- training in Christian and moral principles 

- the assistance of those in need of protection 

## William Booth Memorial Trust 

Governing instrument: Trust Deed dated 19 September 1921. Charity registration No 312882. 

The purpose of this trust is the establishment, maintenance and operation of a college for the instruction and training of men and women for service as officers of The Salvation Army and others involved with or interested in the mission of The Salvation Army. 

52 



## **RISK MANAGEMENT** 

The Salvation Army identifies, assesses and manages risks that could impact its activities so it can better achieve its objectives, comply with relevant laws and regulations and safeguard its funds and assets. 

The Board (SATCo) has ultimate responsibility for overseeing risk management, in accordance with Charity Commission guidance (CC26). The Risk Management Committee (RMC) directs an enterprise-wide risk management programme to inform decision making and ensure effective procedures to identify and evaluate risks and implement effective controls. 

The RMC considers the most recent developments in the most significant risks, while also prioritising broader developments to The Salvation Army’s approach to risk management. The current three-year plan promotes a deepening appreciation of the complexities of risk management within a wide-ranging structure, the importance of metrics to inform risk management and the implications of macro and global risks that may have consequences for the organisation. 

Risk management operates through a top-down review by the RMC and bottom-up review by individual functions, enabling the identification and prioritisation of key and emerging risks. This enables site and service-specific concerns to be identified and managed, whilst retaining high-level oversight and assurance of the most significant risks facing the organisation. The RMC reports to the Board at least twice yearly on key risks. Through this risk management process the trustees have considered the major risks facing the organisation and satisfied themselves that controls are established to manage them. 

Unfortunately the nature of our work means that despite the steps we take, serious incidents can still arise, and we continue to place the utmost importance on reporting these to our regulators. 

The following table outlines the most significant risks for the reporting period, taking account of their impact and likelihood, and the mitigations in place to manage them. 

## **Principal risks** 

The Salvation Army’s work is diverse, geographically spread across a broad range of settings and has a variety of beneficiaries. The risk landscape is therefore varied, and controls are deployed appropriately at different levels of the organisation. The following outline indicates the most significant risks to The Salvation Army in the reporting period, and some of the strategic level mitigations we have in place. 

|**Principal Risks**|**Mitigation**|
|---|---|
|Business Continuity - There is a risk that the<br>occurrence of a significant incident where,<br>during and after the incident, The Salvation<br>Army will not be able to continue to be viable<br>and meet stakeholder expectations.|Business continuity policies and procedures,<br>including the application of ISO27001 for some<br>parts of the organisation, prepare us for<br>management of interruptions.|



53 



Cyber - The risk is that we fail to protect our information systems and the information they hold. 

Data Protection - The risk that we fail to protect sensitive and personal data. 

Financial Sustainability - The risk that there is insufficient revenue income from donations and reserves to support our operating model resulting in the failure of The Salvation Army to thrive in a rapidly changing environment. 

Healthy Corps and Centres - There is a risk that a variety of factors prohibit flourishing of our churches and centres. 

Safeguarding - The risk is that we fail to provide a safe environment, free from abuse, for everyone, including vulnerable beneficiaries. 

Safe Mission – The risk is that we are not able to ensure the health, safety and welfare of personnel, service users and members of the public who are affected by our activities, including in a Covid-impacted environment. 

We deploy multiple measures to protect our systems and the information they hold. We work within an information security international standard (ISO27001) and build on lessons from our internal and external audits in this area. The Salvation Army United Kingdom and Ireland Territory experienced an IT incident in June of 2021. The impact on the work of The Salvation Army Trust was contained with temporary operational adjustments allowing the Trust to continue business as normal. 

As well as our data protection / GDPR policies and training, we take steps to ensure that personal data is treated properly through appropriate security measures, staff training, the use of data protection impact assessments and contractual requirements with organisations we work with who process our personal data. 

We continue to monitor the funding situation and adjust our financial planning and commitments accordingly to ensure we are financially resilient. 

We seek to understand how our corps (churches) and centres can thrive in a wider environment of falling church attendance. We are taking steps to establish and measure factors that contribute to healthy mission and provide close support to our corps officers in their daily work. 

We continue to maintain clear policies and procedures in relation to safeguarding and ensure the appropriate screening, training and supervision of personnel. A subcommittee of RMC – the Territorial Safeguarding Committee - oversees management of the risk. Comprehensive policies, procedures and guidance are in place, alongside a supervisory control framework. Two RMC subcommittees – the Safe Mission Council and the Sudden Deaths Review Group – inform the management of this risk. 

54 



## **SUBSIDIARY AND ASSOCIATED COMPANIES** 

The following companies are beneficially owned by The Salvation Army Trust (percentage held) and donate all or part of their profits to The Salvation Army Trust: 

   1. The Salvation Army Trading Company Limited (SATCoL) (100%) 

   2. The Salvation Army General Insurance Corporation Limited (SAGIC) (100%) 

3. **SATCoL** is a wholly owned subsidiary of The Salvation Army Trust. Its main activity is the collection and sale of second-hand clothes donated by the public through both wholesale and retail activities in its 230 charity shops and donation centres. SATCoL also supplies Salvation Army publications, uniforms and other related materials. 

4. **SAGIC** is a wholly owned subsidiary of The Salvation Army Trust and was formed in 1909. Its principal activity is transacting property insurance in the United Kingdom. SAGIC also provides home and contents insurance to officers, members and supporters of The Salvation Army as well as to the general public, either directly or through its broker network. 

## **Connected Company** 

The Salvation Army Trust holds 20 per cent of the shares in William Leech (Investments) Limited. 

55 



## **RECRUITMENT AND APPOINTMENT OF DIRECTORS (TRUSTEES)** 

There are 15 directors, 10 by virtue of their appointments within The Salvation Army. One director is a divisional leader responsible for one of The Salvation Army’s 22 divisions. 

Each non-executive director brings expertise in a relevant field – property, finance, fundraising/marketing, investments or social services. The appointment of non-executive directors is made by The General on the recommendation of the Nominations Committee. 

## **Training and Induction of Directors** 

The Company Secretary briefs new directors on their legal responsibilities and familiarises them with the Company’s governance folder (and previous Board minutes). This includes the articles of association of SATCo, the Charity Commission’s essential trustee guidance, and other key documents and policies (including the Conflicts of Interest Policy). The Company Secretary regularly delivers a written governance update on relevant issues at board meetings. Directors are also informed of and provided with the opportunity to attend several training sessions throughout the year. 

## **Organisational Structure and Decision Making** 

SATCo’s board (‘the Board’) is assisted by an Audit Committee, a Nominations Committee, an Investment Advisory Committee and a Risk Management Committee. The Audit Committee comprises a non-executive director chair and three independent members with a remit to review The Salvation Army’s internal and external audit arrangements and consider reports issued by internal and external auditors including the annual financial statements. The role of the Nominations Committee is to recommend new non-executive Board members. The Investment Advisory Committee includes three external advisers in its membership and advises on appropriate investments. The Risk Management Committee is referred to below under Risk Management. 

The Board met bi-monthly, with some additional meetings scheduled as required in this reporting year. In addition to its oversight and governance role, the following matters require consideration and approval by the Board: 

- annual budget 

- individual items of expenditure of £5 million and above 

- investment policy, on the recommendation of the Investment Advisory Committee 

- Risk Register 

- Key policies 

- Annual Financial Statements 

The Board has delegated day-to-day operational matters to the Territorial Operations Board, under the leadership of the Chief Secretary. 

During the 2019/20 financial year, the Internal Audit Department reviewed SATCo’s performance against the Charity Governance Code for larger charities. The review identified a number of areas in which SATCo was performing well and other areas for development. Another assessment has been requested by the Chairman of SATCo to take place in the 2023/24 financial year. 

56 



## **Directors’ Responsibilities** 

The directors of SATCo are required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of The Salvation Army Trust, and of the income and expenditure for that period. In preparing the financial statements, the directors are required to: 

- select and consistently apply suitable accounting policies 

- make judgements and estimates that are reasonable and prudent 

- state whether applicable accounting standards have been followed 

- observe the principles of the Charity SORP 

- prepare the financial statements on a going concern basis unless it is inappropriate to presume that The Salvation Army Trust will continue to operate 

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of The Salvation Army Trust and are required to ensure the financial statements comply with The Salvation Army Act 1980, the Charities Act 2011 and The Charities and Trustees Investment (Scotland) Act 2005. They are also responsible for safeguarding the Trust’s assets, taking reasonable steps to prevent and detect fraud and other irregularities. 

The directors confirm they have regard to the Charity Commission’s guidance on public benefit that is relevant to The Salvation Army Trust. 

## **Remuneration of Key Management** 

Key management personnel of The Salvation Army comprise Salvation Army officers and employees. Salvation Army officers do not receive a salary; they receive an allowance based on length of service and seniority of position, and as ministers of religion are provided with furnished accommodation and a motor vehicle. The allowances received by officers in positions of key management range from £17,684.18 to £24,628.20 per annum. 

For employees, we are committed to ensuring a proper balance between paying salaries which will enable us to attract and retain staff of the appropriate calibre and careful stewardship of charitable funds. All senior salaries are benchmarked against senior staff salaries of comparable organisations in the not-for-profit sector. 

Further information is disclosed in Notes 11 and 12 to the Accounts. 

**On behalf of the Directors of The Salvation Army Trustee Company 18 November 2022** 

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## **DIRECTORS** 

The current directors of The Salvation Army Trustee Company and those who held office during the year are as follows: 

Commissioner Anthony Cotterill Chair Colonel Paul Main Deputy Chair Colonel Jenine Main Lieut-Colonel Alan Read Managing Director Lieut-Colonel Andrew McCombe Lieut-Colonel Beverley McCombe Lieut-Colonel Dean Pallant Lieut-Colonel Judith Payne Major Noreen Batt Major Judith Hilditch Helen O’Brien Philip Edwards (appointed 09.09.22) Mark Puller Peter Gale Graham Roper (until 19.09.21) Andrew Stickland 

The Chief Secretary, Colonel Paul Main, is responsible for the day-to-day management of the charity. 

