CESSAC & CESSA HA I Shakespeare Terrace 126 High Street Portsmouth POI 2RH Cf 55AC rbSeT¥IGe Ch8rlty. É$t 1867 Tel. 02392 829319 www.cessaha.co.uk Sumer Audit Piper House 4 Dukes Court Bognor Road Chichester Wesl Sussex P019 8FX Date.. 11 June 2026 Dear Sirs, This representation letter is provided in connection with your audit of the financial statements of the charity for the year ended 31 December 2025 for the purpose of expressing an opinion as lo whether the financial slalemenls are presented fairly, in all material aspects, or give a true and fair view in accordance with The CompanEs Act 2006 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice. We confirm that the following represenlalions are made on the basis of enquiries of the directors, management and staff with relevant knowledge and experience land, where appropriate, of inspection of supporting documenlalionl sufficient to satisfy ourselves that we can properly make each of the following representations to you.. 1. We have fulfilled our responsibilities as directors uncler the Companies Act 2006 for preparing financial slalemenls, in accordance with the applicable financial reporting framework. We confirm that in OLJr opinion the financial statements give a true and fair view and in particular that where any additional information musl be disclosed in order lo give a true and fair view that information has in fact been disclosed. We confirm that the selection and application of the accounting policies used in the preparation of the financial statements are appropriate, and we approve these accounts for the year ended 31 December 2025 2. We confirm that all accounting records have been made available lo you for the purposes of your audit. in accordance with your terms of engagement, and that all transactions undertakèn by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management and shareholders, meetings, have been made available to YOLJ. We have given you unreslricled access lo persons within the charity in order lo obtain audit evidence and have provided any additional information that you have requested for the purposes of your audit. 3. We acknowledge that it is a criminal offence to make a false slalemenl in this regard, and where any director either makes a false slalement,. is aware that the stslement is false,. is reckiess in preventing this statement., or fails to lake reasonable steps lo prevent the directors, report from being approved, we acknowledge that each director will be guilty of a criminal offence. Church of England Soldiers,. Sailors. & Alrmen's Clubs ICESSACI erosh CESSAC Patron.. HM The King Limited Companyl341181 Benefit Societies Act 2014121222RI Registered in En813nd and Wale5 4. We confirm that the charity is controlled by the Directors and Trustees and there are no other controlling parties. 5. We confirm the charity has salisfaclory tille lo all assets and there are no liens or encumbrances on the assets, except for those disclosed in the financial stalemenls. 6. Vve confirm that the methods, significant assumptions and data used by us in making accounting estimates, and the related disclosures. are appropriate to achieve recognition, measurement or disclosure that is in accordance with the applicable financial reporting framework. 7. We conlimi that we have no p18ns or intentions that may materially alter the carrying value and, where relevant, the fai¥ value rfteasuremenls or classification of assets and liabilities reflected in the financial statements. 8. We confimi that the charity has no liabilities or conlingenl liabilities other than those disclosed in the financial slalements. g. We have disclosed lo you the following actual or possible liligalion and claims, the effects of which should be considered when preparing the financial slalemenls and these have been accounted for and disclosed in accordance with the applicable financial reportlng framework. 10. We conffrm that there have been no events since the balance sheet date which require disclosing or which would materially affect the arnounts in the financial slalements, other than those already disclosed or included in the financial statements. 11. We confirm that we are aware of the definition of a related party for the purpose of the accounting framework being applied in the preparation of the accounts. 12. We confirm that all related party relationships and transactions have been accounted for and disclosed in accordance with the Charity SORP. 13. We confirm that the charity neither had, at any time during the year, any arrangement, transaction or agreement to provide credit facilities lincluding advances and credits granted by the charilyl for directors, nor provided guarantees of any kind on behalf of the directors. 14. We oonfirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial slalemenls. 15. We confirm that the charity has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event ol non-compliance. 16. We confirm that we are not aware of any possible or actual instance of nonlompliance with those laws and regulations which provide a legal framework within which the charity conducts its business and which are central to the charity's ability lo conduct ils business. 17. We acknowledge our responsibility for the design, implementation and Maintenan￿ of controls lo prevent and delecl fraud, and that we believe we have appropriately fulfilled these responsibilities. We confirm that we have disclosed lo you the results of our risk assessment of the risk of fraud in the business. There have been no deficiencies in internal control of which we are aware. 18. We confirm that there have been no actual or suspected instances of fraud involvin9 management, employees who have a significant role in internal control or others where the fraud could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by employees. former employees, analysts, regulators or others. 19. We confirm that, in our opinion, the charity's financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity's needs. In reaching this conclusion, we have taken into account all relevant matters of which we are aware, including the availability of working capital and have considered a future period of at least one year from the dale on which the financial statements will be approved. 20. We confimi that in our opinion the effects of uncorrected misstatements are immaterial, both individually and in aggregate. lo the financial slalements as a whole 21. We acknowledge our legal responsibilities regarding disclosure of information lo you as auditors and confirm that.. so far as e￿h director is aware, there is no relevant aLJdil information of which you as auditors are unaware, and each director has taken all the steps that they ought to have taken as a director lo make themselves aware of any relevant audit information and to establish that you are aware of that information. 22. We acknowledge that il is a criminal offence lo knowingly or recklessly make you as an auditor, a statement loral or written) that conveys, or purports lo convey, information or explanations that you require in your capacity as auditor, or are entitled lo require, that is misleading, false 01 deceptive in a material particular. Yours faithfully Signed n behalf of the board of Iruslees by.. Name- Name- Vf Ip Charity regi$tratlon number 226684 Company reglstration numbèr 00034118 IEngland and Wal981 CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS LEGAL AND ADMINISTRATIVE INFORMATION Council Members Ms G Grindell Msc Commander S J Snowball RN Mr D J Foster FCA MrSDRi¢& Lieutenant CommanderA Sard M8E RN Captain IRetd} N Fletcher MIA Davies (Appointed 10 September 20251 (Appointed 19 Noverllber 20251 Secretary MT J Petty Charlty number 226684 Company number 00034118 Principal address 1 Shakespeare Terrace 126 High Street Hampshiré Portsmouth P012RH Règ15tsred officè 1 Shakespeare Terrace 126 High Street Hampshire Portsmouth P01 2RH Auditor SumerAudil Piper House 4 Dukes Court 8ognor Road Chichester West Suss8x P019 8FX Bankers Lloyds Bank PIC 113 Commèrcial Road Portsrnouth Hampshire P01 1BY SolicStors Blake Morgan LLP Harbour Court Compass Road North Harbour Portsmouth Harrpshire P06 4ST CHURCH OF ENGLAND SOLDIERS., SAILORS, & AIRMEN'S CLUBS CONTENTS Page Council Members. report Statemenl of Counc41 members, responsibilili8s Independent audilorfs report 10-13 Slalemenl ol financial activities 14- 15 Ba18n¢e sheet 16 Slatement of cash flows 17 Notes to the financial statem8nts 18-31 CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS COUNCIL MEMBERS. REPORT {INCLUDING DIRECTORS, REPORTI FOR THE YEAR ENDED 31 DECEMBER 2025 The Council members piesenl their report and financial slalemenls for the year ended 31 December 2025. The accounts have been prepared in accordance with the accounting policies sel out in nole 1 to the accounts and comply with the charity's Articles of Associalion. the Companies Acl 2006 and 'Accounling and Reporting by Chariliès." Stalernent ol Recommended Practice applicable to chaiilies pieparing their accounts in ac¢ordan¢e with the Financial Reporting Standard applieable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191". Objectlves and activitiès The Church ol England Soldiers,, Sailors, & Airmen's Glubs Ishort lille.. CESSACI originated in AldeTshot in 1857 to provide an alcohol-free, non-proselylising home-from-home for soldiers. Its founding precept Icirca 18811 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 ol friendly inlercouise" The success of the original facility resulted in many olheis being opened over the years land many 0105ing again to match changing dèmand). Apart fron) the fact Ihal the charity's reach has extended lo cover sailors and then airmen, that pieeepl remains as true today. CESSAC'S principal aim is still, Ihorefoie. the operation of homely, welcoming amenity cenlres at military bases lo improve (he morale and wellbeing of service personnel andlor Iheii families. At 31 December 202S, there were 9 operational ¢enlres. with preparations undemay for the ieopening of a further cenlre at Minley in early 2026.. 