OpenCharities

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

2023-12-31-accounts

Charity registration number 226684

Company registration number 00034118 (England and Wales)

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

LEGAL AND ADMINISTRATIVE INFORMATION

Council Members Rear Admiral A R Rymer CEng
(Chairman)
Colonel C E H Ackroyd TD RD DL
(Vice Chairman)
Mr I H Currie FCA
Ms G Grindell MSc
Commander S J Snowball RN
Mr D J Foster FCA
Mr S D Rice
Lieutenant Colonel D B Ruffle RE (Appointed 21 June 2023)
Lieutenant Commander A Sard MBE (Appointed 22 November 2023)
RN
Chief Executive Officer Commander P C Keefe RN
Secretary Commander P C Keefe RN
Charity number 226684
Company number 00034118
Principal address 1 Shakespeare Terrace
126 High Street
Portsmouth
Hampshire
PO1 2RH
Registered office 1 Shakespeare Terrace
126 High Street
Portsmouth
Hampshire
PO1 2RH
Auditor Sumer Audit
Piper House
4 Dukes Court
Bognor Road
Chichester
West Sussex
PO19 8FX
Bankers Lloyds Bank Plc
113 Commercial Road
Portsmouth
Hampshire
PO1 1BY

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

LEGAL AND ADMINISTRATIVE INFORMATION

Solicitors

Blake Morgan LLP Harbour Court Compass Road North Harbour Portsmouth Hampshire PO6 4ST

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

CONTENTS

Page
Council Members' report 1 - 7
Statement of Council members' responsibilities 8
Independent auditor's report 9 - 12
Statement of financial activities 13 - 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 31

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

COUNCIL MEMBERS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The Council members present their report and financial statements for the year ended 31 December 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the charity's Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”.

Note. For over 10 years, CESSAC’s Annual Returns to the Charity Commission have interpreted the instructions regarding ‘operating overseas’ to report on its primary trading undertaken outside the British Isles as fitting that description. Such an interpretation was reinforced by the fact that the return allowed the selection of ‘Akrotiri’, ‘Dhekelia’ and ‘Falkland Islands’, suggesting these met that criterion. Following publication of the guidance on the 2023 Annual Return, contact with the Commission has revealed that, since CESSAC is operating on UK Armed Forces bases and for those personnel, its intent would be met by describing all the primary trading expenditure and income as ‘UK’. The Return will therefore be so completed with the figures from these accounts onwards. For similar reasons, it has been decided to discontinue the practice of separating the charitable activities in the notes to the accounts between the Sovereign Bases in Cyprus and ‘the rest’ (which routinely included non-Cyprus locations abroad like RAF Mount Pleasant in the Falklands).

Objectives and activities

The Church of England Soldiers', Sailors' & Airmen's Clubs (short title: CESSAC) originated in Aldershot in 1857 to provide an alcohol-free, non-proselytising home-from-home for soldiers. Its founding precept (circa 1881) included its intention: "to provide for the Nation's soldiers, places where they can resort and find rest and healthy recreation and where they can associate on terms of friendly intercourse". The success of the original facility resulted in many others being opened over the years (and many closing again to match changing demand). Apart from the fact that the charity’s reach has extended to cover sailors and then airmen, that precept remains as true today. CESSAC's principal aim is still, therefore, the operation of homely, welcoming amenity centres at military bases to improve the morale and wellbeing of service personnel and/or their families. At 31 December 2023, there were 9 such centres, 4 in one group (all in Cyprus) and another group with 4 in UK and one in the Falklands.

Other aims were added in the 1970s; to relieve persons who have served in H.M. Forces and the dependants of such persons as are in need of assistance including the provision and management of housing. This enabled CESSAC to contribute to the establishment of CESSA Housing Association Limited (CESSA HA), a separate charitable organisation that owns and operates sheltered housing for elderly ex-Service people, their spouses, widows, widowers and immediate relatives. CESSAC has since provided grants to CESSA HA and other eligible charities in furtherance of this aim.

CESSAC still shares its Head Office and some staff with CESSA HA, although both organisations have their own Boards and operate independently. The latter is accountable to the Regulator of Social Housing and the Financial Conduct Authority. The relationship with CESSA HA resulted in CESSAC entering into an agreement with Greenwich Hospital, a Crown Royal Navy Charity, to manage its sheltered housing (GHSH) for former members of the Naval Service in the 1980s. Although reviewed regularly, this symbiotic relationship continues to this day, providing advantages for all parties.