## Committee Members (current) 

## _Territorial Operations Board_ 

Colonel Paul Main (Chair), Commissioner Gillian Cotterill, Major Jane Cowell, Tony Daniels, Major Mal Davies, Miguel Fiallos, Peter Grant, Major Judith Hilditch, Major Paul Kingscott, Major Mike Lloyd-Jones, Mitch Menagh, Alex O’Hara, Major Julian Watchorn, Major Richard Waters, Julius Wolff-Ingham 

_Audit Committee_ 

Andrew Stickland (Chair), Stephen Bright, Hannah Greenfield, Mike Grills _Investment Advisory Committee_ 

Peter Gale (Chair), Mark Colton, William Dalziel, Major Judith Hilditch, Mary Haly, Major Beverly Lloyd, Lieut-Colonel Alan Read, Philip Rotherham, Daniel Wills _Nominations Committee_ 

Peter Gale, Colonel Paul Main, Lieut-Colonel Alan Read, Elliot Thomas _Risk Management Committee_ 

Helen O’Brien (Chair), Major Kerry Coke, Lieut-Colonel Andrew McCombe, LieutColonel Beverley McCombe, Lieut-Colonel Dean Pallant, Lieut-Colonel Alan Read, Elliot Thomas, Daniel Wills, Major Julian Watchorn, Julius Wolff-Ingham 

## Company Secretary 

Elliot Thomas is Company Secretary of The Salvation Army Trustee Company. 

58 



## **ADVISERS** 

## **Bankers** 

Reliance Bank Limited, Faith House, 23/24 Lovat Lane, London EC3R 8EB 

## **Auditors** 

Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London EC3A 2AD 

## **Solicitors** 

England and Wales: Slaughter and May, 1 Bunhill Row, London EC1Y 8YY Scotland: Blackadders, 5 Rutland Square, Edinburgh EH1 2AX 

## **Investment Advisers** 

BWCI Consulting Limited, PO Box 68, Albert House, South Esplanade, St Peter Port, Guernsey GY1 3BY 

## **Investment Managers** 

Cazenove Capital Management, 12 Moorgate, London EC2R 6DA Sarasin & Partners LLP, Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU Legal & General Investment Ltd, One Coleman Street, London, EC2R 5AA 

59 



## **INDEPENDENT AUDITOR’S REPORT TO THE SALVATION ARMY TRUSTEE COMPANY, THE MANAGING TRUSTEE** 

## **Opinion** 

We have audited the consolidated financial statements of The Salvation Army Trust for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Statement of Cash Flows and the related notes. 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). 

In our opinion the financial statements: 

(a) give a true and fair view of the state of The Salvation Army Trust and parent charity’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, for the year then ended; 

(b) have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’; and 

(c) have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustees Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 

## **Basis for opinion** 

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 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. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustee’s 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 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 trustee 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 trustee is responsible for the other information. 

60 



Our opinion on the financial statements does not cover the other information and 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** 

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

- the information given in the Trustee’s Annual Report is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

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

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustee** 

As explained more fully in the trustee’s responsibilities statement, the trustee is 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 trustee determines 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 trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144(1) of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

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

61 



Irregularities, including fraud, are instances of non-compliance 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 charity is required to comply with charity law and, based on our knowledge of its activities, we identified that the legal requirement to comply with charity law including accurately accounting for restricted funds was of key significance. 

- We gained an understanding of how the charity complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures and controls. 

- The audit team, which is experienced in the audit of charities, considered the charity’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override. 

- Our approach was to check for compliance with charity law and tax legislation applicable for charities and to ensure that all restricted income was properly identified and separately accounted for. This included reviewing journal adjustments and unusual transactions. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorseresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 the charity’s trustees as a body, for our audit work, for this report or for the opinions we have formed. 

65 Leadenhall Street London EC3A 2AD 

Knox Cropper LLP Chartered Accountants Registered Auditors 

18 November 2022 

Knox Cropper 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 MARCH 2022 

|**Notes**<br>**INCOME AND ENDOWMENTS**<br>**FROM**<br>**Donations, Legacies and**<br>**Grants**<br>Legacies<br>Donations – Public<br>Donations – Members<br>2<br>Grants<br>3<br>**Trading Activities**<br>4<br>**Investments**<br>5<br>**Other**<br>Gain on property disposal<br>Other income<br>**Total Income**<br>**EXPENDITURE**<br>**Raising Funds**<br>Costs of raising donations,<br>legacies and grants<br>Costs of trading activities<br>4<br>**Charitable Activities**<br>7<br>Church and Evangelism<br>Programmes<br>Community Programmes<br>International Programmes<br>Training Programmes<br>Youth and Young People’s<br>Programmes<br>Grant to The Salvation Army<br>Social Work Trust<br>Financing Costs<br>17<br>**Total Expenditure**<br>Gains/(Losses) on Investments<br>16(a)<br>**Net Income/(Expenditure)**<br>Transfer between funds<br>21/22<br>**NET MOVEMENT IN FUNDS**<br>Fund balances brought forward<br>Fund balances carried forward at<br>31 March 2022|**2022**<br>**2021**<br>**Endowment Restricted Unrestricted**<br>**Total**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>-<br>8,924<br>57,354<br>**66,278**<br>48,386<br>-<br>11,427<br>61,522<br>**72,949**<br>79,903<br>-<br>16,485<br>132<br>**16,617**<br>16,266<br>231<br>3,970<br>558<br>**4,759**<br>16,480<br>-<br>10,442<br>84,657<br>**95,099**<br>58,561<br>-<br>2,133<br>1,311<br>**3,444**<br>2,846<br>-<br>4,826<br>15,991<br>**20,817**<br>14,130<br>-<br>1,806<br>185<br>**1,991**<br>1,441|
|---|---|
||**231 **<br>**60,013**<br>**221,710 281,954 **<br>**238,013**|
||-<br>68<br>13,544<br>**13,612**<br>13,422<br>-<br>6,101<br>77,020<br>**83,121**<br>68,842|
||**-**<br>**6,169**<br>**90,564 **<br>**96,733**<br>82,264|
||-<br>20,509<br>19,624<br>40,133<br>39,160<br>-<br>31,021<br>21,984<br>53,005<br>49,088<br>-<br>1,338<br>3,213<br>4,551<br>6,276<br>-<br>3<br>5,267<br>5,270<br>4,613<br>-<br>-<br>2,337<br>2,337<br>1,822<br>-<br>-<br>23,547<br>23,547<br>16,000|
||-<br>52,871<br>75,972<br>128,843<br>116,959|
||-<br>-<br>1,169<br>1,169<br>-|
||-<br>-<br>1,169<br>1,169<br>-|
|||
||-<br>**59,040**<br>**167,705 226,745**<br>**199,223**|
||(1,438)<br>219<br>15,205<br>13,986<br>36,531|
||(1,207)<br>1,192<br>69,210<br>69,195<br>75,321|
||-<br>21,320<br>(21,320)<br>-<br>-|
||(1,207)<br>22,512<br>47,890<br>69,195<br>75,321|
||17,552<br>468,708<br>220,221<br>706,481<br>631,160|
||**16,345**<br>**491,220**<br>**268,111** **775,676**<br>**706,481**|



All activities reported above, in both the current and preceding years, reflect ongoing activities. The annexed notes form part of these financial statements. 

63 



## **CONSOLIDATED BALANCE SHEET** 

AS AT 31 MARCH 2022 

|Notes<br>**FIXED ASSETS**<br>Intangible Fixed Assets<br>13<br>Tangible Fixed Assets<br>Properties<br>14<br>Property Schemes in Progress<br>14<br>Motor Vehicles and Equipment<br>15<br>Investments<br>16<br>**CURRENT ASSETS**<br>Short-Term Deposits<br>Stock<br>Debtors<br>17<br>Bank Balances and Cash<br>**CREDITORS: amounts falling due within one year**<br>18<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**CREDITORS: amounts falling due after one year**<br>19<br>**TOTAL NET ASSETS**<br>**FUNDS**<br>Endowment Funds<br>20<br>Restricted Funds<br>Property Fund<br>21<br>Other Restricted Funds<br>22<br>Unrestricted Funds<br>23<br>**TOTAL FUNDS**<br>24|**Consolidated**<br>**Trust**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>312<br>1,608<br>-<br>-<br>309,613<br>313,216<br>303,817<br>308,305<br>39,373<br>24,660<br>39,373<br>24,660<br>9,955<br>8,544<br>2,220<br>1,866<br>249,739<br>205,283<br>252,723<br>208,185|
|---|---|
||608,992<br>553,311<br>598,133<br>543,016|
||72,128<br>62,029<br>72,128<br>62,029<br>2,134<br>2,444<br>204<br>211<br>60,354<br>49,733<br>48,258<br>38,482<br>76,613<br>73,174<br>58,805<br>59,507|
||211,229<br>187,380<br>179,395<br>160,229<br>(44,084)<br>(33,700)<br>(23,105)<br>(15,878)|
||167,145<br>153,680<br>156,290<br>144,351|
||776,137<br>706,991<br>754,423<br>687,367<br>(461)<br>(510)<br>(461)<br>(510)|
||**775,676**<br>**706,481 **<br>**753,962 **<br>**686,857 **|
||16,345<br>17,552<br>16,345<br>17,552<br>344,331<br>332,060<br>344,331<br>332,060<br>146,889<br>136,648<br>146,889<br>136,648<br>268,111<br>220,221<br>246,397<br>200,597|
||**775,676**<br>**706,481**<br>**753,962**<br>**686,857**|



Approved on behalf of The Salvation Army Trustee Company on 18 November 2022. 

