THE SALVATION ARMY OFFICERS. PENSION FUND ANNUAL REPORT R THE YEAR ENDE I MARCH 2024 CHARITY REGISTRATION NUMBER: 230791
Page I THE SALVATION ARMY OFFICERS, PENSION FUND CONTENTS Page Report of the Salvation Army Pengon Fund Board 2to7 Accounts 8t014 Auditors, Report 15to17 Artuary's Statement 18
Page 2 THE ALVATI N ARMY FFICERS, PENSION F ND REP RT FTHE VATI N ARMY PEN N FUND ARD The metnber5 of The Salvation Army Officer5, Pension Fund present their annual report together th the financial statements of the Fund for the year ended 31 March 2024. CORoLLING BODY The FurKJ is under control of a Board, which is consbtuted by the Second Schedule of the Salvation Artny Art 1963. This consists of six ex officio members, under the Chairmanship of the Territorial Commander for the time being of The Salvation Amiy United KirvJdom and Ireland Territory, and three other offir$ of the Army, appointed by the Board and whose tertns of office rnay be detertnined by the Board. The members of the Board who served during the year arKJ those serving at date of approval of the Annual Report were.. Commissioner A. Cotterill up to 31st December 2023 Cornmis5ioner G. Cotterill up to 31si December 2023 Commissioner L. Graves up to 315L August 2023 Cotnrni55ioner P. Main (Territorial Comrnander frotn I January 2024) Commissioner G. Niemand from 1st September 2023 Corntnissioner R. Maxwell frorn 7th February 2024 ColotEI P. Forrest frorn 1st January 2024 Lieut-colonel P. Kingscott from 1st May 2024 Lieut-colonel B. Mccornbe Lieut-colonel A. Mccombe Lieut-colonel A. Read up to 30 April 2024 Major C. Daws Major l. Hilditch up to 3Vh April 2023 Major R. wate from l* May 2023 PROFESSIONAL ADVISORS Actuarie5 and Investtnent Consultant.. Me. BWCI Consulting Lirnited Albert H(xJse st Peter Port Guemsey GYI IAW Auditors.. KtK)x Cropper LLP 65-68 Leadenhall Street London EC3A 2AD Soliators.. Messr5. Slaughter & May One Bunhill Row London ECIY 8YY Bankers.. Reliance Bank Limited Faith House, 23-24 Lovat Lane, London EC3R 8EB Investrnent Advisor= Investrnent Advistry Committee of The Salvation Arrny Investrnent Managers.. Sarasin & Partner5 LLP 100 St. Paul's Churthyard, London EC4M 8BU Legal & f£rEral Investment Management ILGIMI I c0man Street London EC2R SAA
Page 3 THE SALVATION ARMY OFFICERS. PENSION FUND REPORT OF THE SALVATION ARMY PENSION FUND BOARD CONTINUED ADDRESS OF SCHEME The Salvation Army Officers, Pension Fund The Salvation Army Territorial Headquarters I Champion Park, London, SE5 8JF ORIGINATING INSTrUMENT: Safvation Army Act 1963 CONSTUT10N AND PURPOSES The Salvation Army Officers. Pension Fund was established for two main purpose5'. to pay pensions to those Officers who limrrrdiately before the implementation of the Art) were in reIpt d retirement allowances from any of the Salvation Army undertrdkings" and . to pay penon5 and allowan5 and to rnake grants to offir5 who rnay retire on or at any time after the appointed day whether by reason of having reached retirement age or on grounds of ill-health or of other disabilty or on any other grounds which, in the opinion of the Board, jusbfy the payment of a pension or the making of an allowan or grant las tage may be).. The Ad also states that.. 'The pension fund shall be notpcontributory atKJ nothirvJ in this Att shall confer any right on any officer or other person to receive or continue to receive a pension or a pension of any particular amount." It will be Sn, therefore, that the Fund is a PensK)n Fund, as this terrn 15 generally understood, in name onty, sintr it has no Members and the payments are accordirvJ to rules which may be redefined at the discretion of the Board. The fund is a registered Charity (No. 230791}. TAX STATUS The Scherne is a deerned Registered Pension Scheme and adheres to HMRC regulation5. ANNUAL REPORT The Salvation Army