CESSAC is a founder member (1939) of the Council for Voluntary Welfare Work (CVWW), which enables it to operate in Armed Forces establishments at home and abroad under a Memorandum of Understanding (MoU) with the Ministry of Defence (MoD. The MoU between the MoD and CVWW recognises that the amenity centres provided by member organisations require a certain amount of primary trading in order to be sustainable. The income received is therefore one indicator of whether the centres are being used by the beneficiaries and hence meeting their welfare needs. However, there are many factors outside the charity’s control, particularly changes in the number of Service personnel present in any location, and just because a centre operates at a loss does not mean it is not needed. For this reason, the current and anticipated use of each centre is regularly reviewed against the perceived benefit being provided in an attempt to best match the running costs across all of them with the likely income overall. Thus, a loss-making centre perceived to be meeting a particular welfare need can be supported financially by surpluses generated elsewhere. This is detailed in a separate Impact Statement focussed on the charity’s stakeholders, visible on its website. The current aim is that CESSAC’s proportion of Head Office costs are funded by income on investments and from other sources. Major improvements/repairs are paid for from the long-term growth in the capital value of the investments.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The Council members have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The beneficiaries and the respective public benefits are detailed separately at the end of this report under each of the 4 registered objects. The Council members review the strategy every 2 years to provide clear priorities for the detailed business plan, and have continued to confirm that the objects (see page 6) do not need to be revised.

Due to the nature of CESSAC and its objects, its activities have already been described above; mainly the operation of its amenity centres (for objects i & iii) and ongoing support to CESSA HA and GHSH (object ii), as well as other eligible charities. Significant grants are only made when funds permit (but smaller grants for objects ii, iii & iv are made annually – see Note 11). While CESSAC welcomes volunteers, particularly in places like the Falklands, the nature of its work generally results in reliance on paid staff.

Achievements and performance

General . The King was announced as CESSAC’s Patron on 4 May 2024, following the Royal family’s reconsideration of patronages. During 2023 we were contacted by the Defence Intelligence Training Group (DITG) at Chicksands to investigate the possibility of operating a centre and café at the base, which, following good joint working with the Command and the MoD we hope to see open in 2024 (see plans for 2024 below). We also made a strong bid to take over from fellow CVWW member Sandes in Pirbright. Unfortunately, we were not invited to operate the facility, but would look again if the opportunity arose. At the invitation of RAF Cosford, we continued to investigate a further opportunity at the station but it now seems unlikely that this would prove a viable proposition. A bursary for a naval sponsored ordinand is now in its third and final year (see Note 11).

Other work focussing on our charitable output and future plans continued. The Welfare Amenity Committee (WAC) undertook its annual review of centre performance, confirming the continued relevance and charitable output of all of them (but see later caveat about Nicosia). CEO continues to represent CESSAC at meetings of CVWW and Cobseo, the Confederation of Service Charities. These provide invaluable information, insight and opportunities to work with other charities. The Council conducted quinquennial reviews of both auditors and investment managers. At the Annual General Meeting a number of small amendments were agreed to update the Memorandum and Articles of Association.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

Centres in the Falklands and UK . These are straightforward coffee shops or cafes providing a homely and welcoming environment for Service personnel and their families, often adjacent to recreational facilities and/or the chaplaincy. Accordingly, each has a relatively modest turnover (all under £100K) with the Falklands and Blandford the highest. Since we took over the operation of the centre at Aldershot in 2022 CESSAC has enabled the provision of new furniture funded by fellow charity ACEST, however the centre continues to make higher losses than anticipated and we continue to work with the Command to improve the impact of the centre. A refurbishment at Blandford completed early this year, which has been much welcomed by the command and beneficiaries. Sales in Colchester are growing (turnover exceeded £1k in a week) and a new coffee machine has been installed. We were delighted to receive very positive feedback from the Garrison Commander. Woodbridge benefitted from East Suffolk Council’s Comfort food scheme, where vouchers could be exchanged for meals. Staff also worked with the local council and the welfare team to provide kids lunch boxes in the school holidays. A wall was taken down between the two rooms, so the quiet area is now part of the café and the ‘makeover’ has been completed, including a new coffee machine. In the Falklands, after several technical issues, the welfare fund helped improve our service and impact with the purchase of a new coffee machine.

Centres in Cyprus . Unlike the other centres, some of CESSAC’s locations in Cyprus have included shops selling a permitted variety of often UK-sourced goods difficult to otherwise obtain. The rise of internet shopping and changing habits has continued to reduce such turnover and by the end of 2023 this only continues at Dhekelia.

The Sovereign Bases (particularly Akrotiri & Episkopi) have had a busy year due to a sequence of crises in the region (earthquake in Turkey, the actual evacuation of civilians from Sudan and then the potential need to do so from Israel/Gaza). Staff in Akrotiri delivered their second ‘Thanksgiving’ meal for the American contractors, which may become an annual event, albeit on a smaller scale, for the permanent US military personnel based there. Episkopi’s well overdue ‘make-over’, including the station-installed new extractor fan in the kitchen, was completed. Redecoration and the delivery of new furniture have generated lots of positive comments about how bright and comfortable the café has become. Events have been less kind to Dhekelia, where business was already worst affected by the lingering effects of the pandemic and its customers also seem to be experiencing the biggest challenge with the ‘cost of living’ crisis. To round off the autumn, metal thieves wrecked 2 air conditioning units just to extract the copper pipes, one of which will need reinstallation. Nicosia remains unopened, due to the need for more asbestos to be removed, and it is increasingly unlikely it ever will now, following the reduction in potential beneficiaries.