The annexed notes form part of these financial statements. 

**_______________________________ ______________________________ Lieut–Colonel Alan Read Major Judith Hilditch Director Director** 

64 



## **CONSOLIDATED STATEMENT OF CASH FLOWS** 

FOR THE YEAR ENDED 31 MARCH 2022 

|**NET CASH OUTFLOW FROM OPERATING ACTIVITIES**<br>**NET CASH INFLOW/(OUTFLOW) FROM INVESTING**<br>**ACTIVITIES**<br>Additions to Properties<br>Net Additions to Property Schemes in Progress<br>Proceeds on disposal of Properties<br>Additions to Motor Vehicles and Equipment<br>Proceeds on disposal of Motor Vehicles and Equipment<br>Additions to Investments<br>Proceeds from disposal of Investments<br>Investment Income<br>Management of short-term deposits<br>**NET CASH (OUTFLOW) FROM FINANCING ACTIVITIES**<br>Loan Repayments<br>**Increase/(Decrease) in Cash and Cash Equivalents**<br>Cash and Cash Equivalents at beginning of year<br>Cash and Cash Equivalents at end of year<br>**ANALYSIS OF CHANGES IN NET DEBT**<br>Cash at Bank<br>Loans falling due within one year<br>Loans falling due after more than one year|Notes<br>28<br>**Balance**<br>**1 April**<br>**2021**<br>**Cash-**<br>**Flows**<br>**£000**<br>**£000**<br>73,174<br>3,439<br>(49)<br>-<br>(510)<br>-|**2022**<br>**2021**<br>**£000**<br>**£000**<br>38,005<br>28,520|
|---|---|---|
|||(8,617)<br>(15,384)<br>(16,680)<br>(5,169)<br>30,558<br>19,744<br>(3,706)<br>(1,918)<br>9<br>1,296<br>(30,474)<br>(1,496)<br>4<br>1,288<br>4,491<br>2,846<br>(10,099)<br>7,273|
|||(34,514)<br>8,480|
|||(52)<br>(57)|
|||3,439<br>36,943|
|||73,174<br>36,231|
|||76,613<br>73,174|
|||**Loan**<br>**Repayments**<br>**Balance**<br>**31 March**<br>**2022**<br>**£000**<br>**£000**<br>-<br>76,613<br>3<br>(46)<br>49<br>(461)|
||72,615<br>3,439|52<br>76,106|



65 



**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2022 

## **1. ACCOUNTING POLICIES** 

The principal accounting policies adopted in the preparation of the financial statements and which have been consistently applied are set out as follows: 

## (a) **Basis of Accounting** 

The financial statements have been prepared under the historical cost convention, subject to the inclusion of investments at market value and donated properties at valuation on acquisition, and are in accordance with the Charities SORP (FRS 102) (second edition – October 2019), Financial Reporting Standard 102, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the regulations issued thereunder. 

The Salvation Army Trust is a public benefit entity as defined by FRS 102. 

Through careful stewardship, monitoring of budgets and reforecasting, The Salvation Army Trust has returned a surplus at the Year End 31 March 2022. 

As the activities and services of The Salvation Army Trust have slowly returned to a new ‘norm’ there has been continued reduced expenditure, while income from our Trading Company almost returned to pre-pandemic levels and our fundraising endeavours have continued to perform well. After designations for urgent property works and new innovations, the general reserve balance of £51.4m is just above the target reserves policy range. However, given the current economic uncertainty this provides a buffer to manage through the impact of the war in Ukraine, rising inflation and escalating energy costs, as well as providing real living salaries to our employees. The general reserve levels are continually monitored and the reserves policy will be reviewed by SATCo in financial year 2022/23. 

On the basis of the above, the trustee has concluded that there is no material uncertainty about the Trust’s ability to meet its debts as they fall due for at least 12 months following approval of the financial statements and therefore continues to adopt the going concern basis in preparing its financial statements. 

## (b) **Consolidation** 

The financial statements aggregate the results of the corps which, for the purposes of compliance with the Statement of Recommended Practice, are considered to be branches, and the results of the subsidiary companies, and of the subsidiary trust (William Booth Memorial Trust). 

## (c) **Key judgements and estimates used in preparing these financial statements** 

## (i) **Financial instrument classification** 

The classification of financial instruments as ‘basic’ or ‘other’ requires judgement as to whether all applicable conditions are met. This includes a review of the form of the instrument and its return. All financial instruments, including loans, are currently classified as ‘basic’. 

## (ii) **Capitalisation of property improvement and development** 

Property improvement and development schemes are reviewed to ascertain whether expenditure should be capitalised or charged to the Statement of Financial Activities. Expenditure which enhances the social use of the property or improves its economic return is capitalised. Expenditure which repairs a property and brings it back to its original condition is written off. 

## (iii) **Useful lives of properties and other fixed assets** 

The useful lives of properties and other fixed assets are reviewed at each reporting date and depreciation rates for asset categories adjusted accordingly if required. 

## (iv) **Pension obligations** 

The provision for contributions payable in respect of past service deficits on the Trust’s defined benefit pension scheme is calculated by the appointed actuary taking into account assumptions relating to the discount rate, inflation and increases in salaries and allowances. 

(v) **Identification and valuation of investment properties** The Group’s property portfolio is reviewed annually to identify investment properties, which are those properties held to earn income or for capital appreciation rather than to be used for its charitable purposes. 

66 



Properties no longer used for charitable purposes but retained until market conditions allow their disposal are not treated as investment properties, provided disposal is intended within a reasonable time scale. 

After initial recognition, investment property is measured at its fair value based either on valuation by The Salvation Army Property Department or by an independent valuer. In either case the valuer will hold a recognised and relevant professional qualification. The property will be valued at each subsequent reporting date. 

## (d) **Income** 

- (i) Donations, Legacies and Grants – Donations, including the gross equivalent of those under Gift Aid, legacies and grants are brought into account when the Trust is entitled to the income, receipt is probable and the amount receivable can be measured reliably. 

- (ii) Investment Income – Dividends and interest are brought into account gross in the year they are due. 

- (iii) Profits and losses on disposal of assets are reflected in the Statement of Financial Activities in the year of disposal. 

- (iv) Trading Income – Trading income is recognised at the point of sale for retail sales and at the time of distribution for wholesale unsorted clothing. Trading income also includes insurance income and Gift Aid. 

- (v) Funds raised by local corps, including trading income, are deemed to be restricted for use in the local area, as the expectation of local donors is for monies to be used to fund local communities. 

## (e) **Expenditure** 

Expenditure is charged on the accruals basis. 

- (i) Irrecoverable Value Added Tax is charged to the related expenditure. 

## (ii) Expenditure 

- Costs of raising donations, legacies and grants consist of direct campaign appeal expenses and the running costs of the Fundraising Department. 

- Cost of trading activities consists of cost of sales, distribution and operational costs. 

- Charitable Activities consists of all expenditure relating to the objects of the charity including the costs of supporting charitable activities and projects. 

Support costs, including governance, have been apportioned to each category of expenditure based on the number of officers and employees involved in each area or on an estimate of the time spent by officers and employees on particular activities. 

- (iii) The non-capital element of property schemes is written off in the year of completion, and a provision is made annually for schemes in progress. The capital element of such schemes not completed at the year end is carried forward in the Balance Sheet under the heading of Property Schemes in Progress and is accounted for as a fixed asset. 

- (iv) Retired Officers’ Allowance Fund – This is a multi-employer charitable fund which operates in a similar way to a defined benefit pension fund. The assets and constructive liabilities cannot be separately identified and therefore the amount charged in the Statement of Financial Activities represents the contribution payable during the year in respect of current service and the total contributions payable (or movement in provision thereof) in respect of past service. 

- (v) Employees’ Pension Fund – This is a multi-employer pension fund where the assets and liabilities cannot be separately identified and therefore the amount charged in the Statement of Financial Activities represents the contribution payable during the year in respect of current service and the total contributions payable (or movement in provision thereof) in respect of past service. The actuarial valuation is done on a three-year cycle and each year we designate an amount of money to meet the deficit at the end of the cycle. 

## (f) **Fixed Assets** 

- (i) Expenditure on the acquisition or improvement of property is reflected as a fixed asset, whereas costs of repairs and renewals to property are charged to the Statement of Financial Activities. 

67 



- (ii) Expenditure on the acquisition of vehicles is capitalised and expenditure on computer equipment and other office equipment which exceeds £15,000 in value (individually or for groups of related assets) is capitalised and depreciated over its economic life. 

- (iii) In accordance with FRS 102 component accounting has been adopted for Freehold and Long Leasehold properties. A property comprises of major components with substantially different useful lives. Depreciation is charged on major components so as to write off the cost of the components to their residual values, over their estimated useful lives, using the straight-line method, as follows 

Freehold Land Not depreciated Property Schemes In Progress Not depreciated Building – Main Fabric (structure) 50 years Major Components Roof structure and covering 50 years Bathrooms and WCs 20 years Lifts 25 years Mechanical and Electrical Systems 25 years Windows and External Doors 25 years Kitchens 20 years Short leasehold properties are depreciated over the term of the lease. 

- (iv) Depreciation is provided on other tangible fixed assets at the following rates: 

Motor Vehicles - 25% pa on cost Office Equipment - 25% pa on cost 

- (v) Goodwill arising on acquisition is amortised on a straight-line basis over the estimated useful life which has been estimated to be 10 years. 

## (g) **Investments** 

To comply with the Statement of Recommended Practice investments are included at market value (bid price). Unlisted investments are valued at the share of underlying net assets which equates to fair value. Investment properties have been valued by an internal property surveyor. Residential investment properties have been valued by reference to recent sales of similar properties in the area. Commercial investment properties have been valued by reference to their current rental income. 