6 in UK. 3 in Cyprus and one in Iho Falklands. Other aims were added in the 1970$.. lo relieve persons who have served in H.M. Forces and the dependanls of such persons as are in nèed of assistance including the provision 2nd management of housing. This enabled CESSAC lo contrtbute to the establishment of CESSA HoLJsing Association Limited ICESSA HAI, a separate chaiilable organisalion that owns and operates sheltered housing for elder5y ex-service people. thèiF spouses. widows, widowers and immediate relatives. CESSAC has Sin￿ provided grants to CESSA HA and other eligible charities in furtherance ol this aim. CESSAC Still shares ils Head Office and somè staff with CESSA HA, although both oroanisations have Iheii own Boards and operate independently. The latter is a￿Ountable lo the Regulator of Social Housing and the Financial Conduct Aulhorily. The relationship with CESSA HA resulted in CESSAC èntering into an agreement with Greenwich Hospital, a Crown Roy31 Navy Charity, to manage its shelleied housing IGHSHI for lormer monbers of the Naval Service in the 1980s. Although reviewed regularly. this symbiotic relationship continues tts this day, providing advantages for all pariies. CESSAC is a founder member119391 of the Council for Voluntary Welfare Work ICVVVW), which enables it to operate in Armed Forces establishments al home and abroad under a M8moiandurn of Understanding IMOUI with the Ministry of Defen¢e IMOD. The MOU between the MOD and Cwm re¢ognises that the amenily cenlies provided by mernber organisalions require a certain amount ol prirnary Iiading in order lo be sustainable. The Income received Is therefore one indicator ol whether the cenlres are being used by the beneficiaries and hence meeting their welfaie needs. However, Ihere are many faolors outside the charily's control, parhcularly changes in the number of Service personnel present in any location, and just because a cenlre opeiate5 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 allempt to besl match the running Costs across all of them with the likely income overall. Thvs, a loss-making centre per￿1ved to be meeting a particular welfare need can be supported financially by surpluses generated elsewhere. This is detailed ifi a separate Impact Statement focu55ed on the chaiily's stakeholders. visible on ils website. The Current aim is that CESSAC'S proportion ol Head Office eosls ale funded by income on investments and frorn other sources. Major improvementslrepairs are paid foi Iiom the long-lerm growth in the capital value of thè snveslmenls. The Council members have paid due regard lo guidance issued by the Charity Commission in deciding what activities the charily 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 Counoil mernbers review the strategy every 2 years lo provide clear priorities lor the detailed business plan. and have continued to confi'rm Ihal the objects (see pag8 81 do not need lo be revised. CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS COUNCIL MEMBERS, REPORT {CONTINUED}IINCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2025 Due to the nalure ol GESSAC and its objects, its activities have already been described above,. mainly the operalion ol its amenity cenlres Ifor objects i & iiil and ongoing support to CESSA HA and GHSH lobjecl ill, as well as other eligible charilies. Significanl grants are only made when funds permil Ibul smallei grants lor objects li, iii & w ale made annualty when the opportunity aiisesl. While CESSAC welcomes volunteeis, particularly in places like the Falklands, the nature ol its work generally results in reliance on paid staff. Achlevamènts and performance General. 2025 was a year of signifioanl Iransition and consolidation for the charity. Followiry the reeruitment ol the new CEO in September 2024, allelllion turned towards stabilising operations, impioving ovef5ight and identifying opportunities lo strengthen the long-lerm susl8inabilily of the organisation. During the year. sever81 longstanding members of the Council stepped down following many years of valued service, including ￿e retirement of Rear Admiial Al Rym&r after 11.5 years as Chair. The Council a150 welcomed new members during the year, slrenglhening governan¢e and supporting succession planning for the fulLJre. The Welfare Arnenily Committee IWACI undertook ils annual review of centre performan￿. confimiing the continued relevance 8fjd charitable output of all operational locations. whilst recognising the growing finanaal pressures affecting h05pilalily and welfare provision across Delence. As a result, CEO and Dops continued to focus on improving operalior)al efficiency, redLJcing unnecessary expenditure and identifying opportL5nities to refresh and modernise the charity's offering. During the year, a new Memorandum of Understanding was agreed al Aldershot which formally transferred responsibility for the Gairison Soft Play 18eility lo CESSAC. 11 is hoped that this will strengthen Ihe charity's offering lo military families and improve the long-term financial performance of the location In Dhekelia, significant effort was invested into refreshing and rebranding the former Beach Cafè into the 'CESSAG Bistro.. including light refurbishment works and a revised menu offering intended lo increase usage and improve the overall beneficiary experience. The success of this initiative will become clearèr following the first full summer operating season during 2026. Chicksands has continued to present operational challenges during its second full year of operation. compounded by re¢ruilmenl and retention difiiculties logethei with lowei than anticipated footfall. Work continues lo improve the posilion. however the ongoing deficit at the site will require careful moniloring il thè location is to remain viable over the longer term. During 2025, lollowing an approach from CVWW, the Council approved in principle the takeover and reopening ol the Jackson Club 8t Minley following the withdrawal of SASRA from this a18a of welfare provision. A significant mLJlti-partner project was subsequeTilly developed involving Holdfast, Defence. Babcock, the Royal Enginèers Assoc13tion, ACEST and the Arrny CenlT81 Fund to support refurbishment and reopening works planned lor early 2026. This development further reinforced the position that CESSAC is now the only remaining GVWI member continuing lo piovide wellare amenities ol this type al scale across Delence. Whilst this presents opportunities lor future growth and relevance. it also rellects the increasing operalitsnal and financial pressures affecting the wider sector. CEO continues to represent CESSAC al meetings of CIMW and CobseL¥, the Confedeiation of Setvi¢e Chaiities. These networks continue to provide valuable inlofmation, strengthen collaboration and pres8nl emerging opportuni￿.6$ lor partnership working across the Armed Forces charitable sector. CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS COUNCIL MEMBERS, REPORT (CONTINUEDI{INCLUDING DIRECTORS. REPORT} FOR THE YEAR ENDED 31 DECEMBER 2025 Centres in the Falklands and UK. These are slraighlforward coffee shops or cafes providing a homely and welcoming environment loi Service personnel and their families. often adjacent to recrèational facilities andlor the chaplaincv. Each centre operates under loeal arrangements with the relevant military eslablishmenl and therefore faces differing operational pressures, staffing challenges and levels of benefi'oiary usage. Accordingly. furnover and operating performance v3ry considerably between locations. During 