The centres remain well supported by the Command chain and valued by the thousands of UK Service personnel and their families.

Ex-Service personnel & their families . CESSAC has continued to enable CESSA HA to make savings through sharing a Head Office and staff and managing 91 sheltered flats at three sites on behalf of Greenwich Hospital.

Fundraising . CESSAC does not undertake fundraising from the public itself and its Collection Boxes were introduced into locations to underline the point that it is a charity. Unsurprisingly, they are generating a reducing amount with the rise of electronic payment.

Investment performance . The investment elements have performed well from a historical perspective as well as generating valuable income. In 2023 investment income was £107,076, and there were gains of £63,185 (early 2024 has seen further improvement). CESSAC takes a total return approach to its investments, as recommended for many charities, and normally draws £45k from the Charles Stanley portfolio, but agreed with the discretionary manager that an extra £12,000 could be taken in 2023. In a planned withdrawal, £58,000 of BlackRock units were sold to further subsidise support operations.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

The results for the year are set out on page 12. The net movement in funds shows a fall of £118,487, although this is much less than 2022 which was severely affected by the volatility of investment markets. It also includes a small loss on exchange of £2,264. Therefore, the actual operating position showed a loss of £179,408. This is clearly unwelcome but represents a proportionate increase on 2022 as a consequence of subsidy supporting operations with increased turnover.

Head Office has continued to play its part in keeping costs down and supporting all the operations and governance. This is illustrated at Note 8, where it can be seen that support costs are low and the overall net costs are considered fully justified in support of CESSAC's charitable objectives. The Council, through the WAC, keeps a close check on the operating position.

Reserves policy

The reserves policy is reviewed annually and in 2023 operational reserves were maintained at 9 months’ of turnover, £1,020,000, to cover the number of centres and dispersion of cash between different banks/currencies. Other reserves are maintained to fund repairs/improvements of the Clubs and/or make donations in furtherance of the charity’s aims (see Note 26). However, since the trading income alone has been insufficient to fund centre operations for some years, the charity expects to continue to use income from investments to enable the charitable output to continue.

Investment policy . The Council members ensure that the capital held by CESSAC is invested prudently and conservatively over the long term for the ultimate benefit of meeting its objectives. Their policy is to to maintain sustainability by increasing both capital and income from the investments over the long term. The reserves are invested across a number of financial institutions; the greater part is in AFCGIF units, currently managed by BlackRock, with most of the rest in a Charles Stanley discretionary managed portfolio at medium low risk. The remainder is in a Virgin Money Charity Deposit Account.

Principal Risks and Uncertainties

The Council has taken a risk-based approach to internal controls, including directing members to undertake internal assurance. The most significant risks to the charity relate to investments, since little capital is tied up in any individual centre. The Council follows a policy of spreading these at medium to low risk as described in the Investment Policy, reviews their performance at every opportunity and has an Investment Panel to oversee the investment environment between meetings. The Council members have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to them.

Over the charity’s 132 years since incorporation, it has usually been alterations in the Armed Forces that have both presented new opportunities and/or caused existing centres to close. It is for this reason that most current centres have not received significant capital and are developed with the assistance of the relevant establishment and funding sought from other sources. Therefore, the success or failure of individual centres is unlikely to present a significant risk. The UK Government refreshed its Defence & Security review from March 2021 this year, which does not appear to have any obvious direct effects.

Withdrawal from any centre is considered if sustained losses there cannot be justified by the assessed charitable benefit in that location, but otherwise service is maintained as long as the overall performance of the charity is satisfactory. Loss of the Greenwich Hospital agreement would deprive the charity of some income and the economies inherent in shared facilities. This is mitigated by demonstrating the efficiency and added value provided to the management of the sheltered housing, which has resulted in a five-year agreement until 31 January 2028. The risk policy is regularly reviewed and the register is maintained in a detailed matrix. A clear system is operated to ensure that every risk is reviewed either by Council or WAC at least annually.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

2024 & Plans for the future

The Council will undertake a two-yearly review of the charity’s strategy. Efforts will continue to explore potential new centre at Thorney Island, and it is planned that CESSAC will operate at Chicksands from June. The latter is being supported with a grant of £6,800 for a new coffee machine from The Army Central Fund and the renovation of the kitchen at Blandford has been supported by a grant of £12,442 from ACEST. Following the RAF’s decision to use the term ‘aviators’, it is possible CESSAC may update its name: this will be considered in 2025 with other potential changes so that all might be included in an update to the Memorandum and Articles of Association. Following the decision of the current CEO to retire in summer 2024 we will conduct an open competition for his successor. Our search and recruitment will be informed by a review of the organisation and staff workload begun in 2023.