offir5, Penon Fund is exempt frotn $47(Illal and $47(11(bl of the 1995 Pension5 Act, and the rulationS thereunder, and the requirernent to produce an annual report including an audit report and aduarial statement is governed by the Salvation Arrny Act 1963. During the year there were no contribution5 to the Fund and, after payrnent of benefits and administrdtive expenses, thi5 resulted in net withdrawals from dealings with offir5 of £9.16rn. In addib'on, as a result of the ongoing recovery of the financial tnarket5 frorn the efferts of COVID-19, net returns on inve5trnents disclosed an oufflow of fund5 this year of £0.60m. Overall, the Fund has disc105ed a net decrease in fu5 for the year of £9.76m. Aease note, wth the consent frorn the rnembers of the Board, the spon50r to the Fund is currently on a contribution holiday a5 a reflection of the current funding position following the cornpletion of the 31 March 2022 actuarial valuation. Contributions will not be paid from 31 March 2022 through until 31 March 2025, when the next valuation is due, and at which point an ae55rnent will be performed as tt> whether contributions into the Fund frorn the stK)nsor Should recornrnence. Page 4
THE SALVATION ARMY OFFICERS. PENSION FUND REPORT OF THE SALVATION ARMY PENSION FUND BOARD ONTINUED IUSK MANAGEMENT The Tru5tee5 have overall responsibility for internal contro15 and risk rnanagetnent. They are cotnrnitted to identifying, evaluating and managing risk and to implementing and tnaintaining cortrol pr(edureS to redu significant risk5 to an acceptsble level. In order to tneet this re5pon5ibility the Trustees have adopted a risk policy. The objective of this policy is to limit the exposure of the Trustees and the assets that they are re5pon5ible for safeguarding to business, financial, operational, cotnpliance and other risks, where p055ible. The Trustees keep risk rnanagernent and intemal contrds constantly under review. The Trustees have established and keep under review a Risk Register. The purpose of the Register is= To highlight to which the Fund is exposed frorn the Tru5tees' perspectDIe,' To rank those risks in terms of likelihood and impact,. and To entify rnanagement actions that are either currently being taken, or that are believed should be taken, in order to rnitigate those risks. ATEmETr OF PENSION FUND BOARD'S FINANCIAL RESPONSIBIL]Es The Pension Fund Board is responsible for preparing the Annual Report ar financial statements in accordance wf(h applicable law and Unlted KSngdom Accounting Standards {United Kingdom fftnerally Accepted Accounting Practice). The SalvatK)n Army Act 1963 require5 the Pension Fund Board members to prepare accounts for each finanaal year which give a true and fair view of the state of affairs of the Fund for that period. In preparfrvJ the accounts, they are requlred to select suitable accounting policies and apply them consistenlly; make ]jgeMentS and estimates that are reasonable and prudent; State whether applitable accounting standards have been followed, subject to any material departures disclosed and explained in the financi315taternents,' atKJ prepare the accounts on a going contem basis when is appropriate to presume that the Fund will continue to operate. They are respon%ble for keeping proper accounting records which disclose with aSonable accuracy, at any time, the financial position of the Fund arbd to enable them to ensure that the accounts comply with recotnmended practi. They are also responsible for safeguarding the aet5 of the Fund and for trdking reasonable steps for the prevention and detection of fra other irregularits'es. ACTUARIAL POSITION The Fund is subject to triennial valuations. The most retrnt full athjarkil valuation was carried t by BWCI Consultiw Limited as at 31 Marth 2022 whose atknjarial statement is set out on ge18.