2025. Blandford and the Oasis Calé in the Falkland Islands continued lo provide the strongest ope FOR THE YEAR ENDED 31 DECEMBER 2025 Investment policy. Tha Council members ensure that the capital held by CESSAC is invested prudently and conservatively over the long term for the ultimate benefit of meeting ils objectives. Their policy is to lo maintain suslainability by increasing both capital and income from the investrnenls over the long term. The reserves are invested acioss a number ol financial instilulions., th6 orealei part is in AFCGIF units, curfenlly managed by BlackRock, with Most of the ￿st in a Charlès Stanley discretionary managed portfolio at m8dium low iisk. The remainder is in a Virgin Money Charity Deposit Account. Princlpal Rlsks and Uncertainties The Council has taken a risk-based approach lo intèrnal controls, including directing members to undertake internal assuranTr. The most significant ri5k5 to th8 chairty ielale lo investments, since lillle Capital is lied up in any individual cenlre. The Council follows a policy of spreading these al medium to low iisk as described in the Inveslmenl Policy, reviews their pèrfoimance al every opportL¢nily and has an Investment Panel lo oversee the inveslmenl environment befv4een meelings. The Council members hav8 assessed the major risks lo which the charity is Èxposèd and are satisfied Ihal systems are in place lo miligale exposure lo Ihern. Over the charity's 134 years sinee incorporation. Èl has usually been alterations in th6 Artn8d FOr￿S Ihal have bolh presented new opportunities andloi caused existing cenlres to close. 11 is for this reason that most current centres have not received si9nificanl capital and are developed with the assistance of the relevant eslablishmonl and funding s(>ughl from other sources. Therefore, the success or failijre of individual centres is unlikely lo present a significant risk. Withdrawal from any eentre will be considered if sustained losses there cannot be justified by the assessed charitable benefit in Ihal lo¢alion, but olheThvise sefwice is maintained as long as the overall perfomiance of the charity is satisfactory. Loss of the Greenwich Hospital agreèrnent would deprive the charity of som8 income and the eeonomies inherent in shared facililies. This is mitigated by demonslraling the efficiency and added value provided lo the management tsf th8 5h8118r8d housing. which has resulted in a five-year agieemenl until 31 January 2028. More broadly. the current geopolrtical environmènt, together with conlinuing uncertainly surrourlding Delence priorities, operational basing and public finances. continues to create challenges lor many organisations operaling in support of the Armed FoTces community. Changes to the size, struclure or location of military units can significantly affect beneficiary dernand and Ihe viability of individual ¢enlres. The Council therefore continues lo mollitoi widei Defence. economic and geopolitical developments carefully lo ensure Ihat the charity's operations, locations and charitable objectives remain relevant and appropriately aligned lo need. The charity also continu85 lo face widei operational risks associated with inflationary pressures, staffing and recruitment challenges, increasing compliance expectations and the complexity ol supporting geographical dispersed operations, including overseas locations. These risks are tnonilored routinely by both the Council and the Welfare Amenity Comrnillee IWACI. supported by a detailed risk management framework and règular operational ieview. CHURCH OF ENGLAND SOLDIERS,, SAILORS, &AIRMEN'S CLUBS COUNCIL MEMBERS. REPORT (CONTINUEDI(INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2025 2026 & Plans for the Future During 2026, thè Council, CEO and Dops will continue lo focus on improving Ihe long-term sustainability, cohesion and operational effectiveness of the charity's welfare amenities portrolio. Particular attention will continue to be given lo the modarnisalion of the beneficiary offering. operational consistency acioss locations and Ihe careful management of staffing. expenditure and financial performance. Following significant work during 2025, the reopening of the Jackson Club al Minley is planned during early 202e following the withdrawal of SASRA from this area ol welfare provision. CESSAC will continue to WOTk alongside Defen￿ and partner oiganisalions lo support the successful re-eslablishment of the facility and the continuation of welfare amenities provision lo the military communily. The Council has also approved, in principle, the future reciuilmenl of a UK Area Manager intended to slrenglhen operational oversvJhl. improve cohèsion across the UK cenlres and provide additional support lo local managers and Dops. 1115 hoped that this investment will improve operational consistency and contribute posilwely low8ids the longer-term sustainability of the welfafe porifolio. Oper8litsnal pertormance across all centres will continue lo be rnonilored ¢arefully during 2026. particularly at locations lacing ongoing staffing, reeruitment or beneficiary demand challenges. Alongside this, CEO will undertake a review of Head Office cost apportionments across Ihe organisalions to ensure Ihal shared 5UPPOrt costs continue lo be allocated fairly, proportl0n31ely And transparently. More broadly. thé Council remains commrtted to ensuring that CESSAC colllinues lo provide ielevanl. wel¢oming and affordable welfare amenities to Service p6rsonnel, veterans and their families, whilst adapting appropriately lo the changing needs ol the Airned Forces cornrnunily and the wider DÈfence environment. Going Concem Rolling forecasts continue to be maintained carelulty lor bolh ¢ash-flow and income & expendilure. Whilst the charity ¢onlinues lo experience operational deficils across Parts of the wglfaie atnenities portfolio, th& ovgrall financial pos11ion remained broadly stable during 2025 due in part lo positive investment performanoe afid the continued strength ol the Ghanly's rèservès. The Council continues to monitor operational performan¢e, expenditure and investment activity carefully and remains satisfied that the charity Continues lo represent a going con￿rn. supported by ils reserves position, ongoing investment portfolio Structure, governance and management CESSAC is a charity (No. 2266841 alld a cotllpany limited by guarantee and not having share capital, registered in England (No. 000341181. 11 does not trade foi profil. is éxèmpl from Corporation Tax and is VAT-registered. (No. 675 8276 831. Ils 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 limes in 2025 with 96 /0 attendance. The WAC meets three times a year and reports ils activities al the nèxt Council meeting and seeks approval for 3ny strategic decision5. Th& Council and WAC are assisted in thèir responsibilrties by the Chief Executive Officer ICEOI who manages the operations and personnel. None of the Council members has any benefici81 interest in Ihè company. All ol Ihe Counal members are rnembers ol the company and guarantee lo contribute £1 in the 8v8nl ol a winding up. Trustees indemnity insurance up to £500K is provided as part of a portfolio ol policies. The Council members, who are also the dir8clors lo¥ the purpose ol company law, and who served during Ihe year were.. Rear Admiral A R Rymer CEng Colonel C E H Ackroyd Mr l H Currie FCA Ms G Grindell Msc Commander S J Snowball RN Mr D J Foslei FCA MrSDRice (Retired 19 November 20251 (Retired 25 June 2C>251 (Retired 19 November 20251 CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS COUNCIL MEMBERS, REPORT (CONTINUED>(INCLUDING DIRECTORS. REPORT} FOR THE YEAR ENDED 31 DECEMBER 2025 Lieulenant Colonel D B Ruffle RE Lieulenanl Commander A Sard MBE RN Captain IRetdl N Fletcher Mr A Davies (Retired 9April 20261 (Appointed 10 Seplember 20251 IAppoSnled 19 November 20251 Advertisements are made lo allracl potential membersltrustees, whosè application5 ale ther5 considered by the Council. Those selected as members are eligible to sit on ¢ommillees and vole al general meetings. Potential trustees are invited lo an inlormal meeting with the Chairman. This is followed by a brief from the CEO and an invitation to attend the next Coun¢il meeting 85 an observer. A fomial invilalion to join the Councl will follow il bolh parties agfeo, followed by induction conducted by the CEO. New trustees are c(￿Opted until election is considered al the next AGM, Training is oftered regularly and the Council revièws Charity Commission e-fnails, Governance & Leadershiplcharity Finance magazines and other material lo keep up lo dalo. The Charity Govemance Code. Perfoirnance against the Charity Code of Governance 2017 and the Cobseo aide-metnoire have been assessed. The organisation mel all criteria. save for one relating lo Equality and Diver511y. whith