Going Concern

Rolling forecasts are maintained for both cash-flow and income & expenditure, both of which currently predict a better year ahead than 2023. The Council firmly believes the charity remains a going concern, since the likely rate of loss should be containable for significantly more than 12 months.

Structure, governance and management

CESSAC is a charity (No. 226684) and a company limited by guarantee and not having share capital, registered in England (No. 00034118). It does not trade for profit, is exempt from Corporation Tax and is VAT-registered. (No. 675 8276 83). Its Memorandum and Articles of Association govern the charitable company, including the appointment and reappointment of its members of Council.

CESSAC is governed by the Council, which met 4 times in 2023 with 97% attendance. The WAC meets three times a year and reports its activities at the next Council meeting and seeks approval for any strategic decisions. The Council and WAC are assisted in their responsibilities by the Chief Executive Officer (CEO) who manages the operations and personnel.

None of the Council members has any beneficial interest in the company. All of the Council members are members of the company and guarantee to contribute £1 in the event of a winding up. Trustees indemnity insurance up to £500K is provided as part of a portfolio of policies.

The Council members, who are also the directors for the purpose of company law, and who served during the year were:

Rear Admiral A R Rymer CEng (Chairman) Colonel C E H Ackroyd TD RD DL (Vice Chairman) Mr I H Currie FCA Ms G Grindell MSc Commander A E Mizen RN (Retired 21 June 2023) Commander J F J Simpson RN (Retired 21 June 2023) Commander S J Snowball RN Mr D J Foster FCA Mr S D Rice Lieutenant Colonel D B Ruffle RE (Appointed 21 June 2023) Lieutenant Commander A Sard MBE RN (Appointed 22 November 2023)

Advertisements are made to attract potential members/trustees, whose applications are then considered by the Council. Those selected as members are eligible to sit on committees and vote at general meetings. Potential trustees are invited to an informal meeting with the Chairman. This is followed by a brief from the CEO and an invitation to attend the next Council meeting as an observer. A formal invitation to join the Council will follow if both parties agree, followed by induction conducted by the CEO. New trustees are co-opted until election is considered at the next AGM. Training is offered regularly and the Council reviews Charity Commission e-mails, Governance & Leadership/Charity Finance magazines and other material to keep up to date.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The Charity Governance Code. Performance against the Charity Code of Governance 2017 and the Cobseo aide-memoire have been assessed. The organisation met all criteria, save for one relating to Equality and Diversity, which history and recruitment opportunities render difficult for us to achieve, notwithstanding a stated Policy in this area, applied across the organisation. Subject to the usual ebb and flow of representation in a relatively small organisation, gender balance overall has been satisfactory. However, an underlying requirement for military experience, and the need to maintain a range of skills and qualifications against low turnover, together with some geographical restrictions, have limited the available field from which minority involvement in governance matters can be drawn. In order to maximise the opportunity for minority participation in future, recruitment criteria, advertising and procedures are kept under review.

Remuneration policy. All of the members are unpaid volunteers. The overall purpose of remuneration policy for the staff at all levels, together with their terms and conditions of service, is to attract and retain those with appropriate skills, experience and competencies who are committed to delivering the relevant charitable work and purposes. Although CESSAC does not engage in substantive levels of fundraising or voluntary work, the esteem and value derived from working in the charitable sector are noted, as recommended. With a principal aim of fairness and no overriding factors, save for affordability, the following will be taken into account when deciding remuneration:

Relationships . CESSAC shares a common root with the Aldershot Church of England Services Trust, and three of the former’s members are appointed as trustees for the latter. CEO is CESSAC's trustee for CVWW.

Asset cover for funds

The charity has no significant restricted funds and therefore no analysis of funds is given in the notes.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

Registered charitable objects

The objects for which the Charity is established are below in ‘inverted commas’, each followed by a summary of the benefits delivered to the respective beneficiaries:

(i) ‘To open, carry on, establish and maintain Church of England Soldiers', Sailors' & Airmen's Clubs or Centres in military stations and other places at home and abroad, and to assist local or other efforts to open, carry on, establish and maintain such clubs or centres’. The aim remains to provide homely facilities for serving personnel and/or their families. The benefit they derive from the centres is amply demonstrated by their use and the strength of support from the chain of command.

(ii) ‘To further the religious and charitable work of the Church of England amongst those serving in H.M. Forces’. This is achieved by working with Service Chaplains wherever possible, without impinging on the nonreligious nature of the centres. It includes offering a grant to help Service-sponsored ordinands (Note 11).

(iii) ‘To relieve persons who have served in H.M. Forces and the dependants of such persons as are in need of assistance including the provision and management of housing’. This aim is clear and currently largely, but not exclusively, delivered through the assistance provided to CESSA Housing Association & GHSH.

