OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-accounts

THE SALVATION ARMY UNITED KINGDOM AND IRELAND TERRITORY

THE SALVATION ARMY SOCIAL WORK TRUST REPORT AND FINANCIAL STATEMENTS FOR THE UNITED KINGDOM IN THE YEAR ENDED 31 MARCH 2024

CHARITY REGISTRATION NO: 215174 SCOTTISH CHARITY REGISTRATION NO: SC037691

Principal Office Territorial Headquarters: 1 Champion Park, London, SE5 8FJ www.salvationarmy.org.uk

1

CONTENTS

CONTENTS
INTRODUCTION FROM THE TERRITORIAL LEADERS 3
THE OBJECTIVES OF THE SALVATION ARMY SOCIAL WORK TRUST 4
OUR VISION, MISSION AND VALUES 4
EXPLAINING OUR STRATEGY, STRUCTURE AND OPERATION 7
OUR ORGANISATION 7
SUMMARY OF WHAT THE SALVATION ARMY SOCIAL WORK TRUST DOES 8
THE SCALE OF THE WORK OF THE SALVATION ARMY SOCIAL WORK TRUST IN THE UK 8
HOW WE WORK 11
REALIGNING RESOURCE TO ENABLE A ‘FLOURISHING’ AND EFFECTIVE SALVATION ARMY 11
ILLUSTRATING THE WORK AND ACHIEVEMENTS OF THE SALVATION ARMY SOCIAL WORK TRUST 2023/2024 14
SUPPORTING SURVIVORS OF TRAFFICKING AND MODERN SLAVERY 14
OUR COMMITMENT TO REDUCING, PREVENTING AND ENDING HOMELESSNESS 17
WIDER WORK IN OUR COMMUNITIES - EMPLOYMENT PLUS 19
THE FAMILY TRACING SERVICE 21
VALUABLE DEBT ADVICE 21
HERE FOR PEOPLE WITH DISABILITIES 21
SHOWING COMPASSION FOR OLDER PEOPLE 22
UNDERSTANDING AND SUPPORTING ADDICTION 23
RELIABLE, EXPERIENCED PARTNER IN A CRISIS 24
LOOKING FORWARD AS A MOVEMENT 25
RAISING FUNDS 27
SUBSIDIARIES 27
MODERN SLAVERY AND ANTI-HUMAN TRAFFICKING STATEMENT 28
STREAMLINED ENERGY AND CARBON REPORTING (SECR) STATEMENT 29
REVIEWING FINANCES 32
RESERVES POLICY 35
INVESTING FOR THE FUTURE 35
STRUCTURE, GOVERNANCE AND MANAGEMENT 38
RISK MANAGEMENT 38
RECRUITMENT AND APPOINTMENT OF DIRECTORS 40
DIRECTORS 43
ADVISERS 44
INDEPENDENT AUDITORS REPORT 45
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 49
BALANCE SHEET 50
CONSOLIDATED STATEMENT OF CASH FLOWS 51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 52

2

INTRODUCTION FROM THE TERRITORIAL LEADERS

Commissioner Paul Main and Commissioner Jenine Main

We are delighted to introduce our very first Annual Report and Accounts, as Territorial Leaders of The Salvation Army in the United Kingdom and Ireland. With over 38 years of service as Salvation Army Officers, we can attest to God’s faithfulness in our own lives and in the life of our movement. This year has been no exception. Since we took up our appointments on 1 January 2024, we have witnessed afresh God’s life-transforming grace in communities right across the United Kingdom, Ireland, the Channel Islands, and the Isle of Man.

We are hopeful that as you read this Annual Report, you will be inspired, as we are, by the remarkable stories of transformation. Our incredible officers, employees, members, and volunteers have yet again stepped up and demonstrated their love for God and neighbour through their generous acts of service to all, without discrimination. We are grateful for every one of them.

There have, of course, been challenges along the way. As the cost of living has continued to grow, it has placed enormous strain on many of those living in the communities in which we serve. Our 588 local corps (churches) have experienced even greater numbers of people seeking assistance, and our residential centres have been required to support people with increasingly complex needs. As you will read in the Report, our personnel have met the challenge with a sense of compassion, boldness, and respect. Whilst not everyone who serves with us is a Christian, it is true to say that together we embody the example Jesus set for us in putting the needs of others before our own.

We would like to thank the many people who have financially supported our work. Even amidst such challenging economic times, our donors have shown extraordinary generosity. Their contribution has enabled us to reach out in new and effective ways, touching the lives of the most marginalised, and offering a helping hand to many people who have needed our support for the first-time. We value every donation and have been determined to put them to beneficial use.

One of our favourite Bible verses is in the Old Testament book of Micah: ‘And what does the Lord require of you? To act justly and to love mercy

and to walk humbly with your God.’

(Micah 6:8 New International Version)

You will find the outworking of these words woven throughout this account of our work. We, therefore, commend this Report to you. Be encouraged and inspired by the work The Salvation Army continues to do, wherever we are.

Thank you for your help and support, and may God bless you.

Commissioner Paul Main Territorial Commander of The Salvation Army in the United Kingdom and Ireland

3

THE OBJECTIVES OF THE SALVATION ARMY SOCIAL WORK TRUST

Promoting the charitable work of The Salvation Army in such one or more of the following ways as The Salvation Army Trustee Company shall think fit, namely:

OUR VISION, MISSION AND VALUES

Our Vision, our Values and our five Mission Priorities inspire and guide all the work we do as a church and as a charity.

Whilst The Salvation Army operates through two main charitable trust registrations, (see below, page 7) we have one unifying Vision statement, Mission Priorities and Values that guide us in all we do.

We have simplified and refreshed our Vision, Mission, and Values statements 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. Since their creation and adoption and across the year under review, the new statements have been deployed extensively across the territory. The aim is that every expression of The Salvation Army, our corps (churches) and community centres and residential centres all seek to deliver the same five Mission Priorities to strive to deliver the one overall Vision Statement. Their simplicity and boldness mean that all areas of the diverse work of The Salvation Army can be both anchored and inspired by them.

Our Vision Statement:

This is ‘Our Vision’ for every part of The Salvation Army. It is inspired by the words of Jesus : ‘I have come that they may have life and have it to the full’ (John 10:10 NIV ).

No words can adequately capture the vision of boundless salvation that God intends for the world and everything in it. However, ‘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.

4

Our Five Mission Priorities:

Our Mission is built on five priorities which are 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 is rich in meaning and helps 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.

They are not arranged hierarchically but overlap and mutually support each other.

5

good life. Peace and fullness of life is possible when justice and reconciliation are priorities in the lives of individuals, communities, and nations. The Salvation Army is committed to work in partnership for these ends.

Our Values

Our Values are for everyone involved in The Salvation Army and should 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.

Our 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.

Since its adoption a few years ago, this statement has been widely used across The Salvation Army in communications, on corporate publications, on our websites and on email footers as a powerfully simple ‘explainer’ of what we are here to do and how we strive to deliver our vision.

6

EXPLAINING OUR STRATEGY, STRUCTURE AND OPERATION

Our two principal charitable registrations:

The Salvation Army operates through two principal charitable trusts: The Salvation Army Social Work Trust (this Report) and The Salvation Army Trust.

This Report and Accounts outlines the work of The Salvation Army Social Work Trust (Charity Registration number 215174) , which is the charity registration through which we manage our extensive residential and regulated programmes of work 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. Some of these services, whist centrally managed, are run at corps (church) and community centres and complement the other locally based services, for example employment programmes, debt advice and emergency response 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. Much of the funding for The Salvation Army Social Work Trust derives from government and local authority contracts and additional supplementary funding comes from The Salvation Army Trust.

However, the work of The Salvation Army Social Work Trust does not represent the entirety of The Salvation Army’s work in the UK. Alongside our centrally managed and coordinated services that this Report covers, we run extensive programmes of engagement and support which are delivered through our 588 local corps (churches) and our community centres. Much of the funding for the work of The Salvation Army Trust derives from public donations, legacies, trading activities and church members. 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 Trust (Charity Registration number 214779) which has its own Report and Accounts and form a ‘sister’ publication to this one.

Together both Trusts reflect the life and work of The Salvation Army as a whole and exist to enable effective management and accountability for the two main ways in which we work.

Our organisation

The Salvation Army was founded in 1865 by William and Catherine Booth and currently operates in more than 130 territories. The world leadership of The Salvation Army is provided by The General of The Salvation Army.

The General is assisted by officers and staff based at International Headquarters in London. The current General is Lyndon Buckingham who was elected in May 2023.

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. Commissioners Paul and Jenine Main are the leaders of The Salvation Army in the UK and Republic of Ireland, having been appointed in January 2024, succeeding Anthony and Gillian Cotterill, who retired in December 2023.

The Salvation Army in the UK is an integrated, yet diverse, organisation that contributes to the betterment of society in the service of God and people. Legally the activity is structured under two main trusts. These are:

7

• The Salvation Army Trust (Charity Registration No. 214779 in England and Wales, and SC009359 in Scotland)

• The Salvation Army Social Work Trust (Charity Registration No. 215174 in England and Wales, and SC037691 in Scotland)

Therefore, we publish two separate reports and accounts. This document is the Annual Report and Accounts for The Salvation Army Social Work Trust. Together both Trusts reflect the life and work of The Salvation Army as a whole and exist to enable effective management and accountability for the two main ways in which we work.

Further information on our legal structures and our governance is included later in this Report.

Summary of what The Salvation Army Social Work Trust does

The scale of the work of The Salvation Army Social Work Trust in the UK

12 Care Homes for Older People

Belfast: The Sir Samuel Kelly Memorial Home (accommodation 56) Buxton: The Hawthorns (acc 27) Coventry: Youell Court (acc 40) Edinburgh: Davidson House (acc 40), Eagle Lodge (acc 35) Hassocks: Villa Adastra (acc 40) London: Glebe Court, Lewisham (acc 36)

8

North Walsham: Furze Hill House (acc 40) Prestwich: Holt House (acc 31) Sandridge: Lyndon (acc 32) Southend-On-Sea: Bradbury Home (acc 34) Weston-super-Mare: Dewdown House (acc 40)

8 Centres for Families (Residential) Belfast: Glen Alva (accommodates family units 20, max 77 residents) Belfast: Grosvenor House (acc family units 19, max 76 residents) Belfast: Thorndale Parenting Assessment (7 family units) Belfast: Thorndale Family Centre (acc family units 35, single bedsits 3, max 125 residents) Fleetwood: George Williams House (acc family units 9, max 36 residents) Portsmouth: Catherine Booth House (acc family units 21, max 40 residents) Portsmouth: St Paul’s House (acc family units 21, max 84 residents) Portsmouth: St Monica’s House (acc family units 10, max 40 residents) 2 Centres for People with Learning Disabilities Kilbirnie: George Steven Centre Liverpool: Strawberry Field Centre for Employment and Training Hadleigh: Hadleigh Farm Estate 4 Centres for Single Homeless Young People Accrington: Crossroads (accommodates 11) Cardiff: Northlands (acc 26) Fleetwood: George Williams House (acc 6) London: Springfield Lodge (acc 40) 4 Homelessness Day Care / Drop-In Bradford: Day Centre Edinburgh: Niddry Street London: No 10 Project Norwich: Pottergate Arc

3 Housing First Programmes Cardiff Glasgow Merthyr Tydfil

10 Non-Residential Homelessness Services Aberdeenshire Floating Support Cardiff Floating Support and outreach services Early Intervention Project – York Inverness Floating Support Greenock Floating Support Southwark Floating Support North West Refugee Floating Support Denbighshire Temporary Emergency Accommodation Support Booth House Swindon - Floating Support Newport Outreach Services 47 Centres for Single Homeless (Adults) Belfast: Centenary House (accommodates 89) and Calder Fountain (acc 12) Birmingham: William Booth Centre (acc 74)

9

Blackburn: Bramwell House (acc 55) Bradford: The Orchard (acc 42) Braintree: New Direction Centre (acc 14) Bristol: Logos House (acc 83) Cardiff: Tŷ Gobaith (acc 70) Coventry: Harnall (acc 100), Axholme House (acc 32) Dundee: Strathmore Lodge (acc 25), Burnside Mill (acc 20) Edinburgh: The Pleasance (acc 38) Glasgow: Eva Burrows 1st Stop Project (acc 32), Hamilton Housing First, Huntershill Court (acc 14), Wallace of Campsie House (acc 52), William Hunter House (acc 37) Grimsby: The Booth Lifehouse (acc 35) Hamilton Barrack Street (acc 150) Huntingdon: Kings Ripton Court (acc 36) Ipswich: Lyndon House (acc 38) Liverpool: Ann Fowler House (acc 38), Darbyshire House (acc 45) London: Cambria House (acc 48), Founders House (acc 123), Riverside Complex (acc 60) Manchester: Discovery House (acc 10), Endeavour House (acc 15), Independence House (acc 15) Milton Keynes: Fishermead (acc 20) Springfield House (acc 16 teenage parents) Perth: Skinnergate (acc 30) Plymouth: Devonport House and Zion House (acc 72) Reading: Shepton House (acc 16), Willow House (acc 38) Ryde: Fellowship House (acc 26), Melville Street (acc 7), Carisbrooke Priory (acc 14) St Helens: Salisbury House (acc 64) Salford: Abbot Lodge (acc 20) (delivered by SAH) Sheffield: Charter Row (acc 55), Lincoln Court (acc 11 self-contained units) Skegness: Witham Lodge (acc 28), Rookery Nook (acc 11) Southampton: The Booth Centre (acc 46 +10 ‘somewhere safe to stay’) Sunderland: Swan Lodge (acc 65) Toward Road (acc 11) Swindon: Booth House (acc 50) Warrington: James Lee House (acc 54)

2 Family Services

Birmingham Shepherds Green House (20 families Domestic Abuse Service) Portsmouth Family Services

Veterans Services

Tŷ Dewr – 12

3 Child Contact Centres

Worthing Winton Birmingham

7 Early Years Education Centres

Gillingham Droitwich Staines Cardiff Ely Portsmouth Leigh-on-Sea Copper Beech, Leeds In addition, our Employment Plus programmes operate at 290 locations across the UK, supporting, coaching, and helping thousands of people into work across the UK. We also operate an extensive network of safe houses for the survivors of modern slavery.

10

How We Work

The Salvation Army Social Work Trust, for which this is the Annual Report and Accounts, is the charitable registration through which we allocate and manage funds for our (principally) residential centres and centrally coordinated operations. Much of the funding for this work is received through government and local authority contracts and grants, with the cost of the additional support, wellbeing and training services being met from a grant from our sister charity, The Salvation Army Trust. To see the full picture of our work, you will need to read both sets of Reports and Accounts.

While The Salvation Army Social Work Trust is not unique as a provider of centrally coordinated residential and support services, it is certainly distinctive in terms of its structure, and this distinctiveness gives us a real opportunity to go about our work in impactful ways.

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, experiencing homelessness, social isolation or poverty and recovery from slavery; it also strives to address the reasons that cause these situations, with a view to effecting sustainable change in individuals and society at large.

What sets The Salvation Army apart from other organisations is that we have the combined strength of our centrally coordinated services and our locally coordinated churches and community centres which are all playing their part to bring about positive change. When this really comes together, as it does in many places across the UK, it models what we call ‘integrated mission.’

Many of the programmes funded by The Social Work Trust support people facing complex challenges. Therefore, a more centralised organisational approach is appropriate for people experiencing homelessness or a survivor of modern slavery or a person recovering from addiction. This contrasts to the approach used in many of the programmes funded by our sister Salvation Army Trust which tend to be less centralised and more ‘organism’ than ‘organisation.’ The Salvation Army accommodates these differences through different management structures to ensure support and oversight is appropriate in differing contexts.

Our strategy in The Salvation Army Social Work Trust has been to ensure that the work of these residential centres is effective and efficient, compliant, and as transformative and as supportive as possible, and that all we do starts with the needs of people we serve. That is why in addition to statutory funding we are committed to deploying additional Salvation Army funds to provide the best possible additional support services we can, to achieve the best outcomes for the people in our care.

While we have ongoing contractual commitments which it is our mission to meet, we are always looking to ensure that opportunities to make additional differences are identified, assessed, and when possible seized. Our strategy therefore is one of controlled and best possible ongoing delivery, and at the same time a disciplined ambition to do as much as we can in ways that are as meaningful and innovative as we can, in as much of the UK as we can. As we look forward, for as long as we can afford to, we will commit to identifying additional opportunities to deliver services.

The Salvation Army Trust provides - and cross charges The Salvation Army Social Work Trust for - centrally co-ordinated facilities such as HR, finance, property, IT, PR, and media support. This approach enables us to be efficient and effective in the use of resources.

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

Finalising the delivery of the Structure Coordination and Design Project 2023/2024

11

The Salvation Army has never been a static organisation, and over its 159 years of life and work it has been constantly evolving to match efficiency and effectiveness with changing times and changing needs.

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 a critical task.

The challenge of the Vision Statement and the five Mission Priorities was the impetus for looking at what organisational structures and ways of working needed to change to enable our ‘local mission delivery units’ (corps and centres) to truly flourish in their individual settings. By ‘flourishing’ we mean that every expression of The Salvation Army should actively be engaging with the five Mission Priorities (our Mission Statement) to achieve our vision.