history and iecruilmenl opportunities render difficult lor us to achieve. nolwilhslanding a staled Policy in this area, applied across the organisalion. Subject to the usual ebb and flow ol representation in a relatively small organisation, gender balance ovsrall has beèn salisfaolory. Howevei, ari underlying requirement for military experienca, and thè n8ed to maintain a range ol skills and qualifications against low lurnover, together with some geographi¢al resliiclions. have limrted the available field from which minority involvement in governance mallers can be drawn. In order to maximise the opportunity for minority participation In fulvre, recruilmenl criteria, advertising and procedures are kepl under review. Rèmunèratlon policy. All of thè members are unpaid volunteers. The overall purpose of remuneration policy for the staff al all levels, together with their terms and conclitions ol service, is to attract and retain those with appropriate skills, experience and competencies who are committed to delivering the relevant oharilable work and purposes. Although CESSAC does not engage in SLJbslantlV8 18v81s ol lundiaisiDg or voluntary work. the esteem and value derived from working in the charitable sector are noteil, as recommended. Imth a principal aim ol fairness and no tsverriding la¢tors. save lor affoidabilily. the following will be taken into account when deciding remuneration". The scope of individual responsibilities., any lundamenlal change., and performance against short and long term expectations and objectives. Affordability Isuslainabilityl of the total cost Of remuneration aw8rd5 when measured against Ihe needs. The likely impact on the benéficiari8S. Comparability in appropiiale se¢lors. together with.. national remuneration trends and minimum wage regulations., inflation-. and applicable localloverseas factors. The remuneration ratio between Senior and other staff in the organisation. The combined effect of pay and other elements of wider remuneration packages. including any no onsolidaled awards. Relationships. CESSAC shares a common root with the Aldershot Churoh of England Services Trvsl. and three of the former's members are appoinled as trustees for the lallèr. CEO is CESSAC'S Iiuslee foi CVWW. A¥sèt covèr for fund$ An anatysis of the restricted funds is included within note 21. CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS COUNCIL MEMBERS, REPORT (CONTINUED)(INCLUDING DIRECTORS, REPORTI FOR THE YEAR ENDED 31 DECEMBER 2025 Registered charitable objects The objects for which the Charily is established are below in 'inverted commas,. each followed by a summary of the benefits delivered lo the ie5peclive bonefi¢iaries. lil 'To open, carry on, establish and maintain Church of England Soldiers,, Sailors. & Airmen's Clubs or Centres in military stations and olher pla¢es al home and abroad. and to assist local or other efforts lo open, carry on. establish and maintain such clubs 01 cenlres,. The aim iemains to provide homely facilities lor serving personnel andlor their families. The benefit they derive from the centrès is amply demonstrated by their use and the strength ol suppori from the chain of command. lill 'To further Ihe religious and charitable work of the Church of England amongst Ihose serving in H.M. For￿8.. This is a¢hifyved by working with Service Chaplains wherever p055ible. without impinging on the non- religious nature ol the cenlres. It includes offering a granl lo help Service-sponsored ordin8nds. liiil 'To relieve persons who have served in H.M. Forces and the dependanls of such persons as are in need ol assistance including the provision and management of housing,. This aim is clear and ¢urienlly largdy, bul nol exclusively, delivered through the asslstancé provided to CESSA Housing Association & GHSH. {iv} 'To prornole the efficiency of H.M. Ftsrces by the provision of facilities and equiprnent loi educational, recreation and leisure puisui15 for those serving in H.M. Forces, whether al Chtsrch of England sold￿[5,. Sailors. & Airmen's Clubs or Cenlies or elsewhere and wholher at home or abroad,. This is a recognised bioad Object lo enable a wide range ol support lo be provided for Ihe benefit ol serving personnel as needs arise. The level of the losses over recenl years has meant that this aim is cuirenlly supported by a number of small granls to other organisalions, listed for Cyprus at Note 10. Auditor In accordance with the charity's articles, a resolution proposing that SumerALJdit be reappointed as auditor of the charily will be put at a General Meeting. Dlsclosure of information to audltor Each of the Council members has Confirmed that there is no information of which they are aware wht¢h is relevant to the audit. but of which the auditor its unaware. They have furlher confirmed (hal they have taken appropiiale steps lo identify such relevant information and lo establish that the auditor is aware ol such inforrnalion. This report has been prepared in accordance with the special prowsions relating lo small companies within Part 15 of the Companies Acl 2006. The Council rnetnbers, 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 2025 Tha Counal members, who are a150 the directors of Church of England Soldiers,, Sailors. & AiTmen's Clubs for the purpose of company law. are responsible lor preparirig thè Council Members. Report and the accounts in ac¢ordallce with applicable law and United Kingdom Ac¢ounllng Standards Iunited Kingdom Generally Accepted Accounting Praclice). Company Law requirès tho Coun¢il membeTS lo prepare accounts for each finanaal year which give a true and lair view ol the state ol affairs of the charity and ol the incoming resources and application ol resources, including the incomè and expenditure. ol the Charitable company for that year. In preparing these accounts, the Council membe15 are requlred lo.. select suitable accounting policies and then apply them consislenlly., obsèrve the methods and piillciples in the Charities SORP,. rnake jvdgements and estimates that are reasonable and prudent.. and prepare the accounts on the going concern basi5 unless it is inappropriate to presutne that the charity will continue in opèration. The Council mernbers are responsible for kèèping adequate accounting records that disclosè with r8asonable accuracy at any lime the financial position of the charity and enable them to ensure that the a¢¢ounls cornply with the Companies Act 2006. They are a150 responsible for safeguarding the assets ol the charity and hen￿ for taking reasonable steps for the prevention and detection ol l¥aud and other irregularitiès. 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 8ccounls ol Chijrch of England Soldiers., Sailors. & Airmen's Clubs (thè 'charity'l for the year ended 31 December 2025 which compiise the Statemenl ol Financial Activities. the Balance Sheet. the Statèment of Cash Flows and Ihe notes lo the accounts, inoluding a summary of significant accounting policies. The financial reporting Iramewofk that has been applied in their preparation is applicable law and United Kingdom Accounting Slandaids. induding Financial Reporiing Slandard 102 The Financial Reporting Standard applicable iii Ihg UK and RgpubliG of Irgland (Uniled Kingdom Generally Accepted Accounting Praclicel. In our opinK)n, Ihe financial staÉemenls'. give a true and fair view of the statè ol the charitable company's affairs as al 31 December 2025 and of its incoming resour￿$ and application of iesources. Èncluding its income and expenditure. for the year then ended", have been properly prepared in accord8nce wth United Kingdom Generally Accepted Accounting Pr8Cti(¥.' and have been prepared in accordance with the requirements ol the Companies Act 2006. Basis for opinion We conducted our au(Jit In accordance with International Standard5 on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audiloi's responsibilities lor the audit Cpl the accounts section of our report. We 8r& independent of the charity in accordance with the ethical requirements that arè relevant to our audit ol the accounts in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olhÉr ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffiaenl and appropriate to provide a basis Iof our opinion. Cohcluslons relating to going concern In auditing the financial statements. we have eoncluded thal the Council members. use of the going con¢ern basis of accounting in the preparation of the financial $18lem*nls is appropriate. Based on the work we have performed, we have not identified any rnaleri81 uncèrtainties relating lo events or conditions that, individually 01 colleclivèly, may cast significanl doubl on the chaiily's ability lo continue as a going concern for a period of al least iwelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Council rn8rnber5 with respect to going concern are described in the relevant sections ol thi5 report. Oth$r Information The olher information ￿mpriSeS thè information included in the annual report. oth81 than the accounts and our auditor's report Ihereon. The Council members are responsible for the other information. Our opinion on the 3CCOLJnts does not cover the other infomialion and, except to the extent othetwise explicilly slated In our report, wè do not express any form ol assurance conclusion theieon. In connection with our audll of the accounts. our iesponsibilily Is lo lead thè other informatson and, in doing so, consider whether the othei information is materially inconsislenl with the a¢¢ounts or our knowledge obtained in the audit or othetwise appeals lo bè materially rnissiated. If we idenlify such material inconsistencies or apparent matefial mi55talemen15. we are required to determine whether there is a material misstatement in the accounts or a material misslalement ol the other information. If, based on the work we have performed. we eonclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothin9 10 18POrt in this regard. 