(iv) ‘To promote the efficiency of H.M. Forces by the provision of facilities and equipment for educational, recreation and leisure pursuits for those serving in H.M. Forces, whether at Church of England Soldiers', Sailors' & Airmen's Clubs or Centres or elsewhere and whether at home or abroad’. This is a recognised broad Object to enable a wide range of support to be provided for the benefit of serving personnel as needs arise. The level of the losses over recent years has meant that this aim is currently supported by a number of small grants to other organisations, listed for Cyprus at Note 11.

Auditor

In accordance with the charity's articles, a resolution proposing that Carpenter Box Jones Avens be reappointed as auditor of the charity will be put at a General Meeting.

Disclosure of information to auditor

Each of the Council members has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The Council members' report was approved by the Board of Council Members.

..............................

Commander S J Snowball RN

Trustee Dated: .........................

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

STATEMENT OF COUNCIL MEMBERS' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

The Council members, who are also the directors of Church of England Soldiers', Sailors' & Airmen's Clubs for the purpose of company law, are responsible for preparing the Council Members' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Council members to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Council members are required to:

The Council members are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

INDEPENDENT AUDITOR'S REPORT

TO THE COUNCIL MEMBERS OF CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

Opinion

We have audited the accounts of Church of England Soldiers', Sailors' & Airmen's Clubs (the ‘charity’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, including a summary of 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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe 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 Council members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The Council members are responsible for the other information. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE COUNCIL MEMBERS OF CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

Responsibilities of Council members

As explained more fully in the statement of Council members' responsibilities, the Council members, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council members 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 Council members are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council members either intend to liquidate the charitable company 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 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Identification and assessment of irregularities including fraud

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

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE COUNCIL MEMBERS OF CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

Audit response to the risk of irregularities including fraud

Based on the results of our risk assessment, our procedures included, but were not limited to:

Conclusions regarding the risks of irregularities including fraud

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We considered our audit was capable of detecting irregularities due to:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE COUNCIL MEMBERS OF CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jordan Abbott BSc ACA (Senior Statutory Auditor) for and on behalf of Sumer Audit

.........................

Chartered Accountants Statutory Auditor

Piper House 4 Dukes Court Bognor Road Chichester West Sussex PO19 8FX

Sumer Audit 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.

Sumer Audit is a trading name of Sumer AuditCo Limited.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Voluntary income
4
10,402
16,400
Charitable activities
6
802,147
-
Investments
3
107,076
-
Other income
5
112,333
-
Total income
1,031,958
16,400
Expenditure on:
Raising funds
7
7,540
-
Charitable activities
9
1,211,600
8,626
Other
15
-
-
Total resources
expended
1,219,140
8,626
Net operating deficit
(187,182)
7,774
Net gains/(losses) on
investments
12
63,185
-		 Total
Unrestricted
funds
2023
2022
£
£
26,802
17,047
802,147
686,354
107,076
103,001
112,333
101,118
1,048,358
907,520
7,540
7,970
1,220,226
1,035,829
-
1,200
1,227,766
1,044,999
(179,408)
(137,479)
63,185
(409,706)		 Restricted
funds
2022
£
24,300
-
-
-
24,300
-
11,674
-
11,674
12,626
-		 Total
2022
£
41,347
686,354
103,001
101,118
931,820
7,970
1,047,503
1,200
1,056,673
(124,853)
(409,706)

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

Net (outgoing)/
incoming resources
before transfers
(123,997)
Gross transfers between
funds
16
8,323
Net outgoing resources
(115,674)
Other recognised gains and losses
Other gains or losses
18
(2,264)
Net movement in funds
(117,938)
Fund balances at 1
January
3,249,961
Fund balances at 31
December
3,132,023		 7,774
(8,323)
(549)
-
(549)
8,626
8,077		 (116,223)
-
(116,223)
(2,264)
(118,487)
3,258,587
3,140,100		 (547,185)
4,000
(543,185)
6,543
(536,642)
3,786,603
3,249,961		 12,626
(4,000)
8,626
-
8,626
-
8,626		 (534,559)
-
(534,559)
6,543
(528,016)
3,786,603
3,258,587

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
17
Investments
20
Current assets
Stocks
19
Debtors
21
Cash at bank and in hand
Creditors: amounts falling due within
one year
23
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
25
Unrestricted funds
Designated funds
26		 2023
£
£
116,967
2,792,193
2,909,160
39,633
32,020
294,239
365,892
(134,952)
230,940
3,140,100
8,077
3,132,023
3,132,023
3,140,100		 2022
£
£
85,873
2,823,172
2,909,045
53,198
31,949
382,698
467,845
(118,303)
349,542
3,258,587
8,626
3,249,961
3,249,961
3,258,587		 2022
£
£
85,873
2,823,172
2,909,045
53,198
31,949
382,698
467,845
(118,303)
349,542
3,258,587
8,626
3,249,961
3,249,961
3,258,587
2,909,045
349,542
3,258,587
8,626
3,249,961
3,258,587

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The Council members are responsible for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Council Members on .........................