## (h) **Stocks** 

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

## (i) **Funds** 

- (i) The Property Fund represents monies already expended on the acquisition, construction and improvement of freehold and leasehold properties. Unrestricted designated funds which are applied for property purposes are categorised as restricted giving rise to a transfer during the year. 

- (ii) The Endowment Funds are held for restricted purposes, where the income only is available to be used in accordance with the wishes of the donors. 

- (iii) The Restricted Funds are held for restricted purposes, as specified by the donors. 

- (iv) The Unrestricted Funds include: Designated Reserves held for particular purposes designated by The Salvation Army in the exercise of its discretionary powers, and General Reserve representing the net assets not designated for specific purposes. 

68 



## **2. MEMBERS’ DONATIONS** 

This represents Salvationists’ personal giving to support their local corps (church) and the work of The Salvation Army. 

## **3. GRANTS RECEIVABLE** 

|Government Grants Covid-19<br>Other Grants<br>Local Authority (incl. Covid grants)<br>Trusts|**2022**<br>**2021**<br>**Endowments**<br>**Restricted**<br>**Unrestricted**<br>**Total**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>-<br>-<br>539<br>539<br>9,174<br>-<br>-<br>-<br>-<br>40<br>-<br>2,072<br>-<br>2,072<br>3,081<br>231<br>1,898<br>19<br>2,148<br>4,185|
|---|---|
||**231 **<br>**3,970**<br>**558**<br>**4,759**<br>**16,480**|



Local authority restricted grants include Covid-19 grants to support corps. This can be split further by government grants of £944k (2021:£1,527k), local authority grants of £953k (2021:£1,456k) and other grants of £172k (2021:£97k). 

## **4. TRADING INCOME AND EXPENDITURE** 

Funds generated by corps are retained by the corps for use in the local area and are regarded as restricted for that geographical region. 

|Local corps charity shops and other trading activities<br>Income<br>Expenditure<br>Trading Subsidiaries<br>Income (Note 6)<br>Expenditure (Note 6)<br>**5. INVESTMENT INCOME**<br>Dividends receivable<br>Interest receivable<br>Rental income from investment properties<br>Income from connected company<br>Investment income of subsidiary companies (Note 6)|**2022**<br>**2021**<br>**£000**<br>**£000**<br>10,442<br>3,291<br>(6,101)<br>(4,590)|
|---|---|
||4,341<br>(1,299)|
||84,657<br>55,270<br>(77,020)<br>(64,252)|
||**7,637**<br>**(8,982)**|
||**2022**<br>**2021**<br>**£000**<br>**£000**<br>1,464<br>1,535<br>114<br>331<br>197<br>120<br>1,636<br>816<br>33<br>44|
||**3,444**<br>**2,846**|



69 



## **6. NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARIES** 

The Salvation Army Trust has two wholly owned trading subsidiaries which are incorporated in the UK. The Salvation Army General Insurance Corporation Limited (SAGIC) transacts insurance business, mainly property insurance. The Salvation Army Trading Company Limited (SATCoL) deals with the collection and recycling of second-hand clothing donated by the general public and is engaged in publishing and the supply of Salvationist materials. Both companies make a qualifying donation of part of their profits to The Salvation Army Trust. Where profits are retained, it is for working capital needs and capital for the long-term development of the business. A summary of the trading results of the subsidiary companies for the year ended 31 March 2022 is shown below. Audited accounts of the companies have been filed with the Registrar of Companies. 

|**Profit and Loss Account**<br>Trading Income<br>Cost of Trading Activities:<br>Cost of Sales<br>Distribution Costs<br>Operating Costs<br>Other Income/(Costs) Including Taxation<br>Total cost of Trading Activities<br>Covid-19 Grant Income<br>Investment Income<br>**Net Profit**<br>Realised Losses on Investments<br>Unrealised Gains on investments<br>**Net Income for the year**<br>Payable to The Salvation Army Trust (Gift Aid)<br>**Retained in Subsidiary**|**2022**<br>**2021**<br>**SAGIC**<br>**SATCoL**<br>**Total**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>21,141<br>63,516<br>84,657<br>55,270|
|---|---|
||(20,003)<br>(31,451)<br>(51,454)<br>(44,421)<br>-<br>(2,558)<br>(2,558)<br>(1,462)<br>(662)<br>(22,298)<br>(22,960)<br>(18,706)<br>(88)<br>41<br>23<br>337|
||(20,753)<br>(56,266)<br>(76,949)<br>(64,252)<br>-<br>33<br>539<br>18<br>539<br>51<br>9,174<br>44|
||421<br>7,807<br>8,228<br>236<br>(21)<br>-<br>(21)<br>(25)<br>(59)<br>-<br>(59)<br>8|
||**341**<br>**7,807**<br>**8,148**<br>**219**<br>-<br>(6,060)<br>(6,060)<br>(2,241)|
||**341**<br>**1,747**<br>**2,088**<br>**(2,022)**|



## **7. CHARITABLE ACTIVITIES** 

|Church and Evangelism Programmes<br>Community Programmes<br>International Programmes<br>Training Programmes<br>Youth and Young People Programmes<br>Grant to Salvation Army Social Work Trust|**Direct**<br>**Costs**<br>**Grants**<br>**Support**<br>**Costs**<br>**(Note 8)**<br>**2022**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>28,175<br>-<br>11,958<br>40,133<br>38,488<br>-<br>14,518<br>53,006<br>2,072<br>2,301<br>177<br>4,550<br>3,763<br>-<br>1,507<br>5,270<br>697<br>-<br>1,640<br>2,337<br>-<br>23,547<br>-<br>23,547|
|---|---|
||73,195<br>25,848<br>29,800<br>128,843|



70 



## **31 March 2021 Charitable Activities** 

|Church and Evangelism Programmes<br>Community Programmes<br>International Programmes<br>Training Programmes<br>Youth and Young People Programmes<br>Grant to Salvation Army Social Work Trust|**Direct**<br>**Costs**<br>**Grants**<br>**Support**<br>**Costs**<br>**(Note 8)**<br>**2021**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>29,385<br>-<br>9,775<br>39,160<br>37,320<br>-<br>11,768<br>49,088<br>3,068<br>3,067<br>141<br>6,276<br>3,434<br>-<br>1,179<br>4,613<br>602<br>-<br>1,220<br>1,822<br>-<br>16,000<br>-<br>16,000|
|---|---|
||73,809<br>19,067<br>24,083<br>116,959|



_Church and Evangelism Programmes_ comprise Christian worship, teaching and promotion of the Christian message at corps, regional and national events. 

_Community Programmes_ are organised by our corps to meet the needs of their local communities. The programmes offered are available to all and include activities for children, young people, families and older people as well as assistance for those in need. 

_International Programmes_ comprise support to the work of The Salvation Army worldwide. This includes grants paid to The Salvation Army International Trust and to overseas Salvation Army territories for projects to alleviate poverty in local communities. 

_Training Programmes_ represent the cost of William Booth College which trains people to become Salvation Army officers and provides learning and development opportunities for employees and officers. 

_Youth and Young People Programmes_ represent the cost of work within The Salvation Army for young people and adults aged 12-25, and other nationally organised programmes. 

_Grant to The Salvation Army Social Work Trust_ comprises grants payable to support the running of Salvation Army Lifehouses, care homes and other programmes and other costs incurred in supporting social programmes. 

_Support Costs_ represent centrally supplied services. 

71 



## **8. SUPPORT COSTS** 

|Fundraising<br>Church & Evangelism<br>Programmes<br>Community Programmes<br>International Programmes<br>Training Programmes<br>Youth & Young People<br>Programmes<br>**Total**<br>**2021**|**Finance**<br>**HR**<br>**IT**<br>**Property**<br>**Communication**<br>**Other**<br>**Legal &**<br>**Secretarial**<br>**2022**<br>**Total**<br>**2021**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>64<br>33<br>63<br>63<br>65<br>57<br>58<br>403<br>317<br>1,603<br>1,583<br>2,370<br>1,833<br>1,628<br>1,460<br>1,480<br>11,957<br>9,775<br>2,086<br>1,753<br>2,523<br>2,214<br>2,119<br>1,897<br>1,926<br>14,518<br>11,767<br>26<br>17<br>32<br>28<br>28<br>24<br>23<br>178<br>142<br>243<br>115<br>222<br>236<br>247<br>220<br>224<br>1,507<br>1,179<br>334<br>36<br>69<br>252<br>339<br>302<br>308<br>1,640<br>1,220|
|---|---|
||**4,356**<br>**3,537**<br>**5,279**<br>**4,626**<br>**4,426**<br>**3,960**<br>**4,019**<br>**30,203**<br>**24,400**|
||**3,788**<br>**4,004 **<br>**4,760**<br>**3,819**<br>**4,891 **<br>**2,437 **<br>**701 **<br>**-**<br>**24,400**|



An analysis of governance costs included above is set out in Note 9 below. 

Fundraising support costs of £403k (2021: £317k) are included within this note but not within the support costs column presented in Note 7 as these costs are not included within Charitable Activities. 

