Charily rÈgi$tfation number 226684 Company reglstratlon number 00034118 IEnglanil and Walosl CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS LEGAL AND ADMINISTRATIVE INFORMATION Council Members RearAdmir81 A R Ryfflpr CEng Colonel C E H Ackroyd Mr l H Currie FCA Ms G Grlndell Msc Commander S J Snowball RN Mr D J Foster FCA MrSDRi Lieutenant Colonel D B Ruffle RE Lieutenant Commander A Sard MBE RN Charity numb•r 226684 Company number 00034118 Pr5nclpal address 1 Shakespeare Terrace 126 High Street Hampshir8 Portsmouth P012RH Reglstered office 1 Shakespeare Terrace 126 High Streèt Hampshire Portsmouth P01 2RH Auditor SumerAudlt Piper House 4 Dukes Court Boonor Road Chichester West Sussex P019 8FX Bankers Lloyds Bank PIC 113 Commerclal Road Portsmouth Hampshire P01 IBY Sollcltors Blake Morgan LLP Harbour Court Compass Road North Harbour Portsrnoulh Hampshire P06 4ST CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS CONTENTS Page Council Members. report Slalemenl of Council members, responsibllitl6s Independent auditorfs report 8-10 Stat8menl of financlal aclivth'es Balancé sh881 13 Slalemenl of cash flows 14 Notes lo the financial statements 15-28 CHURCH OF ENGLAND SOLDIERS., SAILORS, & AIRMEN'S CLUBS COUNCIL MEMBERS. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024 The Council members present their report 8nd financlal siatements for the year ended 31 December 2024. The accounts have b8en prepared in aacordance with the accounting policies 881 out in notè 1 to aceounls and comply wllh the charity's Articles of Association, the Companies Act 2006 and °AccoiJnling and Reporting by Charities.. Statement of Recommended Practice applicable to ch2r¢ties preparing their accounts in accordance wllh the Financlal Reporting Standard applicable In the UK and RèpLJbllc ol Ireland IFRS 1021 leffective 1 January 20191" Oljlectlves and actlvltles The Church of England Soldi8rs', Sailors, & Alrmen's Clubs (short title: CESSACI origSn8led In Aldershot In 1857 to provide an alcoho1-free, non-prosebylising hom8-from-home for soldiers. Ils founding preoepl Icirca 18811 included its intention. to prtsvide lor the Nation's soldiers, places where they ean resort and find rest and healthy recreallon and wh8re they can 8ssoeiale on terms of friendly inlerwurs9 Thè success of the original facility resulted in many others b8ing op8ned over the years {and many closing 8g8in to match changing demand). Apart from the lact that the charity's reach has extended to cover sailors and then airmen, that pre¢gpI r8m8ln5 as true today. CESSAC'S principal aim is still, Iherefore, th8 operation of homely. welcomino amenity cenlres at mililary bases to iFnprove the morale and wellbeing of s8rvice personnel andlor their families. Al 31 December 2024, Ih8re were 9 sueh centres, 3 in one group lall in Cyprus) and another oroup with 5 in UK and one in the Falklands. Other aims were added in the 1970s,' to relieve pèrsons who have S8tved In H.M. Forces and the dependanls ol such ptsrsons as are In need ol assistance including Ihe provision and managemanl of housing. This enabled CESSAC lo contribute to the establishment of CESSA Housing Association Limited ICESSA HAI, a separale charitable organisation that owns and operates sheltered housing for elderly 8x-S8rvic8 people, their spouses, wldows, widowers and immediate relatives. CESSAC has since provided grants to CESSA HA and other èligible charilies in furtherance ol this aim. CESSAC still shares its Head Office and some staff with CESSA HA, allhoLJgh both oroanisations have their own Boards and operalg ind8pendently. The latter is accountable to the Regulatoi of Social Housing and the Financial Conduct Authority. The relationship with CESSA HA resulled in CESSAC entering into agreement wth Greenwich Hospital. a Crown Royal Navy Charity, to manage its sheltered housing IGHSHI for former metnbers of the Naval Service in the 1980s. Although reviewed regularly. this symbiotic relationship continues to this day, providing adv8ntag8s for all parties. CESSAC is a founder member119391 of the Councll lor Voluntary Welfare Work IGVWWI, which enables it to operate in Armed Forces establishments 8t home and abroad under a Memorandum of Understanding IMOUI with the Minlstry of Defence IMOD. The Mou b8tW88n the MOD and CVWW recognises that the amenity ￿￿treS provided by member organlsations require a ¢ertaiN amount of prirnary trading in order to be sustainable. The income received is therefoTe one indicator of whether the cenlres are belng used by the beneficiaries and hence meeling their welfare needs. However, there are many factors outside the charity's control, particularly changes In the number of Service personn81 presenl in any location. and just because 8 cenlre operates at a loss does not mean it Is not needed. For this reason, the ¢UTrent and anticlpated Ljse of each centre is regularty revi8w8d againsl the perceived benefit being provided in an all8mpl to b8sI maleh the runnlng costs across all of them wlh the likely incom8 ov8r811. Thus. a loss-making ￿ntr8 perceiv8d to be meeting a particular welfare need can be supported financially by surpluses generated elsewhere. This is detailed in a separate Impact Statement locussed on the charity's slak8hold8rs, visible on its website. The current aim is that CESSAC'S proportion of Head offi￿ cosls are funded by incorne on Investments and from other sources. Major improvèrnentslrepairs are paid lor from the long-term growth in Ihe capitBI value of the investments. The Councll members have paid due regard to guidancé issuèd by the Charily Commission deciding what activities the charily should vndertake. The beneficiaries and th8 resp8Ctlv6 public benefils are detailed separately at the end of this report under Èach of the 4 registered objects. The Council members review the strategy every 2 years to provide cl8ar priorilies lor the detailed buslness plan, and have continued lo confirm that the objects (see page 51 do not need lo b8 revised. CHURCH OF ENGLAND SOLDIERS,, SAILORS. &AIRMEN'S CLUBS COUNCIL MEMBERS. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024 Dug lo the natr¢re of CESSAC and its objects. ils activllles hav6 already been described 8bovè-, rnainly the operation of its amenSty cantres Ifor oblèctg l & iiil and ongoing support to CESSA HA and GHSH (object ill, as well as othèr eligible charities. Significant grants are only made when funds permit (but smaller grants lor objècts 11, lil & Iv are Made annualty- see Note 111. While CESSAC welcomes volunteers, particularfy in placés like the Falklands, the nature ol its worf( generally results In rèliancé on paid staff. Achltrvèmonts and performance Ganeral. Followrig the Royal Family's reconsideralion of palronkges CESSAC was honoured to be inlomed, on 4 May 2024, that His Majesty The King would be CESSAC'S Patron in succession lo Her Majesty Qu8en Elizabeth 11. IrTr June 2024 we completed our plans lo establish a new CESSAC Centre whlch opened at the Defence Intalllgence Training Group IDITGI Chicksands. Other work, has Included the recruiimenl ol a new CEO who assumed post in September 2024. The Welfare Amenlty Cornmillee (WACI undertook Its annu81 rewew of centre perforrrance, conflrming the conlinued relevance and charitable output of all ol them. However, in common Mrilh many organisalions in the 'hospitallly" sector il has also been necessary to carefulty monitor the 1Snanaal performance ol all Centres. As a result, the CEO and Dops have been focussing on new ways to deliver our services aeross Defence, whilst exploring innovations Ihat may provid8 8llemative income streams that bolster our Centres, reduce the annual deficit. and ensure Ihe long term sustainability of the charlty. CEO continues to represent CESSAC at meetings of CVWW and Cob$eo, the Confederation of Serviee Chari118S. These networks provide invaluable Informallon and ara presenting emerglng opportunltlas to exploit increased partne¥ing across the SeNces 3rd Sector. Centres in the Falklands and UK. These are straighfforwar(I wffee shops or cafes providlng 8 homely and welcoming environment for Semce personnel and thelr f8mlli8s, often adjacent to recreatlonal facilities andlor the chaplalncy. AccordingSy. each hgs a rolatively modesl turnover (all under £100KI with tt18 Falklands and Blandford expeiienang th8 highest outturn and Woodbridge and Aldershot th8 lowest. Centres in Cypru8. Unlike our cenlres in the UK, some of CESSAC'S lo¢ations in Cyprus have hlstorfcally included shops selling a permitted variety UK goods difficult to otherwise obtain. The ris& ol int8rnet shopping and changing hablts has now reduced the use ol these shops to such an extent. that 811 bcalions have now drawn down Iheir stocks and shop5 have been clos8d. CEQ will visit Cyprus In early 2025 lo review the delivery of our operations on the island and lo discuss ideas lo improve turnover, performance and delivery 01 chari18b18 obj8olives in Dhokelia. Engagement across the Statlons and Garrisons. The cenlr8s remain well supported by th& Command thain and valued by the thousands of UK Ser￿ce personnel and th8lr families. Ex-servlce personnel & their families. CESSAC has continued to 8nabl8 CESSA HA lo make savings through sharing a Head Office and staff and managing 91 sheltered ftats at three sites on behalfof G￿e￿wiCh Hospit81. Fundralslng. CESSAC does not LJndÈrtake fundraising from the public iiself and ils Collection Boxes were Introdu¢ed into locallons lo undeTline the point that it is a charily. Unsurprisingly, they are generating a reduclnu gmounl with the rise of electronic payment. Invèstment p•rfomianctr. CESSAC'S invgslmgnl portrolio has performed well from a histor¢cal perspective. generating valuable Income to help support the charilies operations. In 2024 investment income was £110.005 with galns of £134.977. However, at the time of submitting this report, early 2025 has seen a marked volatility ol glob81 markets. CESSAC takes a total return approach to its Investments, as recommended for many ch&rities. and typically draws around £45k from the Charles Stanley porrfolio and a further £72k from Blackrock 8ach year. The Board will discuss any requirement lo withdraw èxtra funds to meet the increased cost of charitable operalions with our professional dSscr8tlonary fund man8g8r, and carefully consider its Impact in Ilp context ol our investment pollcy. CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS COUNCIL MEMBERS. REPORT {CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024 Flnanclal rovlew The results for the year a¥e sel out on page 12. The charity's balance sheet rernains just over £3 million prowding a reassuring reserve lo ensure suslainabilily and suppori our charitable aims. However, the year saw the nel movement of funds fall by £107.969, broadly on a par with 2023. The major factors in this reduction We￿ a nel OPg18ting dfjfiGIl of £237.053. rfjlioved by gains on investments of over £134K, and 8 small èxchange ratè105s of £5,893. In¢reas8d staft and oper8ting costs during a p8ri0d of high8r inflation, tog8lh8r with stock disposal Iwrite off as we move away from providing shop facilities all help explain the 0 £57K increase in the oper81ing defi￿1 from 2023. Income and growth on our investments is used to meet our charitable aims and subsidise operations. The under￿1￿9 gap between operational income and expenditure, especially during this exlended perins. or hav8 no r8alistic alt8rn8tlve but to do so. Audltor's responslbllltlès for the audlt of the flnanclal statements We have been appointed as auditor under section 144 of Ihe Charities Act 2011 and report in accordan￿ with the Act and relevant regulations made or hamng effect thereunder. OUT objectives are lo obl8in reason8bl& 8ssur8nce about whether the fiNanu81 slalements as a whok are free from material rnisstalernenl, whether due to fraud or error, and lo Issu8 an auditorfs report that includes our opini1￿. Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misstatemenl when il exists. Misstatements can arise from fraud or error and are eonsldered malerlal If, Indlvldually or In the 8ggregate, they could reasonably be expe¢t#d lo Influ¢n¢¢ the economic decisions of users taken on th8 basis ol these financial s1818rnents. Id6ntlfScatlon and assessment of Irregularltles Includlng fraud Irr&gul8rilles, Ineludlng fraud, ar8 Instances of non-wmpli8nce with 18ws and regulations. We deslgn PTocedures In line with our responsibilities, oullined above, to delect matgrial misstatements in respecl of irregularities, including fraud. The exlenl to which our procedures are capable of delecling irregularities, including fraud, is detailed below. In 1denl1f￿ng and a55esslng risks of tnaterial misslalernent In iespecl of iriegulariti8s. including fraud and rK>n- ompliance wllh laws an<5 regulations. our prooedure5 included the following., Obtaining an understanding ol the Fegal and regulatory framework that the charity operates in. focusing on those laws and regulations that had a dlrect effect on the financlal statements and operatlons., Obtaining an understsnding of the ¢harily's policies and procedures on fraud risks, includiry kr50wledge ol any actual, suspected or alleged fraud-, Discussing among the engagement team how And where fraud might occur in the financial statements and any pot8nt181 indicators of fiaud through our knowFedge and understanding of the oompany and OUT seclor-speofic experierice. As a result of these procedures, we considered the oppotlunlties and incentives Ihat may exlst wllhln the association for fraud. We are also r8quir8d to perform specific proc8dures to respond lo the risk of m8nag8rn8nt override. As a result of perforrnlng the above, wè identified the following areas as those most Ilkely lo have an impacl on the financial slalements.. health & safety and employment law, as well as Complian￿ with the UK Companies and Charities Acts. 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 In addilion to the above, our procedurès to raspond to risks identified induded the following.. Making enquiries of management aboul any known or susp6Ctod instances of non-compliance wlh laws and regulations and fraud.. Reviawing minutes of meetings of the board and senior management. Reading correspondence with regulators Challènging assumptions and judgements made by management In thelr s1gnlficant accounting eslimales,. and Audiling the iisk of rnan8gem8nt OV8rride of controls, including through testing joumal entries and other adjustments for approprtaleness. Due lo the inherenl limitations ol an audit. there is unavoid8bl8 risk that some material misslalements In the financial slalements may not be detected, even Ihougb the audit is properfy planned and performed in aecordance wlth th6 ISAS IUKI. For instance, the further removed non-compliance is from the events and transactions Teflecled In the financial statements, the less likely the auditor is lo become aware (>f11 or to recognis8 th8 non-compliance. A further descrlption of our responsibilities 1$ av8ilablo on the Financial Reporting Council s websit6 at.. http8.'11 www.frc.org.uklaudilorsr8sponsibilities. This description forms part of our audilovs ￿pOrt. This r&port is made solely lo the company's members, as a body, in accordance with section 391 of the Cornpar)ies Ad 2014. Our audit work has been undertaken so that we might stal8 to the company's rnembers those mallers we are required to stale to them in an audiloffs rèport and for no olh8r purpose. To the fullest extent pemitted by law, we do not accept or assume resptsnsibllity lo anyone other than the company and the company's memb&r4 as a body, lor our audit work, for Ihls report, orfor the opinions we have formed. Jordan Abbott BS¢ ACA ISenSor Statutory Audltorl for and on behalf of SumerAudit Chartarèd Accountants Statutory Audltor Chichester 1110712025 Sumer Audbt FS the trading name of Sumer Auditco Limited Sumer Audit is eligible lor appointment a5 auditor of the charty by virtue of its eligibility for appointment as auditor of a company undar $8¢tSon 1212 of the Companies Act 2006. 