.............................. .............................. Commander S J Snowball RN Lieutenant Commander A Sard MBE RN Trustee Trustee

Company Registration No. 00034118

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
29
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Purchase of investments
Proceeds on disposal of investments
Investment income
Net cash generated from investing
activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of foreign exchange rates
Cash and cash equivalents at end of year		 2023
£
£
(233,628)
(58,679)
2,607
(52,024)
142,899
107,076
141,879
-
(91,749)
382,698
3,290
294,239		 2022
£
£
(152,511)
(45,542)
1,594
(88,561)
136,112
103,001
106,604
-
(45,907)
425,742
2,863
382,698

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Council members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

2 Accounting policies

Charity information

Church of England Soldiers', Sailors' & Airmen's Clubs is a private company limited by guarantee incorporated in England and Wales. The registered office is 1 Shakespeare Terrace, 126 High Street, Portsmouth, Hampshire, PO1 2RH.

2.1 Accounting convention

The accounts have been prepared in accordance with the charity's Memorandum & Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: 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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

2.2 Going concern

At the time of approving the financial statements, the Council members have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Council members continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Council members in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Council members for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

2.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies

(Continued)

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income from charitable trading activities principally represents retail sales and other income in CESSAC's Services Centre in Cyprus and at CESSAC Centres in the UK and elsewhere with other operating income arising from fees for managing sheltered lettings, owned by other charitable bodies, for ex-members of HM Forces and their spouses.

2.5 Resources expended

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

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 8.

2.6 Tangible fixed assets

Tangible fixed assets are measured at cost net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 2% straight line basis Leasehold properties Cyprus improvements 10% straight line basis Furniture, fittings & equipment 10 - 25% straight line basis Vehicles 20% straight line basis

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies

(Continued)

2.7 Fixed asset investments

Listed investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in income and expenditure. Transaction costs are expensed to income and expenditure as incurred.

The fixed asset investment loan is initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investment is assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in income and expenditure.

2.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). No such indications were noted.

2.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost.

2.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.11 Financial instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in net income/(expenditure), except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in or in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2.12 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies

(Continued)

2.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.14 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources.

2.15 Taxation

CESSAC is a registered charity and is not subject to taxation on income. Any income tax recovered on investment income and covenanted subscriptions is included with the respective income.

2.16 Government Grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover, including the Coronavirus Job Retention Scheme and other Coronavirus related support are recognised as income over the periods when the related costs are incurred.

3 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Income from listed investments 106,141 102,681
Interest receivable 935 320
107,076 103,001

4 Voluntary income

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
1,966
-
Government grants
-
-
Other grants
8,436
16,400
10,402
16,400		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
1,966
2,111
-
-
14,936
-
24,836
11,069
24,300
26,802
17,047
24,300		 Total
2022
£
2,111
26,005
24,300
41,347

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

4
Voluntary income
Government grants
received
Discretionary Covid-19
grants
-
Other
-
-
5
Other income
Net gain on disposal of tangible fixed assets
Management fees and office rent		 -
-
-		 -
-
-		 (Continued)
3,867
-
3,867
11,069
24,300
35,369
14,936
24,300
39,236
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
2,607
1,594
109,726
99,524
109,726
99,524		 (Continued)
3,867
-
3,867
11,069
24,300
35,369
14,936
24,300
39,236
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
2,607
1,594
109,726
99,524
109,726
99,524
99,524

6 Charitable activities

Supporting
Supporting
HM Forces
HM Forces in
in the UK
the UK and
and
overseas
overseas
2023 2022
£ £
Sale of goods 785,925 669,138
Other income 16,222 17,216
802,147 686,354

Charitable trading income

Incoming resources derive from UK and activities in British HM Forces bases overseas including income from charitable trading activities.

7 Raising funds

2023 2022
£ £
Investment management 7,540 7,970

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8 Support costs allocated to activities

Staff costs
Depreciation
Head office costs
Governance costs
Allocated to:
Supporting HM Forces in the UK and overseas		 2023
£
129,819
202
27,136
37,289
194,446
194,446		 2022
£
121,753
202
20,648
33,413
176,016
176,016

The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are allocated directly against the charities activities.

9 Charitable activities

Supporting Supporting
HM Forces HM Forces
in the UK in the UK
and and
overseas overseas
2023 2022
£ £
Staff costs 460,532 390,704
Depreciation and impairment 26,449 19,960
Cost of supplies 342,482 287,036
Operating costs 196,046 173,366
1,025,509 871,066
Grant funding of activities (see note 11) 271 421
Share of support costs (see note 8) 157,157 142,603
Share of governance costs (see note 8) 37,289 33,413
1,220,226 1,047,503
Analysis by fund
Unrestricted funds 1,211,600 1,035,829
Restricted funds 8,626 11,674
1,220,226 1,047,503

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

10 Council Members

None of the Council members (or any persons connected with them) received any remuneration during the year, but 7 of them were reimbursed a total of £1,156 travelling expenses (2022 - 5 were reimbursed £530).