10- 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 Oplnlons on other matters prescribed by the Companies Act 2006 In our opinion. based on the work underiaken in the course of our audit." the information given in the Council members, report lor the financtal year for whi¢h the financial statements are prepared. which includes the directors, report piepared lor the PUTPOS85 of company law. is consistent with the financial slalements; and the directors, report included within the Counal members, report has beèn prepared in accordance with applicable legal requirements. Matters on which we arè r•qulrad to rèport by exception In the light of the knowledge and understanding ol the chaTity and ils enwronmenl obtained in Ihe Course of the audit, we have nol identified material misslalemènls in the directors, report included within thè Couneil mémbtsrs, report. W8 hav8 nothing lo report in respect of Ihe following matters in relation lo which the Companies Act 2006 requirès us lo report lo you rf, in our opinion.. adequate accounting records have not been kept, or retuins adequate for our audit have not been raceived frorn branches not visited by us., or the financial slalements are not in agreement with the accounting records and returns., or certain di5d05ures of Iruslees, remuneralion specified by law aré not mad8'. or we have nol received all the inloTmalion and explanations we require lor our audit., or the Council members wo16 not Èntitled lo prepare the financial stalemenls in accordan¢e wlh the small companies regimè and take 8dvaM18ge ol the small companies, exemplions in preparing the Council members. report and from the requirement to prepare a strategie report. Responsibilities of Counell mèmbèrs As explained more lully in the statement of Ctsunal meTnbers' re5pon5ibililies. the Council members, who ai8 also Ihe directors of the charily lor the purposè of ¢ompany law, are responsible lor the preparation of the financial statements and lor being satisfied that they give a true and fair view, and lor such inlemal eontrd as the Council members detemine is necessary to enable the preparation of financial statements that are tree Irorn material misgta16menl. whether due lo fraud or error. In preparing the financial slalement5. Ihe Council members are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, mallers relaled lo going concern and using the going concern basis of accounting unless the Council members erther intend lo liquidate the charitable company or to cease operations. or have no ￿aliStiC alternative bul lo do so. Auditorfs respon$lbilitles for the audit of the financSal statem•nt# Our objectives are lo obtain reasonable assuran￿ about whether the financial statements as 8 whole are free from material misslalemenl, whether due lo fraud or error, and Io issue an aLJdito¢s réport th81 Includes our opinion. Reasonable assurance is a high level ol assurance bul is not a guarantee that an audit conducted in accordance with TSAS IUKI will always detect a material misstatement when il exists. Mis51alewenls can arise from fraud trr errol and are considered material il, individually or in the aggiegale. they could reasonably be expected to influence the economic decisions ol users taken on the basis of these fin8nCI81 slalernenls. Identification and assessmtrnt of irregularities in¢luding fraud Iiregularitiès, inoluding fraud. are inslances of non-compliance with laws and regulations. We design procedures in line with our responsibilrties. outlined above, to detect material mi55tatemenls in respect of irregularities, including fiaud. The extent lo which our procedures are capable of detecting irregulaiities. including fiaud, 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 In identifying and assessing risks of material misslalemenl in respect of irregularities, induding fraud and ntsn- compliance with laws and iegulalions. our procedures included the following.. Obtaining an undèrstanding ol the legal and iegulalory framework that the charity operate5 in. focusing on those laws and regulations Ihal had a direct effect on the financial slalements and operations., Obtainin9 an understanding of the charity's policies and prO￿dureS on fraud risks. including knowledge of any actual, suspected or alleged fraud,. Discussing arnong the eng8gement leam how and where fraud might occui in the finanaal slalemenls and any potential indicators of fraud through Ouf knowledge and undeislanding ol the ¢ompany and our sectof-specific experience. As a result of thesè procedures, we considered the opportunrties and incentives (hat may tsxisl within the association for fraud. We are also required to perform specifi¢ procedures to respond lo ihe risk of management override. As a result ol performing the above, we idenlified the following areas as those most likely to have an iFnpact on the financial stalemenls.. health & safety and employment law. as w811 a5 compliance wilh the UK Companies and Charities Acls. In addition lo the above. Ouf piocedures lo respond lo risks identified included the following: Making enquirie5 of management about any known or suspected instances of non-compliance wllh laws and regulations and fraud". Reviewing minutes of meelings of the board and Senior management. Reading correspondence with regulators. Challenging assumptions and judgements m8de by management in their significant accounling estimates", and Auditing the risk of managernenl override of controls, including through testing journal entries and other adjustmènts for appropriateness. Oue to the inheient limitations ol an audit, there is an unavoidablè risk that some material misslalemenls in tho financial statements may not be delect&d. even though the audit is property planned and performed in accordance with the ISAS IUKI. For instance, the further removed non-compliance is frorn the events and transactions reflected in the fin•ncial statements, the less likely the auditor is lo become aware of il 01 lo re￿9￿1$8 th8 non-compliance. A further description ol our responsibilities is available on the Financial Reporting Council's website al." hllps'.Jl w.Irc.org.uklauditOlsiesponsibililies. This description forms part ol oijr auditor's report. 12 CHURCH OF ENGLAND SOLDIERS,, SAILORS, & AIRMEN'S CLUBS INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE COUNCIL MEMBERS OF CHURCH OF ENGLAND SOLDIERS,, SAILORS, & AIRMEN'S CLUBS Use of our report Thi5 report 15 made solely lo the company's mèmbers, as a body, in accordance with section 391 of the Companies A¢1 2014. Our audit work has been undertaken so that we might state to the company's members those matlers wè ale required lo stale lo them in an audilovs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility lo anyone olher than the company and the company's membe[& as a body, for our audit work. foi this report, or lor the opinions we have fomied. Jordan Abbott Bsc ACA (Senior Statutory Audltorl for and on b•half of Sumer Audit Chartered Accountants Slathtory Auditor ChlchostÈr 3010612026 Sumer Audit is thè trading name of Sumer Auditco Llmltèd 13- CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2025 Unrestricted Restrfctad funds funds 2025 2025 Total Unrestricted funds 2024 Reslricled funds 2024 Tolal 2025 2024 Not8S ncome and 8ndowme Voluntary income Charilable aclivities Inveslrnenls Other income 1,705 785,291 104,646 121.508 81,556 83,261 765.291 104,646 121.508 6,437 795.977 110.005 117,951 17,442 23.879 795.977 110.005 117,951 Total Incomè 1,013,150 81.556 1,094,706 1,030,370 17,442 1.047.812 Raising funds 7,380 7.380 7,682 7,682 Charitable aclwilies 1.290,325 1,290,325 1.277.183 1.277.183 Total resou￿e￿ expended 1,297,705 1,297.705 1.284.885 1,284,865 N*t oparatlng deflcit 1284.5551 81.556 1202,9991 1254,4951 17,442 1237,053} Nel gainsl{lossesl on investmenls 10 203,061 203,081 134,977 134,977 Net loutyolngll Incoming resources before transfers 181,4941 81,556 62 1119,518) 17.442 1102.0761 14- CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS STATEMENT OF FINANCIAL ACTIVITIES ICONTINUEDI INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2025 Net loutgoingll incomlng resour¢es bèfore transfers 181.494} 81,558 62 1119,5181 17,442 1102,0761 Gross transfers between funds 11 60,251 160.2511 25,519 125.5191 Net loutgoingllincomSng resources 121,2431 21,305 62 193,9991 18,077) 1102.0761 Other recognised gains and lossès Other gains or losses 12 2,652 2,652 {5.6931 15,8931 Net movement in funds 118.5911 21,305 2,714 199.8921 18,0771 1107.9691 Fund balances al 1 January 3,032,131 3,032,131 3,132,023 8,077 3,140,100 Fund balancès at 31 Decèmbèr 3,013,540 21,305 3,034.845 3,032,131 3,032,131 The slalement of financial aclwilies includes all gains and losses recognised in the year. All income and 8xpendilure derive from conlinulng activities. The slalement of financial activities also complies wrth the requirements for an income and expenditUT8 ac￿Unt under the Ctsmpanies Act 2006. 15- CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS BALANCE SHEET AS A T 31 DECEMBER 2025 2025 2024 Notes Fixed assets Tangible assets Investments 16 17 160,851 2,701.392 122.472 2,803,507 2,862,243 2,925.979 Current assets Stocks Debtors Cash at bank and in hand 18 19 21,840 103,438 262.916 24,329 77,515 174,309 388,194 276,153 Creditors-. amounts falling due withln one year 20 1215,5921 1170.0011 Nel current assets 172,602 106,152 Total assets less current Ilabilities 3,034,845 3,032.131 Income funds Restricted funds ed funds Designated funds 21 21.305 22 3,031,695 3,032,131 3,013,540 3,032,131 3.034,845 3,032,131 Th nts were appitsvéd by Ihe Council Mèmbers on . Commander S J Snowball RN Trustee Lieutenant GommanderA Sard MBE RN Trustee Company Registration No, 00034118 16 CHURCH OF ENGLAND SOLDIERS,, SAILORS, &AIRMEN'S CLUBS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 Notes Cash flows from operaliny activities Cash absorbed by operation5 2S {264.9211 1317.4151 Investing activities Purchase of tangible fixed assets Proceeds from disposal of13ngible fixed assets Pur¢ha5e of investments Proceed$ from disposal of investments Investment income received 162,3101 138,522> 3,700 148,9691 354,145 104,646 1121,1581 244,820 110,005 Net cash generated from investing activities 351,212 195,145 Nèt ¢ash used in financlng activities Net incwaselldecreasel in cash and ra$h equlvalènts 86,291 1122,2701 Cash and cash equivalents al beginning ol yaar Effect of foreign exchange iales 174,309 2.316 294,239 2,340 Cash and cash equivalents at ènd of year 282,916 174,309 17 CHURCH OF ENGLAND SOLDIERS., SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Accountlng policies Charity informatlon Ghuich of England Soldiers,. Sailors. & Airmen's Clubs is a private company limiled by guarantee incoipoialed in England and Wales. The registered office is 1 Shakespeare Terrace, 126 High Slreet, Hampshire. Portsrnouth, P012RH. 1.1 Aecounting convention The accounts have been prepared in accordance with the oharily's Memorandum & Articles ol Association, the Companies Act 2006 and 'Accounting and Reporting by Charities.. Stalem¢nt ol Recommended Practice applicable to charities preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in Ihe UK and Republic of Iieland IFRS 1021 las amended lor accounting periods commencing from 1 January 20191. The charily is a Public Benefit Entity as deftned by FRS 102. The financial staternenls are Prepared in stèrling, which is the function81 currency of the chari(y. Monetary amoun15 in these financial statements are rounded to the nearest £. The accounts have been prèpared on the historical cost convention, modified to include certain ffinancial instruments at fair value. The prin¢ipal accountsng policies adopted are sel out below. 1.2 Going con¢eTn At the lirne of appitsving the financial slalernent5. the Council members have a reasonable expectation that the charity has 8dequatè resources to continue irTr operational existence for the foreseeable future. Thus the Council members continue lo adopt the going concern basis of a¢¢oiJnling in preparing the financial st31em6nts. 1.3 Ch3ritabl8 funds Unrestricted funds are available for use al the discretion of the Counal members in furtherance of their charitable obje¢lives. Designaltrd funds comprise funds which have beèn set aside at the discretion of the Council membeTS lor specific purposes. The purposes and uses of th8 designated funds are sel out in the notes lo the financial statements. Restricted funds are subjèct lo specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are sel out in the notes lo the finanaal stalements. 1.4 IncomSng resources Income Is recognised when the charity is legally èntitled to it after any perform8n¢e wndilions have been met. the amounts can be measured reliably. and il is probablè that income will be received. Cash donations are récognised on receipt. Other donations are recognised once the ¢harily h85 b8en notified ol the donation. unless performance conditions require deferral of the arnounl. Income lax iecoverable in relation lo donations ieoeived under Gift Aid 01 deed5 of ¢ov¢nanl is recognised al the time ol the donation. Legacies are recognised on receipt or olhetWi5¢ If the charity has been notified of an impendiDg distribution, the arnounl is known. and receipt is expected. If the amount is not known. the legacy is Iiealed as 3 eonlingenl as5el. Income frorn grants. whether 'capilal' grants 01 'rèv6nue' granls. is recognised when the Charity has enlillemenl lo the funds, any p8rformance Qondiliolls 8ttached to the grènls have been met, il is probable that the income will be received and the amount can be measured 181i8bly and is not deferred. 18- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2025 A¢¢ounting policies Icontinuedl Income from charitable trading activities principally repièsen15 retail sales and other income in CESSAC'S Servitss Centre in Cyprus and at CESSAC Cenlres in the UK and elsewhere with other operating income arising from lees lor managing sheltered lellings, owned by other charilablo bodies. for ex-members ol HM Forc¥s and their spouses. 1.5 Resources expended Expendituie is reco9nised once there is a legal or con51ruclive obligation to make a payment lo a third party, il is pi(>bable th81 5elllemenl will be required and the amount of thé obligalioll can be measured reliably. Expenditure is classified under the following activity headings.. Expenditure on charitable activities undertaken to further the purposes of the charity and their associaled support and governance costs. Costs of r8ising funds comprise the costs of the inveslrnenl portfolio management. ITrtscoverable VAT is charged as a ¢osl against the activity for which the expenditure was incurrod. Support costs are those functions that assist the work of the charity bul do not directly undertake charilabltr activities. Support costs include ba¢k office costs, finance, personnel, payroll and governance costs which support the charity's aclivilies. These costs have been allocated belween cost of raising funds and expenditure on charitable aclivilies. The bases on which suppori costs have beèn allocated ale set out in nole 1.6 Tangible fixed assets Tangible fixed assets are measurad at cost nel of depreciation and any impairment losses. Depiecialion is recognised so as to wrtte off the cost or valuation of assets less their residual values over their Useful lives on the following bases-. Land and buildings Leasehold properties Furniture. fittings & equipment Vehicles 2°/0 Straight line basis Cyprus improvetnent5 10Q/ts slraighl line basis 10- 25 /0 slraighl line basis 20QA sliaight line bas¢s Freehold land is not depreciated. The gain or 10s5 arising on the disposal ol an asset is determined as the difference between the sale proceeds and the cairying value of the asset, and is recognised in Ihe statement of financial activities. 1.7 Fixed asset investments Listed investments are ini11311y measured al transadion price excluding Iransaetion ¢0515. and are subseqtjently measuied al fair value at each reporting dale_ Changes in fair value zie recognised in income and expenditure. Transaction cosls are expensed to income and expenditure as incurred. The fixed as5el investment loan is initially m8asur8d 31 cost and subsequently measured al cost less any accumulated irnpairmenl losses. The inv85tn18nt is assessed for impairment 31 oa¢h reporting date and any impairment losses or reversals of impairmÈnl10sses are recognised immediately in income and expendilui8. 