10- CHURCH OF ENGLAND SOLDIERS,, SAILORS, & AIRMEN'S CLUBS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024 Unrestricted Restricted funds funds 2024 2024 Total Unrestricted funds 2023 Restricted funds 2023 Total 2024 2023 Not8S Voluntary income Charitable activities Inveslmenls Other incomè 6,437 795,977 110,005 117,951 17,442 23.879 795.977 110,005 117,951 10,402 802,147 107,076 112,333 16,4(XJ 26,802 802,147 107,076 112,333 Total Incoma fj,030.370 17.442 1,047.812 1.031,958 16,40(1 1,048,358 Raising funds 7,682 7.682 7,540 7.540 Charitable activities 1,277.183 1,277.183 1.211,600 8,626 1.220.226 Total resources expended 1,284,865 1,284.865 1,219,140 8,626 1,227,766 Net operatlng deflclt 1254.4951 17,442 1237.053) (187,1821 7,774 {179,4081 Not gain3lllossesl on investments 12 134,977 134,977 63,185 63,185 11 CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024 Nat loutgolngll incoming resources before transfers 1119,5181 17,442 1102,0761 1123,g971 7.774 1116,2231 Gross transleTS belween funds 15 25,519 (25,519) 8,323 {8.323> Nèt outgoing resourees 193,9991 18,0771 1102,076} 1115,6741 15491 1116.2231 Oth6r recognlsed galns and losses Other gains or losses 17 15.893) {6.893) 12.2641 12,2641 N&t movement in funds 199,8921 18,0771 1107.969} 1117.9381 15491 1118,4871 Fund balances at 1 January 3,132.023 8.077 3.140,100 3.249,961 8,626 3.258,587 Fund balances at 31 December 3.032.131 3.032,131 3,132,023 8.077 3.140,100 Th8 St8tement of financial activities includes all gains and losses recognised in the year. All Income and expendlture derive from conllnulng actlvllies. The sl8t8ment of financial activities also complie$ with the requiremenls for an income and expenditure 8¢(x)unl under Ihe Companies Acl 2006. 12 CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Flxed assets Tangible assets Inveslments 16 20 122.472 2,803,507 116,967 2,792,193 2,925.979 2,909.160 Current assets Stccks Debtors Cash at bank and in hand 18 19 24,329 77,515 174,309 39,633 32,020 294,239 276,153 365,892 Credltors: amounls falllng due wlthln ono year 21 1170,0011 1134,9521 Nel current assets 106,152 230,940 Total assets lèss currènt liabilit1•5 3,032,131 3,140,100 Incomè funds Reslricled funds 22 8,077 Designated funds 23 3,032,131 3,132.023 3,032,131 3,132,023 3.032,131 3.140,100 The eompany is enlilled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2024. although an audit has been carried out under section 144 of the Charities Art 2011. The members have not required the company lo obtain an audit of ils finan¢ial slalements under the r8qUITements of the Companies Act 2006. lor the year in question in accordance with section 476. The directors ackno￿adge their reswnsibilili8s for complying with thg requiroments of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. Th8sè financlal statements have been prepared in accordance with the provisions applicable to companies subject lo the 5m8I1 ¢ompanles reglmé. The ccounls were approv8d by the Coun￿1 Mgmbers on .. Commander S J Snowball RN Trustee Li8u18nanl Command8r A Sard MBE RN Truste8 Company Reglstratlon No. 00034118 13- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2(J24 2024 2023 Notes Cash flow5 from operating actlvltlas Cash absorbed by operatlons 28 1317,4151 1233.628) Investing activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Purchase of investments Proceeds on disposal of investments Investment Income {38.5221 158,6791 2,607 152,0241 142,8gg 107.,07 1121,1581 244.820 110,005 Net cash generated from InvestSng actlvltl•s 195,145 141.879 Net Cash used In financlng activlties Net decre•8e in ¢a8h and cash equlvalent8 1122,2701 191.749} Cash and cash equivalents al beginning of year Effect of foreign exchange rates 294,239 2,340 382.698 3.290 Cash and Cash aquiva18nts at 8nd of year 174.309 294.239 14 CHURCH OF ENGLAND SOLDIERS,, SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accountlng pollclès Charlty Infomiatlon Church of England sO￿lerS,, Sailors, & Airmen's Clubs is 8 private company limited by guarantee Incorporated in England and Wales. The reglstered office 18 1 Shakespeare Terrace, 126 Hlgh Street. Hampshire, Portsmouth, POI 2RH. 1.1 Accountlng Conventlon The accounts have been prepared in accordance with the charitvs Memorandum & Articles of Assoaation, the Companies Act 2006 and Accounting and Reporting by Charilies.. St8terllenl of Recommended PraclSce applicable to charities preparing thelr a¢counls in accordance with the Financial Reporting StandaTd applicable in the UK and R8publl¢ of Ireland IFRS 1021" las amended lor accountlno pèrfods commencing from I January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financi31 slalements are prepared In steding, which is th8 functional cU￿encY of the charity. Monetary amounts in these financial stalernents a￿ rounded to the nearest £. Th8 accounts have been prepared on the historical cost convèntlon, modified to include certain finanaal instruments at lair value. The principal accounting policies 8dopted ar8 set out below. 1.2 Going concern At.the time of approving th8 financial stalememls, the Council members have a reasonable èxpectation that the eharity has adequate r&sources to ¢onlinue in operational existence lor the foreseeabl8 future. Thus the Council members continue to adopt the going concern basis of accountin9 in prep8ring the financial ststemenls. 1,3 Charitable funds Unreslrlcled funds arÈ av811able for use at the discretion of the Coundl members In furtheronc¢ of their charitsble objectives. Dèsign8ted funds comprise funds ￿lch have been set aslde at the dlsortlior of the Council members for specific purposes. The purposes and uses ol the dèslgn81gd funds are set out in the notes to the financial statements. Restricted funds are subject io specsfie conditions by donors or granlors as lo how they may be used. The purposes and uses of the restrlcted funds are sel out in the notes to the finanaal statements. 