11 Grants payable

CESSAC made the following principal donations in the UK:

Grants to CESSA HA tenants for Christmas vouchers/social functions - 2023: £Nil (2022: £3,296). Annual grant to a sponsored ordinand - 2023: £820 (2022: £778)

CESSAC Cyprus made the following donations:

Various smaller donations 2023:

Details Amount
Episkopi MilitaryTrainingWing- Armed Forces Day € 32
Dhekelia Halloween Raffle € 7
Akrotiri PrimarySchool € 182
Dhekelia 1 Rifles & HQ communitysupport € 91
Total € 312

(2022: €475)

12 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Gains/(losses) arising on:
Revaluation of investments 61,505 (403,063)
Sale of investments 1,680 (6,643)
63,185 (409,706)

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13 Employees

Number of employees

The average monthly number of employees during the year was:

Full time
Part time
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
8
38
46
2023
£
560,346
37,132
17,601
615,079		 2022
Number
8
35
43
2022
£
487,663
32,483
15,502
535,648

NB: A non-material correction has been made to this note re 2022 employee numbers to give a better comparison with this year’s accurate figure. The financial accounts have always reflected the correct employment costs, but it has been realised the number of employees recorded in this Note have been incorrect for much more than a decade. This is for 2 reasons: the 3 full time and 3 part-time staff employed in Greenwich schemes have always been accidentally excluded (since in a separate payroll); and an incorrect division of the staff shared with CESSA HA was being used. This combination of errors explains the increase in the number of UK employees in 2022 from 3 to 5 full-time and from 10 to 20 part-time.

Chief Executive Remuneration

The Chief Executive, the only Senior Executive, is one of the members of staff jointly employed with a related party, Church of England Soldiers', Sailors' and Airmen's Housing Association Ltd (the ‘association’). The Chief Executive is not a Director, but was an ordinary member of the association's defined contribution pension scheme (The Social Housing Pension Scheme administered by The Pension Trust) carrying no special terms. He has no other individual pension arrangement to which either entity makes a contribution. The main outputs of the two entities are: CESSAC’s Charity Centres; and sheltered housing. The latter encompasses schemes belonging to the association and those managed by CESSAC for Greenwich Hospital. The division of the costs for all joint employees is regularly reassessed in proportion to the value of contribution to each entity. The 2019 re-assessment of the share of such costs led to CEO’s being 50% each for 2020 to the association and to CESSAC. This resulted in the share of costs below (excluding national insurance contributions):

2023 2022
CESSAC Emoluments £39,660 £37,948
Association Emoluments £39,661 £37,949
Total Emoluments £79,321 £75,897
CESSACpension contribution £3,966 £3,795
Associationpension contribution £3,966 £3,795
Totalpension contributions £7,932 £7,590

There were no employees whose annual remuneration was £60,000 or more.

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13 Employees

(Continued)

14 Taxation

No charge to corporation tax arises on the results for the year.

15 Other

Net loss on disposal of tangible fixed assets Total
Unrestricted
funds
£
2023
2022
-
1,200
-
1,200		 Total
Unrestricted
funds
£
2023
2022
-
1,200
-
1,200
1,200

16 Transfers

The transfer between restricted and unrestricted funds represents the restricted funds spent on fixed asset additions.

17 Tangible fixed assets

Cost
At 1 January 2023
Additions
Disposals
Exchange adjustments
At 31 December 2023
Depreciation and impairment
At 1 January 2023
Depreciation charged in the year
Eliminated in respect of disposals
Exchange adjustments
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Land and
buildings
Leasehold
properties
Furniture,
fittings &
equipment
£
£
£
12,000
266,909
195,706
-
-
43,471
-
-
(5,736)
-
(4,955)
(2,239)
12,000
261,954
231,202
4,800
265,547
123,595
240
1,337
20,771
-
-
(5,736)
-
(4,930)
(1,368)
5,040
261,954
137,262
6,960
-
93,940
7,200
1,362
72,111		 Vehicles
£
28,936
15,208
(13,818)
(416)
29,910
23,736
4,342
(13,818)
(417)
13,843
16,067
5,200		 Total
£
503,551
58,679
(19,554)
(7,610)
535,066
417,678
26,690
(19,554)
(6,715)
418,099
116,967
85,873

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

18 Other gains or losses
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Foreign exchange (losses)/gains (2,264) 6,543
19 Stocks
2023 2022
£ £
Finished goods and goods for resale 39,633 53,198
20 Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 January 2023 2,823,172
Additions 52,024
Valuation changes 58,216
Disposals (141,219)
At 31 December 2023 2,792,193
Carrying amount
At 31 December 2023 2,792,193
At 31 December 2022 2,823,172

Fixed asset investments revalued

Listed investments include an investment portfolio managed by Charles Stanley and an Armed Forces Common Investment Fund managed by Black Rock and are included on the basis of market value, with an historical cost of £2,576,808 (2021 - £2,435,209).