This significant task, termed The Structure Coordination and Design Project , has been focused on three desired outcomes:

Starting in 2021 and over a two-year period coming to fruition in the year covered by this Annual Report, the Structure Coordination and Design Project conducted one of the most extensive pieces of internal research we have ever executed in order to answer 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 (at the time) 22 divisions, and at all headquarters, both territorial and divisional.

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 and 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

12

continue to be, a review of effectiveness, and how investment can be directed more freely to where increased investment will deliver meaningful 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 our 588 corps and community centres including locations where Social Work Trust work is carried out, can be clustered, and supported divisionally (regionally). Following extensive consultation, it was decided to systematically reduce the number of divisions from 22 to 14. This entailed 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 that divisional headquarters staff with territorial headquarters form one integrated system of support and oversight. During 2023 and 2024, The Salvation Army in the UK settled into working with its new divisional boundaries.

The Structure Coordination and Design Project concluded its work at the end of 2023, with the ongoing focus on transformation, streamlining and integration being taken forward by headquarters staff as an essential aspect of ‘business as usual’. The monitoring of actions is overseen within existing board structures.

This significant task, termed The Structure Coordination and Design Project , has been focused on three desired outcomes:

The Structure Coordination and Design Project concluded its work at the end of 2023, with the ongoing focus on transformation, streamlining and integration being taken forward by headquarters staff as an essential aspect of ‘business as usual’. The monitoring of actions is overseen within existing board structures.

13

ILLUSTRATING THE WORK AND ACHIEVEMENTS OF THE SALVATION ARMY SOCIAL WORK TRUST 2023/2024

The work funded by The Salvation Army Social Work Trust (‘The Social Work Trust’) is extensive and is centrally coordinated. It ranges from residential programmes for people experiencing homelessness to addictions services, to older people’s care homes, emergency services, employment services, debt advice and family centres.

Much of the funding for this work derives from government and local authority contracts, and transfers from The Salvation Army Trust.

This year we have and will continue to focus on two of our largest operations: modern slavery and homelessness but we also illustrate other vital areas of mission that is funded through The Social Work Trust.

Supporting survivors of trafficking and modern slavery

CONTEXT:

The Salvation Army Anti Trafficking and Modern Slavery Department (ATMSD) exists to: Prevent modern slavery and the trafficking of people Protect the individual(s) on their journey from victim to survivor

Progress the survivor’s journey to sustained freedom and communities’ resilience against trafficking.

We provide specialist support to protect all adult survivors of modern slavery in England and Wales through a government contract which was first awarded in 2011. In July 2020 we were awarded the Modern Slavery Victim Care Contract (MSVCC) which enables survivors of MS to receive support at all stages of their recovery. This includes legal and financial support, medical care, counselling, and education opportunities as well as somewhere safe to live or outreach support, a specialised support worker and interpreting services.

Although we partner with other organisations to help deliver this specialist support, we also have our own Direct Delivery service where we provide safe house accommodation and outreach support. Our Integrated Mission team is involved with encouraging and facilitating the development of appropriate responses to human trafficking and modern slavery throughout the UKI Territory. We have a growing volunteer programme offering opportunities for volunteers to become involved at various stages of a victim and survivor's journey. Whilst we work with victims and survivors here in the UK, our specialist international team (based in the UK) focuses on protection and prevention projects working with our SA and other NGO colleagues across the globe to ensure effectiveness, impact, sustainability, value for money and sharing best practice.

Behind the protective shield built around each survivor by specialist support services, The Salvation Army seeks every opportunity to meet individual’s needs and involve and empower them in their recovery.

WHY DOES THE SALVATION ARMY DO THIS WORK?

Centuries after slavery was officially abolished, thousands of people are still being exploited and sold as slaves across the UK. They can be forced to work in the sex trade, used as domestic slaves, exploited for labour or criminal actively or have their organs removed to be sold. As a Christian Church and Charity, we are called by God to participate in God’s mission of bringing love to the world. We should therefore speak out and act against this abhorrent crime and our historic reputation and prophetic voice has resulted in Governments over the years listening to what we have to say. To this end the ATMSD continues to be that voice and speak up for those who suffer

14

and are victims of modern slavery. We provide clear and sound evidence that demonstrates the impact policy decisions will have on the most vulnerable and marginalised in our society. THE CHARACTER AND IMPACT OF OUR WORK

The work of The Salvation Army’s Anti-Trafficking and Modern Slavery programme adds tremendous value to a survivors’ wellbeing and resilience. Many of the opportunities for survivors to recover and rebuild their lives may not be available to them without The Salvation Army being involved in this work, for example:

KEY DELIVERABLES LAST YEAR:

OTHER KEY DEVELOPMENTS

The Care Quality Commission (CQC) published a report of services provided to recovering survivors of modern slavery by The Salvation Army and partners through the Modern Slavery Victim Care Contract (MSVCC). It confirmed good practice within the services that met and often exceeded contractual standards, it also highlighted the quality of services and commitment of staff going beyond to provide tailored support.

15

A VOICE FOR VICTIMS

VALUING VOLUNTEERS

During the year, our Anti-Trafficking & Modern Slavery Team visited major cities around the UK to raise awareness of Modern Slavery & Human Trafficking. We also championed our amazing volunteers. Three volunteers told us about their role:

Responders like Andrea referred 267 survivors into support this year.

Our transport team organised 977 journeys to move survivors to safety this year.

WARM WELCOME FOR REFUGEES

In addition to our work nationally, Salvation Army Corps around the country continued to help refugees to resettle in the UK.

In Blackpool, Fylde and Wyre teams have helped source properties and furnish them in preparation for Afghan families to move out of hotels and into their own private accommodation.

Caseworkers from the team have been working with the families to integrate them fully into British life and culture, including employment workshops, applying for citizenship, and driving theory sessions, as well as providing fun in the community such as arts, crafts, and a sewing circle.

In Bromley Temple around 30 members of the local Ukrainian community met up twice a month to enjoy fellowship and to learn English. Soldiers Serhii and Mariia, who came to the town in July 2023 after being sponsored by the corps, hosted this growing community.

In New Malden, around one third of the town’s population are Korean. Corps Officers Majors Jae Soo Cha and Jung Hwang, who came to the UK from Korea in 2019, welcomed local Korean families who had settled in the area too. ‘We realised that many of them felt lonely and were needing something,’ said the Majors.

16

Our commitment to reducing, preventing, and ending homelessness

GROWING CONCERN AND CHALLENGING GOVERNMENT

In the year under review, homelessness numbers were causing us concern. At the start of the year, government snapshot figures estimated a 26% increase in people sleeping rough – to over 3,000 people a night and almost 40,000 households were registered as homeless, including people in emergency and temporary accommodation.

In April 2023, The Salvation Army called for the then Government to increase support funding in line with inflation and a reversal of the freeze on the value of Local Housing Allowance rates. ‘The government’s plan to end rough sleeping by 2024 risks being derailed if it does not take action’ said Nick Redmore, The Salvation Army’s Director of Homelessness Services.

In December 2023, The Salvation Army called for a change in the law so all those forced onto the streets are offered temporary and then longer-term accommodation, and an increase in funding to facilitate this, and an in-line with inflation funding increase for local homelessness services. Captain John Clifton (Blackpool Salvation Army) commented: ‘Being homeless during the season of comfort and joy makes terrible and dangerous living conditions feel even worse. Thousands are facing an unhappy Christmas out on the streets without shelter, sanitation or privacy are at risk of illness, injury, and early death because homelessness laws do not consider their situation to be desperate enough.’

With the numbers of people experiencing all forms of homelessness increasing again, The Salvation Army has remained as committed to supporting them as ever. There are many reasons why people can become homeless and there are not always quick solutions, but The Salvation Army has developed many different forms of support to meet immediate needs and in the longer term, to enable people wherever possible to get into some form of stable tenancy.

At a corps and community centre level, we do not offer formalised services but where we can, we help people who come to us seeking help with refreshments, clothes, and guidance or advice and signposting on how to access formalised support and residential accommodation. This form of response will differ from corps to corps.

Across the UK, The Salvation Army operates a network of 77 residential Lifehouses for men and women, and in support of the people who come to us through referrals from the local authority, we also run addiction programmes, employment Plus programmes and other support services including chaplaincy. Wherever possible, The Salvation Army encourages integrated mission, where members of a corps and volunteers work with our local Lifehouses (homelessness centres).

HIGHLIGHTS FROM OUR LIFEHOUSES:

• Coventry:

Continuing in the year under review, since 2021, Eden Girls School have been donating food to their local Harnhill residential Lifehouse, which supports 80 people and more recently pupils from the local Islamic secondary school volunteer to pack food for the residents. 14-year-old Zaynab said ‘I felt a need to do something in the community…it helps with our religious values - we have an obligation to help other people’.

• Cambuslang:

Monica Lennon MSP visited her local Eva Burrows Centre so see how The Salvation Army’s 1[st] Stop Project was providing a safe and supportive environment for homeless people. Endorsing the work there she said, ‘The Salvation army is at the forefront of evidence-based service delivery.’

• Braintree:

Residents and staff of The Salvation Army’s New Direction Lifehouse celebrated 25 years of operation in October 2023. Service manager Sharon Ralph commented ‘It’s rewarding watching the

17

residents grow, move on, achieve the things they want to and move into their own accommodation. Former resident and now Programme Manager Anthony Reay recalled how, when he became homeless, he would have to give up both college and a part-time job but that thanks to the support he received, he didn’t need to and said that the support he received helped shape his future.

• Basildon:

Malachi Basildon is a housing scheme co-managed by The Salvation Army. It is a development of 10 flats which provides furnished safe living space supporting single occupants to lead independent lives. In December, the six modular SoloHaus homes which were donated by the Hill Group project was named Best Partnership at the Inside Housing Development Awards, recognising the positive impact the project has had in the community. Captain Daniel Holland, Homelessness Services Regional Manager said, ‘Ending homelessness is about much more than providing accommodation; it is about creating a sense of community, belonging and hope.’

• Sunderland:

Residents from Swan Lodge Lifehouse were crowned champions of a five-a-side football tournament in September 2023. The tournament is arranged by Change Grow Live, a charity that supports people in addictions recovery. The Swan Lodge Lifehouse residents' team were coached by former Sunderland AFC player and South Shields manager Julio Arca. Lifehouse support worker commented, ‘We see how sport helps with residents’ mental health and in managing addictions and improving overall morale.’

OUR TEN- YEAR HOMELESSNESS SERVICES DEVELOPMENT STRATEGY - ‘1,000 VOICES’ Background:

A significant outcome of the year in review was a ten-year development strategy for The Salvation Army’s Homelessness Services. The need for a fresh strategy was becoming clear for a while. The ‘1,000’ voices are the voices of the many Service Users and staff who access and work in our services and spoke into and are central to the ten-year approach. Our Homelessness Services operations acknowledge that the external factors determining the strategic approach to homelessness provision are ever changing.

Simply put, over the last 5-10 years, large hostel-type accommodation has been decommissioned in growing numbers with strategies from all 5 nations and their local authorities proposing alternative responses to homelessness and rough sleeping.

The pandemic demonstrated the potential to bring rough sleeping to an end, and the government at the time made a commitment to do so within their term, but this was not met.

Therefore, a key focus within The Salvation Army’s strategy is to commit to the ending of rough sleeping and homelessness in general with a renewed focus on prevention. Within the wider Salvation Army, the Structure Coordination and Design Project (SCDG) (see page 11) has determined the future direction of travel for The Salvation Army in the Territory to enable transformation, integration and streamlining and a more localised approach to decision making and this is reflected in the development of the homelessness strategy.

The external operating environment

The following trends within homelessness and local authority responses were highlighted, necessitating a fresh approach:

18

The proposed delivery models:

The strategy is proposing a focus on moving away from large hostel-type accommodation to more agile, flexible local responses.

This strategy was set out early in 2024 and will shape the ongoing delivery of homelessness services for the next decade. It fully reflects The Salvation Army’s commitment to reacting positively, sensitively, and creatively to changing needs and forms of service delivery and the changing needs of the client groups we serve.

Wider work in our communities - Employment Plus

WHY IS THIS WORK SO IMPORTANT?

Employment offers people more than financial stability. It can also bring a sense of pride, purpose, and achievement. It allows people to participate in, and contribute to, society. Employment Plus is our specialist service for people who are out of work, not utilising their skills or not earning enough money to make ends meet. Many of these people don’t quality for, or can’t access, help elsewhere. Our focus was on supporting people who had been out of the labour market for some time, and those with complex needs.

19

Where? Employment Plus service ran in over 290 Corps and Lifehouses last year. During the year, we established regular employability sessions in seven prisons too.

What? We worked alongside jobseekers to understand their needs and goals. Employability practitioners thoroughly assessed each jobseeker taking part in our programmes.

How? We weren’t just interested in employment history; we also wanted to understand people’s personalities, experiences, and goals in life – to guide them to the resources and training opportunities that best fitted their needs.

Who? Over 6,300 people contacted or started on the Employment Plus programme last year with over 1,100 people finding work. Over the last ten years, our Employment Plus programmes have supported nearly 50,000 people in the UK.

THE TYPES OF SUPPORT WE OFFERED:

Employment Plus Local

Provided information and guidance on learning progressions and qualifications, job searches, digital inclusion, and benefits. Led by our local churches and community centres.

1:1 Practitioner Support

Offered for six months to two years and continues after employment is found. In work support practitioners provided guidance and guidance regarding employment rights and finance.

Courses and Workshops

Tailored support through in-person and online training courses and group workshops, addressing a range of problems such as self-esteem, motivation, and language proficiency. An increasingly key factor was providing people with digital skills.

Work Experience

Partnering with local JobCentres, independent employability providers and corporate partners, we offered short-term placements at a local level. Some participants gained experience working in The Salvation Army charity shops, for 8, 12 or 16 weeks.

GEOFF’S EXPERIENCE

Geoff had a long period out of work after caring for his elderly parents. He was on Job Seekers Allowance and struggling to afford bills, which worsened during the cost-of-living crisis.

Recently he found work as a groundsman at a local hospital with intensive support from Employment Plus. We helped him access a computer for job searches, build up his CV, apply for jobs and prepare for interviews. Geoff was supported with food parcels and signposted to other organisations offering grants.

Geoff was supported by Employment Support Coordinator, Sue. He said: ‘She helped me with the job searches, looking at my options, helping me fill in applications, setting up accounts to apply for jobs. She also put me in touch with diverse groups who help with grants or food vouchers and help with finding cheaper gas and electricity providers.’

‘I couldn’t have found a job without Sue and for the rest of the people who work at Southwick. Thank goodness for The Salvation Army.’ Geoff

20

The Family Tracing Service

Reconciliation is the heart of the Christian message of salvation. Our Family Tracing Service is one of the longest-running services within The Salvation Army. The service is accessible, affordable, and available to the whole community.

During the year, the Service continued to offer reconciliation within families where circumstances have often been complex and traumatic. It helps bring peace and a feeling of closure.

The Service developed in 2023/2024. With a small team of three caseworkers, we needed to expand ways for people to connect with us. One way we did this was by improving our web pages, with a new Contact Me concept. This simple online proforma allowed people to contact us 24 hours a day and get an instant acknowledgement.

We achieved successful reconnections which led to family reconciliations, which often go on to reshape entire family units. One service user told us: ‘I am extremely thankful, and I have met up with one of my brothers, my nephews too… and learnt that I am now a great uncle. The whole experience has brought me joy.’

New Applications received, registered, and assessed 1,034
Number of general enquiries received 11,252
Success rate for tracing 89%.

Valuable debt advice

We continued to run debt advice programmes across the UK from our churches and community centres. We are authorised and regulated by the Financial Conduct Authority (FCA) and all our staff/volunteers are trained to regulatory requirements.

In 2023/2024:

In the last year we have found suitable debt solution in faster timelines, taking away the worry and fear that being in debt brings. We have introduced on-line portals, allowing people to take control of their financial situation and providing the often much-needed budgeting skills.

As an example, MH came to us with a total debt of £22.5K. We helped him negotiate a payment plan agreeable to his creditors and affordable to MH. He was fastidious in meeting his plan which projected he would be debt free by the end of 2023.

Here for people with disabilities

MUSIC MAN PROJECT

The project continued to offer confidence-boosting music education service for people with learning disabilities and their carers. It isn’t about people coming together to play music. It’s also about creating opportunities for people to enjoy music and bringing them into contact with The Salvation Army and exploring faith and spirituality.

Music is a wonderful way to communicate and can speak to the very heart of who we are in a way that goes beyond words. In our centres where this programme operates, in 2023/2024, we saw people who are non-verbal find a new way of expressing themselves. People who were socially

21

isolated have gained confidence. Those who, in the past, experienced all kinds of barriers have found opportunities to develop relationships through the power of music.

There are currently five active Music Man Projects within The Salvation Army in the UK and the project is growing. It’s testament to the music ministry that this growth tends to happen organically.

People who encountered the Music Man project were inspired by its message – and by the Army’s mission to be inclusive and welcoming as it works to bring fullness of life with Jesus to all.

ENABLED SUMMER SCHOOL

This took place at The National Star College in Cheltenham in the summer of 2023. It is an annual event for people who have a disability, where diversity, individuality and differences are celebrated.

Two of the many attendees were Elaine and her son Sam who reported that the Enabled Summer School is where they both got the strongest sense of belonging. Activities were accessible, the delivery appropriate, engaging, and exciting – and Sam could just be himself.

Over the week, people met friends and enjoyed fun, laughter, and fellowship. There were choices and challenges, the chance to learn new skills and improve on others. The ‘can do’ attitude, positivity and encouragement from others made Enabled a unique and exceptional week.