Page 5 THE SALVATION ARMY OFFICERS. PENSION FUND REPORT OF THE SALVATION ARMY PENSION FUND BOARD CONTINUED INVESTMENTS The Fund's investment poliry is determined by the Board, under the advice of the Investment Advi50ry Comtnittee of The Salvation Artny IIACI and its Ststetnent of Investment Principles 15 sumtnari5ed below. The Salvation Arrny maintains a Code of Ethical Practice to ensure funds are invested to refiect its ethical and rnoral stance. The Board'5 objLrtive is to invest the assets of the Fund in the best interests of beneficiaries. It aim5 to generate sufficient retum, at appropriate levels of risk and in line with the Ethical ce, to enable the Fund to meet its future liabilities. The Board recogni5es that investment in a small nurnber of a55et classes or irKJividual investments increases the risk of 5ignificant1055 over a short period of tirne and believes that the need for an adequately diversified overall investtnent portfolK) IS tnet by the benchtnark and ranges Set out below. In addition, the PA)ard has selected a passive investment manager (LGIM) and an active investment manager {Sarasinl to provide diversification by manager and by investment style. Each investment manager is experted to take investtnent deci510n5 With regard to a suitable level of diver5ification being tnaintained within asset claes. Investments rnanaged by 5arasin and Partners LLP are held wrth The Bank of New York Mellon who act a5 custodian for assets. Investments managed by LGIM are held with HSBC Bank PLC and Citibank, NA (London Branch). The Fund s benchmarks and ranges of distribution are a5 follow5. Overall asset allocation, Long term targét asset alIcatIon Perrnitted range fftirmancè BÈnthmark (fverseas Equiti 30.OIP 41-5 FTSE Custom All World ex UK Specialist Ethical INet WHTI Index LorvJ dated UK corpcate bonds 35.0 +1- 5% ICE BofAML 15+ Year Sterllng Non-Gilt Index Index- Gilt5 35.0 +1- 5% 37% FfsE A UK Index-Linked Gilts Over 15 Years Index, 63Q/o FfsE A UK 1ndex-nked Gilts Under 15 Years Index C8sh TOTAL +5% Active manager asset allocation, Asset allocation Perrnitted range Performance Benchmark Long datsd UK Corporatè BDn( Cash TOTAL IOD.O% -5 ICE BofAML 15+ Year Sterfing Non-Gilt Index 0.0 100. +5%
Page 6 THE SALVATION ARMY OFFICERS. PENSION FUND REPORT OF THE SALVATION ARMY PENSION FUND BOARD CONTINUED INVESTMENTS (Continued) pae rnanager asset allocation, AetrUnrf A55et allocatign Permitted range Performance Benchmark (fverseas Equities 46.00 +1-2 FTSE Custom All World ex UK Specialist Ethical INet WHTI Index Index-nked Gilts over 15 years IrtdÈx-nkÉd Gilts under 15 yeors TOTAL 20.0 41-2 FFSE A UK Inde%-nked Gilts (her 15 Years Index FFSE A UK Indèx-Linked Gllts Under 15 Years Index 34.00% +1- 2% A full analysis of the investment portffolio is set out in Note 7 to the finanaal staternents. The analysis of investments lat bid market value} as at 31 March 2024 was as follows.. Market Value UK Equities Overseas Equits"es UK Bo5 Property Managed Funds Cash 86,959,737 167,925,636 66 £255,639,785 loo% Property Funds had a market value of £nil at the year*nd 12023.. £15,779,561). Legal & GerEral Custom UK Equity Index Fund had a market value of £29,746 at the year-end (2023.. £272,775). Legal & &neral Custom All World ex UK Equity Irdex Fund had a market value of £78,907,145 at the year-end 12023.. £298,708). Legal & General Under 15 year Index-linked Gilts had a market value of £55,072,05812023.. £95,166,513). Legal & General over 15 year Index-llnked GS1ts had a market value of £33,916,68712023.' £57,696,533). The Fund performantr against benchmark over l and 3 years was as follows.. Performan over I ar Fund Benchmarfc Perf0Mian over 3 Fun ears Benchmark 5arasin Le al & General OPF Consolidated Page 7