72 



## **9. GOVERNANCE COSTS** 

Absorbed within support costs were the following governance costs: 

|External audit<br>Internal audit<br>Trustee expenses<br>Support costs allocated<br>Trustee indemnity insurance<br>Apportionment of directors’ time|**2022**<br>**2021**<br>**£000**<br>**£000**<br>116<br>135<br>301<br>317<br>-<br>-<br>28<br>17<br>107<br>104<br>**552**<br>**573**|
|---|---|



## **10. PERSONNEL** 

The average number of officers and employees and full-time equivalent (FTE) officers and employees was: 

|**Trust**<br>Number of Officers<br>Number of Employees<br>**Subsidiaries**<br>Total<br>Personnel Costs<br>Allowances and Salaries<br>Redundancy Costs<br>Social Security Costs<br>Pension Fund Contributions (Current Service)<br>Retired Officers Allowance Fund Contributions (Past<br>Service)|**2022**<br>**2022**<br>**2021**<br>**2021**<br>**Headcount**<br>**Number**<br>**FTE**<br>**Number**<br>**Headcount**<br>**Number**<br>**FTE**<br>**Number**<br>618<br>687<br>792<br>776<br>1,189<br>996<br>1,411<br>1,127<br>1,860<br>1,683<br>2,203<br>1,903<br>701<br>701<br>651<br>651<br>**2,561**<br>**2,384**<br>**2,854**<br>**2,554**<br>**2022**<br>**2021**<br>**Trust**<br>**Subsidiaries**<br>**Total**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>54,467<br>19,796<br>74,263<br>74,159<br>257<br>-<br>257<br>626<br>4,811<br>1,514<br>6,325<br>5,949<br>9,744<br>1,321<br>11,065<br>10,773<br>(26)<br>-<br>(26)<br>-<br>**69,253**<br>**22,631 **<br>**91,884 **<br>**91,507 **|**2022**<br>**2022**<br>**2021**<br>**2021**<br>**Headcount**<br>**Number**<br>**FTE**<br>**Number**<br>**Headcount**<br>**Number**<br>**FTE**<br>**Number**<br>618<br>687<br>792<br>776<br>1,189<br>996<br>1,411<br>1,127<br>1,860<br>1,683<br>2,203<br>1,903<br>701<br>701<br>651<br>651<br>**2,561**<br>**2,384**<br>**2,854**<br>**2,554**<br>**2022**<br>**2021**<br>**Trust**<br>**Subsidiaries**<br>**Total**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>54,467<br>19,796<br>74,263<br>74,159<br>257<br>-<br>257<br>626<br>4,811<br>1,514<br>6,325<br>5,949<br>9,744<br>1,321<br>11,065<br>10,773<br>(26)<br>-<br>(26)<br>-<br>**69,253**<br>**22,631 **<br>**91,884 **<br>**91,507 **|
|---|---|---|
||||
||||
||||
|||**69,253**<br>**22,631 **<br>**91,884 **<br>**91,507 **|



73 



## **Higher Paid Employees** 

The number of employees whose emoluments amounted to over £60,000 in the year was as follows: 

|£60,001 - £70,000<br>£70,001 - £80,000<br>£80,001 - £90,000<br>£90,001 - £100,000<br>£100,001 - £110,000<br>£110,001 - £120,000<br>£120,001 - £130,000<br>£130,001 - £140,000<br>£140,001 - £150,000<br>£150,001 - £160,000<br>£160,001 - £170,000|**2022**<br>**2021**<br>**Trust**<br>**Subsidiaries**<br>**Total**<br>**Total**<br>**No.**<br>**No.**<br>**No.**<br>**No.**<br>27<br>-<br>27<br>22<br>6<br>-<br>6<br>8<br>3<br>-<br>3<br>1<br>4<br>1<br>5<br>5<br>4<br>1<br>5<br>5<br>-<br>1<br>1<br>-<br>-<br>-<br>-<br>1<br>-<br>-<br>-<br>1<br>-<br>2<br>2<br>1<br>-<br>1<br>1<br>-<br>-<br>1<br>1<br>1|
|---|---|
||**44**<br>**7**<br>**51 **<br>**45**|



## **Key Management Personnel** 

The key management personnel of the Trust are those persons having authority and responsibility for planning, directing and controlling the activities of the Trust, directly or indirectly, including the directors of The Salvation Army Trustee Company as the Corporate Trustee of the Trust. The Trustee considers the key management personnel of the Trust to be the executive directors (officers and employees) of the Board. The total aggregate emoluments including pension contributions paid to key management personnel during the year was £200,942 (2021: £222,784) 

## **11. TRUSTEES** 

## (a) **Emoluments:** 

The directors of The Salvation Army Trustee Company comprise Salvation Army officers and employees and other external directors with specialist expertise. All active Salvation Army officers receive an allowance based on length of service and, as ministers of religion, are provided with furnished accommodation and a motor vehicle. They are eligible for support from The Salvation Army Retired Officers Allowance Fund. The allowances received by the officers serving as directors ranged from £17,684.18 to £24,628.20 per annum and they did not receive any additional remuneration for their duties as directors. 

## (b) **Expenses** 

No (2021: no) directors of The Salvation Army Trustee Company were reimbursed for travelling expenses, amounting to £0 (2021: £0). 

## **12. PENSION AND SIMILAR COSTS** 

The Salvation Army Trust contributes to three pension or similar schemes in respect of its staff: 

- (i) The Salvation Army Retired Officers Allowance Fund relating to Salvation Army officers, 

- (ii) The Salvation Army Employees Pension Fund for other staff, 

- (iii) A defined contribution scheme set up to offer employees who are not members of The Salvation Army Employees Pension Fund the opportunity to join a pension scheme following the closure of the Employee Pension Scheme to new members with effect from 31 December 2011. 

Amounts charged in respect of pension fund contributions for the year are disclosed in Note 10 above. 

74 



## **SALVATION ARMY RETIRED OFFICERS ALLOWANCE FUND** 

The Salvation Army Retired Officers Allowance Fund was established by The Salvation Army Act 1963 under the legal name, The Salvation Army Officers Pension Fund. It is a registered charity and operates on the same basis as a defined benefit scheme, but the benefits are not guaranteed. It is non-contributory by the officer, but a contribution currently equivalent to £4,870 (2021: £4,860) per officer, per annum, is made by The Salvation Army. Officers in both principal Trusts (The Salvation Army Trust and The Salvation Army Social Work Trust) participate in the scheme and it is not possible to allocate the assets and constructive liabilities of the Fund between the Trusts. Therefore the Fund is accounted for in a similar way as a multi-employer pension fund. 

The Salvation Army Retired Officers Allowance Fund was subject to a triennial actuarial review on 31 March 2019, using the Attained Age Method, and this was based on the following principal assumptions: 

|Post-Retirement Discount Rate|2.7% per annum|
|---|---|
|Pre-Retirement Discount Rate|3.4% per annum|
|Rate of Increase in Allowances and Pensions|4.1% per annum|
|Rate of Inflation|3.6% per annum|



The market value of the Fund’s assets at the valuation date amounted to £231.6m whereas the value of past service ongoing liabilities amounted to £238.8m revealing a funding shortfall of £7.2m. 

A recovery plan was agreed whereby the contribution was increased to an amount equivalent to £4,870 per officer, per annum, from 1 April 2021, and The Salvation Army Trust would make an annual capital contribution to the scheme of £2m over a period of approximately 13 years. In practice, capital contributions in excess of this amount are being paid in order to fund the deficit over a shorter period of time and in 2021/22 the capital contribution paid was £4m (2020/21 £4m). 

Although the pension benefits are not guaranteed, they do represent a constructive liability as there are expectations that the pensions will be paid. Therefore, a provision is made in the financial statements of The Salvation Army Trust for the total discounted value of the future capital contributions which it has agreed to pay. 

Over a number of years, The Salvation Army Trust has made payments to cover the annual costs of the retired officers allowances and the administration costs to allow the investments to recover from a deficit position. At the year end 31 March 2022, the investments had recovered and showed a surplus clearing the deficit. This is shown as an advance within debtors. This process is under constant review and future contributions from The Salvation Army Trust will be adjusted accordingly. 

## (a) **SALVATION ARMY EMPLOYEES PENSION FUND** 

The Salvation Army Employees Pension Fund is a funded defined benefit scheme. The contribution rate payable by members is 8% of pensionable salaries and the employer’s contribution is 30.2% of pensionable salaries. 

The Scheme is a multi-employer scheme incorporating six employers. It closed to new members with effect from 31 December 2011. The actuary has confirmed that it is not practical to allocate the assets and liabilities of the scheme between participating employers and therefore it is accounted for as a multiemployer scheme. 

The Scheme is subject to triennial actuarial valuations. The last actuarial valuation was completed, using the Projected Unit Method, at 31 March 2021. 

The review was based on the following assumptions: 

|Post-retirement discount rate|1.22% per annum|
|---|---|
|Pre-retirement discount rate|0.72% per annum|
|Rate of salary increases|3.55% per annum|
|Rate of pension increase:||
|On pensions accrued before 6 April 2006|3.0% per annum|
|On pensions accrued after 6 April 2006|2.1% per annum|
|Inflation:<br>RPI|3.05% per annum|
|CPI|2.3% per annum|
|Deferred Pension Increases (pre 6 April 2009)|3.12% per annum|
|Deferred Pension increases (post 6 April 2009)|2.02% per annum|



75 



The market value of the Fund’s assets on the valuation date was £213.7m and the value of technical provisions amounted to £211.1m giving rise to a funding surplus of £2.5m. 

## **13. INTANGIBLE FIXED ASSETS** 

|**Goodwill**<br>**Cost**<br>Balance at 1 April 2021<br>Additions<br>Balance at 31 March 2022<br>**Accumulated Depreciation**<br>Balance at 1 April 2021<br>Charge for the year<br>Balance at 31 March 2022<br>**Net Book Value at 31 March 2022**<br>**Net Book Value at 31 March 2021**|**Goodwill**<br>**Other**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>11,275<br>625<br>11,900<br>-<br>-<br>-|
|---|---|
||11,275<br>625<br>11,900|
||10,066<br>226<br>10,292<br>1,171<br>125<br>1,296|
||11,237<br>351<br>11,588|
||**38**<br>**274**<br>**312**|
||**1,209**<br>**399**<br>**1,608**|



Intangible fixed assets represent the goodwill arising on acquisition, by the Trust’s subsidiary company SATCoL, of the business operations and net assets of Kettering Textiles Limited. The goodwill is being amortised over 10 years. 

The £625K Other intangible assets represents patents and licences in the Trust’s subsidiary SATCoL. 