Enabled groups to run all year round locally and there is also an online Enabled community. The first online event last year was Enabled Easter. In total the sessions were watched by 2850 people live or over the course of the weekend. People continued to enjoy the sessions long after the event, with views increasing to 3060 by the following week.

Showing compassion for older people

Residential care homes

In addition to all the support and services we provide for older people through our churches and community centres, which are outlined in our sister Report and Accounts for The Salvation Army Trust, we run care homes which are funded through The Salvation Army Social Work Trust (this Report).

Older people need the support of our services for a number of reasons. The UK population has been steadily aging, driven by increased life expectancy and declining birth rates. Aging brings the risk of isolation and loneliness. The number of care home places, especially those that are funded by local authority, are falling.

Our approach is to work with older people so they can live as ordinary a life as possible. We treat our homes as their homes. We ensure that our support is bespoke to each individual and arranged in consultation with their loved ones and health care professionals.

22

What we do is rooted in love. We want to ensure older age is rich and fulfilling. We welcome anybody whose needs we can meet, irrespective of financial status and we do not ask people to leave our homes based on their ability to pay.

Our chaplains are a unique provision in our care homes, and they support both staff and residents. They are part of our vibrant communities and engage in formal worship and create spaces for every person to be involved, heard, and supported and assist in the collaboration with our corps.

We are pleased that the provision of care in our residential homes continued to receive positive recognition and reporting from the regulator.

Care home Location Regulators Rating (CQC –
England, CI - Scotland and RQIA
– N Ireland)
Sir Samuel Kelly Belfast RQIA – Good
The Hawthorns Buxton,Derbyshire CQC-Good
YouellCourt Coventry CQC–Good
Davidson House Edinburgh CI -Good
Eagle Lodge Edinburgh CI – Very good / Good
Villa Adastra Hassocks,W Sussex CQC - Good
GlebeCourt Lewisham,London CQC-Good
Furze Hill House North Walsham,Norfolk CQC–Good
Holt House Prestwich,Manchester CQC - Good
Lyndon House St Albans,Herts CQC – Good
Bradbury Care Home
(closed January
2025)		 Southend, Essex CQC – Good
Dewdown House Weston super Mare CQC–Good

Here are some of the things people say about our residential care home service:

‘I am so grateful for all their support and guidance whilst caring for my mother. Their dedication in their roles shines through. Her improved outlook on life is down to them showing care and giving her a home she is happy to be in. Their individual knowledge has saved her, repeatedly. I can never say thank you enough for all you do every day. The little gifts and the time spent on activities to enrich their days show just what a special place this home is.’

‘ Dad is living his best life. He has friends, he absolutely adores the staff. He joins in all sorts of activities including things he has never done before like cooking! Having a chaplain and regular worship is important to Dad. The staff deal very positively with Dad’s dementia and always with respect. He is encouraged to make good choices and supported unconditionally.’

You can read more about our work in local churches and communities in our associated annual report, The Salvation Army Trust 2023/2024.

Understanding and supporting addiction

Our work aligns closely with the stated aims of the movement to help people who face significant distress and hardship to find self-worth and love.

23

CORE RECOVERY

Core Recovery is a model of church that has grown out of our work supporting people with addictions and its associated issues. It is an effortless way of doing church that strips things right back to the basics, journeying together with people and Jesus towards personal transformation.

This approach became operational in more than 20 Salvation Army communities. For example, over the year, Bath launched a Core Recovery meeting from its community work and quickly grew to more than 20 participants.

Meetings are interactive, so people can speak and ask questions throughout. Feedback from participants mentioned the importance of feeling accepted.

PRACTICAL SUPPORT AND SOLUTIONS

While complete freedom from harmful addictions is desirable, it is not always possible. One element Army’s approach to helping people is to focus on harm reduction.

Last year, there were nearly 5,000 drug-related deaths in England and Wales. In January 2024, we reported that The Salvation Army had called for all police officers to be equipped with Naloxone. This temporarily reverses an opioid overdose to allow time for emergency services to arrive. The Army also called for NHS emergency departments, mental health trusts and ambulance services to issue take-home Naloxone kits for those at risk of opioid overdose.

CAMPAIGNING TO END THE STIGMA OF ADDICTION

A Salvation Army-backed campaign aimed at reducing the stigma around deaths due to alcohol and drugs was supported by MSPs in the Scottish Parliament.

See Beyond – See the Lives – Scotland was launched by the University of Stirling, Scottish Families Affected by Alcohol and Drugs, Scottish Health Action on Alcohol Problems and The Salvation Army. We hoped that using stories and images of people who have been affected will shatter myths surrounding drug and alcohol abuse – and encourage people to show compassion for those experiencing problems with substance use and those left behind when a loved one dies.

Director of Addictions Lee Ball said: ‘The Salvation Army supports thousands of people through our addiction and harm reduction work, and we understand that people often use drugs and alcohol as a coping strategy to escape unbearable pain and trauma. To save lives, you must also address the root cause of the substance use, and that means investing in addiction and mental health support services.

Reliable, experienced partner in a crisis

OUR EMERGENCY SERVICES

Every year, as a matter of course, our corps renew their commitment to work with emergency services in the aftermath of major emergencies. It means they could rely on us, and so could the people affected when disaster strikes. 26 emergency response vehicles respond to at least 300 callsouts per year.

‘It’s a privilege to offer our support, and emergency crews always appreciate our response. Many say to us that we are the vehicle they look for first when on scene.’ - Julie Judson, Salvation Army chaplain.

TO THE RESCUE

24

Amid the heatwave last year, The Salvation Army was on hand to support the emergency services and rough sleepers as temperatures soared. We provided water, sun cream, suitable clothing, and emotional support to rough sleepers.

PROVIDING RESOURCES AND EQUIPMENT

LOOKING FORWARD AS A MOVEMENT

The Salvation Army Social Work Trust portfolio of services has once again supported people, of all ages, in all sorts of need. Continuous development and response to change are our hallmark and we fully intend to be as agile and responsive as we move forward as we have been for the last 160 years.

The Salvation Army Social Work Trust is the legal entity through which our centrally coordinated programmes are managed, and this Report has highlighted many examples of the delivery in 2023/2024 across many areas. Some of this work is funded through central government, devolved government, and local authority contracts and some is funded with grants from The Salvation Army Trust.

We will continue to support victims of modern slavery through our network of safe houses and our volunteer drivers and through the immense value of the Survivor Support Fund which helps meet the needs of survivors and get them set up in a new life.

We will start to implement the development strategy for our Homelessness Services and continue to respond to the growing numbers of people experiencing homelessness, and to work with Government and with local authorities to meet these needs flexibly and in changing ways as funding and funding criteria change.

25

We will continue to deliver services such as Employment Plus and debt advice which make such a difference to people as they seek to manage their financial situation, to reduce the oftendamaging stress that debt can cause and, if needed, help them back into meaningful work.

We will maintain our commitment to supporting the emergency services at serious incidents, providing practical and emotional support.

We will continue to support people with addictions and people recovering from addictions with specialist support and helping them and other vulnerable people experience fellowship and friendship through our Core Recovery programme.

We remain committed to family life and will continue to deliver services that support and help maintain and relationships.

We will continue to ‘speak truth to power’ to ensure we are the voice of people who often have no voice, that legislation is developed to meet the real problems that we see which need tackling and funding, and we remain committed to speaking out where legislation needs amending,

The Salvation Army Social Work Trust, working with its sister trust The Salvation Army Trust, remains committed to striving to achieve our vision of ‘Fullness of life for all with Jesus’ and to do so by following its five Mission Priorities. Fullness of life has many meanings, but The Salvation Army Social Work Trust remains committed to deploying its funding to meet need in the many and often complex ways it presents itself. It’s what we were called to do and it’s what we remain steadfast in doing next year and in the years ahead.

GOING CONCERN

The Trust has felt the financial impact of global economic factors, particularly the high inflation rates on our cost base plus the related cost of living crisis. At the time of writing the Bank of England projections for the medium term indicate that inflation will rise to 3.7% and expected to fall back to the 2% target after that, but this remains a watching brief with the current instability arising through the trade tariffs being imposed by the USA. The organisation anticipates that the trading environment will continually be challenging. The Trust has a significant contract with the Home Office, £76.0m (2023: £65.6m) which supports the Anti-Human Trafficking Programme. This equates to 87.5% of the Other Social Operations income stream, and should this contract be terminated; it would also mean that £82.2m expenditure (2023: £73.4m) would no longer be incurred. The Trust could continue to operate without a significant impact upon other service deliverables.

Financial projections and other supporting financial models that detail potential financial impacts upon the Social Work Trust, are reviewed on a regular basis by the operational boards as well as furthering the scenario planning to assess the potential short, medium, and long-term financial implications of other risks and opportunities. Albeit this is currently undertaken on a lower-level scale.

Looking ahead we plan to better utilise the financial reserves to support the organisation and where necessary invest in strategic priorities. This financial year, 2023-24, saw us continuing to spend on our strategic aims. The closing unrestricted reserves were £173m (2023: £154m) and the cash and bank balances were £23.9m (2023: £29.7m). Given that there are daily bank monitoring and cash-flow forecasts undertaken, the directors have a reasonable expectation that the organisation has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of approval of these financial statements, and are not aware of any material uncertainties that may adversely affect the organisation. Accordingly, the financial statements will continue to be prepared on the going-concern basis.

26

RAISING FUNDS

The income streams for The Salvation Army Social Work Trust consist mainly of statutory funding and, to a lesser degree, income from the sale of assets and income from legacies.

Fundraising for the overall work of The Salvation Army, including the work carried out by The Salvation Army Social Work Trust, is largely managed through and executed under The Salvation Army Trust, a separate charity from The Salvation Army Social Work Trust.

One of the distinctive features in the delivery of services covered by The Social Work Trust is that we always seek to do the best we can to help people experience holistic change. Often this means providing additional support services, training, and skills development. This comes at a cost, and therefore to meet this additional cost The Salvation Army Trust makes a grant to The Salvation Army Social Work Trust based on funding needs.

No active fundraising is carried out by The Salvation Army Social Work Trust.

SUBSIDIARIES

The Salvation Army Social Work Trust works in harmony with its subsidiary, Salvation Army Homes (SAH). SAH is a charitable provider of supported housing and support services across England, registered under the Co-operative and Community Benefit Societies Act 2014 (registration no. 15210R) and is also registered with the Regulator of Social Housing (registration no. LH 2429).

The principal activities of SAH are the management and development of social housing, primarily for single people. This includes Lifehouses for homeless people, foyers offering support and training, housing with appropriate support services for vulnerable people and special housing for the elderly as well as self-contained rented homes at rents affordable to those on low incomes.

SAH operates nationally in over 70 local authorities across England and has five principal areas of operation:

1. Agency-Managed Centres (1,497 bed spaces): SAH works in partnership with a number of organisations nationally, including The Salvation Army, to provide a wide range of Agency-Managed Supported Housing services. These include residential centres (called Lifehouses) for homeless single people and homeless families, centres for those recovering from addictions, accommodation for ex-offenders and individuals and families fleeing domestic violence. Within these partnerships, we act as the landlord owning and maintaining the buildings, whilst our managing agents undertake the day-to-day management of the service.

2. General Needs (1,275 homes): SAH owns a range of accommodation that provides secure affordable housing for families and individuals. Residents access this accommodation through local authority waiting lists as we have nomination arrangements in place with our local authority partners.

3. Accommodation for the over-55s (291 bed spaces): Some of SAH’s accommodation is specifically designed for those over the age of 55, including a scheme manager providing on-site support. In accommodation where there is no staff on site, there will be an alarm call system and other types of floating or community support

27

available. Styles of accommodation vary from studio flats to bungalows. Many of SAH’s schemes have communal facilities where residents can engage in a range of activities.

4. Directly Managed Supported Housing (507 bed spaces): SAH directly manages a number of schemes throughout England, both managing the building and delivering the day-to-day management and support. As with the Agency- Managed schemes, SAH provides a range of support services to the residents. All schemes, including our foyers which are tailored for those between the age of 18 and 25, have 24-hour staff support where residents engage in a range of activities to promote independence with the aim of resettlement into independent living.

5. Registered Care Homes (52 bed spaces): SAH owns a number of registered care homes, working with a partnering agency to provide support and care for clients in a residential environment.

SAH also manages 707 residential properties, providing a housing management service throughout the country.

MODERN SLAVERY AND ANTI-HUMAN TRAFFICKING STATEMENT

At The Salvation Army in the United Kingdom and Ireland Territory we hold a zero-tolerance 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 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 compete 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.

28

STREAMLINED ENERGY AND CARBON REPORTING (SECR) STATEMENT

At The Salvation Army Social Work Trust (SWT) we recognise that climate change represents a significant global threat, and we recognise that we need to reduce our operational energy use and carbon emissions, and we have set ourselves some challenging targets to achieve this. We are pleased to report our progress in this area over the last year.

Targets

Our carbon reduction targets for the operational emissions included in this report are:

What do we mean by net zero? We will reduce our emissions by at least 90%, in line with the criteria of the Science Based Targets Initiative’s Net Zero Standard.

We have also calculated our wider indirect carbon footprint and set a target to reduce those emissions to net zero by 2040. Further details are included in our Net Zero Strategy 2040.

Reporting methodology

This report has been prepared in accordance with the Streamlined Energy and Carbon Reporting Guidelines (SECR) 2019, the Greenhouse Gas Reporting Protocol Corporate Standard and ISO 14064-1. To convert activity data into carbon we have used the 2024 UK Government's Conversion Factors for Company Reporting.

29

Greenhouse gas emissions and energy use data

----- Start of picture text -----
Tonnes CO2e KWH
Baseline Baseline
Scope 1 (Gas, Petrol,) (2019/20) 2020/21 2021/22 2022/23 2023/24 (2019/20) 2020/21 2021/22 2022/23 2023/24
Property 4,224 4,096 4,122 4,286 4,205 22,973,309 22,274,210 22,507,000 23,525,009 23,030,788
Fleet 137 266 134 173 134 489,527 1,083,612 525,215 675,620 747,044
Total Scope 1 4,361 4,362 4,256 4,459 4,339 23,462,836 23,357,822 23,032,215 24,200,629 23,777,832
Scope 2 (electricity, grid average)
Property 1,844 1,364 1,365 1,363 1,539 7,214,939 5,848,518 6,429,501 7,046,786 7,430,523
Total Scope 2 1,844 1,364 1,365 1,363 1,539 7,214,939 5,848,518 6,429,501 7,046,786 7,430,523
Scope 3
Total Scope 3
Total (Grid Average) 6,205 5,725 5,622 5,822 5,878
Intensity Ratio
(Tonnes CO2e per employee) 3 3 3 3 2
Total energy Consumption 30,677,775 29,206,340 29,461,716 31,247,415 31,208,355
----- End of picture text -----

----- Start of picture text -----
GHG Emissions (TO2e)
Energy Consumption (KWh)
6600
32,000,000
6400
31,000,000
6200
30,000,000
6000
5800 29,000,000
5600 28,000,000
5400
27,000,000
5200
26,000,000
5000
Baseline 2020/21 2021/22 2022/23 2023/24
(2019/20)
Property Fleet Property Fleet
----- End of picture text -----

Our total energy consumption has increased by 1.7% compared to our 2019/20 baseline. Total carbon emissions have reduced by 5.3% and our intensity of tonnes CO2e per employee by 7.6%. We have made a small amount of progress reducing carbon emissions from our properties. However, emissions from fleet have stayed static.

Progress by area

Property

30

Actions:

Fleet

Actions:

Colleague engagement.

Engaging our staff and volunteers on this agenda is important to us. We are currently developing a Care for Creation training module that will be rolled out early next year for both current and new staff and officers.

We provide updates throughout the year through our intranet, weekly internal newsletters, and articles in our Salvationist magazine.

Wider strategy

This report covers a small part of our sustainability and carbon reduction programmes. Read more about the work we are doing in our Net Zero Strategy 2040 and Carbon Management Plan 2024-27. Both reports are available upon request.

31

REVIEWING FINANCES

Income

Charitable activities:
Centres’ revenue income
Other social operations
Housing association turnover
Legacies and donations
Grants from The Salvation Army Trust
Investment and rental income
Disposal of fixed assets
Total income		 2024
£m
90.8
86.9
27.5
205.2
2.8
29.7
3.4
(1.1)
240.0		 2023
£m
79.8
77.8
23.3
180.9
3.1
22.4
1.9
29.1
237.4

Centres’ revenue income

The main elements are:

Other social operations

The main elements are:

Our Employment Plus team provides services to help unemployed people into work through several Work Programme contracts where The Salvation Army is a subcontractor. Income fluctuates as it is dependent on the number of referrals and on clients securing and retaining employment.

We provided support to the victims of modern slavery under a contract with the Ministry of Justice. The demand for this service has increased year on year.

32

Housing Association turnover

This represents the turnover of The Salvation Army Homes (SAH), a subsidiary of the Social Work Trust, adjusted to reflect the accounting policies and reporting requirements of the Social Work Trust.

Legacies and donations

Legacies of £1.4m and donations of £1.4m were received in the current year.

Grants from The Salvation Army Trust

The Salvation Army Trust provides financial support to the Social Work Trust. This includes the Big Collection Appeal which is an annual appeal undertaken by corps (church) members specifically for social work programmes.