THE SALVATION ARMY OFFICERS. PENSION FUND REPORT F THE SALVATION ARMY PENSION FUND BOARD ONTINUED Approved by the Tru5tee5 on 14 October 2024 SIGNED ON BEHALF OF THE BOARD Lièut-colonel P. Ki scott Type text here
Page 8 THE SALVATION ARMY OFFICERS. PENSION F ND FUND ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Note5 2024 2023 ColuBUTONS AND BENEFITS Contribution5 Receivable Transfers in Ilb), 3 5,150,229 5 150 229 Benefits Payable TranerS out Administrative Expenses 8,891,257 9,236,909 269 829 9 161 066 9 56675L NetAdditn$/<wit11raw3ls) from Dealings With Offte 9 161086 4 416 522 RETURNS ON INVESTMENTS Investment Income Chawe in Market Value of Investments Investment Management Fees Ilb), 6 2,179,890 2,902,815 12,451,413) 1327,583) {8,039,5511 (423,5101 599 106 5 560 246 INCREASEI(DECREASE) IN THE FUND DUIUNG THE YEAR 19,760,192) {9,976,7681 NET ASSETS OFTHE SCHEME AtIApn12023 At31 March 2024 268 528 652 £258,768,460 278 505 420 £266,528,652
Page 9 THE SALVATION ARMY OFFICERS. PENSION FUND STATEMENT OF ASSErs AS AT 31 MARCH 2024 Notes 2024 2023 INVEsfMENT ASSETS Bond5 Equitie5 Property Fund Lal & General UK Fund L31 & General Worldwide FutKJ Legal & General Under 15 year Index-linked Gilt5 L31 & General Over 15 year Index-linked Gilts Legal & General Worldwide Index Fund Cash Deposits 86,959,737 97,290,858 15,779,561 272,775 298,708 95,166,513 57,696,533 29,746 55,072,058 33,916,687 78,907,145 754412 255,639,785 423 814 266,928,762 CURRENT ASSErs 3,276,561 1,725,984 CURRENT LIABILITIES 1147,8861 (126,094) TOTAL ASSEfs AT 31 MARCH £258 768 460 £268 528 652 These financial statements were approved by the board on 14 October 2024 SvJned on beha of the board.. Lleut-colonel P. Kln scott
Page 10 THE SALVATION ARMY OFFICERS. PENSION FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED IMAR 24 I. ACCOUNTING POLICIES lal The Financial Staternents have prepared in accordan with Finanaal ReporbrvJ StatKlard 102 - the Financial Reporting Standard applicable in the UK and Republic and Ireland issued by the Finanaal Reporting Council arKJ with the guidan set out in the Staternent of Recornmended practi.. Financial Reports of Pension Schemes 12018}. The presentational curretry is tK)und5 sterling. Ibl ItKotne.' li) Contributions are trdken into account on an accruals basis at the rates pendY agr&d between tIE Pension Fund Board atKJ The Salvation A¥ on the recorntnendatK)n of the Consulting Aciuaries. lill Investment income is accounted foron an accruals basis, dividend income being accounted for when the investment is quoted "ex - div-. Ic) ExpetKJiture'. ExpetKJiture is accounted for on the accruals basis. Benefits payable are included in the financial statement5 in respett of entitlement up to the year end in accordan with the rules of the Fund. Idl Investments.. Investments are included at their fair Val at the ac(x>unting year end based on bid rnarket pri lisbryjs or, in the case of uniti5ed p(K>led investments, on the latest available bid price or sngle price prowded by the pooled investment manager. 2. ACTUAIUAL VALUATION The accounts summarise the tnSaCtIonS and net asts of the Fund. They do not tske account of paymert of pension5 atKJ benefits which fall after the end of the Fund year. The artuarial position of the Fund, which d(Es take account of anticipated future payrnent5, 15 dea with in the tement by the artuary on page 18 and these financial statements should be read in conjunrtion therewith. This statement relates to the Artuarial Valuation as at 31 March 2022. 3. CONTRIBUTIONS RECEIVABLE 2024 2023 Ordinary Annual contributy.on Annual Capital Contribution Special Contribution 5,150,229 £5,150,229 The Salvation Army undertakings have not paid any contributs.ons in this finanaal year.