1.4 Incomlng resourcès Income is recognised when Ihe charfty Is18gally entltl8d lo ￿ after any perfomiance conditions have been met, the amounts can be maasured r81iably, and il is probable that income will be received. Cash donatlons are reeognlséd on roceipt. Oiher donations are recognlsed once the charity has bèèn nofjfi8d of the donation. Un￿SS p8rformance conditions require deferral ol the amount. Incorn8 tax r8cov8rabl8 in rèlation to donations rèceived under Gift Aid or deeds ol Covenant is recognised at the timè of th8 donation. Legacies are recognised on rec8iPt or otherwise if the oharity has been notified ol an imponding dislrjbulion, the amount Is know), and r8c8lpt 15 expected. If the amount is not known. the legacy 1$ Ireale¢J as a conting8llt ass81. Inwme frorn govemment and other grants. whether 'eapltal' grants or 'revenue' grants, is recognised when the charily has entitlement lo 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 rn&asured reliably and is nol defer￿d. 15 CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 A¢¢ountlng poll¢lo$ {Contlnuedl Income from chariiable trading activities principally represents retail sales and other income in CESSAC'S SeNices Centre in Cyprus and at CESSAC Centres in the UK and elsewhere with oth&r operating incom6 arislng from leés for managing shélter8d 16tlings, ownèd by other chaiilable bodie5, for ex-members of HM Forc8s and Iheir swus85. 1.5 Resources gXP9nded Expenditur8 is reoognised onoe th&r9 is a18gal or oonstructiV8 obligation lo make a payment to 8 third party, it is probable that settlement will be required and the amount of Ihe obligation can be measured reliably. Expenditure is classified under the following adivily headings.. Exp8nditure on ch8rilab18 activit18s undertaken to furth8T the purposes of the charity and their associated support and governance wsts. Costs ol raising funds comprise the costs of the investment portfolio management. Irrecoverable VAT is charged as a cost against the activity for which the expendituie was incurred. Support costs are Ihose functions that assist the work of the charity but do not dlreclly undertakè charit8ble activitie5. Support costs include back office costs, finance, personn81, payroll and gov8rn8n¢g Costs which 5UPPOrt the charlly's activiligs. These wsts havo beoll allocated between cost of raising funds and expenditure on charitable activi118s. The bases on which support costs have be8n allocated are set out in note 1.6 Tanglbla flx•d ass8ts Tangible fixed assets are measured Bt cost net of depreclatlon and any Impalmènt lossgs. Depreciation is recognlsed so as to write off the cost or valuation of assets le5S their residual values over thelr useful live5 on the following bases.. Land and buildings Leasehold prop8rti&s Fumiture, fittings & equlpment Vehlcles 20A stralght line b8sIs Cypius improvements 10% str8ighl lin8 basis 10- 25°k slralght line basls 20Yo Straight line b2SIS Freehold land is not depreaated. The galn or loss arising on Ihe disposal of an assel is determlned as the diffèrence b8tW88n the Sala pmceods and the carrying valu8 of thè asset, and 15 r&cognised in the st8t8ment Df financial 8clivilies. 1.7 Flxed ass8t Investments Listed Investments a￿ inllially me8SLJred al Iransa¢tion pri¢è 8x¢luding tran$a¢lion costs, and are subsequently measured at fair value 8188ch reporting dale. Changes in fair value are recognised in income and 8xpendilure. Transaction costs are expensed lo income and expenditure as incurred. The fixed assel investment loan is initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investment is assessed lor impairment at each reporting date and any impairment losses or reversals of impaiment l(Isses are recognised immediately in income and expgnditute. 1.8 Impairment of fixed assèts At each reporting end dale. Ihe charity reviews the carrylng amounts of 1ts tangible assets to determlne whether there is any Indlcation Ih8t those assets have suffered an Impairtnent loss. 11 any such Ind￿atIOn 8XlSts, the recov8T8b18 amount of the asset IS estimated in order lo d818rrrin8 the 8xlenl of the impaimienl loss lif any). No such indications wore noted. 16. CHURCH OF ENGLAND SOLDIERS., SAILORS, & AIRr￿EN's CLUBS NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accountrng policies {Contlnu$dl 1.9 Stocks Stocks are st8ted at the lower of cost and estim8t8d selling price less cosis to complè18 and sell. Cost comprises direct materials and. where applicable, direct labour costs and those overheads Ih81 have been incurred in bringing the stocks to Ihgir present location and condltlon. 118ms held for distribution at no or nominal consider81ion are moasured 81 the lower of replacement cost wsl. 1.10 Cash and cash equlvalents Cash and cash equivalents include cash In hand, deposits h91d al call with banks. other short-term liquid investments with original maturities of three months or less, and bank overdr&fts. Bank overdrafts are shown within borrowSngs In currant liabilities. 1.11 Flnancial instruments The Company has &lecled lo apply the provisions of Section 11 'Basic Financial Instruments. and Secllon 12 'oth8r Fin8nci81 Instruments Issues. of FRS 102 to all of Sls financial instruments. Financial instruments are recognised when th8 ¢harily becomes party to th& contra¢lual provisions of the instrument. Baslc financial assets 885ic fin8ncial assets, which include debtors and cash and bank balan￿$, are Snilially m88sur8d at tr8n8actlon price including transactSon costs and are subsequently carried at amortlsed cost using the effective interest rnethod unle55 Ihe arrang8mgnl constitutes a financing transaction, wh8re the transaction is measured at the present value of th& fulure receipts discounted at a market rale of inl8resl. Financial assets classified as receivable wthin one year arg not amortised. othérflnanclal assets Other financi3185s¢ts, induding investments in equity Instruments ar8 ITiilially rneasured al lair value, whith is norTnally the transaction price. Such assets are subsequ8ntly carried at fair value and the changes