Expenditure

Charitable activities:
Centres’ operations
Other social operations
Housing association operating costs
Cost of raising funds
Total expenditure		 2024
£m
114.4
90.8
26.3
231.5
0.1
231.6		 2023
£m
105.3
83.4
24.0
212.7
0.1
212.8

Centres’ operations

This represents the operating costs of care homes for older people, Lifehouses, detox centres, day care centres and other non-residential projects.

Other social operations

The increased costs reflect the increase in the number of victims of trafficking being helped by our service as well as Employment Plus and the Family Tracing Service.

Net gains/(losses) on investments

There has been an unrealised gain on investments of £20.2 million (2023 restated: gain of £1.2 million).

This represents a £3.0m gain in value of the Salvation Army Homes’ investment property at Waterloo, London with aggregate unrealised gains on the Trust’s investment portfolios of £1.3m.

33

Funds

Excluding investment gains of £20.2 million, the Social Work Trust (excluding SAH results) has generated a surplus of £7.2 million compared to a surplus of £25.3 million in the previous year.

Total funds at the year-end were as follows:

Endowment funds
Restricted funds:
Social Work Fund
Social Work projects
SAH operations
Total restricted funds
Unrestricted funds:
Designated funds
Unrealised investment gains
General reserve
Total unrestricted funds
Total funds		 2024
2023
£m
£m
19.0
16.8
80.3
75.9
40.2
38.7
130.8
129.4
251.3
**244.0 **
51.8
53.1
100.2
85.5
20.7
15.5
172.7
**154.1 **
443.0
414.9

Endowment funds

All endowment funds are represented by investment in the Common Investment Funds and the movement is due to the increase in market value of the investments. The capital value of the funds is retained but the income is applied to fund our work.

Restricted funds

Social Work Fund represents property assets including Lifehouses, care homes and other properties used for the operations of the parent charity. These funds are not therefore available to spend. Funds restricted for social work projects represent legacies and donations given for specific purposes.

All SAH funds are treated as restricted in the group accounts.

Unrestricted funds

Designated reserves

The levels of designated funds are reviewed annually. These are funds set aside by the directors for new projects and to meet known future commitments such as maintenance of our properties. These funds are kept under review by SATCO to ensure their purpose remains in the medium term. There is a major components reserve utilised for larger building projects addressing the necessary investment in properties within the Social Work Trust.

Unrealised gains

These are gains and losses as a result of market value fluctuations which have not yet been realised.

General reserve

This represents funds which are freely available for the general purposes of the charity.

34

RESERVES POLICY

Our reserves policy focuses on the level of general reserves.

We work with vulnerable and disadvantaged members of society, principally through our residential centres. We need reserves so that we can maintain continuity of our services in the event of a decrease in income or unexpected expenditure.

The directors have reviewed the main income streams, the risks associated with them, the main categories of expenditure and the extent to which these can be curtailed if required. A considerable proportion of our income is received under contract from local authorities. As such this is subject to regular competitive tendering and to changes in central and local government policies. The Trust also receives a grant from its sister trust – The Salvation Army Trust - generated from its fundraising to support the work of the Trust. There is a much smaller portion of income that is voluntary income which can be uncertain and fluctuate from year to year.

The total value of funds held as at 31 March 2024 was £443m (2023: £415m). There are restricted reserves of £251m (2023: £244m), unrestricted reserves of £173m (2023: £154m), and endowment reserves of £19m (2023: £17m).

The unrestricted funds include general reserves, designated funds, and the unrealised investment gains reserve. General reserves are utilised to fund the day-to-day needs of The Salvation Army. These were £20.7m as at 31 March 2024 (2023: £15.5m). The designated funds are unrestricted but set aside by the directors for specific purposes, £51.8m (2023: £53.1). The unrealised investment gains reserve totalled £100.2m (2023: £85.5m).

General reserves at the year-end were £20.7m which is within the target range of £9.6m to £24.4m. The target range is modelled looking at income and expenditure with an associated risk factor (correlated with a higher likelihood of an adverse outcome) considered annually and duly reflected in the annual Reserve Policy. Like other charitable organisations, we are facing increased costs from high inflation as well as a challenging fundraising environment as the cost-of-living crisis continues to bite. A deficit budget has been approved for 2025/26 which will result in a significantly lower general reserve towards the lower end of the target range. The Trustee review the reserves policy on an annual basis taking account the changing internal and external risk factors.

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:

35

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:

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.

36

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 AREF/IPDUKQuarterlyAllBalancedPropertyFund

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.

Asset Class Performance Benchmark
UK Equities FTSE All-Share
Europe (ex UK) Equities FTSE All World Developed Europe (ex UK)
Emerging MarketsEquities FTSE All WorldEmerging Markets
Asia Pacific Equities FTSE All World Developed Asia Pacific
United States Equities S&P 500
Property IPD UK Property
Cash and gilts under lien FTSE Gilts under 5 years

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

CIF1 CIF1 CIF1 CIF2 CIF2 CIF2
% % % % % %
Annual total return (gross of fees) 16.9 4.0 5.3 14.4 1.1 6.1
Benchmark return 20.6 (2.6) 13.6 20.6 (2.6) 13.6

The performance is being monitored on a regular basis through discussions with the respective investment fund managers.

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

CIF1 CIF1 CIF1 CIF2 CIF2 CIF2
2024 2023 2022 2024 2023 2022
% % % % % %
(Decrease)/Increase in capital
value of fund		 18.64 2.9 6.8 12.8 -0.1 17.1
Average net income return 1.37 0.5 0.4 0.8 0.7 0.7

37

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 property in the United Kingdom Territory is held by The Salvation Army Trustee Company (SATCo), a company limited by guarantee, registered in England (No 00259322), with its registered office at 1 Champion Park, London, SE5 8FJ.

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

  1. The Salvation Army Social Work Trust, whose accounts are contained in this Report.

  2. The Salvation Army Trust, Charity Registration No 214779 in England and SCO09359 in Scotland.

The governing document of The Salvation Army Trust is The Salvation Army Act 1980, as amended. Under Section 12(1) (a) The Salvation Army Trustee Company is appointed as the sole ordinary trustee of the trusts listed in Schedule 5 to that Act.

The governing document of The Salvation Army Social Work Trust is the Deed Poll dated 30 January 1891, and a supplementary deed dated 26 March 1969.

The Salvation Army Social Work Trust acts as managing agent for a number of projects on behalf of several registered housing associations, including Salvation Army Homes.

Salvation Army Homes

The Salvation Army Social Work Trust has the power to exercise control over Salvation Army Homes (SAH). SAH is registered with the Co-operative and Community Benefit Societies Act 2014 and is a registered social landlord regulated by The Regulator of Social Housing.

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 enterprisewide 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. Current plans include promoting 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 once yearly on key risks. Through this risk management process the directors have considered the major risks facing the organisation and satisfied themselves that controls are established to manage them.

38

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.

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 various levels of the organisation. The following outline indicates the most significant risks in the reporting period, and some of the strategic level mitigations we have in place.

Principal Risks Mitigation
Business Continuity - There is a risk
of the occurrence of a significant
incident where, during and after the
incident, The Trust will not be able
to continue to be viable and meet
stakeholder expectations.		 Business continuity policies and procedures,
including the application of ISO27001 for some parts
of the organisation, prepare us for management of
interruptions.
Cyber - The risk is that we fail to
protect our information systems and
the information they hold.		 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
Data Protection - The risk that we
fail to protect sensitive and personal
data.		 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.
Financial Sustainability - The risk
that there is insufficient revenue
income from donations, legacies,
grants, and reserves to support our
operating model resulting in the
failure of the Trust to thrive in a
rapidly changing environment.		 We continue to monitor the funding situation and
adjust our financial planning and commitments
accordingly to ensure we are financially resilient.
Safeguarding - The risk is that we
fail to provide a safe environment,
free from abuse, for everyone,
including vulnerable beneficiaries.		 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 oftherisk.

39

Comprehensive policies, procedures, and guidance Safe Mission – The risk is that we are are in place, alongside a supervisory control not able to ensure the health, safety framework. and welfare of personnel, service Two RMC subcommittees – the Safe Mission Council users and members of the public and the Sudden Deaths Review Group – inform the who are affected by our activities. management of this risk.

RECRUITMENT AND APPOINTMENT OF DIRECTORS

There are 14 directors of Salvation Army Trustee Company (‘SATCo’, the sole trustee of The Salvation Army Social Work Trust), eight by virtue of their appointments within The Salvation Army. One director is a divisional leader responsible for one of The Salvation Army’s 14 divisions.

The other five directors are non-executive, each bringing expertise in a relevant field, as approved by The General – including property, finance, investments, or social services. The appointment of non-executive directors is made by SATCo 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 each board meeting. 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 up to 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’s role is outlined above under Risk Management.

The Board met bi-monthly during the year, 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:

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

40

The Internal Audit department periodically reviews SATCo’s performance against the Charity Governance Code. The Internal audit department carried out a review in the period to 31 March 2024 and identified a number of minor improvements in line with best practise which SATCO acknowledge and will implement in the forthcoming Internal Audit review period.

Trustee's Responsibilities

The Trustee is responsible for preparing the Trustee's Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

The law applicable to charities in England and Wales/Scotland/Northern Ireland requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements are published on The Salvation Army website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of The Salvation Army’s website is the responsibility of the Trustee. The Trustee's responsibility also extends to the ongoing integrity of the financial statements contained therein.

Public Benefit

The Trustee confirm that they have given due consideration to the Charity Commission’s published guidance on the public benefit requirement under the Charities Act 2011.

We believe that in delivering public benefit we are effective because we bring the breadth of our capabilities to bear on the complex challenges being faced by our vulnerable clientele: the homeless, the oppressed through human trafficking, the elderly, and a suite of other communityfocused activities. The organisation’s strategy sets out how we meet those challenges to make a difference over the current decade and beyond. Find out more in the sections ‘Summary of what The Social Army Social Work Trust does,’ ‘In the Frontline Against Modern Slavery,’ ‘Giving Homeless People Help and Understanding,’ ‘Wider Work in Our Communities’ and ‘Looking Forward as a Movement.’

Remuneration of Key Management

Key management personnel of The Salvation Army comprise Salvation Army Officers and employees. Active Salvation Army Officers do not receive a salary; instead, they receive an allowance based on

41

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 £19,377.96 to £25,471.57 per annum. Further information is disclosed in Note 10 and 11 to the Accounts.

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.

On behalf of the Directors of The Salvation Army Trustee Company 19 May 2025

42

DIRECTORS

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

Commissioner Anthony Cotterill (until 31.12.23) Commissioner Paul Main Chair Commissioner Jenine Main (until 31.12.23) Colonel Peter Forrest Deputy Chair (appointed 19.01.24) Lieut-Colonel Nicholas Coke (appointed 05.07.24) Lieut-Colonel Mark Herbert Lieut-Colonel Paul Kingscott (appointed 10.05.24) Lieut-Colonel Andrew McCombe Lieut-Colonel Beverley McCombe Lieut-Colonel Dean Pallant (until 30.06.24) Lieut-Colonel Judith Payne (until 24.07.24) Lieut-Colonel Alan Read (until 01.05.24) Major Judith Hilditch (until 30.04.23) Major Amanda White (appointed 26.09.24) Philip Edwards Peter Gale Aidan Grills (appointed 10.05.24) Jennifer Laurent-Smart (appointed 26.09.24) Helen O’Brien Mark Puller (until 12.05.23) Andrew Stickland

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

Committee Members (current)

Territorial Operations Board

Colonel Peter Forrest (Chair), Commissioner Jenine Main, Lieut-Colonel Paul Kingscott (until 17.03.24), Major Jane Cowell, Lieut-Colonel David Shakespeare, Major Mike Lloyd-Jones, Major Julian Watchorn, Major Richard Waters, Tony Daniels (until 04.09.24), Miguel Fiallos, Peter Grant, Mitch Menagh (until 04.09.24), Alex O’Hara, Nick Redmore, Major Pam Pitt (appointed 01.07.24), Major Kerry Coke (appointed 18.09.24), Major Kathy Betteridge (appointed 18.09.24), Polly Hughes (appointed 18.09.24), Julius Wolff-Ingham

Audit Committee

Andrew Stickland (Chair), Mike Grills, Stephen Bright, Hannah Greenfield (until 21.11.24)

Investment Advisory Committee

Peter Gale (Chair), Lieut-Colonel Alan Read (retired 01.05.24), Marcel Schuster, Mary Haly, Daniel Wills, Mark Chaloner, Philip Rotheram (until 30.11.23), Lieut-Colonel Paul Kingscott (appointed 18.04.24)

Nominations Committee

Commissioner Paul Main, Colonel Peter Forrest, Lieut-Colonel Alan Read (until 01.05.24), Elliot Thomas, Lieut-Colonel Paul Kingscott (appointed 18.04.24)

43

Risk Management Committee

Helen O'Brien (Chair), Lieut-Colonel Drew McCombe (ex-officio), Lieut-Colonel Beverley McCombe (ex-officio), Lieut-Colonel Dean Pallant (until 30.06.24), Lieut-Colonel Alan Read (retired 01.05.24), Lieut-Colonel David Shakespeare, Major Kerry Coke, Major Sarah Price, Major Howard Russell (until 23.10.24) , Daniel Wills, Elliot Thomas, Julius Wolff-Ingham, Lynette Sturgeon, Matthew Saxon, Lieut-Colonel Nick Coke (ex-officio) (appointed 01.07.24), Lieut-Colonel Paul Kingscott (ex-officio) (appointed 18.04.24), Lieut-Colonel Jonathan Roberts (appointed 01.09.24)

Company Secretary

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

ADVISERS

Bankers

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

Auditors

Crowe U.K. LLP, Statutory Auditor, Chartered Accountants, 55 Ludgate Hill, London EC4M 7JW

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

44

INDEPENDENT AUDITORS REPORT TO THE TRUSTEE OF THE SALVATION ARMY SOCIAL WORK TRUST

Opinion

We have audited the financial statements of The Salvation Army Social Work Trust (‘the charity’) and its subsidiary (‘the group’) for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group 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 or the group’s ability to continue as a going concern for a period of at least 12 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 trustee is responsible for the other information contained within the Annual Report. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

45

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 this gives rise to a material misstatement in the financial statements themselves. 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustee

As explained more fully in the trustee's responsibilities statement set out on page 41, 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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

46

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including internal specialists and significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operate, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Salvation Army Act 1980, General Data Protection Regulation (GDPR), CQC Regulations for service providers and managers, Health and Social Care Act, taxation legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustee and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of contract and grant income and centres’ resident charges income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit, legal counsel and the Audit Committee about their own identification and assessment of the risks of irregularities, designing audit procedures over contract and grant income and centres’ resident charges income , sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, OSCR, CQC and reading Minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

47

This report is made solely to the charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustee 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 trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP Statutory Auditor

London

Date: 22 May 2025

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Crowe U.K. LLP is eligible for appointment as auditor of the charity under regulation 10(2) of the Charities Accounts (Scotland) Regulations by virtue of its eligibility under section 1212 of the Companies Act 2006.

48

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 March 2024

Note
INCOME AND ENDOWMENTS FROM:
Donations and Legacies
Grants receivable from: The Salvation
Army Trust
Donations
Legacies
Charitable Activities
Centres’ operations
3
Other social operations
4
Housing Association turnover
12
Investments
5
Other
(Loss)/Gains on disposal of fixed
assets
TOTAL INCOME
EXPENDITURE ON:
Raising Funds
Investment management costs
Charitable Activities
Centres’ operations
6
Other social operations
7
Housing Association operating
costs
12
TOTAL EXPENDITURE
9
Net Gains on Investments
NET INCOME/(EXPENDITURE)
Transfers between Funds
22/23
Actuarial (Losses)on Defined Benefit
Pension Schemes
121
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total Funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Endowments
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,185
2,185
-
-
2,185
16,825
19,010		 Restricted
£000
-
796
1,358
2,154
281
91
27,525
27,897
260
(1,098)
29,213
-
-
5,723
176
26,305
32,204
32,204
3,306
315
7,504
(501)
7,318
244,001
251,319		 Unrestricted
£000
29,698
623
-
30,321
90,470
86,785
-
177,255
3,171
-
210,747
50
50
108,665
90,652
-
199,317
199,367
14,676
26,056
(7,504)
-
18,552
154,139
172,691		 2024
Total
£000
29,698
1,419
1,358
32,475
90,751
86,876
27,525
205,152
3,431
(1,098)
239,960
50
50
114,388
90,828
26,305
231,521
231,571
20,167
28,556
-
(501)
28,055
414,965
443,020		 2023
Restated
Total
£000
22,373
2,268
871
25,512
79,775
77,864
23,303
180,942
1,850
29,068
237,372
50
50
105,328
83,436
24,040
212,804
212,854
1,176
25,694
-
(501)
25,193
389,772
414,965

All income and expenditure has arisen from continuing activities. Detailed comparative information is provided in note 30. Notes 1 to 30 form an integral part of these accounts.