Page 11 THE SALVATION ARMY OFFICERS. PENSION FUND NOTES TO THE FINANCIAL STATEMENTS CONTINUED R THE YEAR ENDED IMAR 24 4. BENEFifs PAYABLE 2024 2023 Pensions to retired Offir5 Lump Sum Retiremert Grants Transfer5 7,969,606 921,651 8,392,166 844,743 £8,891,257 £9,236,909 5. ADMINRATIVE EXPENSES 2024 2023 The salVatn Amiy Management Charge Allor5 Remuneratlon Al1t Fees Actuarlal Fees other Professional Fees other Expenses 49,969 41,246 15,900 180,432 23,518 io 15,864 213,464 58,800 468 £269,829 £329,842 6. INVESTMENT INCOME 2024 2023 Income from Fixed Irntert Securities Dlvldends from Equiti Income from Property FurKJ Interest on Cash Deposits 1,611,923 2,249,123 650,817 491,682 £2,179,890 £2,902,815
Page 12 E FINAN ATEMEN NTIN ED 7. INVESTMENTS Market Value 31103124 Market Value 0114123 Purchases at Cost Sales Proceeds Change in Market Value Bonds 97,290,858 130,639,044 (136,784,254) 14,185,911) 86,959,737 Equity Funds Equibes Gilt Funds Propety Fund 571,483 148,817,705 {77,199,660) 6,747,363 78,936,891 152,863,046 15 779 561 £266,504,948 423 814 {59,041,300) 15 599 697 288 624 911 14,833,001) 88,988,745 £279 456 749 2 451413 £254,885,373 754 412 Cash Deposits £266,928,762 £255,639,785 The change in market value of investsrents during the year comprises all increases and de(reases in market value of investments held at any time during the year, including profits and lo%es realised on sales of investments during the year. For Equity Funds, the change in market value also includes in respect of ihe underfwr¥J invegcments, any incorne generated, transattions costs a[ sale prodS in respect of the purcha* or sale of those investments. The value of these costs and revenues are Th)t separately identified. During the year the bwk value of investments decreased by £14,628,790. 2024 2023 Market Value Market Value Book Value Book Value BONDS Fixed Intsrest Securities Q)rporate Bonds UK Gilts Overseas tsporate BorKIs Overseas Govemrnent Bond Funds 86,959,737 88,303,166 97,290,858 95,864,833 88 988 745 175 948 482 77 276 $95 165 580 061 152 863 046 250 153 904 145 669 624 241534 457 Equlty Funds UK Quoted Overseas 29,746 78 907 145 78 936 891 4,665,657 78 228 L80 82 893 837 272,775 298 708 571483 4,665,657 1633 475 6 299 132 EQUITIES UK Quoted Overseas PROPERTY FUND 15 779 561 15 599 697 CASH DEPOSITS Bn)kers Balances Sterfing TOTALS 754 412 £255 639 785 754 412 £249 228 310 423 814 £266 928 762 423 814 £263 857 100
Page 13 THE SALVATION ARMY OFFICERS. PENSION FUND NOTES TO THE FINANCIAL STATEMENTS CO]NuED FOR THE YEAR ENDED IMAR 24 INVESTMENTS (Continued) Investment fair value hierarchy The fair value of investments has been thtermined using the following fair value hierarchy.. Level I The unadjusted quoted price in an active rnarket for identical or liabilitie5 that the entity can ac5$ at the measurernent date. Level 2 Input5 Otherthan quoted pri5 incled within Level I that are observable lie developed using rnarket datal for the a&set or liability, either direcdy or 11rettIy. Level 3 Inputs are unobrvable (ie for which market data is unavailable) forthe asset or liability. The FutKJ's investsllent a55ets and liabilitie5 have been fair valued using the above hierarchy leve15 as follows= A5 at 31 March 2024 Level I Level 2 Level 3 Totrl UK Bonds Equity Fu5 (pooled invement vehicle5) Gilt FutKJs (pooled inve51Jnent vehicle5) Equitie5 Property Cash 86,959,737 86,959,737 78,936,891 88,988,745 78,936,891 88,988,745 754 412 £87 714 149 £167 925 636 754,412 £255 639 785 As at 31 March 2023 Level I Level 2 Level 3 T<)tsl UK Bond5 Equity Fundslpix)led inve5ttnent vehicle51 Gilt Funds Ipooled inve5tsrent vehicle5) Equities Property Cash 97,290,858 97,290,858 571,483 152,863,046 571,483 152,863,046 15,779,561 15,779,561 423 814 £266 928 762 423 814 £97 714 672 £169 214 090 Investment risks FRS 102 requires the disclosure of information in relation to rtain inverrEnt risks. Créditnsk..thi5 is the risk that one party to a finanoal instrument will cau a finanoal Its for other party by failing to discharye an obligation. Narketrisk..this cotnprise5 currency risk, interest rate risk and other pri risk. Currencyrisk..this IS the that the fair value or future cash flows of a financial asset will fluctuate because of changes in foreign exchange rates. Interest rate risk.. this 15 the risk that the fair value or future cash flow5 of a financial aet will fluctuate because of changes in tnarket interest rat.