in fair value are recognised ￿n nel incomell8XP8ndilurel, except Ihat investments In eqtjily instruments thal are not publicly traded and whose fair v8luos cannot b8 measured reliably ere measured at cost less irnpaimenl. Impairment of financial assels Financlal assets, other than those held al falr value Ihrough Income and expenditure, are assessed for Indicators of impairment al each reporting date. Flnancial assets are impaired where there is objectiv8 evidon¢e that, as a result of one or more events that oocurred after the Initial recoonilion of the finan¢ial asset, the ests'rnaled future cash flows have been affect8d. If an asset is impalred, the imp8irrnent loss is the difference between the rarrying amount and the present value of the estimated cash flows discounted al the asset's original effective inlerest rate. The impaiimenl loss is rewgnised in net incomellexpenditurel for the yèar. If there is a dec￿ase in the imp5irment Ioss 8rtsing from an event occurring after the impairment was recognSsed. the impaimenl is revgised. The reversal is such that the current Carrying arnount does not exceed what the carrying amount would have been, had the impairment not pr8viously been recognised. The impaiment reversal Is rg¢ognised In net incomellexpenditurel lor the year. Derecognition of financial assets Finan￿al 855ets are dere¢ognised only when the contractual Tights to the cash flows Irom the asset expire or are seltled, or when the charity transfers the firi8noial asset and substantially all the risks and r8wards of ownership to another entity, or If some signifi¢anl risks and rewards of ownershlp are retaln8d bLJt control of the asset has transferred to another party that is able to sell the asset in its entlrety to an unrelated Ihird party. 17- CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accountlng pollclas ICont5nuedl 8asio financial liabilltles Basic financial liabilits'es. including trade and olher payables, are initially recognised at Iransactlon prl¢o unless the arrangement constitutes a financing transaction, where the debt instrurnent Is measured at the presenl value of the future receipts dSscounted at a market rale of inter&$t. Dgbl instruments are subsequently carried at amortised cosl, using th8 8ffectiv8 int8r8sI rat8 method. Trade payables are oblioations to pay for goods or selv4￿S that have been acquI￿d in the ordinary Course of operations from suppliers. Accounts payable are classified as currenl1iabilitie5 if paytn8nt is du8 within one year or less. 11 not. Ihey a￿ presented as non-¢urrent liabilitie8. Trade payables aro recognised initially at tr8n$8Ction price and subsequently rneasured al amortised cost using the effective interest method. Other flnanclal Ilabllltles Derivatives. including interest rate swaps and forward foreign exchange contracts, bre not b88ic financial instruments. Derivatives are initially reeognised at fair value on the dat8 8 d8rivative contr8¢t is entered into and are subsequently re-measuied at their fair value. Chang88 in the lair value of derivative5 are recognised in or in finance co$ls or finance income a8 appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. D&r&cognltlon of flnanclal Ilabllltlès Financial liabilities are derecognised when the charity's contractu81 obligations expire or are discharged or ¢ane6lled. 1.12 Employee benefits The costs of short-t8rm employee benefits are recognised as a liability and an expense. unless th(tse costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognlsed in the p8riod in which the employee's services are received. Termination benefils are recognised immediately as an expense when the oompany Is demonstrably committed lo terminate the employment of an employee or lo provld& term￿natIOn bentsfits. 1.13 R8tlrement b8n8flts Payments to deftned contrfbutlon retirement benefit schemes are charged as an expeT)se 8S they fall due. 1.14 Foreign ex¢hange Transactions denominatod in foreign Currencies are recorded al the rale ruling al the date of Ihe transacuon. Monetary assels and liabilities denominated in foreign curronoifjs 8re tr8nslated into sterling al the rates of exchange ruling at the balance sh88t dale. All diff8rences are included in net outgoing resources. 1.15 Taxallon CESSAC is a rg9isl8rod charity and is not subject lo taxation on income. Any income tax recovéred u) investment in¢ome and covenanted subscriptions is included with the respective income. 1.16 Governmont Grants Government grants are recognised at the fair value ol the asset received or reCe￿vable whèn th6rè is reasonable assurance that the grant conditions will bè m8t and th8 grants will be received. 18 CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Critlcal accountlng estlmates and ludgements In th8 appllcalion of the charity's accounting policies, the Coundl members are required to make judgements, eslimales and assumptions about the carrying amount of assets and liabllities that are not readlly apparent from other sources. The estimates and associated assumptions are based on historlcal exp8rience and olher factors that are considered to be relevant. Actual results may differ from these estimates. The estlmate5 and underlying assumptions are rewewed on an ongoing basis. Revisions to accounting eslirnales are re￿gNISed in the period in which Ihe estlmatts is ravised where the revision affects ￿lY that period, or in the period of the revision and future p8riods where the revision affects both ourrent and future periods. lricome from investmenls Unrestrlcted Unreslrlcted funds funds 2024 2023 Income from listed investments Interest receivable 108,000 