## **14. PROPERTIES** 

## (a) **Consolidated** 

|**Cost**<br>Balance at 1 April 2021<br>Additions during the year<br>Transfer to investment properties<br>Schemes completed during the year<br>Less: Disposals<br>Balance at 31 March 2022<br>**Accumulated Depreciation**<br>Balance at 1 April 2021<br>Charge for the year<br>Less: Disposals<br>Transfer to investment properties<br>Balance at 31 March 2022<br>**Net Book Value at 31 March 2022**<br>**Net Book Value at 31 March 2021**|**Freehold**<br>**Long**<br>**Leasehold**<br>**Short**<br>**Leasehold**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>428,134<br>43,679<br>229<br>472,042<br>6,604<br>2,013<br>-<br>8,617<br>(415)<br>(31)<br>(446)<br>1,967<br>-<br>-<br>1,967<br>**436,290**<br>**45,661**<br>**229**<br>**482,180**<br>(11,366)<br>(3,201)<br>-<br>(14,567)<br>**424,924**<br>**42,460**<br>**229**<br>**467,613**<br>146,104<br>12,495<br>227<br>158,826<br>2,993<br>1,203<br>-<br>4,196<br>(3,752)<br>(1,074)<br>-<br>(4,826)<br>(183)<br>(13)<br>(196)<br>**145,162 **<br>**12,611**<br>**227**<br>**158,000**<br>**279,762 **<br>**29,849**<br>**2**<br>**309,613**<br>**282,030**<br>**31,184**<br>**2**<br>**313,216**|**Property**<br>**Schemes**<br>**In Progress**<br>**£000**<br>24,660<br>19,424<br>-<br>(1,967)|
|---|---|---|
|||**42,117**<br>(2,744)|
|||**39,373**|
|||**-**<br>**-**<br>**-**|
|||**-**|
|||**39,373**|
|||**24,660**|



76 



## (b) **Trust** 

|**Cost**<br>Balance at 1 April 2021<br>Additions during the year<br>Transfer to investment properties<br>Schemes completed during the year<br>Less: Disposals<br>Balance at 31 March 2022<br>**Accumulated Depreciation**<br>Balance at 1 April 2021<br>Charge for the year<br>Less: Disposals<br>Transfer to investment properties<br>Balance at 31 March 2022<br>**Net Book Value at 31 March 2022**<br>**Net Book Value at 31 March 2021**|**Freehold**<br>**Long**<br>**Leasehold**<br>**Short**<br>**Leasehold**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>426,827<br>39,631<br>229<br>466,687<br>6,054<br>1,375<br>-<br>7,429<br>(415)<br>(31)<br>(446)<br>1,967<br>-<br>-<br>1,967<br>434,433<br>40,975<br>229<br>475,637<br>(11,366)<br>(3,201)<br>-<br>(14,567)<br>**423,067 **<br>**37,774**<br>**229**<br>**461,070**<br>145,822<br>12,332<br>228<br>158,382<br>2,978<br>915<br>-<br>3,893<br>(3,752)<br>(1,074)<br>-<br>(4,826)<br>(183)<br>(13)<br>(196)<br>**144,865**<br>**12,160**<br>**228**<br>**157,253**<br>**278,202 **<br>**25,614**<br>**1**<br>**303,817**<br>**281,005**<br>**27,299**<br>**1**<br>**308,305**|**Property**<br>**Schemes**<br>**In Progress**<br>**£000**<br>24,660<br>19,424<br>(1,967)|
|---|---|---|
|||42,117<br>(2,744)|
|||**39,373**|
|||-<br>**-**<br>-|
|||**-**|
|||**39,373**|
|||**24,660**|



Trust properties comprise primarily corps halls, divisional and territorial headquarters buildings and residential properties for active and retired officers. 

## **15. MOTOR VEHICLES AND EQUIPMENT** 

## (a) **Consolidated** 

|**Cost**<br>Balance at 1 April 2021<br>Additions<br>Disposals<br>Balance at 31 March 2022<br>**Accumulated Depreciation**<br>Balance at 1 April 2021<br>Charge for the year<br>Disposals<br>Balance at 31 March 2022<br>**Net Book Value at 31 March 2022**<br>**Net Book Value at 31 March 2021**|**Motor**<br>**Vehicles**<br>**Office**<br>**Equipment**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>349<br>26,777<br>27,126<br>265<br>3,441<br>3,706<br>-<br>(154)<br>(154)|
|---|---|
||614<br>30,064<br>30,678|
||234<br>18,348<br>18,582<br>65<br>2,221<br>2,286<br>(145)<br>(145)|
||299<br>20,424<br>20,723|
||**315**<br>**9,640**<br>**9,555**|
||**115**<br>**8,429**<br>**8,544**|



77 



## (b) **Trust** 

|**Cost**<br>Balance at 1 April 2021<br>Additions<br>Disposals<br>Balance at 31 March 2022<br>**Accumulated Depreciation**<br>Balance at 1 April 2021<br>Charge for the year<br>Disposals<br>Balance at 31 March 2022<br>Net Book Value at 31 March 2022<br>Net Book Value at 31 March 2021|**Motor**<br>**Vehicles**<br>**Office**<br>**Equipment**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>349<br>3,625<br>3,974<br>265<br>736<br>1,001<br>-<br>-<br>-|
|---|---|
||614<br>4,361<br>4,975|
||234<br>1,874<br>2,108<br>65<br>582<br>647<br>-<br>-<br>-|
||299<br>2,456<br>2,755|
||315<br>1,905<br>2,220|
|||
||**115**<br>**1,751 **<br>**1,866**|



78 



## **16. FIXED ASSET INVESTMENTS** 

## (a) **Consolidated** 

|Market Value as at<br>1 April 2021<br>Acquisitions<br>Gain/(Loss)<br>Disposals<br>**Market Value at**<br>**31 March 2022**<br>**Historical Cost at**<br>**31 March 2022**<br>**(b)**<br>**Trust**<br>Market Value as at<br>1 April 2021<br>Acquisitions<br>Gain/(Loss)<br>Disposals<br>Market Value at<br>31 March 2022<br>Historical Cost at<br>31 March 2022|**Investment**<br>**Properties**<br>**Salvation Army**<br>**Common Investment**<br>**Funds**<br>**Unlisted**<br>**Investments**<br>**Fund 1**<br>**Fund 2**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**11,983**<br>**5,276**<br>**173,660**<br>**12,299**<br>243<br>-<br>30,000<br>231<br>2,621<br>357<br>12,881<br>(1,795)<br>-<br>-<br>-|**Investment**<br>**Properties**<br>**Salvation Army**<br>**Common Investment**<br>**Funds**<br>**Unlisted**<br>**Investments**<br>**Fund 1**<br>**Fund 2**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**11,983**<br>**5,276**<br>**173,660**<br>**12,299**<br>243<br>-<br>30,000<br>231<br>2,621<br>357<br>12,881<br>(1,795)<br>-<br>-<br>-|**Investment**<br>**Properties**<br>**Salvation Army**<br>**Common Investment**<br>**Funds**<br>**Unlisted**<br>**Investments**<br>**Fund 1**<br>**Fund 2**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**11,983**<br>**5,276**<br>**173,660**<br>**12,299**<br>243<br>-<br>30,000<br>231<br>2,621<br>357<br>12,881<br>(1,795)<br>-<br>-<br>-|**Subsidiaries**<br>**Listed**<br>**Investments**<br>**Total**<br>**£000**<br>**£000**<br>**2,065**<br>**205,283**<br>-<br>30,474<br>(78)<br>13,986<br>(4)<br>(4)|
|---|---|---|---|---|
||**14,847**<br>**5,633**|**216,541**|<br>**10,735**|**1,983**<br>**249,739**|
||||||
||**468**<br>**2,963**|**126,700**|**9,484 **|**3,263**<br>**142,878**|
||**Investment**<br>**Properties**<br>**Salvation Army**<br>**Common Investment**<br>**Funds**<br>**Fund 1**<br>**Fund 2**<br>**£000**<br>**£000**<br>**£000**<br>**11,983**<br>**5,276**<br>**173,660**<br>**243**<br>-<br>30,000<br>**2,621**<br>357<br>12,881<br>**-**<br>-||**Unlisted**<br>**Investments**<br>**£000**<br>**12,299**<br>231<br>(1,795)<br>-|**Subsidiaries**<br>**Listed**<br>**Investments**<br>**Total**<br>**£000**<br>**£000**<br>**4,967**<br>**208,185**<br>-<br>30,474<br>-<br>14,064<br>-<br>-|
||**14,847**<br>**5,633**|**216,541**|**10,735**|**4,967 **<br>**252,723**|
||||||
||**468**<br>**2,963**|**126,700**|**9,484 **|**4,967 **<br>**144,582 **|



Unlisted Investments represent a 20% holding in William Leech (Investments) Limited. It is not considered to be an associated company and is valued in both the Trust and Consolidated Balance Sheets at share of underlying net assets which equates to its fair value. 

|**William Leech (Investments) Limited**<br>**Other**|**2022**<br>**2021**<br>**£000**<br>**£000**<br>10,733<br>12,297<br>2<br>2|
|---|---|
||**10,735**<br>**12,299**|



Subsidiaries are accounted for at cost in the Trust Balance Sheet. The Consolidated Balance Sheet includes the subsidiaries’ own listed investments. 