1.8 Impalnnent of fixed assets At each reporting end dale, the chaiily reviews the ¢ariying amounts ol ils tangible assets lo determine whether there is any indication that those assets have suffered an impairment loss. If any such indration exists, the recoverable amounl of the ass811s esliimated in order to determine the exlenl ol the impaimient loss lif anyl. No such indications wei8 noted. 19 CHURCH OF ENGLAND SOLDIERS,, SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting poli¢ie$ (Continued} 1.9 Stocks Stocks are slated al the lower of cost and estimated selling price less costs to cornplele and sell. Cost Comprises direct materials and, where applicable, direct labour costs and those overheads that have been incuried in bringing the stocks lo their present location and condition. Items held for distribution at no Or nominal ¢onsid8fation arè mèasured at the lower of replacement cost and cost. 1.10 Cash and cash equivalents Cash and cash equivalents include Cash in hand, deposits held al call with banks, other shoTt-lerm liquid investments with original malurilies of thrèè months or less, and bank overdrafts. Bank overdrafts are shown wilhin borrowings in current liabilities. 1.11 Financial instruments The Company has el¢cted to apply the provisions of Section 11 'Basic Financi81 Inslrumenls. and S￿tIon 12 'Other Financial Inslruments Isskjes. ol FRS 102 to all of ils financial inslrumenls. Financial instruments are recognised when the tharity be¢omes party to the conlraclual provisions of the inslrumenl. Basic flnancial assets Basic financial 3ssels. whi¢h include debtors and cash and bank balan￿s, ale ini118lly measured at transaction price including transaction ¢osls and arè subsequently carried at amortised cost using the effective interest method unless the arrangement conslilutes a financing transaction, where the transaction is measured at the presenl value of the future le￿Ip1S discounted 31 a rnaikel r8le ol inltrrèsl. Financial assets dassified as reGeivab18 Within on8 year are not amoriised. Olher flnancial assets Other financial assets, including inveslmenls in èquily instruments are initially measured at faif value, which is nomally the Iransaclion price. Such 8ssels are subsequently cairied at fair value and the changes in fair value are recognised in nel incomellexpenditurel, except that Investments in equily instruments that are not publicly traded and whos? lair values cannot be measured reliably are rreasured 81 ¢osl less impairment. Impalrment of financial assets Finanaal assels, other than Ih05e held at fair value through income and expenditure, are assessed lor indieators ol impairment al each reporting dsle. Financial assets are impaired where there is objective evidtsnee that, as a result of one or more events that occurred aft81 the initial recognition ol the linanaal asset, the estimated future cash flows have been affeoled. If an asset Is 1mpaiied. the impairment loss is the difference between the c8rrying amount and the pie5enl value ol the eslimaled Cash flows discounted al the asset's original effective intere81 iale. The impairment loss is recognised in nel incomellexpenditurèl for the year. If there is a decrease in the impaiiment los$ 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 irnpairment reversal is recognised in net incomellexpendiluiel foi the yeai. Derecognition of finanGlal assels Financial a55ets are derecognised onty when the conliaclual rights lo thé cash flows from the asset expire or are sellled, or when the charily transfers the finai)cial asset and subslanlially all th8 risks and rewards of ownership lo another entity, or if some significant risks and rewards ol ownership are ielained bul control of the asset has transferred to anolhei party that is able lo sell the asset in ils entirely lo an unrelated third party. 20- CHURCH OF ENGLAND SOLDIERS., SAILORS, &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting policies ContSnuedl Basic financial liabilities Basic financial liabilities, induding trade and othér payables. are initially recognised at transaction price unless the arrangement constitutes a finan¢ing Iransaclion, where the debt instrument is measured 81 the present value ol the future ieceipls dis¢ouDled al a rnaiket rate ol interest. Debt inslrutnenls are 5ubsequeNIIy carried at amortised ¢ost. using the effective interest rate method. Trade payables are obligations lo pay for goods or services that have been acquired in the ordinary course of operations fiom suppliers. Accounls payable are classified a5 current liabilities il payment is due within one year 01 less. 11 not, they are presented as non-¢urrenl liabilities. Trade payables are recognised initially al transaction pri￿ and subsequently rnea5ured al amortised cost using Ihe effectivé int81851 method. Derecognifion of financial liabilities Financial liabilities are derecognised when the charity's contractU81 obligation$ expire or are discharged or cancelled. 1.12 Employee beneflts The costs of short-term employee bénèfits ar8 recognised as a liability and an expense. unless those costs are required lo be recognised as part of the cost ol stock or fixed assels. The c(>st ol any unused holiday enlillement is recognised in the period in which the employee's services are received. Termination benefits are rÈeognised immediately as an expense when the ￿MpanY is dernonslrably committed to leminale the ernploymenl of an employee or lo provide termination benefils. 1.13 Retirement benefits Payments lo defined conlribulion retirement benefit schemes are charged as an expense as they lall due. 1.14 Foreign exchangè Transactions denominated in foreign CUr￿n￿e$ ale recorded al the rate ruling al the date ol the transaction. Monetary assets and liabilities denorninaled in foreign currencies arè tran51aled into sterling at the rates of exchange rulin9 al the balance sheet date. All differences are included in nel outgoing resources. 1.15 Taxation CESSAC is a registered charity and is not subjed to taxation on income. Any income lax recovered on inve51rnent income and covenanted subsuiptions is in¢lLJded with the respective income. ritical accounting estimatès and judgements In the application of the charity's accounting policies, the Council mÈmbèr5 are rÈquired lo make judgements. estimates and assumptions about the carrying amount of assets and liabilities that are ool readily apparent fiotn olhei sources. The eslimales and associated assumptions are based on hisloiical experience and other factors that are considewed to be relevant. Actual results may differ from these estimates. The eslimales and underlying assumption5 a18 reviewed on an ongoing basis. Revisions to a¢¢ovnting eslimales are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period ol thè revision and lulure periods where the revision affects both cuirent and lulure periods. 21 CHURCH OF ENGLAND SOLDIERS,, SAILORS. & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECENIBER 2025 Voluntary Incomè Unrestricted Restricted fund5 funds Total Unrestricted Restricted funds funds Total 2025 202S 2025 2024 2024 2024 Donations and gifts Other grants 1,705 2,422 79,134 4,127 79,134 3.949 2,488 3,949 19,930 17,442 1,705 81,556 83.261 6,437 17,442 23,879 Charitable activltl•s Supportlng Supporting HM Forces HM Forces in the UK in the UK and and ovèrseas ovèrsèas 202S 2024 Sale ol goods Olher income 773,016 12.275 782,828 13,149 785.291 795,977 Charitable trading income IncoTning resources derive from UK and activities in British HM Forces bases oversÈas including income from charitable trading aelivitiès. Income from investments Unrestricted Unrestricted funds funds 2026 2024 Income froTll listed Investments Interest receivable 103.353 1,293 108.000 2,005 104,646 110.005 22- CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Other income Unrestrletèd Unrestrlctèd funds funds 2025 2024 Net gain on disposal of tangible fixed assets Mallagemenl fees and office rent 1,10Q 120,408 117,951 121.508 117.951 Expenditure on raising funds Unrèstrictèd Unrostrlcted funds funds 2025 2024 Inv8Stmènt management 7.380 7,682 Charitable activities Supportlng SLJPPDrting HM Forces HM Forces inthe UK in the UK and and overseas oversoas 2025 2024 Staff costs Depreciation and impairment C05t of Supplies Operating costs 547,918 24,324 299,380 200,806 502,935 29,933 332.256 204.642 1,072,426 1,069,766 Share of support costs (see note 91 Shale of governance costs (see note 91 169,996 47,901 168,379 41.038 1.290,325 1,277,183 -23- CHURCH OF ENGLAND SOLDIERS,, SAILORS, &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Support costs allocattd to actlvltSes 2025 2024 Staff costs Depreciation Head office costs Governance costs 144.752 240 25,004 47,901 137,788 240 28,351 41,038 217,897 207,417 Analy$$d b*￿•*n.. Supporting HM Forces in the UK and overseas 217,897 207,417 The charity inilialty idèntrfies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its govèrnaneè costs, Ihé rèmaining support costs logelhei with the governance costs are apportioned lo the charitable acliv41ies undertakeTI in the year. Included within governan¢e ¢osts aro fees payable to the eharily's auditors of £8,64012024." £5.8751 lor the audit and £1,23512024'. £1,190) lor other setViC85. 