Page 14 THE SALVATION ARMY OFFICERS. PENSION FUND NOTES TO THE FINANCIAL sTATEmETrs CO]NuED R THE YEAR ENDED 31 MARCH 2024 INvmENTs (Continued) OtherprKensk..this IS the risk that the faIrval of future cash flows ora financial asset will fluctuate because of changes in market price5 (other than those aring frorn interest rate risk or currency risk), whetlEr those changes are caused by factors Specific to the indwidual financial instrurnent or its issuer, or factors affecting all sirnilar financial in5trurrEnts traded in the tnarket. The Fund is subject to credit risk because it direcuy invests in bonds. This risk is mitigated by investing in government bonds where the credit risk is tninitnal, or rPOrate bond5 which are rated at least investrnent grade. Currency risk arises on the Fund'g eQueS held in overseas markets and indiretuy fmrn the underlying investments held in the overseas equities fur. The Trustees have set a benchmark limit to overseas turrency exposure of 30.00kn of the total portfolio value. The Fund is subject to interest rate risk because 50tne of its inve5ttnents are held in bonds and cash. The Trustees have set a benchrnark for total investment in bonds of 35019 afKI cash of ODIO of the total investment portfolio. other price risk arises principally in relation to the Fund's return seeking portfolio which indudes directly held equities, indirecuy held equities in tIE UK and overseas equity funds and the property fund unit trusL The Trustees have set a benchmark for total investtnent in property of Ioolo of the totsl investment portfolio. CURRE ASss 2024 2023 Debtors: Accrued Dividends Accrued Interest Amounts due frorn Central Funds 1,778,759 165,763 159,692 213,945 Cash at Bank: Current Account Dep(lt Account 1,074,370 257 669 1,097,216 255 131 £3,276,561 £L,725,984 CURRENT LIABILITIES 2024 2023 Sundry Creditors 147,886 10. RELATED PARTY TRANSAcfioNS The administration of the Fund is undertaken by The Salvation Army Trust, which has levied a managetnent charye of £49,969 for the year 12023.. £41,246). At the year-end a net balance of £165,763 was due from Central Funds {2023.. £213,945}. The Fund's banker is Reliance Bank Limited, which 55 a subsidlary company of The Salvation Army International Trust. At the year end, the Fund had bank balances of £1,332,038 (2023.. £1,352,349) with the Bank.
Page 15 INDEPENDENT A DrroRS' REPORT THE MEMBER FTHE ARD LVATI N ARMY Fl 'PEN ND OPINION ON FINANCIAL STATEMENTS We have audited the financial staternents of The Salvation Army Officers, Pension Fund for the year ended 31 March 2024, whrh comprise the Fund Account, the Statement of Net Assets and the notes to the finarKial statements, including a surnmary of significant accounting policies. Tl financial reporbr¥J framework that has been applied in their preparation is applicable law and United Kingdorn Accounting Standards, inding FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepfrd Accounting Practice). This report is tnade s)lely to tIE Mernbers of the Board, as a body, in accordan with Settion 145 of the Charities Att 2011 ar regulations made under Section 154 of that Act and with The silvation Army Att 1963. Our audit work has been undertaken w that we might state to tl Members those matters we are required to state to them in an auditors. report and for no other purpose. To the fullest extent permitted by law, we do not accept or aume respotEibilty to anyone other than the Pension Fund and the Mernbers f(K our audit work, for this report orfor the opinions we have formed. In our opinion the financial statements.. show a true and fair view of the financial transacbons of the Pension Fund during the year ended 31 March 2024, and of the amount and disposition at that date of its assets and liabilities, other than the liabilities to pay pensions and benefits after the end of the year,. have been properly prepared in accordance with United Kingdom GeneTrlly ACpted Accounting Prartice. and have been prepared in accordan with requirements of the Charl"e5 Act 2011 and the requirements of The Salvation Army Act 1963. BASIS FOR OPINION We cOrUCted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are futher described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Pension Fund in accordan with the ethical requirements that are relevant to our audit of the financial statements in the UK, induding the FRCS Ethical Standard, we have fulfilled our other ethical responsibiliti in accordance with these requirements. We believe that the audit eviderKe we have obtained is sufficEnt ar appropriate to provKle a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have corKluded that the Trusteeg use of the goiro conrn bass ol accountsng in the preparation of the finanaal statements is appropriate. Based on work we have performed, we have not identified any material Unrtainty"e5 relating to events or condrtions that, indivKlually or collectwely, may cast signfficant doubt on the Fund's abilty to continue as a going conrn for a period of at least 12 months from when the financial thtements are authorised for issue. Our responsibilities and the responsibili"eS of the trustees with respett to going concern are descri in the relevant settions of this Port. OTHER INFORMATION The Members are resronsible for the other information. The other infomiation cornprises the Information included in the annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does Th)t cover the other information and we do not express any form of asSurnn concluson thereon.