49

BALANCE SHEET

AS AT 31 March 2024

Note
FIXED ASSETS
Tangible Fixed Assets
Properties
13
Property schemes in progress
14
Motor vehicles and equipment
15
Investments
16
TOTAL FIXED ASSETS
CURRENT ASSETS
Stocks
Debtors
17
Short-term deposits
Cash at bank
CREDITORS:Amounts falling due within one
year
18(a)
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
Creditors: Amounts falling due outside one
year
18(b)
Defined Benefit Pension Scheme Liability
11
TOTAL NET ASSETS
FUNDS
Endowment Funds
21
Restricted Funds
22
Unrestricted Funds
23
TOTAL FUNDS
24		 Group
2024
2023
Restated
£000
£000
183,728
182,450
1,520
2,682
1,441
968
199,321
179,190
386,010
365,290
206
208
87,314
28,346
8,027
44,077
23,866
29,703
119,413
102,334
(43,743)
(32,727)
75,670
69,607
461,680
434,897
(15,799)
(17,081)
(2,861)
(2,851)
443,020
414,965
19,010
16,825
251,319
244,001
172,691
154,139
443,020
414,965		 Parent
2024
2023
Restated
£000
£000
66,835
66,700
1,443
2,605
88
164
162,821
145,691
231,187
215,160
206
208
84,658
26,172
8,027
44,077
19,510
23,336
112,401
93,793
(31,609)
(23,374)
80,792
70,419
311,979
285,579
-
-
-
-
311,979
285,579
19,010
16,825
120,278
114,615
172,691
154,139
311,979
285,579		 Parent
2024
2023
Restated
£000
£000
66,835
66,700
1,443
2,605
88
164
162,821
145,691
231,187
215,160
206
208
84,658
26,172
8,027
44,077
19,510
23,336
112,401
93,793
(31,609)
(23,374)
80,792
70,419
311,979
285,579
-
-
-
-
311,979
285,579
19,010
16,825
120,278
114,615
172,691
154,139
311,979
285,579
66,700
2,605
164
145,691
215,160
208
26,172
44,077
23,336
93,793
(23,374)
70,419
285,579
-
-
285,579
16,825
114,615
154,139
285,579

Notes 1 to 30 form an integral part of these accounts.

Approved on behalf of The Salvation Army Trustee Company on 19 May 2025 by:

_________ Lieut-Colonel Paul Kingscott (Director)

__________ Commissioner Paul Main (Director)

50

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 March 2024

Note
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Cash (used in)/provided by operating activities
25
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment and rental income
Additions to properties
Additions to motor vehicles and equipment
Additions to property schemes in progress
Additions to investments
Proceeds on disposal of properties
Net Cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Interest payable
Repayment of loans
Cash inflow from new loans
Net Cash (used in) financing activities
Change in Cash and Cash Equivalents in the year
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equivalents at the end of the year
ANALYSIS OF CHANGES IN NET DEBT
Cash at Bank
Short term deposits
Total cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year		 Note
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Cash (used in)/provided by operating activities
25
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment and rental income
Additions to properties
Additions to motor vehicles and equipment
Additions to property schemes in progress
Additions to investments
Proceeds on disposal of properties
Net Cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Interest payable
Repayment of loans
Cash inflow from new loans
Net Cash (used in) financing activities
Change in Cash and Cash Equivalents in the year
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equivalents at the end of the year
ANALYSIS OF CHANGES IN NET DEBT
Cash at Bank
Short term deposits
Total cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year		 2024
£000
3,431
(7,177)
(748)
(5,732)
-
1,354		 2024
£000
(32,671)
(8,872)
(344)

(41,887)
73,780
31,893
Cash-Flows
£000
(5,837)
(36,050)
(41,887)
-
-		 2023
£000
1,850
(4,028)
(721)
(2,191)
(14,603)
35,120
(1,371)
(2,473)
3,500		 (473)
(2,163)
-
Balance
1 April
2023
£000
29,703
44,077
73,780
(2,516)
(17,063)
54,201 (41,887) (1,045)
11,269

51

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2024

1. CHARITY INFORMATION

The Salvation Army in the UK is an integrated, yet diverse, organisation that contributes to the betterment of society in the service of God and people. Legally we are structured under two main trusts. These are:

These financial statements are for The Salvation Army Social Work Trust (‘Social Work Trust,’ ‘the Trust’). The address of the registered office is 1 Champion Park, London, SE5 8FJ.

2. ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements for the Social Work Trust, which have been consistently applied, are as follows:

(a) Basis of Accounting

The accounts (financial statements) have been prepared in accordance with Financial Reporting Standard 102, the Financial Reporting Standards applicable in the UK and the Republic of Ireland and Charity SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102, The Salvation Army Act 1980, the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn.

Social Work Trust meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

(b) Prior year restatement

A number of prior year adjustments have been identified due to error or incorrect application of our accounting policies. The impact of the prior year adjustments has increased prior year reserves from £410m to £415m. More detailed descriptions of each adjustment are included within Note 29.

(c) Going Concern

The Trust has felt the financial impact of global economic factors, particularly the high inflation rates on our cost base plus the related cost of living crisis. At the time of writing the Bank of England projections indicate that inflation will rise to 3.7% and expected to fall back to the 2% target after that, but this remains a watching brief with the current instability arising through the trade tariffs being imposed by the USA. The organisation anticipates that the trading environment will continually be challenging. The Trust has a significant contract with the Home Office, £76.0m (2023: £65.6m) which supports the Anti-Human Trafficking Programme. This

52

equates to 87.5% of the Other Social Operations income stream, and should this contract be terminated; it would also mean that £82.2m expenditure (2023: £73.4m) would no longer be incurred. The Trust could continue to operate without a significant impact upon other service deliverables.

Financial projections and other supporting financial models that detail potential financial impacts upon the Social Work Trust, are reviewed on a regular basis by the operational boards as well as further scenario planning to assess the potential short, medium, and long-term financial implications of other risks and opportunities. Albeit this is currently undertaken on a lower-level scale.

looking ahead, we plan to better utilise the financial reserves to support the organisation and where necessary invest in strategic priorities. This financial year, 2023-24 saw us continuing to spend on our strategic aims and utilising reserves to do this where possible. The closing unrestricted reserves were £173m (2023: £154m) and the cash and bank balances were £23.9m (2023: £29.7m). Given that there are daily bank monitoring and cash-flow forecasts undertaken, the Directors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements and are not aware of any material uncertainties that may adversely affect the organisation. Accordingly, the financial statements will continue to be prepared on the going-concern basis.

(d) Basis of Consolidation

Social Work Trust has one subsidiary entity, the Salvation Army Homes (‘SAH’). SAH is a charitable provider of supported housing and support services across England, registered under the Cooperative and Community Benefit Societies Act 2014 (registration no. 15210R) and is also registered with the Regulator of Social Housing (registration no. LH 2429). SAH has one active subsidiary, Kingsown Property Limited, and one dormant subsidiary, SAH Developments Limited, whose results are consolidated in the SAH financial statements. The accounts of The Salvation Army Social Work Trust consolidate SAH’s accounts using the acquisition method. The Statement of financial activities (SOFA) and balance sheet consolidate, on a line-by-line basis, the financial statements of the Trust and its subsidiary undertakings. The Trust has taken advantage of the exemption in FRS102 from the requirement to prepare a charity-only cash flow statement and certain disclosures about the Trust’s financial statements.

(e) Critical accounting judgements and key sources of estimation uncertainty

In the application of the Trust’s accounting policies, Directors of the sole trustee are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

(ii) Defined Benefit Obligation

The Salvation Army Social Work Trust contributes to the underlisted defined benefit pension or similar schemes in respect of its staff:

53

(iii) Identification and valuation of investment properties Social Work Trust’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. 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 three-year window. If disposal does not occur within this period and the property is not re-engaged for charitable purposes, it is reclassified to investment property.

After initial recognition, investment property is measured at its fair value which is determined by members of staff with relevant experience and qualifications, and the valuation is performed using open market data for comparable properties. The property will be valued at each subsequent reporting date.

(iv)

Contractual Income Obligations

Contractual income streams both restricted and unrestricted are controlled, monitored and reported upon against the respective contracts. In the unlikely event that a contractual term requires a repayment of funds, this is deducted from income in the SOFA and the confirmed amount repayable is recorded as a creditor, with any further unconfirmed amount that it is possible may need to be repaid disclosed as a contingent liability.

(f) Income

All income is included in the SOFA when the Trust is entitled to the income, receipt is probable, and the amount can be measured reliably. Income includes:

Legacies income is recognised when it satisfies the following criteria:

54

the amount due. In each case this information is notified to the Trust by the date of signing the accounts;

(g) Expenditure

Expenditure is charged on the accruals basis when a legal or constructive obligation arises, and when the amount can be measured reliably. Irrecoverable Value Added Tax is charged to the related expenditure. Total expenditure includes:

(h) Pension and Similar Costs

55

The Salvation Army Officers’ Pension 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 retirement benefits are not guaranteed and are paid at the discretion of the Board of the Fund. It is non-contributory and has historically been funded by Salvation Army trusts (including The Salvation Army Trust and The Salvation Army Social Work Trust); however, there have been no payments made to the Fund during the current year. Officers that serve in the principal Trusts (The Salvation Army Trust and The Salvation Army Social Work Trust) may receive a retirement allowance from the Fund in the future, although, 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 Employees’ Pension Fund is a defined benefit scheme. The Trust is not the only participating employer in the Fund and it is unable to determine its share of the underlying assets and liabilities on a consistent and reasonable basis. This is because contributions paid into the Fund have not been invested separately from those paid by other employers participating in the Fund. As such, no separate fund is identifiable in respect of the Trust. To determine a current fund for each participating employer it would be necessary to separately account for contributions, benefit payments and investment returns for each participating employer.

Under the terms of the Fund, the assets and liabilities are pooled amongst the participating employers. If a participating employer were to cease to participate then that employer would be required to pay a debt, via a Section 75 Debt, to fully fund their share of the Fund’s liabilities. The Trust would not be liable for another employer’s debt but has an option to assume responsibility under an apportionment arrangement.

The Fund closed to the future accrual of pensionable service with effect from 30 April 2023 and therefore regular employer contributions ceased on this date.

A full actuarial valuation of the Fund was carried out at 31 March 2021 by the Fund Actuary. The valuation disclosed a past service surplus of £2.5m.

An update of the funding position as at 31 March 2024 was carried out by the Fund Actuary. This showed that the past service surplus had increased from £2.5m to a surplus of £65.5m on the 2021 valuation basis.

Since 1 January 2012, employees joined The Salvation Army Employees’ Defined Contribution Scheme.

In addition, Salvation Army Homes participates in three pension or similar schemes in respect of its staff.

The Salvation Army Homes (SAH) participates in the following pension schemes:

56

former defined benefit element of the scheme, this has been recognised as a liability in full in the financial statements.

(i) 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. The non-capital element of property schemes is written off in the year in which costs are incurred.

All properties are disclosed at cost less accumulated depreciation other than SAH properties at the dates of acquisition (19 January 2011 and 2 March 2017) which were brought into account at those dates at fair values (being an existing use social housing valuation (EUV – SH) prepared by independent chartered surveyors). These properties are subsequently depreciated at the rates indicated below.

(ii) Expenditure on the acquisition of vehicles is capitalised and expenditure on computer equipment and other office equipment which exceeds £15,000 in value is capitalised and depreciated over its economic life. Any equipment acquired at centres is written off in the year of acquisition.

(iii) In accordance with FRS 102 component accounting has been adopted for freehold and long leasehold properties. A property comprises of major components with 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

the components to their residual values, over
straight-line method, as follows		 their estimated useful
Freehold Land Not depreciated
Building – Main Fabric (structure) 50 years
Major Components
Roof structure and covering 50 years
Bathrooms and WCs 20-30 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 - 3-4 years Office Equipment - 3-10 years

(v) The Social Work Trust has achieved partnership status with the Homes England which means that it can access capital funds from this source to assist with the costs of schemes. SAH has always been able to access this funding. Grants arising are credited to restricted income except where the income is subject to certain restrictions which remain unfulfilled at the accounting reference date, in which case the income is deferred. A proportion of the depreciation charge arising on the properties concerned is charged against these restricted funds.

(j) Investments and Investment Properties

To comply with the Charities SORP, investments are included at fair value (their market value bid price). Realised gains on investments are calculated as the difference between sales proceeds and the market value of those investments at the beginning of the accounting period.

The Salvation Army Social Work Trust holds some investment properties, and its subsidiary SAH owns properties held for market rent or commercial lettings and these are included as investment properties and are recorded at fair value with changes in the market value reported annually in the statement of financial activities. The fair value of the investment property is determined by

57

members of staff with relevant experience and qualifications. For residential properties, the desktop valuation is based on comparable properties in the local area. The data is collected from property portal sites like Rightmove and Zoopla and supported by data of sold and completed properties from HM Land Registry. A valuation by an independent valuer was not performed

(k) Stocks

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

(l) Cash and short-term deposits

Cash include cash in hand, deposits with banks and funds that are readily convertible into cash at, or close to, their carrying values, but not held for investment purposes. Short-term deposits are amounts not accessible for a period of up to 3 months.

(m) Funds

(iii) Unrestricted Funds include:

(n) Financial instruments classification

All financial instruments, including loans, are classified as ‘basic.’ Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method.

Financial assets held at amortised cost comprise cash at bank and in hand, together with trade debtors, other debtors, and accrued income. Financial assets held at fair value include investments including investment property, excluding cash held as part of the investment portfolio.

Financial liabilities held at amortised cost comprise trade creditors, other creditors, and accruals.

58

3. CHARITABLE ACTIVITIES: CENTRE OPERATIONS

------------------------------------------------------2024------------------------------------------------ ------2023------

Social Services Centres
Older People
Single Homeless
Family and Children
Day Care
Addictions
Other Non-Residential
Programmes
Housing Association Centres
Older People
Single Homeless
Family and Children
Social Enterprise
Total 2024
Total 2023		 Maintenance
& Special
Care Allowance
Supporting
People
£000
£000
15,686
-
11,763
11,193
1,878
2,374
-
250
811
782
159
1,039		 Local
Authority
& Other
Grants
£000
9
459
764
-
32
1,523		 Catering &
Miscellaneous
Income
£000
110
723
356
43
7
1,432		 Total
£000
15,805
24,138
5,372
293
1,632
4,153
51,393
1,172
35,879
1,789
38,840
518
**90,751 **		 Total
£000
12,922
19,908
4,850
309
1,472
3,285
30,297
15,638		 2,787 2,671 42,746
1,169
-
24,453
9,901
1,063
650		 -
1,109
29		 3
416
47		 1,084
33,899
1,543
26,685
10,551		 1,138 466 36,526
-
32		 44 442 503
56,982
26,221		 3,969 3,579 79,775
48,506
25,224		 2,772 3,273 79,775

Income of £281,000 (2023: £473,000) is restricted.

£105,000 (2023: £228,000) of government grants, £2,541,000 (2023: £1,987,000) of local authority grants and £971,000 (2023: £557,000) of other grants were received for outsourced services performed by the Trust on behalf of local authorities and other government bodies. There were no unfulfilled conditions relating to these grants. Also see Note 4 for details of other government grants received.

59

------------------------------------------------------2023 ------------------------------------------------

Social Services Centres
Older People
Single Homeless
Family and Children
Day Care
Addictions
Other Non-Residential
Programmes
Housing Association Centres
Older People
Single Homeless
Family and Children
Social Enterprise
Total 2023		 Maintenance
& Special
Care Allowance
Supporting
People
£000
£000
12,863
-
9,407
9,610
1,498
2,416
-
235
574
736
-
1,108		 Local
Authority
& Other
Grants
£000
7
600
480
-
-
996		 Catering &
Miscellaneous
Income
Total
£000
£000
52
12,922
291
19,908
456
4,850
74
309
162
1,472
1,181
3,285
24,342
14,105		 2,083 2,216
42,746
1,074
-
22,236
10,479
854
611		 7
597
42		 3
1,084
587
33,899
36
1,543
24,164
11,090		 646 626
36,526
-
29		 43 431
503
48,506
25,224		 2,772 3,273
79,775

60

4. OTHER SOCIAL OPERATIONS

Employment Plus
Anti-Human Trafficking
Defence Services Operations
Family Tracing, Counselling etc
Total 2024
Total 2023 Restated		 ------------------------------------------------------2024------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
£000
£000
£000
£000
-
-
1,272
158
-
75,989
174
9,035
-
-
-
211
-
-
-
37		 ------------------------------------------------------2024------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
£000
£000
£000
£000
-
-
1,272
158
-
75,989
174
9,035
-
-
-
211
-
-
-
37		 ------------------------------------------------------2024------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
£000
£000
£000
£000
-
-
1,272
158
-
75,989
174
9,035
-
-
-
211
-
-
-
37
Total
£000
1,430
85,198
211
37
86,876		 ------2023----
Total
£000
4,025
73,594
186
59
-
75,989		 1,446 9,441 77,864
-
65,582		 3,988 8,294 77,864

Local authority and other grants include £889,000 (2023: £1,565,000) of Employment Services Contracts and £383,000 (2023: £2,407,000) of government grants. There were no unfulfilled conditions relating to these grants.

Prior year Anti-Human Trafficking is restated, refer to note 29 Prior year adjustment.