79 



## **Common Investment Funds** 

The Salvation Army Common Investment Funds hold a wide range of investments. The principal categories of investment and the relevant percentages held at the year end were as follows: 

||**Fund 1**|**Fund 2**|
|---|---|---|
|Cash|11%|7%|
|UK Equities|11%|11%|
|UK Property Funds|0%|0%|
|Overseas Investments|78%|82%|



## **17. DEBTORS** 

|Connected Salvation Army Trusts and Companies<br>Taxation recoverable<br>Prepayments and accrued income<br>Other debtors|**Consolidated**<br>**Trust**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>-<br>5,775<br>4,478<br>11,040<br>1,205<br>907<br>673<br>437<br>31,805<br>24,847<br>31,387<br>21,644<br>27,344<br>18,204<br>12,888<br>5,361|
|---|---|
||**60,354 **<br>**49,733**<br>**48,258**<br>**38,482 **|



Included in accrued income above is an amount of £2,940k (2021: £4,108k) which is the deferred consideration due in connection with the sale of shares in Reliance Bank in 2018/19 and which is receivable after more than one year. As the proceeds will be received over an extended period of time, the deferred consideration has been discounted to the net present value, and the reduction in the debtor of £1,169k, is the financing cost recognised in the SOFA. 

## **18. CREDITORS: amounts falling due within one year** 

|Loans repayable within one year (secured)<br>Connected Salvation Army Trusts and Companies<br>Tax and Social Security<br>Creditors and Accruals|**Consolidated**<br>**Trust**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>46<br>49<br>46<br>49<br>7,780<br>-<br>12,258<br>5,265<br>-<br>-<br>5<br>-<br>36,258<br>33,651<br>10,796<br>10,564|
|---|---|
||**44,084**<br>**33,700**<br>**23,105**<br>**15,878**|



80 



## **19. CREDITORS: amounts falling due after one year** 

|Bank Loans (secured)<br>**Bank Loans**<br>_Repayable by instalments_<br>Within one year<br>More than one year, less than five years<br>More than five years<br>**Pension Provision**<br>Balance Brought Forward<br>Contributions payable<br>Interest on pension obligation<br>Change in assumptions<br>Contributions paid in advance|**Consolidated**<br>**Trust**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**461**<br>**510**<br>**461**<br>**510**<br>**Consolidated**<br>**Trust**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>46<br>49<br>46<br>49<br>159<br>170<br>159<br>170<br>302<br>340<br>302<br>340|
|---|---|
||**507 **<br>**559**<br>**507 **<br>**559**|
||**Consolidated**<br>**Trust**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>-<br>3,348<br>-<br>3,348<br>(4,000)<br>(4,000)<br>(4,000)<br>(4,000)<br>(50)<br>31<br>(50)<br>31<br>24<br>-<br>24<br>-<br>4,026<br>621<br>4,026<br>621|
||**-**<br>**-**<br>**-**<br>**-**|



81 



## **20. ENDOWMENTS (Consolidated and Trust)** 

|**Permanent Endowments**<br>ES Brant<br>Sir James Reckitt Trust<br>WJ Davis Trust<br>Other<br>**Expendable Endowments**<br>William Leech Fund<br>**Total**|**Balance**<br>**1 April**<br>**2021**<br>**Movement in**<br>**Funds**<br>**Income and**<br>**Gains/(Losses)**<br>**Balance**<br>**31 March**<br>**2022**<br>**£000**<br>**£000**<br>**£000**<br>2,099<br>6<br>2,105<br>731<br>91<br>822<br>1,184<br>40<br>1,224<br>1,221<br>219<br>1,440|
|---|---|
||5,235<br>356<br>5,591|
||12,317<br>(1,563)<br>10,754|
|||
||**17,552**<br>**(1,207)**<br>**16,345**|



The ES Brant Fund was formerly a separate Salvation Army Trust. Its purpose is evangelical work. 

The Sir James Reckitt Fund was set up in 1916 for the benefit of the work of The Salvation Army in Hull. By administrative decision, the income is allocated as to 7/8ths for corps purposes and 1/8th for Men’s Social Work. 

The WJ Davis Fund was set up in 1991 to support the work of the Midnight Patrol and the annual income is transferred to the Social Trust to fund this work. 

The William Leech Fund was initially set up in 1955 with annual donations thereafter. It is represented by a 20% holding of shares in William Leech (Investments) Limited, with the other shares held equally by four other Christian charities. The annual income is transferred to The Salvation Army International Trust as part of the United Kingdom Territory’s contribution to the International Self-Denial Fund to help fund work in developing countries. 

|**31 March 2021**<br>**Permanent Endowments**<br>ES Brant<br>Sir James Reckitt Trust<br>WJ Davis Trust<br>Other<br>**Expendable Endowments**<br>William Leech Fund<br>**Total**|**Balance**<br>**1 April**<br>**2020**<br>**Movement in**<br>**Funds**<br>**Income and**<br>**Gains/(Losses)**<br>**Balance**<br>**31 March**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>2,082<br>17<br>2,099<br>486<br>245<br>731<br>1,076<br>108<br>1,184<br>630<br>591<br>1,221|
|---|---|
||4,274<br>961<br>5,235|
||10,299<br>2,018<br>12,317|
|||
||**14,573**<br>**2,979**<br>**17,552 **|



82 



## **21. RESTRICTED PROPERTY FUND (Consolidated and Trust)** 

Funding of properties for charitable purposes 

|**Consolidated and Trust**<br>**31 March 2021**<br>**Consolidated and Trust**|**Balance**<br>**1 April**<br>**2021**<br>**Movement in Funds**<br>**Balance**<br>**31 March**<br>**2022**<br>**Income and**<br>**Transfers**<br>**Expenditure**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**332,060**<br>**18,410**<br>**(6,139)**<br>**344,331**|
|---|---|
||**Balance**<br>**1 April**<br>**2020**<br>**Movement in Funds**<br>**Balance**<br>**31 March**<br>**2021**<br>**Income and**<br>**Transfers**<br>**Expenditure**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**321,395**<br>**20,643**<br>**(9,978)**<br>**332,060**|



## **22. OTHER RESTRICTED FUNDS (Consolidated and Trust)** 

|Corps funds<br>Legacy reserves<br>Trust funds<br>Specific donations<br>**Consolidated and Trust**<br>**31 March 2021**<br>Corps funds<br>Legacy reserves<br>Trust funds<br>Specific donations<br>**Consolidated and Trust**|**Balance**<br>**1 April**<br>**2021**<br>**Movement in Funds**<br>**Balance**<br>**31 March**<br>**2022**<br>**Income and**<br>**Transfers**<br>**Expenditure**<br>**and**<br>**Transfers**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>50,169<br>38,779<br>(36,742)<br>52,206<br>73,558<br>8,957<br>(5,620)<br>76,895<br>2,374<br>332<br>(276)<br>2,430<br>10,547<br>7,405<br>(2,594)<br>15,358|
|---|---|
||**136,648**<br>**55,473**<br>**(45,232)**<br>**146,889**|
||**Balance**<br>**1 April 2020**<br>**Movement in Funds**<br>**Balance**<br>**31 March**<br>**2021**<br>**Income and**<br>**Transfers**<br>**Expenditure**<br>**and**<br>**Transfers**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>48,157<br>33,308<br>(31,296)<br>50,169<br>77,028<br>8,646<br>(12,116)<br>73,558<br>2,079<br>612<br>(317)<br>2,374<br>9,259<br>10,045<br>(8,757)<br>10,547|
||**136,523**<br>**52,611**<br>**(52,486)**<br>**136,648**|



83 



## **23. UNRESTRICTED FUNDS (Consolidated and Trust)** 

|**23. UNRESTRICTED FUNDS (Consolidated and Trust)**||
|---|---|
|Designated Funds (i)<br>General Reserve (ii)<br>**Trust**<br>Non-charitable Trading Funds (iii)<br>**Consolidated**|**2022**<br>**2021**<br>**£000**<br>**£000**<br>195,030<br>158,462<br>51,367<br>42,135|
||246,397<br>200,597<br>21,714<br>19,624|
||**268,111**<br>**220,221**|



## (i) **Designated Funds** 

The Unrestricted Funds of The Salvation Army include the following designated reserves which have been set aside by the directors for specific purposes: 

|Property Purposes<br>Investment Property Unrealised Gains<br>Other Investments Unrealised Gains<br>Pension Reserve<br>Divisional Headquarters Reserves<br>Other|**Balance**<br>**1 April 2021**<br>**New Designations**<br>**Utilised/Realised**<br>**Balance**<br>**31 March 2022**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>55,739<br>11,984<br>6,000<br>-<br>7,606<br>2,863<br>69,345<br>14,847<br>70,291<br>-<br>12,664<br>82,955<br>621<br>-<br>4,026<br>4,647<br>6,063<br>-<br>501<br>6,564<br>13,764<br>2,000<br>908<br>16,672|
|---|---|
||**158,462 **<br>**8,000**<br>**28,568**<br>**195,030**|



## (ii) **General Reserve** 

This is required to fund the day-to-day needs of The Salvation Army. 