2.005 106,141 935 110,005 107.076 Voluntary income Unrestricted Restricted funds tunds Total Unrestrlcted funds Rgsllicted funds Total 2024 2024 2024 2023 2023 2023 Donations and gifts Other grants 3,949 2,488 3,949 19,930 1.966 8,436 1,966 33.272 17,442 16,400 6,437 17,442 23.879 10.402 16,400 26,802 other income Unrèstricted Unrestrlcted funds funds 2024 2023 Nel gain on disposal of tangible fixed assets Management fees and office rent 2,607 109.726 117.951 117,951 109,726 19 CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Charitable acllvltlès Supportlng Supporting HM Forces HM Forces in In thè UK lh6 UK and and overseas 2024 overseas 2023 Sale of gwds Olhgr incomo 782,828 13,149 785,925 16,222 795,977 802,147 Charltable trodlrtg Ineome Incoming resoL5rces derive from UK and activities in British HM Forces bases overseas including income from ¢h8rlt8ble tradlng acllvllles. Raising fund5 2024 2023 Investment management Support costs allocated to activities 7,682 7,540 2024 2023 Staff costs Depreciation Head office costs Governance costs 137,788 240 28,351 41,038 129,819 202 27.136 37,289 207,417 194.446 Analysed between: Supporting HM Forces in the UK and tsverseas 207,417 194,446 The charity inilialty identifies the costs of ils support functions. 11 then identifies those ¢osts which relate lo the governance function. Having identified its govemance costs, the remaining support costs together with the governance Costs are apportioned to the charilable actSvilies undertaken In the year. 20- CHURCH OF ENGLAND SOLDIERS., SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Charltabl& a¢tlvitlès Supporting Supportlng HM Forcès HM Fore•s in the UK in the UK and and overseas overseas 2023 2024 Staff eosts Oepreciation and impalment Cost of supplies Operabng costs 502.935 29.933 332,256 204,642 460,532 26,449 342,482 196,046 1.069.766 1.025,509 Grant funding of activities (see note 111 271 Share of support costs Is8e TK>le 81 Share of governancè costs Iseè not8 81 166.379 41,038 157.157 37,289 1,277,183 1.220,226 Analysis by fund Unrestricted funds Restricted funds 1,277,183 1,211,600 8,626 10 Council Membèrs None ol the Council members lor any persons connected with them) received any rèmunaT8tion during the year, bul 7 of them were reSmbursed a total of £1.069 Iravelling expenses12023- 7 were r8imburs8d £1,156). 11 Grants payabl• CESSAC made the following prlnclpal donations In the UK.. Annual grant lo a sponsored ordinand- 2024.. £nil12023.' £8201 CESSAC Cyprus made the following donations.. Varlous small donations- 2024 É12212023.' &12) 21 CHURCH OF ENGLAND SOLDIERS,, SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 12 Galns and losses on Snvestments Unrestricted Unrgstrlctod funds funds 2024 2023 Gainslllossesl arislng on.. Revaluation of investments Sale of inveslrnents 83,177 51,800 61.505 1,680 134,977 63,185 13 Taxatlon The charity is exempt from taxation on its ath'vities because all ils income is applied for charitable purp0598. 22- CHURCH OF ENGLAND SOLDIERS., SAILORS, &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 14 Employees Numbèr of 8mploy¢ès The average monthly number ol employees during the year w8S'. 2024 Numb8r 2023 Numbèr Full tlme (UK & FI) PBrt time (UK & FI) Full time (Cyprusl Part time (Cyprusl 23 21 17 48 46 Employment costs 2024 2023 Wages and salaries Social securlty costs Other pension costs 614,486 24,696 27,786 560,346 37,132 17,601 666,968 615,079 Chief Execulive Remuneration None of the Directors lor any persons connected with them) received any remuneration during the year. but 7 of them were reimbursed a total of £1,069 travelling expenses12023- 8 were reimbursed £8131. Thé high88t paid dirèctor rèc6wed £42,009 {2023- £39,661) rèmun8r8tion18xcluding pension contributions). For the purposes ol the above disdosures, "Oirector" also includes the Chief Executive and any other person who is a member ol the executive management team. or ils equivalent. of the association. The Chlef Executive, the only Senlor Executive, Is one of the members of staff jolntly employed with related party, Church of England Soldiers.. Sallors, and Airmen's Housing Association Ltd Ithg '8ssocialion'l. The Chief Ex6CUtNe is not a Director, but was an ordinary member of the association's defined contribution pension scheme Jhe Social Housing Pension Scheme administered by The Pension Trust) carying no speeial terms. He has no other individual pension arrangement lo which either entity makes A eontribulion. The main outputs of the two entities are.. CESSAC'S Charity Centres., and sheltered houslng. Tha latt6r èncompasses schemes balonging to tha assoclation and thos& managed by CESSAC for Gr88nwich Hospital. The division of th8 Costs for all joint employees is regularly reassessed in proportion lo th8 value of contribution to each entity. The 2019 re-assessment of the share of such costs led to CEO s being 50°/o each lor 2020 and subsequent years to the association and to CESSAC. IUr)til 2019 CEO s shares had been 34% & 66°k respeclivetyl. This resulted in the share of Gtssts below (excluding national insurance contributions1= 202 £42.00 £42,00 £84.01 £3.79 £3.7 202 £39,66 £39,661 £79,321 £3,96 £3,96 ESSAC Emolument8 ociation Emoluments olal Emoluments ESSAC penslon conlrfbullon OCIa￿On enslon conlrfbullon otal nslon contribulions -23- CHURCH OF ENGLAND SOLDIERS,, SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DEGEMBER 2024 14 Employees Icontlnuedl There w8r8 no 8mploy89s whosè 8nnu81 r6mun6r8tion was £60.000 or mora. 15 Transfers The transfer restricted and unrestricted fijnds represents the restrictèd funds spent on fixed asset additions. 