21 Debtors

Debtors
2023 2022
Amounts falling due within one year: £ £
Prepayments and accrued income 32,020 31,949

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

22 Financial instruments

Carrying amount of financial assets
Instruments measured at fair value through profit or loss
23
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Government grants
24
Trade creditors
Other creditors
Accruals and deferred income		 2023
£
2,792,193
2023
£
22,714
-
58,763
925
52,550
134,952		 2022
£
2,823,172
2022
£
18,172
2,435
44,918
92
52,686
118,303

24 Government grants

The deferred grant relates to a grant received in 2022 from Episkopi station for purchase of various fixtures and fittings of which £2,435 was utilized in 2023.

Deferred income is included in the financial statements as follows:

Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 January 2023
Released from previous periods
Resources deferred in the year
Deferred income at 31 December 2023		 2023
£
-
2,435
(2,435)
-
-		 2022
£
2,435
-
-
2,435
2,435

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

25 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At
ACEST
Army Central Fund
Previous year:
At
ACEST		 1 January
2023
Incoming
resources
Resources
expended
£
£
£
8,626
9,600
(8,626)
-
6,800
-
8,626
16,400
(8,626)
1 January
2022
Incoming
resources
Resources
expended
£
£
£
-
24,300
(11,674)		 Transfers
At 31
December
2023
£
£
(8,323)
1,277
-
6,800
(8,323)
8,077
Transfers
At 31
December
2022
£
£
(4,000)
8,626

ACEST grants were provided in 2022 to cover the purchase of a new coffee machine and for some refurbishment/upgrade works at Blandford. The 2023 grant was provided to cover the cost of replacement furniture at Aldershot.

The Army Central Fund grant was provided to cover the cost of a coffee machine for the new Chicksands Centre.

26 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At
Operating cost
reserve
Capital fund for
future
opportunities
General funds		 1 January
2023
Incoming
resources
Resources
expended
£
£
£
1,020,000
-
-
2,229,961
-
-
-
1,031,958
(1,219,140)
3,249,961
1,031,958
(1,219,140)		 Transfers
Gains and
losses
At 31
December
2023
£
£
£
-
-
1,020,000
(117,938)
-
2,112,023
126,261
60,921
-
8,323
60,921
3,132,023

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

26
Unrestricted funds
Previous year:
At
Operating cost
reserve
Capital fund for
future
opportunities
General funds		 1 January
2022
Incoming
resources
Resources
expended
£
£
£
1,020,000
-
-
2,766,603
-
-
-
907,520
(1,044,999)
3,786,603
907,520
(1,044,999)		 (Continued)
Transfers
Gains and
losses
At 31
December
2022
£
£
£
-
-
1,020,000
(536,642)
-
2,229,961
540,642
(403,163)
-
4,000
(403,163)
3,249,961		 (Continued)
Transfers
Gains and
losses
At 31
December
2022
£
£
£
-
-
1,020,000
(536,642)
-
2,229,961
540,642
(403,163)
-
4,000
(403,163)
3,249,961
3,249,961

Reserves have been established as follows:

27 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
116,967
-
Investments
2,792,193
-
Current assets/(liabilities)
222,863
8,077
3,132,023
8,077
Unrestricted
Restricted
funds
funds
2022
2022
£
£
Fund balances at 31 December 2022 are represented by:
Tangible assets
85,873
-
Investments
2,823,172
-
Current assets/(liabilities)
340,916
8,626
3,249,961
8,626		 Total
2023
£
116,967
2,792,193
230,940
3,140,100
Total
2022
£
85,873
2,823,172
349,542
3,258,587

28 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

CHURCH OF ENGLAND SOLDIERS', SAILORS' & AIRMEN'S CLUBS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

29 Cash generated from operations 2023 2022
£ £
Deficit for the year (116,223) (534,559)
Adjustments for:
Investment income recognised in statement of financial activities (107,076) (103,001)
Foreign exchange differences (4,659) 1,623
Gain on disposal of tangible fixed assets (2,607) (394)
(Gain)/loss on disposal of investments (1,680) 6,643
Fair value gains and losses on investments (61,505) 403,063
Depreciation and impairment of tangible fixed assets 26,689 20,200
Movements in working capital:
Decrease in stocks 16,855 8,583
(Increase)/decrease in debtors (71) 649
Increase in creditors 19,084 42,247
(Decrease)/increase in deferred income (2,435) 2,435
Cash absorbed by operations (233,628) (152,511)
30 Analysis of changes in net funds

The charity had no material debt during the year.