Page 16 INDEPENDENT A DrroRS' REPORT THE MEMBER FTHE ARD LVATI N ARMY Fl 'PEN ND In connection with our audit of the financial statements, our responsibilty is to read the other information and, in d(yng 50, conyder whether the other inforrnation is materially incon515frnt with the rinancial statements or our knowledge obtairEd in the audit or otherwise appears to be materially misstated. If we idenbfy such material incSstenC1es or apparent tnaterial misstatements, we are required to determine whether there is a material misstatement in the financial ststements or a material misstaterrEnt of the otlEr information. If, based on tIE work we have performed, we condude that there is a rnaterial mis5tstement of this other information, we are required to retK)rt that fact. We have nothi to report in this gard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the fdlowing matters where tIE Charities (Accounts and Reports) Regulabons 2008 require us to report to you if, in our opinion.. the information given in the financial statements is inConStent in any material respeLt th the Report of the Board,. or suffrient accounting records have not been kept; or the financial statements are not in agerneTrt with the accountiro records,. or we have not received all the Infomiation and explanations we require for our audit. RESPONSIBILITIES OF PENSION FUND BOARD described on page 4, the Pension Fund Board is responsible for the preparation of the finanaal ststements and for being tisfied that they give a true and fair view, and for such internal control as the Members determine is nery to enable the preparation of financkil statements that are free from material misststement, whether due to fraud or error. In pparIng the finanaal statements, the Members are responsible for assessing the Pension Fur.5 ability to Continl as a going c0Thrn, disclosing, as applicable, matters related to going concern and using the going concem basis of accounkn.ng unl5 the Members either Intend to liquidate the Pension Fund or to ase operations, or have Th) realistic alternatNe but to do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS We have been appointed as auditor and report to you our opinion as to whetherthe finanaal statements gNe a true and fair view and are properfy prepared in accordance with The salvats.on Army Act 1963. Our objectives are to obtain reasonable assurance about whether the financial ststements as a whde are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that incle5 our opinion. Reèsonable assurance is a high kvel of assurance, but is mt a guarantee that an audit conducted in accordance with ISAS IUKI will always detert a material misststement when it exists. Misststements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to Influen the economic decisK)ns of users tsken on the basis of these financial statements. Irregularities, including fraud, are inStsn5 of non-compliarKe with laws and regulations. We design procedures In line with our responsibilities, outlined above, to detett material misstatements in resFect of Irregularrties, including fraud. The extent to whKh our procedures are capable of detecting Irregularities, induding fraud Is detailed below.. the eThJagement partrEr ensured that the engagement team colkntwely had the appropriate c0rnpeten, capabile5 and skills to idenb'fy or reanISe noTrcornpliance wh applicable laws and regulab"ons; we identified and f(Kud on the laws and regulations applicable to the Fund through discussions with management, and from our knowledge and experience of the sector. We then assessed the extent of Complian %vith the laws and regulations through enquirEs and review of the documerted policies, pr(edureS and contrd5'