16 Tangiblè fixèd assets Land and bulldlt)gs Leasehold propert188 Furniture. Ilttlngs & equlpmeht Vehicles Total Cost At 1 January 2024 Additlons Disposals Exchange adjuslmenls 12.00 261.954 231,203 38,522 15,6921 15,8601 29,910 535,067 38,522 15,6921 118,9511 {12,0171 11,0741 Al 31 December 2024 12,000 24Y,937 258,173 28,836 548,946 Depreclatlon and Impalrment At 1 January 2024 Depreciation charged in the year Eliminated in respect of disposals Exchangg adjuslmenls 261,954 137,262 25,731 15,6921 13,5731 13,843 4,202 418,099 30,173 15,6921 116.106) 240 {12,0171 15161 Al 31 Deeèmber 2024 5,280 249,937 153,728 17,529 426,474 Carrylng amount At 31 December 2024 6,720 104,445 11,307 122,472 Al 31 Decgmb9r 2Q23 6,960 93.940 16.067 116.967 17 Other gains or losses Unrestricted Unre5trict8d funds funds 2024 2023 Foreign exchange (lossesygains 15,8931 {2.2641 24- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 18 Stocks 2024 2023 Finished goods and goods for resale 24,329 39,633 19 Debtors 2024 2023 Amounts falllng duè wlthln ona yèar: Other debtors Prepayrnent5 and 8ccrued income 45,704 31,811 32,020 77,515 32,020 20 Flxèd ass•t Invèstments Llstod Investm•nts Cost or valua￿On At 1 January 2024 Additions Valuation changes Dlsposols 2,792,193 121,158 83,175 (193,0201 At 310ecember 2024 2,803,506 Carrying amount At 31 Decembei 2024 2,803,506 At 31 December 2023 2,792,193 Flxed ass•t Invostmonts ravalued Listed investments include an Investment portfollo managed by Charles Stanley and an Armed Forcos Common Investment Fund Tnanaged by Black Rock and are included on the basis of market valug, with an historical cost of £2,528.76812023- £2.576,8081. -25- CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 21 Creditors: amounts falllng due within one year 2024 2023 Other lax81ion and social securty Trade creditors Other creditors Accruals and deferred income 22,256 39,621 80,038 28,086 22,714 58.763 925 52.550 170,001 134,952 Restrlcted funds The reslricled funds of the charity cornprise the unexpended balances of donations and grants held on Irusl subject to specific conditions by donors as to how they may be used. At 1 January 2024 Incorning resources Resources expended Transfers At31 December 2024 ACEST Amy Central Fund 1.277 6,800 17,442 118,7191 16,8001 8,077 17,442 (25,5191 Prevlous yèar: At 1 January 2023 Incornlng resources Resoureas expend8d Transfèrs At31 Decembar 2023 ACEST Army Central Fund 8,626 9,600 6,800 18.6261 18,3231 1,277 6.800 8.626 16,400 18,6261 18,3231 8.077 ACEST grants were provided in 2022 to cover the purchase of a new coffee machine and lor some refiJrbishmenllupgr8de works al Blandlord. The 2023 grant was provided to cover the cosl ol replacement furnlture atAJdershot. Thè Amiy Cèntral Fund grant was provided lo cover the eosl of a eoffee maehlne for the new Chicksands Centr8. 26- CHURCH OF ENGLAND SOLDIERS,, SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 23 Unrostri¢ted funds The un￿strICted funds of the charity comprise the unexpended balances of donations and grants which are nol subject lo specific conditsons by donors and grantors as lo how Ihey may b$ used. These include designated funds which have been set aside out (>f unrest￿GI8d funds by the Iruslees lor specific purposes. At 1 January 2024 Incoming resources Resources expended Transfers Galns and losses At31 December 2024 Operating cost reserve 1.020,000 120.0001 1.000,000 Capital fund for future opportuniite5 General funds 2,112,023 179,8921 125,411 2,032,131 1,030,370 11,284,865) 129,084 3.132,023 1,030,370 11,284,865) 25,519 129,084 3,032,131 Prevlous year: At l January 2023 Incoming resources Resources expended Transfers Galns and lo$$es At31 December 2023 Operating cost reserve Capital fund for future opportunitles General funds 1,020,￿0 1,020,000 2.229.961 1117,9381 126,261 2.112.023 1.031,958 11,219,140) 60,921 3,249,961 1.031,958 11,219.1401 8,323 60,921 3,132,023 Reserves have been established as lollows= An operatSng cost reserve equal to nine months. charitable aclivily1£1,000,OOQI. A capital fund for future opportunities and investment. 24 Analysls of net assets betwaen funds UnrestrÈcted fund5 2024 Restricted funds 2024 Total 2024 Fund balances at 31 December 2024 are represented by.. Tangible assets Invèstments Current assetsllliabilitiesl 122.472 2,803,507 106.152 122,472 2,803,507 106.152 3,032.131 3,032,131 27- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 24 Analysls of net assets bètwe&n funds Icontlnuedl Unrostrlcted funds 2023 Restrlct•d funds 2023 Total 2023 Fund balances at 31 December 2023 are represented by.. Tangible assets Inv8slmenls Cuiient assetsllliabililiesl 116,%7 2,792,193 222,863 116,967 2.792,193 230,940 8,077 3,132.023 8,077 3,140,100 25 Related party transactlons Donatlons totalling £325 w8r8 r8¢8N8d from Trusttres during the year. 26 Cash gènèr*èd from op8ratlons 2024 2023 Deficit for the year {102.076) 1116,2231 Adjustments for". Investment income reoognised in statement of finBnclal act￿1{￿eS Foreign exchange differences Gain on disposal of tangible fixed assets Gain on disposal of investments Fair value gains and losses on investments D6precialion and impairment ol tangible fixed ass6ts (110.005} 13.0481 {107,0761 14,6591 12,6071 11,6801 161,5051 26,689 151,800) 183,1771 30,173 DAov8rnents in working ¢8Pit81= Decrease in stocks Ilncreasel in debtors Increase in creditors {De¢reasel in deferred inoome 16,851 145,3101 30.977 16,855 19,084 12,4351 Ca$h absorbed by operallons 1317,4151 1233.6281 27 Analysis of changes in net funds Th8 charity had no material dèbt during Ihè year. -28-