Employment Plus
Anti-Human Trafficking
Defence Services Operations
Family Tracing, Counselling etc
Total 2023		 ------------------------------------------------------2023------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
Total
£000
£000
£000
£000
£000
-
-
3,976
49
4,025
-
65,582
12
8,000
73,594
-
-
-
186
186
-
-
-
59
59
-
65,582
3,988
8,294
77,864		 ------------------------------------------------------2023------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
Total
£000
£000
£000
£000
£000
-
-
3,976
49
4,025
-
65,582
12
8,000
73,594
-
-
-
186
186
-
-
-
59
59
-
65,582
3,988
8,294
77,864
-
65,582		 3,988

61

5. INVESTMENT INCOME

Dividends and interest
receivable
Rents receivable
Rental income from
investment properties		 Restricted
Unrestricted
2024
Total
2023
Total
£000
£000
£000
£000
245
2,509
2,754
1,269
15
424
439
390
-
238
238
191
260
3,171
3,431
1,850

62

6. ANALYSIS OF CENTRES’ OPERATIONS COSTS

-------------------------------------------------------------------2024--------------------------------------------------------------------2023-------

Social Services Centres
Older People
Single Homeless
Family and Children
Day Care Centres
Addictions
Other Non-Residential
Programmes
Housing Association Centres
Older People
Single Homeless
Family and Children
Social Enterprise
Total Costs 2024
Total Costs 2023		 Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
£000
£000
15,265
1,103
14,991
598
3,712
34
326
4
1,460
3
4,755
635		 Other
Operating
Costs
£000
868
5,292
511
9
243
1,152		 Property &
Furnishings
£000
4,899
5,408
888
145
431
1,870		 Support
Costs
£000
2,285
1,451
853
116
165
1,415		 Governance
Costs
£000
85
374
8
1
3
12		 Total
£000
24,505
28,114
6,006
601
2,305
9,839
71,370
1,885
37,830
2,289
42,004
1,014
114,388		 Total
£000
21,155
22,870
5,803
639
2,131
8,375
40,509
2,377		 8,075 13,641 6,285 483 60,973
956
109
18,538
2,152
1,099
3		 345
9,406
346		 223
3,883
513		 250
3,678
325		 2
173
3		 1,741
39,425
2,058
20,593
2,264		 10,097 4,619 4,253 178 43,224
321
233		 81 257 122 - 1,131
61,423
4,874		 18,253 18,517 10,660 661 105,328
56,216
4,560		 15,939 19,048 9,398 167 105,328

Governance costs include external audit fees, exclusive of VAT, of £145,500 (2023: £129,800) for the Trust, £45,200 (2023: £48,400) for SAH and £6,273 (2023: £5,000) for Kingsown Property Limited (subsidiary of SAH).

Non-audit service fees, exclusive of VAT, payable to the auditor were £59,607 (2023: £2,664) for the Trust, £Nil (2023: £17,671) for SAH and £4,418 (2023: £4,041) for Kingsown Property Limited. Fees from 2023 were incurred before the firm became the auditor of the Trust.

£9,293,000 (2023: £2,688,000) of centres’ operations costs are funded from restricted funds.

Prior year Analysis of Centres’ Operations is restated, refer to note 29 Prior year adjustment

63

---------------------------------------------------------------2023----------------------------------------------------

Social Services Centres
Older People
Single Homeless
Family and Children
Day Care Centres
Addictions
Other Non-Residential
Programmes
Housing Association Centres
Older People
Single Homeless
Family and Children
Social Enterprise
Total Costs 2023		 Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
£000
£000
13,771
1,027
12,459
504
3,598
23
406
28
1,330
5
4,462
482		 Other
Operating
Costs
£000
803
4,708
373
4
89
1,024		 Property &
Furnishings
£000
3,525
3,512
977
102
517
1,443		 Support
Costs
£000
1,997
1,653
823
93
187
950		 Governance
Costs
Total
£000
£000
32
21,155
34
22,870
9
5,803
6
639
3
2,131
14
8,375
36,026
2,069		 7,001 10,076 5,703 98
60,973
848
107
17,890
2,163
1,034
2		 274
8,299
297		 291
7,927
440		 218
3,083
282		 3
1,741
63
39,425
3
2,058
19,772
2,272		 8,870 8,658 3,583 69
43,224
418
219		 68 314 112 -
1,131
56,216
4,560		 15,939 19,048 9,398 167
105,328

64

7. OTHER SOCIAL OPERATIONS

Social Services Centres
Employment Plus
Anti-Human Trafficking
Defence Services Operations
Family Tracing, Counselling etc
Total Costs 2024
Total Costs 2023		 -------------------------------------------------------------------2024--------------------------------------------------------------
-------2023-------
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total
Total
£000
£000
£000
£000
£000
£000
£000
£000
4,905
3
301
79
68
-
5,356
6,545
7,304
87
73,652
1,060
35
30
82,168
73,399
188
100
29
4
6
-
327
333
1,862
8
1,089
18
-
-
2,977
3,159
14,259
198
75,071
1,161
109
30
90,828
83,436
14,668
182
66,707
1,098
778
3
83,436		 -------------------------------------------------------------------2024--------------------------------------------------------------
-------2023-------
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total
Total
£000
£000
£000
£000
£000
£000
£000
£000
4,905
3
301
79
68
-
5,356
6,545
7,304
87
73,652
1,060
35
30
82,168
73,399
188
100
29
4
6
-
327
333
1,862
8
1,089
18
-
-
2,977
3,159
14,259
198
75,071
1,161
109
30
90,828
83,436
14,668
182
66,707
1,098
778
3
83,436
83,436
83,436

Employment Plus includes a number of matched funding contracts.

Prior year Anti-Human Trafficking is restated, refer to note 29 Prior year adjustment

Employment Plus
Anti-Human Trafficking
Defence Services Operations
Family Tracing, Counselling etc
Total Costs 2023		 -----------------------------------------------------------------2023-----------------------------------------------------------
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total
£000
£000
£000
£000
£000
£000
£000
6,107
4
58
91
285
-
6,545
6,432
76
65,615
986
287
3
73,399
175
95
33
3
27
-
333
1,954
7
1,001
18
179
-
3,159		 -----------------------------------------------------------------2023-----------------------------------------------------------
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total
£000
£000
£000
£000
£000
£000
£000
6,107
4
58
91
285
-
6,545
6,432
76
65,615
986
287
3
73,399
175
95
33
3
27
-
333
1,954
7
1,001
18
179
-
3,159		 -----------------------------------------------------------------2023-----------------------------------------------------------
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total
£000
£000
£000
£000
£000
£000
£000
6,107
4
58
91
285
-
6,545
6,432
76
65,615
986
287
3
73,399
175
95
33
3
27
-
333
1,954
7
1,001
18
179
-
3,159		 -----------------------------------------------------------------2023-----------------------------------------------------------
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total
£000
£000
£000
£000
£000
£000
£000
6,107
4
58
91
285
-
6,545
6,432
76
65,615
986
287
3
73,399
175
95
33
3
27
-
333
1,954
7
1,001
18
179
-
3,159		 -----------------------------------------------------------------2023-----------------------------------------------------------
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total
£000
£000
£000
£000
£000
£000
£000
6,107
4
58
91
285
-
6,545
6,432
76
65,615
986
287
3
73,399
175
95
33
3
27
-
333
1,954
7
1,001
18
179
-
3,159
14,668
182		 66,707 1,098 778 3
83,436

65

8. ANALYSIS OF SUPPORT COSTS

Support Costs consist of:
Governance
Communications
Personnel
Business Administration
Mission Service Management
Total		 2024
£000
357
132
2,997
7,084
199
10,769		 2023
£000
404
180
3,216
6,156
220
10,176

Prior year Analysis of Centres’ Operations is restated, refer to note 29 Prior year adjustment

66

9. ANALYSIS OF TOTAL EXPENDITURE

Raising funds
Charitable activities		 Staff Costs
Depreciation
Other
Costs
2024
Total
2023
Total
£000
£000
£000
£000
£000
-
-
50
50
50
86,698
5,854
138,919
231,471
212,804
86,698
5,854
138,969
231,521
212,854

Prior year Charitable Activities are restated, refer to note 29 Prior year adjustment

10. PERSONNEL

Allowances and salaries
Social Security costs
Pension and similar costs
Temporary agency staff costs		 2024
2023
2024
2023
2024
Parent
Parent
Subsidiary Subsidiary
Total
£000
£000
£000
£000
£000
53,526
50,132
9,055
7,866
62,581
4,649
4,457
850
771
5,499
3,283
3,593
1,130
1,319
4,413		 2023
Total
£000
57,998
5,228
4,912
61,458
58,182
11,035
9,956
72,493		 68,138
13,173
11,963
1,032
1,130
14,205		 13,093

£2,997k (2023: £3,216k) of staff costs have been paid by SAT and recharged across. Prior year Allowances and salaries are restated, refer to note 29 Prior year adjustment

Redundancy Costs

Redundancy costs relating to employees in the Social Work Trust, including SAH, amounted to £347,703 (2023: £147,974). Redundancy costs are recognised once a decision to make a post redundant has been communicated to an individual or the workforce.

There are redundancy and termination payment liabilities of £nil for 2024 (2023: £75k)

The average number of officer and employees was:

Trust
Number of officers
Number of employees

Subsidiary
Total		 2024
2023
Headcount
Headcount
No.
No.
66
77
2,287
2,228
2,353
2,305
349
317
2,702
2,622

67

Higher-Paid Employees

The following indicates the number of the group’s employees earning between:

2024 2024 2024 2023
Parent Subsidiary Total Total
No. No. No. No.
£60,001 - £70,000 11 5 16 8
£70,001 - £80,000 4 2 6 6
£80,001 - £90,000 6 4 10 9
£90,001 - £100,000 1 - 1 3
£100,001 - £110,000 1 - 1 4
£110,001 - £120,000 - - - -
£120,001 - £130,000 - 1 1 1
£140,001 - £150,000 - - - 1
£160,001 - £170,000 - 1 1 -
23 13 36 **32 **

The directors of The Salvation Army Trustee Company comprise Salvation Army Officers 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. The allowances received by the officers serving as directors ranged from £20,280.32 to £24,939.79 per annum and they did not receive any additional remuneration for their duties as directors. No allowances or salaries paid to any of the directors are charged direct to the Social Work Trust and therefore the cost is not included in the Trust’s Statement of Financial Activities but is disclosed in this note.

No expenses were incurred by the directors of The Salvation Army Trustee Company in relation to their role as directors. The costs of indemnity insurance, to protect The Salvation Army Trustee Company directors against claims for neglect or default, were borne by The Salvation Army Trust.

Certain directors of SAH are remunerated. Lieut-Colonel Drew McCombe is a director of both SAH and of The Salvation Army Trustee Company. He is remunerated £4,000 which is donated to The Salvation Army Trust. Mr. Philip Edwards is also a director of both SAH and of The Salvation Army Trustee Company, he is remunerated £652.

Salvation Army Officers who are members of SATCO have eight family members who are officers and are paid an allowance in accordance with The Salvation Army Act. The allowances received by these family members ranged from £4,538.84 to £18,531.47 per annum in 2023/24 (2023: £13,221.89 – £18,112.94)

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. This is defined by the Trust as the directors of The Salvation Army Trustee Company as the Corporate Trustee of the Trust and the executive directors (officers and employees) of the Trust. The total aggregate remuneration, including employer National Insurance and pension contributions for the year paid to key management personnel during the year was £1,445,473 (£152,730 was paid by Social Work Trust and £1,292,743 was paid by Salvation Army Trust).

11. PENSION AND SIMILAR COSTS

The Salvation Army Social Work Trust may make contributions to three pension or similar schemes in respect of its officers or staff:

Salvation Army Homes participates in the Social Housing Pension Scheme

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

68

• SALVATION ARMY OFFICERS PENSION FUND

The Salvation Army Officers Pension Fund (‘the 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 retirement benefits are not guaranteed and are paid at the discretion of the Board of the Fund. It is non-contributory and is funded by Salvation Army Trusts (including The Salvation Army Trust and The Salvation Army Social Work Trust); however, there have been no payments made to the Fund during the current year. Officers that serve in the principal Trusts (The Salvation Army Trust and The Salvation Army Social Work Trust) may receive a retirement allowance from the Fund in the future, although, it is not possible to allocate the assets and constructive liabilities of the Fund between the Trusts. Therefore, as both Salvation Army Trust and Social Work Trust may contribute to the Fund, it is, for accounting purposes, disclosed and accounted for in a similar way to a multi-employer pension fund.

The Salvation Army Officers Pension Fund was subject to a triennial actuarial review on 31 March 2022, This actuarial valuation indicated that the Fund was in surplus on the funding basis. As such, no additional contributions are currently required to fund a deficit in the Fund. Following this valuation, it was also agreed that regular contributions into the Fund would cease until the next valuation as at 31 March 2025.

The calculations for the FRS102 disclosures have been carried out by running full actuarial calculations as at 31 March 2024 and the disclosures are shown below

The Fund is ordinarily funded by means of regular contributions to cover current retirement benefit accrual, with the rate of contributions determined at each triennial valuation. The funding method currently employed is the Attained Age Method which measures the increase in the funding target relating to future benefits expected to accrue to active Officers over the period to retirement or earlier leaving service. Additional contributions are made to cover any shortfalls that arise following each valuation. The Board of the Fund determine the level of contributions payable to it following agreement with the principal trusts of the Army and the advice of the Fund actuary.

There have been no amendments to the Fund during the year and no dedicated events have occurred.

Obligations for the Salvation Army in respect of the Salvation Army Officers Pension Fund

Fair Value of Fund Assets
Present value of funded obligations
Net overfunding in Fund
Unrecognised assets
Net Defined Benefit Asset		 31/03/2024 (£)
31/03/2023(£)
258,768,460
268,528,652
(174,685,265)
(175,282,771)
84,083,195
93,245,881
0
0
84,083,195
93,245,881

The amounts recognised in the Expenditure section of the Statement of Financial Activities are as follows:

Service cost
Net Interest on Net Defined Benefit liability
Expense recognised in expenditure section of
statement of financial activities
he Net Interest on Net Defined Benefit Liability item is
Interest on obligation
Interest on assets
Net Interest on Net Defined Benefit Liability		 31/03/2024 (£)
31/03/2023(£)
3,705,289
6,878,234
(4,382,556)
(625,095)
(677,267)
6,253,139
broken down as follows:
31/03/2024 (£)
31/03/2023(£)
8,029,346
6,839,381
(12,411,902)
(7,464,476)
(4,382,556)
(625,095)

The Net Interest on Net Defined Benefit Liability item is broken down as follows:

69

The amounts recognised as Actuarial Gains/(Losses) are as follows:

Return on assets (not included in interest
Actuarial Gains on obligation
Total Amount recognised in Actuarial Gains/(Losses)
Cumulative amount of Actuarial Gains
recognised
Actual return on Fund assets
Administration expenses paid from Fund
Other Items		 31/03/2024 (£)
31/03/2023(£)
(13,011,008)
(13,024,722)
3,440,884
87,126,788
(9,570,124)
74,102,066
64,531,942
74,102,066
(599,106)
(5,560,426)
31/03/2024 (£)
31/03/2023(£)
269,829
329,842
269,829
329,842

No contributions to the Fund were paid by the Army over the year from 1 April 2023 to 31 March 2024.

No contributions to the Fund are expected from the Army over the next year from 1 April 2024 to 31 March 2025.

Changes in the present value of the Fund's Defined Benefit Liability are as follows:

Opening Defined Benefit Liability
Service cost
Benefits paid
Interest on obligation
Experience losses / (gains)
(Gains) from changes in assumptions
Closing Defined Benefit Liability		 31/03/2024 (£)
31/03/2023(£)
175,282,771
257,928,853
3,705,289
6,878,234
(8,891,257)
(9,236,909)
8,029,346
6,839,381
1,322,368
(6,026,198)
(4,763,252)
(81,100,590)
174,685,265
175,282,771

The weighted average duration of the liabilities of the Fund was 12 years as at 31 March 2024.

Changes in the fair value of Fund assets are as follows:

hanges in the fair value of Fund assets are as follows:
Opening fair value of Fund assets
Interest on assets
Return on assets (not included in interest)
Contributions by employer
Benefits paid
Administration expenses		 31/03/2024 (£)
31/03/2023(£)
268,528,652
278,505,420
12,411,902
7,464,476
(13,011,008)
(13,024,722)
0
5,150,229
(8,891,257)
(9,236,909)
(269,829)
(329,842)
258,768,460
268,528,652

The major categories of Fund assets as a percentage of the total are as follows:

31/03/2024 (%) 31/03/2023(%)
Equities 30.5 0.1
Index Linked Bonds 68.0 93.2
Property 0.0 5.9
Cash 1.5 0.8

All of the Fund's assets have a quoted market price in an active market. The Fund does not hold any property or other assets used by the Army

70

Principal actuarial assumptions used for the FRS 102 disclosures:

31/03/2024 (%) 31/03/2023(%)
Discount rate at end of year 4.9 4.7
Discount rate at start of year 4.7 2.7
Inflation 3.5 3.5
Rate of increase in allowances 4.0 4.0

Mortality Assumptions

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements.

The assumptions are that an officer aged 65 will live on average until age 88 if they are male and until age 89 if female.

For an officer currently aged 55 the assumptions are that if they attain age 65 they will live on average until age 88 if they are male and until age 90 if female.

• SALVATION ARMY EMPLOYEES’ PENSION FUND

The Trust is a participating employer of the Salvation Army Employees' Pension Fund ("the Fund"), a defined benefit scheme.

A valuation of the Fund for the purposes of these disclosures was carried out at 31 March 2024 by an independent actuary. The major assumptions used by the actuary, together with those used in the previous year, were: -

31 March 2024 31 March 2023
% pa % pa
Discount rate 4.9 4.7
RPI inflation rate 3.5 3.5
CPI inflation rate 3.2 3.2
Rate of increase in pensionable salaries 3.9 4.0
Rate of increase in pension payments 2.3 / 3.3 2.3 / 3.4

The major categories of the Fund’s assets as a percentage of the total Fund assets, were as follows:

31 March 2024 31 March 2023
% %
Gilts 47 48
Index-Linked Gilts 44 45
AVC’s 2 1
Cash and Net Current Assets 7 6

The following amounts at 31 March 2024 were measured in accordance with the requirements of FRS102.