PbJe 17 We assessed the SUepublIty of the Bjnd's flnanclal statemats to mèrfal misaternent, Ind{9 obtslnlng an wderknndlng of how mJht occur, by corNderts)g the key r5 lmpacb.ry the finanaal ststements. These inclLKled risks a00ated wfth revenue recc%Jn6tth, applKatbn of accountyng elmates, Manag overrtle of controb and the of enefKK?r8. Cxjr approBth Indud& agreelng the reCcgraon cl Inc to the ¢wrwt Summary ofktuarkl Valuation attach1 to these finandal Aaternents as agreed the partyopatiro enpltrprs, usin9 anatytical arnd ther substantive 0TrdUto agree beneffts payab tsthe year, rewew of Icrnal entrtes In the accoUnn9 rea)rds the Investlgatlon of slgnwnt arx1 unusval trartsactions entified from our rewew of the accounung recc¥d Based on wr un¢Jerstsndlng we deSne0 cvr audlt p0ule$tO bsentify TrJn-compIn wth the levant bws and gulat0$. The prc(edu included ¥ of pOrting to the Board muntrtrs wlth re4)ert to the èppliotion of é(Kurnented and WCK&lures and a review of the flnandal ststernents to erUre cunpllarKe wth the Funds repoIrj requ1M. There a inherent Imtst((s in our audrf( woc&wes de9yrd above. The more run£ that laws aThl reguLatths are from finaal transactk)ns, the less Ilkdy r( Isthat ¥Ye w0d Lwxne aware of non- Cc1nwn. ALKlthng thndar(ts also limf( the aJit proKedure5 required to Klentify rMjrKomplla ws and regulation5 to enqulry of the trustees and other rnanagemert an(1 the In5[Ct of regulatory and 31 Corr¥OThJen, if any. Material rnisstaternents that arise dLE to fraud can be IrdertO detect than that arfse from error as tfv may Involve dellberate conoalment or LdIU(3n. A further desthptbn of our respo[titI for the audlc of the fina1 Stttemts Is located tL Flnanclal RepOThJ CourKS1's webste at.. htt www.frc.o aUdIthSLI1. Th15 deXrip.l form5 part of our repc¥t. k•LLf KNOX CROPPER LLP 65 Leadenhall Street Londo EC3A 2AD aMrt•rtd AcUntsnt$ ststutory Audit•rs D¢: 14 October 2024 KJX Cmppw LLP Is eliglbk to arl as an attOr In tsrms of settk)n 1212 cl the CcThpanles Art 2{6.
Page 18 THE SALVATION ARMY FFICERS. PENSION F ND MMARY AIUAL VAL ATI An actuarial valuètion of the Fund was carried out as at 31 March 2022. The main purposes of the valuation were to review Ihe financial position of Ihe Fund at that date and to help est4blish the contributions paYae to the Fund in the future. The valuation assumed that the Fund would continue a going concern. In order to cany out the valuation, the actuary made a number of assumptlons based on ecommlc conditlons at the valuation d8te, on prospecbve investment retums and regarding longevlty of Offlters. However, chaTh)es In Tnarket values of the assets and in market conditions after the valuation date may mean that the assumptions and market Valu on which it is based are no longer appropriate. The Fund'5 funding rosition could have changed signifintlY %nce the valuation and this could affect the contributions yable in the future. The main econom assumptlons used In the calculations were as follows.. Pritr inflab-on 4.0% Rate of irKrea5e in allowance5 4.5% pa Rats of increase5 4.5% pa Rate of deferred pension IneS 4.5% pa Prtrretirement discount rate 3.7% pa Post-retirement dixount rate 2.9% pa Management expenses (other than inve5trNent related expense51 5.0% of futtjre ordinary contribubons Market valLE The ValUatn revealed a funding surplus of £31,3LO,000 and a funding ratio of 96,0%. Aftw taking into £ccount the cost of benefits acuuing In the fuiure and the future expttted ordinary contributions, the overdll shortffall was £12,571,000 Following the completion of the 31sL March 2022 actuarial valuation, The Salvation Army undertakings have not paid any contributions in this financial year. This decision will be reCorndered following the 31 March 2025 actuarial valuation. Diana Simon BWCJ Consulting Mited consulb.ng Actuaries