10 Galn$ and loss•s on Investmènts Unrestricted Unrestricted funds funds 2025 2024 Gainslllosses) arising on.. Revaluation of inveslments Sale ol investments 196,509 6,552 83,177 51.800 203,061 134.977 11 Transfers The transfe¥ be￿een restricted and unreslricled funds represents the restricted funds spent on fixed asset additions. 12 Other gain$ or los$ès Unrestrictèd Unrèstrlctèd funds funds 2025 2024 Foreign exchange {lossesllgains 2.652 15,8931 -24- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2025 13 Taxatlon The charity 15 exempl from laxalion on its activities because all its income is applied lor ¢hanlable purposes. 14 Counell Membèrs None of the Council members lor any persons connected with them) received any iemuneralion during the current or prior year. but 5 of them were reimbursed a lolal of [1.206 Iravelling expenses 12024 - 7 were reimbursed £1,089). 15 Employees Numbèr of employ••s The average monthly number of employees during the year was-. 2025 Numbèr 2024 Number Full lime {UK & FI) Part lime (UK & FI) Full lime Icyprusl Part lime ICyprus} 27 23 22 19 55 48 Employment ¢o$ts 2025 2024 Wages and saLiries Social securily costs Other pension Costs 644,629 46,741 28,872 614,486 24,696 27,786 720,242 666,968 -25- CHURCH OF ENGLAND SOLDIERS., SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 16 Employees Icontlnuedl Chief Executive Remuneration The highesl paid director received £40,01312024- £42.009) remuneratbon lexcluding pension contribulionsl. For the purposes ol the above disclosures, "Director" also includes the Chief Executive and any other person who is a membef of the executive managerllent team, or its equivalent, ol the association. The Chief Executive. the only Senior Executive, is one ol the members ol staff joinlly employed with related party. Church ol England Soldiers., Sailors, & Airmen's Housing Association Ilhe 'associalionl. Th8 Chièf Executwe is not a Director, but was an ordinary member of the association's defined contiibulion pension scherne carrying no special lernis. The division of the costs for all joint employees is regulaily reassessed in proportion to Ihe value of contribution lo each entity. Tha division of the cos15 for all joint ernployees is regularly reassessed in proportion lo the value of ctsntribution lo each enlily. the CEO'S being SQ°A lo (he association and to CESSAC. This restslted in the share of c051s below (excluding national ins￿ranCe conlributlOn51. 2025 £40,012 £40,013 £80,025 £3,987 £3,988 £7,975 2024 CESSAC Emoluments Assoaation Emoluments Total Ewolurnents CESSAC pension contribution Association pension contribution Total pen510n contributions £42,009 £42,009 £84,018 £3,796 £3,796 £7,932 There were no employees whose annual remuneration was £60.000 or more. 16 Tangible fixed assets Land and bulldlng$ Loasohold propgrt1è$ Fumlturè, flttlngs & equipmont V8hlclo9 Total Cost At 1 JanLJary 2025 Additions Disposals Exchange adjustments 12,000 249,937 258,173 62,310 18561 7.416 28,836 548,946 fj2,310 17,356) 21,672 16,5001 1,169 13,087 At 31 December 2025 12,000 263.024 327.043 23,505 625,572 Depreciation and impairment Al 1 January 2025 Dèpre¢iation charged in the ye8r Eliminated in respect of disposals Exchange adjustments 5,280 240 249,937 153,728 21,270 1856} 4,638 17,529 3,054 13,9001 714 426,474 24.564 14,7561 18,439 13.087 At 31 December 2025 5,520 263,024 178,780 17,397 464.721 Carrying amount Al 31 December 2025 6.480 148,263 6,108 160.851 Al 31 December 2024 6.720 104,445 11,307 122,472 26- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 17 Fixed asset investments Listed investments Cost or valuation Al 1 January 2025 Additions Valuation changes Disposals 2,803.507 48.969 196.509 1347,5931 Al 31 De¢ember 2025 2,701,392 Carrying amount Al 31 December 2025 2.701,392 Al 31 December 2024 2,803,507 Fixed asset investments revalued Listed investments in¢lude an investment portfolio managed by Charles Stanley and an Armed FOr￿S Ccsmmon Investment Fund managed by Black Rock and are included on thè basis of rnaikel valuè, with an historic cost of £2,285,98512024- £2.528,7681. 18 Stocks 2025 2024 Finished goods and goods for lesale 21,840 24,329 19 Dgbtors 202S 2024 Amounts falling due within one year. Other debtors Prepayments and accrued income 71,584 31.854 45.704 31.811 103,438 77,515 -27- CHURCH OF ENGLAND SOLDIERS., SAILORS. & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 20 Creditors.. amounts falling due withln one year 202S 2024 Other laxalion and social security Trade creditors Othèr eredilors Accruals and deferred income 14,739 87,367 82.189 31,297 22,258 39,621 80,038 28,086 215,592 170,001 21 Rostrlcted funds The reslricled funds of the charity comprise the unexpended balances of donations and grants held on trust subject lo specific conditions by donors as lo how they may be used. At 1 January 202S Incoming resources Transfers At31 December 2025 ACEST REA CESSA Housing Association RSME 30,000 30,979 2,422 18,155 126.8501 130.9791 12,4221 3.150 16,155 81,556 160.2511 21,305 Previous year: At 1 January 2024 Incoming r8sourcas Transfers At31 Dècombèr 2024 ACEST Army Central Fund 1,277 6,800 17,442 118,7191 16,8001 8,077 17,442 125.5191 The ACEST grant was provided lo cover the cost of cafe equipment for the Club Kitchen. The REA grant was provided to cover the cost ol furniture for the Club. The CESSA Housing Association donalion was provided to cover Ihe cost of a combi boiler lor Hèad office. The RSME grant was provided lo cover the cost of two nèw coffee machines for the Club. 28- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 22 Unrestricted funds Thè unreslricled funds of the th8rily compiise the unexpended balances ol donations and grants which are not subject lo specific conditions by donors and grantors as lo how they may bè usèd. These include designated funds which have been set aside out of unrestricted fvnds by the trustees for specific purposes. At l January 2025 Incoming resources Resources expended Transfers Gains and lossès At31 December 2025 Operating cost reserve Capital fund for future opportunities General funds 1,000,000 1,000,000 2,032,131 1438) 60.687 2,031,895 118,155) 1,013,15fl 11,297,705) 205,713 3.032.131 1,013,15CI 11,297,705) 60,251 205,713 3,013,540 Previous year: At 1 January 2024 Incomlng r*source$ Re$our¢e$ expended Transfers Gains and losses At31 D•cemb•r 2024 Operaling cost reserve Capital fund for future opportunities General funds 1,020.000 120,0001 1,000,OOQ 2,112.023 179,8921 125.411 2,032,131 1,030,370 11.284.8651 129.084 3.132,023 1,030.370 11,284,8651 25,519 129.084 3,032,131 Reserves have been established as follows.. An operatino cost reserve equal to nine months, charitablè activ￿y{cl.QO0,Oo0l. A capital fund for future opportunities and investm@nt. -29- CHURCH OF ENGLAND SOLDIERS., SAILORS. &AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 23 Analysbs of nèt assots bèiwoèn funds Unrestricted funds 2025 Restricted funds 2025 Total 2025 Fund balan¢es at 31 December 2025 are represented by.. Tangible assets Inveslmenls Gurrent asselsloiabilitiesl 160,851 2,701.392 169.452 160,851 2.701,392 172,602 3,150 3,031,S95 3,150 3.034,845 Per balan¢8 shoel Balance to allocate 3.013,540 118.1551 21,305 18,155 3,034,845 Unreslrictgd funds 2024 RestrSct•d funds 2024 Total 2024 Fund balances at 31 December 2024 are represented by: Tangible assets Investments Current assotsllliabililièsl 122,472 2,803,507 106,152 122,472 2.803.507 106.152 3,032.131 3,032,131 24 Related paty transactions Donations lotalling £1,08312024- £3251 wèrè received from Trustees during the year. CHURCH OF ENGLAND SOLDIERS., SAILORS, & AIRMEN'S CLUBS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 25 Cash 9•rtèratèd from operations 2025 2024 SurpluslldefiThl} foi the year 62 1102,0761 Adjustments for.. Investment income recognEsed in statement of linanaal activities Foreign exchange differences Gain on disposal of tangible fixed assets Gain on disposal of investments Fair value gains and losses on investments Depreciation and impaiiwenl of tangible fixed assèts 1104.6461 15811 11,11)01 16,5521 1196,5091 24.564 1110.0051 13,0481 151.8001 183.1771 30,173 Movements in working capilal.. Dtciease in stocks Ilncreasel in deblors Ir)crease in oiedilois 3,427 125.7241 42,138 16,851 145,3101 30,977 Cash ab$orbed by operations 1264,9211 1317,4151 26 Analysis of changes in nèt funds The charily had no material debt during the year. 31