£ million

Total market value of assets
Present value of funded obligations
Net overfunding in Fund
Unrecognised assets
Net Defined Benefit Asset		 199.55
148.78
50.77
(50.77)
0.00

71

The Fund operated by the Salvation Army is a defined benefit scheme. However, the Company is not the only participating employer in the Fund and it is unable to determine its share of the underlying assets and liabilities on a consistent and reasonable basis. This is because contributions paid into the Fund have not been invested separately to those paid by other employers participating in the Fund. As such no separate fund is identifiable in respect of the Company. In order to determine a current fund for each participating employer it would be necessary to separately account for contributions, benefit payments and investment returns for each participating employer. Under the terms of the Fund, the assets and liabilities are pooled amongst the participating employers. If a participating employer were to cease to participate then that employer would be required to pay a debt to fully fund their share of the Fund’s liabilities. The Company would not be liable for another employer’s debt but has an option to assume responsibility under an apportionment arrangement. The Fund closed to the future accrual of pensionable service with effect from 30 April 2023 and therefore regular employer contributions ceased on this date.

A full actuarial valuation of the Fund was carried out at 31 March 2021 by the Scheme Actuary. The valuation disclosed a past service surplus of £2.5m. An update of the funding position as at 31 March 2023 was carried out by the Scheme Actuary. This showed that the past service surplus had increased from £2.5m to a surplus of £65.5m on the 2021 valuation basis.

• SOCIAL HOUSING PENSION SCHEME (SHPS)

SAH participates in SHPS, a multi-employer pension scheme which provides benefits to non-associated participating employers. The scheme is classed as a defined benefit scheme in the UK. The scheme is classified as a ‘last man standing’ arrangement. Therefore, the Association is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

Under the defined benefit pension accounting approach, the SHPS net deficit as at 1 April 2023 is £2,851k and £2,861k as at 31 March 2024.

PRESENT VALUES OF DEFINED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND DEFINED BENEFIT ASSET/(LIABILITY)

Fair value of plan assets
Present value of defined benefit obligation
Surplus/(deficit) in plan
Deferred tax
Net defined benefit asset/(liability) to be recognised		 2024
2023
£000
£000
12,222
(15,083)
12,287
(15,138)
(2,861)
-
(2,851)
-
(2,861)
(2,851)

72

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE DEFINED BENEFIT OBLIGATION

Defined benefit obligation at start of period
Expenses
Interest expense
Actuarial losses/(gains) due to scheme experience
Actuarial (gains)/losses due to changes in
demographic assumptions
Actuarial (gains)/losses due to changes in financial
assumptions
Benefits paid and expenses
Defined benefit obligation		 2024
£000
15,138
14
726
(43)
(174)
(35)
(543)
15,083		 2023
£000
21,340
13
584
188
(36)
(6,173)
(778)
15,138

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE FAIR VALUE OF PLAN ASSETS

Fair value of plan assets at start of period
Interest income
Experience on plan assets (excluding amounts
included in interest income) – gain/(loss)
Contributions by the employer
Benefits paid and expenses
Fair value of plan assets at end of period		 2024
£000
12,287
602
(753)
629
(543)
12,222		 2023
£000
18,477
513
(6,522)
597
(778)
12,287

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2024 was (£151,000) (2023: £6,009,000).

DEFINED BENEFIT COSTS RECOGNISED IN STATEMENT OF FINANCIAL ACTIVITIES

Expenses
Net interest expense
Total expense		 2024
£000
14
124
138		 2023
£000
13
71
**84 **

Salvation Army Homes were notified in 2021 by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme's benefits over the years and the result is that there is uncertainty surrounding some of these items. The Trustee is seeking clarification from the Court on these items. The Court hearing was scheduled for February 2025 with a judgement known later in 2025, at which time the Trustee will consider the Court's directions. It is estimated that this could potentially increase the value of the full Scheme liabilities by £155m. Until the Court direction is received, it is unknown whether the full (or any) increase in liabilities will apply and therefore, in line with the prior year, no adjustment has been made in these financial statements in respect of this potential issue.

73

DEFINED BENEFIT COSTS RECOGNISED IN OTHER RECOGNISED GAINS AND LOSSES

ASSETS
Experience on plan assets (excluding amounts included
in net interest cost) – gain/ (loss)
Experience gains/(losses) arising on the plan liabilities
Effects of changes in the demographic assumptions
underlying the present value of the defined benefit
obligation – gain/(loss)
Effects of changes in the financial assumptions
underlying the present value of the defined benefit
obligation – gain/(loss)
Total actuarial gains and losses (before restriction
due to some of the surplus not being recognisable) –
gain/(loss)
Total amount recognised in other recognised
gains/(losses)
Global Equity
Absolute Return
Distressed Opportunities
Credit Relative Value
Alternative Risk Premia
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private Equity
Private Debt
Opportunistic Liquid Credit
High Yield
Opportunistic Credit
Cash
Corporate Bond Fund
Long-Lease Property
Secured Income
Liability-Driven Investment
Currency Hedging
Net Current Assets
Total assets		 2024
£000
(753)
43
174
35
(501)
(501)
2024
£000
1,218
477
431
400
388
158
715
63
491
63
10
481
478
2
-
241
-
79
365
4,974
(5)
21		 2023
£000
(6,522)
(188)
36
6,173
(501)
(501)
2023
£000
229
133
372
464
23
66
904
310
529
1,403
-
547
526
43
1
89
-
371
564
5,658
24
31
12,287
12,222

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

74

KEY ASSUMPTIONS

2024 2023
% per annum % per annum
Discount Rate 4.90% 4.87%
Inflation (RPI) 3.15% 3.19%
Inflation (CPI) 2.75% 2.75%
Salary Growth 3.78% 3.75%
Allowance for commutation of pension for cash at 75% of 75% of
retirement maximum maximum
allowance allowance

The mortality assumptions adopted at 31 March 2024 imply the following life expectancies: 

Male retiring in 2024
Female retiring in 2024
Male retiring in 2044
Female retiring in 2044		 Life expectancy at
age 65 (Years)
20.5
23.0
21.8
24.4

EMPLOYER PENSION CONTRIBUTIONS

Defined benefit employer contributions including deficit
contributions
Growth Plan deficit contributions
Auto-enrolment & SHPS defined contribution including
deficit contribution		 2024
2023
£000
£000
629
597
98
347
402
375
1,129
1,319

The defined benefit pension costs for Salvation Army Homes were £629,261 (2023: £596,860). The pension cost is assessed in accordance with the advice of a qualified actuary using the Projected Unit Fund Method and is not materially different from that arising from the current employer’s contribution rate.

THE GROWTH PLAN

Until 2022-23 Salvation Army Homes participated in a multi-employer Growth Plan Scheme. Following the last member leaving the scheme, the plan was considered closed. In 2023-24 90% of the due liability was repaid, amounting to £371,482. There remains a liability of 10% due to be paid.

AUTO-ENROLMENT

As a result of the introduction of pensions ‘auto-enrolment’ by the Government, the cost of the new defined contribution scheme administered by SHPS was £402,202 (2023: £375,232) covering 328 employees (2023: 305 employees).

75

12. SALVATION ARMY HOMES TURNOVER AND OPERATING COSTS

By virtue of the governing document of The Salvation Army Homes (‘SAH’), The Salvation Army Social Work Trust has effective control of SAH.

The net assets of SAH and its subsidiaries have been consolidated within these accounts. The net assets of the SAH group were, on acquisition, adjusted to fair values.

For the purpose of establishing fair values, SAH’s property portfolio was valued by an independent chartered surveyor on an existing use social housing (EUV – SH) basis.

SAH’s results, adjusted to reflect The Salvation Army Social Work Trust’s accounting policies, were as follows:

Turnover
Grants Received
Operating Costs
Staff Costs
Other Costs*
Interest Payable
Property Depreciation
Tax
Gain/(Loss) on Disposal of Assets
(Note6)
Gain/(Loss) on revaluation of
investment properties (Note0)
Interest Receivable (Note5)
Social Housing Pension Scheme
(SHPS) Remeasurement of
Obligation
Actuarial Gain/(Loss)		 2024
£000
£000
27,525
-
27,525
(11,034)
(10,250)
(1,371)
(3,673)
23
(26,305)
(2,173)
3,000
105
-
(501)
1,651		 2023
£000
£000
23,303
-
23,303
(9,956)
(9,032)
(473)
(4,560)
(19)
(24,040)
(34)
1,500
64
-
(501)
292		 2023
£000
£000
23,303
-
23,303
(9,956)
(9,032)
(473)
(4,560)
(19)
(24,040)
(34)
1,500
64
-
(501)
292
23,303
(24,040)
(34)
1,500
64
-
(501)
292

*Other Costs includes temporary agency staff costs of £1,031,858 (2023: £1,130,496)

The prior year SAH – Turnover & other costs are restated, refer to note 29 Prior year adjustment.

76

13. PROPERTIES

GROUP
Cost or Valuation
Balance at 1 April 2023 (Restated)
Additions during the year
Schemes completed during the
year (Note 14)
Less: Disposals
Balance at 31 March 2024
Accumulated Depreciation
Balance at 1 April 2023 (Restated)
Charge for the year
Less: Disposals
Balance at 31 March 2024
Net Book Value at 31 March 2024
Net Book Value at 31 March 2023
(Restated)		 Freehold
£000
202,913
4,810
2,133
209,856
(737)
209,119
56,087
4,609
(195)
60,501
148,618
146,826		 Leasehold
£000
53,254
2,367
-
55,621
(3,181)
52,440
17,630
970
(1,270)
17,330
35,110
35,624		 Total
£000
256,167
7,177
2,133
265,477
(3,918)
261,559
73,717
5,579
(1,465)
77,831
183,728
182,450

Both SAH’s portfolio (on 19 January 2011) and, SAH’s acquisition, Chapter 1’s portfolio (on 23 March 2017) were brought into account at valuation, performed by independent chartered surveyors on an existing use social housing (EUV-SH) basis. All other properties are reflected at cost.

PARENT
Cost
Balance at 1 April 2023
Additions during the year
Schemes completed during the year
Less: Disposals
Balance at 31 March 2024
Accumulated Depreciation
Balance at 1 April 2023
Charge for the year
Less: Disposals
Balance at 31 March 2024
Net Book Value at 31 March 2024
Net Book Value at 31 March 2023		 Freehold
£000
102,311
474
2,133
104,918
(435)
104,483
36,047
2,091
(68)
38,070
66,413
66,264		 Leasehold
£000
568
-
-
568
-
568
132
14
-
146
422
436		 Total
£000
102,879
474
2,133
105486
(435)
105,051
36,179
2,105
(68)
38,216
66,835
66,700

Prior year Freehold Property is restated, refer to note 29 Prior year adjustment

All properties are used for charitable purposes. The market values of these properties are significantly higher than their book values but the costs of estimating these exceed any benefits accruing.

The Salvation Army, in common with other churches, provides ministers of religion (officers) and retired ministers of religion with accommodation and holds a portfolio of properties to allow it to do so. Occasionally properties are not required immediately to provide accommodation to officers and retired officers and these, where possible, are let on short-term tenancies until required to accommodate officers. The Salvation Army does not consider these properties to be investment properties as their availability for use, other than for the work of the charity, is typically of limited duration.

Prior year carried forward balance restated, refer to note 29 Prior year adjustment.

77

14. PROPERTY SCHEMES IN PROGRESS

Balance at 1 April 2023
Additions during the year
Property schemes
capitalised during the year
Scheme’s revenue
expenditure
Balance at 31 March 2024		 Group
2024
£000
2,682
5,732
8,414
(2,133)
(4,761)
1,520		 Parent
2024
£000
2,605
5,732
8,337
(2,133)
(4,761)
1,443

Prior year Property Schemes in Progress are restated, refer to note 29 Prior year adjustment

15. MOTOR VEHICLES AND EQUIPMENT

GROUP
Cost
Balance at 1 April 2023
Additions during the year
Disposals
Balance at 31 March 2024
Accumulated Depreciation
Balance at 1 April 2023
Charge for the year
Disposals
Balance at 31 March 2024
Net Book Value at 31 March 2024
Net Book Value at 31 March 2023
PARENT
Cost
Balance at 1 April 2023
Additions during the year
Disposals
Balance at 31 March 2024
Accumulated Depreciation
Balance at 1 April 2023
Charge for the year
Disposals
Balance at 31 March 2024
Net Book Value at 31 March 2024
Net Book Value at 31 March 2023		 Motor
Vehicles
£000
1,458
-
-
1,458
1,294
76
-
1,370
88
164
Motor
Vehicles
£000
1,415
-
-
1,415
1,251
76
-
1,327
88
164		 Equipment
£000
2,497
748
(10)
3,235
1,693
199
(10)
1,882
1,353
804
Equipment
£000
-
-
-
-
-
-
-
-
-
-		 Total
£000
3,955
748
(10)
4,693
2,987
275
(10)
3,252
1,441
968
Total
£000
1,415
-
-
1,415
1,251
76
-
1,327
88
164

78

16. INVESTMENTS

FIXED ASSET INVESTMENTS

GROUP AND PARENT
Cost/Market Value at 1 April 2023
Additions
Unrealised Gains on investments
Cost/Market Value at 31 March 2024		 Unlisted
£000
5
-
-
5		 Units in
CIF 1
£000
3,849
-
610
4,459		 Units in
CIF 2
£000
127,383
-
16,318
143,701		 2024
Total
£000
131,237
-
16,928
148,165

At 31 March 2024, units held in The Salvation Army Common Investment Fund No 1 had a unit value of £3.3037 (2023: £2.8514).

At 31 March 2024, units held in The Salvation Army Common Investment Fund No 2 had a unit value of £4.2358 (2023: £3.7552).

Salvation Army Social Work Trust holds one £1 share and has the power to control Salvation Army Homes (SAH). The Salvation Army Homes is registered with the Co-operative and Community Benefit Societies Act 2014 and is a registered social landlord regulated by The Regulator of Social Housing. SAH itself owns the whole of the issued share capital of Kingsown Limited and SAH Developments Limited, companies incorporated in England. The results and net assets of SAH, Kingsown and SAH Developments have been consolidated within these accounts.

INVESTMENT PROPERTIES

Balance at 1 April 2023
Additions during the year
Property revaluation — increase/(decrease) in
value
Balance at 31 March 2024
Fixed Assets Investments (from above)
Total Investments		 GROUP
2024
2023
£000
£000
47,954
46,603
-
-
3,202
1,350
51,156
47,953
148,165
131,237
199,321
179,190
 GROUP
2024
2023
£000
£000
47,954
46,603
-
-
3,202
1,350
51,156
47,953
148,165
131,237
199,321
179,190
 PARENT
2024
2023
£000
£000
14,454
14,603
-
-
202
(149)
14,656
**14,454 **		 PARENT
2024
2023
£000
£000
14,454
14,603
-
-
202
(149)
14,656
**14,454 **
131,237
179,190
 148,165
162,821
 131,237
**145,691 **

Prior year Investment Properties Valuation are restated, refer to note 29 Prior year adjustment.

The building named Xenia Hall is held as student accommodation. The year-end valuation of this property is based on its deemed sale price less cost of disposal, which reflects its market value. This property was sold post year end in August 2024.

17. DEBTORS

Accommodation charges outstanding
Trade debtors
Prepayments and other accrued income
Connected Salvation Army Trust and Companies
Amounts owed by group and associated
undertakings
Taxation recoverable
Other debtors		 GROUP
2024
2023
£000
£000
2,812
1,687
10,243
2,714
11,515
9,315
58,372
13,681
-
-
-
-
4,372
949
87,314
28,346		 PARENT
2024
2023
£000
£000
1,851
934
10,244
2,715
10,988
8,667
58,372
13,681
-
-
-
-
3,203
175
84,658
26,172		 PARENT
2024
2023
£000
£000
1,851
934
10,244
2,715
10,988
8,667
58,372
13,681
-
-
-
-
3,203
175
84,658
26,172
26,172

79

Included in amounts owed by connected Salvation Army Trust and companies is £35m bank deposit held by The Salvation Army Trust on behalf of the Social Work Trust.

The Prior year debtors – amounts falling due within one year are restated, refer to note 29 Prior year adjustment.

18. (a) CREDITORS: Amounts falling due within one year

Trade creditors
Accruals and deferred Income*
Other creditors
Tax and Social Security
Connected Salvation Army Trusts and Companies
Amounts owed to group and associated
undertakings
Bank loans repayable within one year (Note 18(b))		 GROUP
2024
2023
£000
£000
12,532
4,114
11,891
17,610
11,447
6,088
2,135
2,373
913
26
-
-
4,825
2,516
43,743
32,727		 PARENT
2024
2023
£000
£000
9,476
1,851
7,745
13,343
8,219
5,895
2,045
2,259
913
26
3,211
-
-
-
31,609
23,374		 PARENT
2024
2023
£000
£000
9,476
1,851
7,745
13,343
8,219
5,895
2,045
2,259
913
26
3,211
-
-
-
31,609
23,374
23,374

The Prior year creditors – amounts falling due within one year are restated, refer to note 29 Prior year adjustment.