## (iii) **Non-Charitable Trading Funds** 

This represents the profits retained in the trading subsidiaries to provide the working capital for their trading operations and capital for the long-term development of their businesses 

## **31 March 2021** 

|**31 March 2021**|||
|---|---|---|
||**2021**|**2020**|
||**£000**|**£000**|
|Designated Funds (i)|158,462|115,498|
|General Reserve (ii)|42,135|21,510|
|**Trust**|200,597|137,008|
|Non-charitable Trading Funds (iii)|19,624|21,661|
|**Consolidated**|**220,221**|**158,669**|
|**Designated Funds**|||



|**Designated Funds**|||||
|---|---|---|---|---|
||**Balance**|||**Balance**|
||**1 April 2020**|**New Designations**|**Utilised/Realised**|**31 March 2021**|
||**£000**|**£000**|**£000**|**£000**|
|Property Purposes|48,317|5,000|2,422|55,739|
|Investment Property Unrealised Gains|13,856|-|(1,873)|11,983|
|Other Investments Unrealised Gains|36,140|-|34,151|70,291|
|Pension Reserve|(3,348)|-|3,969|621|
|DHQ Reserves|5,295|-|768|6,063|
|Other|15,238|-|(1,473)|13,765|
||**115,498**|**5,000**|**37,964 **|**158,462 **|



84 



## **24. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS** 

Fund Balances at 31 March 2022 are represented by: 

|Intangible assets<br>Fixed assets<br>Investments<br>Current assets<br>Current liabilities<br>Long-term liabilities<br>**Total Net Assets**|**Endowment**<br>**Funds**<br>**Restricted Funds**<br>**Unrestricted**<br>**Funds**<br>**Total**<br>**Funds**<br>**Property**<br>**Other**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>-<br>-<br>-<br>312<br>312<br>-<br>348,986<br>-<br>9,955<br>358,941<br>16,345<br>-<br>94,682<br>138,712<br>249,739<br>-<br>(4,145)<br>52,206<br>164,336<br>212,397<br>-<br>(49)<br>-<br>(44,035)<br>(44,084)<br>-<br>(461)<br>-<br>-<br>(461)|
|---|---|
||**16,345**<br>**344,331 **<br>**146,888**<br>**269,280**<br>**776,844**|



Fund Balances at 31 March 2021 are represented by: 

|Intangible assets<br>Fixed assets<br>Investments<br>Current assets<br>Current liabilities<br>Long-term liabilities<br>**Total Net Assets**|**Endowment**<br>**Funds**<br>**Restricted Funds**<br>**Unrestricted**<br>**Funds**<br>**Total**<br>**Funds**<br>**Property**<br>**Other**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>-<br>-<br>-<br>1,608<br>1,608<br>-<br>332,965<br>-<br>13,455<br>346,420<br>17,552<br>-<br>86,477<br>101,254<br>205,283<br>-<br>(343)<br>50,171<br>137,552<br>187,380<br>-<br>(52)<br>-<br>(33,648)<br>(33,700)<br>-<br>(510)<br>-<br>-<br>(510)|
|---|---|
||**17,552 **<br> **332,060**<br>**136,648**<br>**220,221**<br>**706,481 **|



## **25. CAPITAL COMMITMENTS** 

The directors are continuing the process of refurbishing and developing Salvation Army properties. At the Balance Sheet date, contractual obligations entered by The Salvation Army Trust in respect of property capital schemes amounted to £60.5m (2021: £64.9m). 

## **26. FINANCIAL COMMITMENTS** 

As at 31 March 2022 the total annual commitments under non-cancellable operating leases on vehicles and equipment and land and buildings, are as follows: 

|Expiring within 1 year<br>Expiring between 2 and 5 years<br>Expiring in over 5 years|**2022**<br>**2021**<br>**Land and**<br>**Buildings**<br>**Vehicles and**<br>**Equipment**<br>**Land and**<br>**Buildings**<br>**Vehicles and**<br>**Equipment**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>6,237<br>435<br>4,827<br>170<br>13,292<br>1,793<br>10,522<br>1,823<br>4,351<br>-<br>3,006<br>-|
|---|---|
||**23,880**<br>**2,228**<br>**18,355**<br>**1,993**|



85 



## **27. RELATED PARTY TRANSACTIONS** 

The Salvation Army Trust supports the work of other connected Salvation Army trusts through the payment of grants and these are set out in Note 8. Grants of £1.4 million were paid to The Salvation Army International Trust and overseas Salvation Army territories (2021: £3.1 million) and a grant of £23.5 million was paid to The Salvation Army Social Work Trust (2021: £16 million). 

An overhead recharge of £10.8m (2021: £10.0m) was charged to The Salvation Army Social Work Trust during the year, representing that Trust’s share of central overhead costs, specific to The Salvation Army Social Work Trust which were incurred by The Salvation Army Trust. In addition, recharges of £68k (2021: £66k) were charged to The Salvation Army Social Work Trust for hire of rooms at corps premises. 

The Salvation Army Trust uses the banking services of Reliance Bank Limited which is a subsidiary of The Salvation Army International Trust. At the year end The Salvation Army Trust held balances of £120.3 million with Reliance Bank (2021: £111.7 million). Interest was earned on deposit balances on a normal commercial basis. 

## **28. RECONCILIATION OF NET MOVEMENT OF FUNDS TO NET CASH INFLOW FROM OPERATING ACTIVITIES** 

|**Net Movement in Funds**<br>Losses/(Gains) on Investments<br>Depreciation: Properties<br>Transfer to Investment Properties at NBV<br>Depreciation: Motor Vehicles and Equipment<br>Amortisation of Goodwill<br>Gain on Disposal of Properties<br>Investment Income<br>Decrease in Stocks<br>(Increase) in Debtors<br>Increase in Creditors<br>(Decrease) in Pension provision<br>**Net Cash Inflow/(Outflow) from Operating Activities**|**2022**<br>**2021**<br>**£000**<br>**£000**<br>69,195<br>75,321<br>(13,986)<br>(36,531)<br>4,196<br>7,988<br>250<br>-<br>2,286<br>2,295<br>1,296<br>1,296<br>(20,817)<br>(14,130)<br>(4,491)<br>(2,846)<br>310<br>77<br>(10,621)<br>(901)<br>10,387<br>(701)<br>-<br>(3,348)|
|---|---|
||(31,190)<br>(46,801)|
||**38,005**<br>**28,520**|



## **29. CONTINGENT GAIN** 

The United Kingdom and Ireland Territorial Headquarters (THQ) building at 101 Newington Causeway is being sold to a developer and will be vacated in early 2024. The sale is conditional on the developer obtaining a planning permission for the project. If granted, the possible gain on the sale will be approximately £41m. The new THQ building will be funded from the proceeds from the sale of the current THQ. 

86 



## **30. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITY** 

As required by FRS 102 the SOFA set out below is the full analysis for the 2021 comparative. 

|**INCOME AND ENDOWMENTS FROM**<br>**Donations, Legacies and Grants**<br>Legacies<br>Donations – Public<br>Donations – Members<br>Grants<br>**Trading Activities**<br>**Investments**<br>**Other**<br>Gain on disposal of property<br>Other income<br>**Total Income**<br>**EXPENDITURE**<br>**Raising Funds**<br>Costs of raising donations, legacies<br>and grants<br>Costs of trading activities<br>**Charitable Activities**<br>Church and Evangelism<br>Programmes<br>Community Programmes<br>International Programmes<br>Training Programmes<br>Youth and Young People’s<br>Programmes<br>Grant to The Salvation Army Social<br>Work Trust<br>**Total Expenditure**<br>Gains/(Losses) on Investments<br>**Net Income/(Expenditure)**<br>Transfer between funds<br>**NET MOVEMENT IN FUNDS**<br>Fund balances brought forward<br>**Fund balances carried forward at**<br>**31 March 2021**|**2021**<br>**Endowment**<br>**Restricted**<br>**Unrestricted**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>-<br>8,646<br>39,740<br>**48,386**<br>-<br>12,665<br>67,238<br>**79,903**<br>-<br>16,174<br>92<br>**16,266**<br>225<br>7,021<br>9,234<br>**16,480**<br>-<br>3,291<br>55,270<br>**58,561**<br>-<br>1,314<br>1,532<br>**2,846**<br>-<br>3,066<br>11,064<br>**14,130**<br>-<br>569<br>872<br>**1,441**|
|---|---|
||**225**<br>**52,746**<br>**185,042**<br>**238,013**|
||-<br>665<br>12,757<br>**13,422**<br>-<br>4,590<br>64,252<br>**68,842**|
||**-**<br>**5,255**<br>**77,009**<br>**82,264 **|
||-<br>24,569<br>14,591<br>39,160<br>-<br>32,028<br>17,060<br>49,088<br>-<br>3,063<br>3,213<br>6,276<br>-<br>29<br>4,584<br>4,613<br>-<br>-<br>1,822<br>1,822<br>-<br>-<br>16,000<br>16,000|
||-<br>59,689<br>57,270<br>116,959|
|||
||-<br>**64,944**<br>**134,279**<br>**199,223**|
||2,754<br>597<br>33,180<br>36,531|
||**2,979**<br>**(11,601)**<br>**83,943**<br>**75,321**|
||-<br>22,391<br>(22,391)<br>-|
||**2,979**<br>**10,790**<br>**61,552**<br>**75,321**|
||14,573<br>457,918<br>158,669<br>631,160|
||**17,552**<br>**468,708**<br>**220,221**<br>**706,481**|



87 



## **31. POST BALANCE SHEET EVENT** 

During February 2022 Russian forces invaded Ukraine causing a humanitarian and political crisis which had a global economic impact, giving rise to significant falls in the UK and global stock markets. The trust’s investment portfolio saw material unrealised losses after the year end, reflecting the volatility of the global markets. The main portfolio value fell from £221.8m at 31 March 2022 to £202.4m at 30 September 2022, representing a 9% fall in market value. The investment portfolio is being managed as part of a long-term investment strategy and its performance is regularly being monitored. At the time of this report, we do not expect the Russian/Ukraine conflict to materially affect our planned activity. 

The uncertainty, and the associated sanctions against Russia and Russian individuals, has led to volatility in investment markets. How those events might develop, the scale of those developments and the wider impacts are hard to predict, though a period of heightened uncertainty seems inevitable. The amount of exposure to Russia is regarded as immaterial to The Salvation Army Retired Officers Allowance Fund and The Salvation Army Employees Pension Fund. The Trustees of the pension schemes have not identified any material risks to the funds or employer covenant because of Russian sanctions although the Trustees will continue to closely monitor the situation. 

The mini-budget unveiled by the British Government in September 2022 has had a material impact on asset holdings of the pension schemes. When comparing the value of assets as at the last audited accounts (31 March 2022) the investments under management totalled £213.7m. The latest fund value, as at 14 October 2022, saw the investments under management reduce to £181.2m. It is expected that the liabilities will reduce over the period, due to bond yield prices moving, although at the time of these accounts being prepared the known number to indicate this change and whether the funding position on the technical provisions places the pension scheme in a surplus is unknown (although this is expected) but will be continued to be monitored and reviewed regularly. 

88