*** Deferred Income**

Balance at 1 April 2023
Additions during the year
Released during the year
Balance at 31 March 2024		 Group
2024
£000
2,396
1,915
4,311
(1,867)
2,444		 Parent
2024
£000
40
285
325
(40)
285

£2.16m deferred income relates to SAH rental income received in advance.

18. (b) CREDITORS: Amounts falling due after more than one year

Multi-Employer Pension Scheme (note 10(d))
Loans repayable between 1 & 2 years
Loans repayable between 3 to 5 years
Loans repayable over five years		 GROUP
2024
2023
£000
£000
-
18
1,330
1,276
4,255
3,961
10,214
11,826
15,799
17,081		 PARENT
2024
2023
£000
£000
-
-
-
-
-
-
-
-
-
-		 PARENT
2024
2023
£000
£000
-
-
-
-
-
-
-
-
-
-
-

The Prior year creditors – amounts falling due after more than one year are restated, refer to note 29 Prior year adjustment.

Housing loans from private sources are secured by charges on SAH-specific housing properties and are repayable between 2024 and 2044 at varying rates of interest between 4.10% and 7.75%. The Net Book value of these properties at 31 March 2024 is £28.2m.

80

19. OPERATING LEASE COMMITMENTS

The Group and Parent have future minimum lease commitments under non-cancellable operating leases of:

Land and buildings
Within one year
One to five years
Over five years
Other operating leases
Within one year
One to five years
Over five years		 GROUP
2024
2023
£000
£000
63
161
47
47
15
26
125
234
GROUP
2024
2023
£000
£000
247
206
642
460
20
-
909
666		 PARENT
2024
2023
£000
£000
-
-
-
-
-
-
-
-
PARENT
2024
2023
£000
£000
-
-
-
-
-
-
-
-		 PARENT
2024
2023
£000
£000
-
-
-
-
-
-
-
-
PARENT
2024
2023
£000
£000
-
-
-
-
-
-
-
-
-

For both land and buildings, and other operating leases, both lease categories are related solely to SAH. Lease payments of £369k (2023: £398k) were charged to the Consolidated Statement of Financial Activities during the year.

20. OPERATING LEASE - CONTRACTED INCOME

The Group and Parent have future minimum lease income due under non-cancellable operating leases:

Land and buildings
Within one year
One to five years
Over five years		 GROUP
2024
2023
£000
£000
55
22
157
173
241
280
453
475		 PARENT
2024
2023
£000
£000
55
22
157
173
241
280
453
475		 PARENT
2024
2023
£000
£000
55
22
157
173
241
280
453
475
475

81

21. ENDOWMENTS

GROUP
Expendable Endowment
Xenia Field Capital Fund
Permanent Endowments
H.M. Brant
J.B. Crighton
Miss M.B. Hill
C.J. and E.J. Melbourne
Blackmore Mission
M.J. Fowler
R. Pattison
Leeds Guardian Homes Trust
E.S. Brant Trust
Birmingham Girls Trust		 Balance
1 April
2023
£000
14,950
20
134
35
79
1
16
14
15
1,354
207
1,875
16,825		 New Funds
Received
£000
-
-
-
-
-
-
-
-
-
-
-
-
-		 Changes in
Market Value of
Investments
£000
1,913
-
22
-
-
-
-
-
1
217
32
272
2,185		 Transfers
£000
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance
31 March
2024
£000
16,863
20
156
35
79
1
16
14
16
1,571
239
2,147
19,010

The Expendable Endowment represents the Xenia Field Fund. Whilst the capital and income of the Fund can be expended on social work projects, it is the Trustee’s intention that the capital be maintained.

Permanent Endowment funds represent bequests and donations, the capital of which cannot be expended but any income can be applied to social work projects without restriction.

The E.S. Brant Trust was established by a trust deed dated 16 June 1965. The annual income can be applied to the social work of The Salvation Army.

The Birmingham Girls Trust consists of endowment funds transferred from Birmingham City Council, the income on which can be applied for the benefit of girls in distress in the Birmingham area.

All endowment funds are represented by investments in The Salvation Army’s Common Investment Funds.

Comparative

GROUP
Expendable Endowment
Xenia Field Capital Fund
Permanent Endowments
H.M. Brant
J.B. Crighton
Miss M.B. Hill
C.J. and E.J. Melbourne
Blackmore Mission
M.J. Fowler
R. Pattison
Leeds Guardian Homes Trust
E.S. Brant Trust
Birmingham Girls Trust		 Balance
1 April
2022
£000
14,967
20
130
35
79
1
16
14
14
1,317
201
1,827
16,794		 New Funds
Received
£000
-
-
-
-
-
-
-
-
-
-
-
-
-		 Changes in
Market Value of
Investments
£000
(17)
-
4
-
-
-
-
-
1
37
6
48
31		 Transfers
£000
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance
31 March
2023
£000
14,950
20
134
35
79
1
16
14
15
1,354
207
1,875
16,825

82

22. RESTRICTED FUNDS

GROUP

Social Work Fund
Other Restricted Funds
Social Work projects including property funding
Centre specific donations
Bramwell Arthur William Goodwin
SAH operations – property purposes		 Balance
1 April
2023
Income
Expenditure
Other
recognised
gains/(losses)
Transfers
From/(to)
Unrestricted
Reserves
Balance
31 March
2024
£000
£000
£000
£000
£000
£000
75,920
1,212
(4,932)
-
8,096
80,296
28,962
1,689
(421)
306
(334)
30,202
6,534
1,025
(546)
-
(258)
6,755
3,233
-
-
-
-
3,233
129,352
25,287
(26,305)
2,499
-
130,833
168,081
28,001
(27,272)
2,805
(592)
171,023
244,001
29,213
(32,204)
2,805
7,504
251,319

Prior year social work projects including property funding and SAH operations – property purposes are restated, refer to note 29 Prior year adjustment

Other Restricted Funds represents unexpended balances of donations and legacies held on trust which can only be expended in accordance with the specific terms laid down by the donors.

Social Work Fund represents sums already expended on the properties used by The Salvation Army in its social work throughout the United Kingdom.

The Centre specific donations fund represents amounts that have been donated for specific care home activities, either for single or multiyear purposes. This reserve is applied to all cost centres; some of course are more active than the others. It also manages several projects per cost centre at a time.

Bramwell Arthur William Goodwin is a legacy donation to benefit the disabled and blind within the Salvation Army Care Homes in England

All SAH funds are treated as restricted in the group’s accounts as these funds are limited to the operations of SAH rather than the wider work of the Social Work Trust. Transfers between funds arise from the sale or purchase of property or the approval of funding for property schemes in progress which are transferred between unrestricted and restricted funds.

83

Comparative

GROUP

Social Work Fund
Other Restricted Funds
Social Work projects including property funding
Centre specific donations
Bramwell Arthur William Goodwin
SAH operations – property purposes		 Balance
1 April
2022
Income
Expenditure
Other
recognised
gains/(losses)
Transfers
From/(to)
Unrestricted
Reserves
Balance
31 March
2023
£000
£000
£000
£000
£000
£000
81,262
29,102
(5,068)
-
(29,376)
75,920
28,886
2,132
(2,778)
-
722
28,962
5,731
1,280
(545)
-
68
6,534
3,233
-
-
-
-
3,233
129,096
23,303
(24,040)
993
-
129,352
166,946
26,715
(27,363)
993
790
168,081
248,208
55,817
(32,431)
993
(28,586)
244,001

84

23. UNRESTRICTED FUNDS

GROUP
General Reserves
Unrealised Investment Gains
Designated Reserves
Property Purposes
Vehicles
Social Work projects		 Balance
1 April
2023
Restated
Income
Expenditure
Other recognised
gains/(losses)
Transfers
From/(to)
Restricted
Reserves
Balance
31 March
2024
£000
£000
£000
£000
£000
£000
15,489
210,550
(199,359)
-
(5,949)
20,731
85,493
-
14,676
-
100,169
100,982
210,550
(199,359)
14,676
(5,949)
120,900
48,593
197
(8)
-
(1,555)
47,227
1,497
-
-
-
-
1,497
3,067
-
-
-
-
3,067
53,157
197
(8)
-
(1,555)
51,791
154,139
210,747
(199,367)
14,676
(7,504)
172,691

Prior year General and Designated Property Purposes reserves are restated, refer to note 29 Prior year adjustment

The General Reserve is required to fund the day-to-day needs of The Salvation Army Social Work Trust. The Unrealised Investment Gains Reserve is held to separate unrecognised gains still subject to market risk.

Unrestricted Funds include designated reserves which have been set aside by the Trustee for specific purposes. Designated funds are kept under review by SATCO to ensure their purpose remains in the medium term.

85

Comparative

GROUP
General Reserves
Unrealised Investment Gains
Designated Reserves
Property Purposes
Vehicles
Social Work projects		 Balance
1 April
2022
Income
Expenditure
Other recognised
gains/(losses)
Transfers
from/(to)
Restricted
Reserves
Balance
31 March
2023
£000
£000
£000
£000
£000
£000
15,402
181,437
(179,573)
-
(1,777)
15,489
85,841
-
-
(348)
-
85,493
101,243
181,437
(179,573)
(348)
(1,777)
100,982
18,972
107
(849)
-
30,363
48,593
1,488
9
-
-
-
1,497
3,067
-
-
-
-
3,067
23,527
116
(849)
-
30,363
53,157
124,770
181,553
(180,422)
(348)
28,586
154,139

86

24. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund Balances as at 31 March 2024 are represented by:

GROUP
Fixed Assets
Properties
Property schemes in progress
Motor vehicles and equipment
Investments
Current Assets
Current Liabilities
Long-term Bank Loans
Defined
benefit
pension
liabilities
Total Net Assets		 Endowment
Funds
£000
Social
Work
Fund
£000
Other
Restricted
Funds
£000
Un-
restricted
Reserves
£000
Total
£000
-
66,835
116,893
-
183,728
-
1,443
77
-
1,520
-
-
1,353
88
1,441
19,010
-
36,500
143,811
199,321
-
12,322
46,994
60,097
119,413
-
(304)
(12,134)
(31,305)
(43,743)
-
-
(15,799)
-
(15,799)
-
-
(2,861)
-
(2,861)
19,010
80,296
171,023
172,691
443,020

Fund Balances at 31 March 2023 are represented by:

GROUP
Fixed Assets
Properties
Property schemes in progress
Motor vehicles and equipment
Investments
Current Assets
Current Liabilities
Long-term Bank Loans
Defined
benefit
pension
liabilities
Total Net Assets		 Endowment
Funds
£000
Social
Work
Fund
£000
Other
Restricted
Funds
£000
Un-
restricted
Reserves
£000
Total
£000
-
66,700
115,750
-
182,450
-
2,605
77
-
2,682
-
-
804
164
968
16,825
-
33,500
128,865
179,190
-
7,180
47,236
47,918
102,334
-
(565)
(9,353)
(22,809)
(32,727)
-
-
(17,081)
-
(17,081)
-
-
(2,851)
-
(2,851)
16,825
75,920
168,082
154,138
414,965

87

25. RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES

Net movement in funds
Unrealised (gain) on investments
Realised loss/(gain) on disposal of properties
Depreciation of motor vehicles and equipment
Depreciation of properties
Investment and rental income
Decrease/(increase) in stocks
(Increase)/decrease in debtors
Property schemes in progress written off
Increase in creditors
Increase/(decrease) in Defined Benefit pension scheme liability
Interest payable
Net (outflow)/inflow from operating activities		 2024
£000
28,055
(20,130)
1,098
275
5,579
(3,431)
2
(58,968)
4,761
8,707
10
1,371
(32,671)		 2023
£000
25,193
(1,176)
(29,068)
159
6,627
(1,850)
(34)
299
5,069
17,496
(12)
473
23,176

26. CAPITAL COMMITMENTS

At the balance sheet date, commitments in relation to the construction or refurbishment of property amounted to £3.4m (2023: £1.6m). Of this amount £2.1m related to SAH (2023: £0m).

27. RELATED PARTY TRANSACTIONS

The Salvation Army Trust (registration number 214779) is a linked charity of the Social Work Trust by nature of the sole trustee in common, both trusts together representing the work of The Salvation Army across the UK. During the current year grants totalling £29.7m (2023: £22.4m) were received from The Salvation Army Trust. An overhead recharge of £10.8m (2023: £10.2m) was charged from The Salvation Army Trust during the year, representing the Social Work Trust’s share of central overhead costs which were incurred by The Salvation Army Trust. The full amount of the overhead recharge of, £10.8m was outstanding at year end. In addition, recharges of £105k (2023: £77k) were charged to The Salvation Army Social Work Trust for hire of rooms at corps premises.

The Salvation Army Social Work Trust holds one £1 share and has the power to control The Salvation Army Homes (SAH). The Salvation Army Homes is registered with the Co-operative and Community Benefit Societies Act 2014 and is a registered social landlord regulated by The Regulator of Social Housing. SAH itself owns the whole of the issued share capital of Kingsown Limited and SAH Developments Limited, companies incorporated in England. The results and net assets of SAH, Kingsown and SAH Developments have been consolidated within these accounts. The following costs have been charged to the Social Work Trust during the year; Bed spaces recharged from SAH to the Social Work Trust during the current year totalling £7.4m (2023: £5.8m); 5% margin arose from the bed space recharged totalling £342k (2023: £340k); Other costs incurred on behalf of Social Work Trust £508k (2023: £431k);, out of these £1.4m is outstanding at year end.

SAH took out a loan of £315,000 with Reliance Bank Limited in the financial year ended 31 March 2011, and £2,200,000 in the financial year ended 31 March 2014, and a further loan of £150,000 in the financial year ended 31 March 2015- a wholly owned bank by The Salvation Army International Trustee Company (SAITCo).

The Association made the following payments during the year to Reliance Bank Limited: Capital repayments £98,210 Interest payments £104,624

The total outstanding balance of the loan as at 31 March 2024 was £1,494,774 (2023: £1,592,984). The long-term loan was granted to the Association on normal commercial terms, including Salvation Army Homes providing appropriate security to satisfy the conditions of the loan.

88

During the year, SAH paid £302,123 (2023: £388,123) for the property and liability insurance to SAGIC Limited, Social Work Trust paid £1m (2023: £753k) for the insurance to SAGIC Limited. SAGIC Limited is a company wholly owned by The Salvation Army Trust.

In addition to the entities listed above, transactions occurred during the year with individuals who are Key Management Personnel, or their families. These transactions are described in Note 10 to the financial statements.

28. CONTINGENT LIABILITY

Salvation Army Homes is the leaseholder for several properties where the Social Work Trust are the freeholder. In the event of a lease surrender, a contingent liability would occur for repayment of grant to Homes England or the Greater London Authority. A Lease Surrender Agreement between both parties ensures that in this event, an offsetting contingent asset would exist.

29. PRIOR YEAR ADJUSTMENT

The 2023 results have been restated as followings:

The effects of these items on the 2023 financial statements are summarised below:

89

Prior Year Restatement note
Reconciliation of funds
Funds as previously stated
Revaluation of Investment Property (a)
Property Schemes in Progress (b)
Home Office contract profit share (c)
Recycled capital grant fund (g)
SAH loan taken out post-acquisition (i)
Reconciliation of 2023 SOFA
2023 as previously stated
Gain/(Loss) on revaluation (a)
Property Schemes in Progress not capital (b)
Home Office contract profit share (c)
SAH loan taken out post-acquisition (i)
SAH Recycle Capital Grant Fund movement (g)
2023 total as restated		 01-Apr-22 31-Mar-23
£'000
409,949
13,208
(5,030)
(4,757)
871
724
414,965
34,562
(149)
(5,030)
(4,757)
724
(158)
25,194
£'000
375,387
13,356
-
-
1,029
-
389,772

90

30. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITY FOR THE YEAR ENDED 31 MARCH 2023 (restated)

INCOME AND ENDOWMENTS FROM:
Donations and Legacies
Grants receivable: The Salvation
Army Trust
Donations
Legacies

Charitable Activities
Centres’ operations
Other social operations
Housing Association turnover
Investments
Other
Gains on disposal of fixed assets
TOTAL INCOME
EXPENDITURE ON:
Raising Funds
Investment management costs
Charitable Activities
Centres’ operations
Other social operations
Housing Association operating costs

TOTAL EXPENDITURE
Net Gains/(Losses) on investments
NET INCOME/(EXPENDITURE)
Transfers between Funds
Other Recognised Gains / (Losses)
Actuarial Gains/(Losses) on Defined
Benefit Pension Schemes
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total Funds brought forward
TOTAL FUNDS CARRIED FORWARD*		 Endowments
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
31
-
-
31
16,794
16,825		 Restricted
£000
-
1,329
870
2,199
473
581
23,303
24,357
193
29,068
55,817
-
-
7,718
674
24,040
32,432
32,432
1,495
24,880
(28,586)
(501)
(4,207)
248,208
244,001		 Unrestricted
£000
22,373
939
1
23,313
79,302
77,283
-
156,585

1,657
-
181,555

50
50
97,610

82,762
-
180,372

180,422

(349)
783
28,586
-
29,369
124,770

154,139
 2023
Total
£000
22,373
2,268
871
25,512
79,775
77,864
23,303
180,942
1,850
29,068
237,372
50
50
105,328
83,436
24,040
212,804
212,854
1,176
25,694
-
(501)
25,193
389,772
414,965

91