THE RAEC AND ETS BRANCH ASSOCIATION
PATRON
Her Royal Highness The Duchess of Gloucester GCVO
PRESIDENT
Brigadier (Retired) G Morris CBE
VICE PRESIDENT
Brigadier S Anderson
TRUSTEES’ ANNUAL REPORT 2022
Registered Charity No 231250
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TRUSTEES’ ANNUAL REPORT FOR THE PERIOD 1 JANUARY to 31 DECEMBER 2022
Charity Name
The RAEC and ETS Branch Association
Registered Charity Number
231250
Charity’s Principal Address
AGC Regimental HQ Worthy Down Winchester Hants SO21 2RG
Professional Advisers
Bankers
Royal Bank of Scotland (Holts Branch) Lawrie House, Victoria Road Farnborough, Hants GU14 7NR
Investment Managers
Investec Wealth & Investment Limited Festival House Jessop Avenue Cheltenham GL50 3SH
Independent Examiners
BRC Accountants Suite 2 Healey House, Dene Road, Andover, SP10 2AA
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Charity is an Association that was constituted on 24 April 2009 formed from the Royal Army Educational Corps Association established on 5 July 1957.
Prior to this, the Association was known as the Royal Army Educational Corps Society which had been formed in the 1930s.
The administration and activities of the Association are governed by a Governance Manual. The Constitution and Rules, contained within the Governance Manual, were last amended at the Association’s Annual General Meeting held on 21 April 2016.
TRUSTEES
| Colonel (Retired) A N King | Chairman | |
|---|---|---|
| Colonel C Terblanche | Trustee | |
| Lieutenant Colonel (Retired) D Bornstein | Trustee | |
| Lieutenant Colonel (Retired) JH Jenkins | Trustee | |
| Lieutenant Colonel (Retired) D Pittendreigh | Trustee | |
| Lieutenant Colonel J Painting | Trustee |
The day-to-day administration of the Charity is delegated to the Association Secretary/Treasurer.
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OBJECTIVES, ACTIVITIES AND ACHIEVEMENTS
BACKGROUND
A charitable trust, originally known as the Army Educational Corps Charitable Fund, was set up by Trust Deed dated 30 March 1946; it became the Royal Army Educational Corps Charitable Fund after the grant to the Corps of the title “Royal” on 28 November 1946.
The Charitable Fund was absorbed into the Benevolence Fund of the Royal Army Educational Corps Association in the 1950s, such fund being ring-fenced specifically for the charitable activities of the Association. The latter fund was absorbed on 24 April 2009 into the Benevolence Fund of The RAEC and ETS Branch Association. The Association maintains two funds: a Benevolence Fund and a General Fund. Activity and performance of these funds are discussed in greater detail later in this report.
In pursuance of its charitable objects, the Charity awards grants of money to purchase or support the funding of appropriate and specific goods, services or facilities.
OBJECTS
The Objects of the Association are: -
-
to provide support, including financial assistance to former members of the Army Educational Corps and the Royal Army Educational Corps (“the antecedent Corps”) and their dependents who are in conditions of need, hardship or distress (“the beneficiaries”), such support to take into account assistance from other sources.
-
to provide support, including financial assistance, to serving and former officers of the Educational and Training Services Branch of the Adjutant General’s Corps (“the Branch”) who are or have been Full Members of the Association and their dependents who are in conditions of need, hardship or distress (“the beneficiaries”), such support to take into account assistance from other sources.
-
to provide support, including financial assistance, to former members of the Women’s Royal Army Corps who were permanently employed with the Royal Army Educational Corps who are or have been Full Members of the Association and their dependents who are in conditions of need, hardship or distress (“the beneficiaries”), such support to take into account assistance from other sources.
-
to promote the military efficiency of the Army and specifically the Branch including, but without prejudice to the generality of the foregoing, fostering esprit de corps within the Branch, preserving its traditions and those of the antecedent Corps and maintaining contact between serving and former officers of the Branch and former members of the antecedent Corps.
In pursuance of the Association’s Objects, the principal activities of the Association are to undertake various charitable activities.
PROCEDURES AND POLICY FOR GRANT MAKING
Procedures and policy for grant making is set out in Section 2 to the Governance Manual. The Finance Sub Committee of the Association has overall responsibility for financial matters. All Benevolence funding under Objects 1 to 3 is decided upon by the Trustees at full Trustees Meetings. Applications for grants from the General Fund under Object 4 are routinely considered and decided by the Finance Sub Committee out of committee.
BENEVOLENCE FUND GRANTS
There is no minimum service requirement that would bar an applicant from receiving Benevolence funding under Objects 1,2 and 3 of the Association’s Constitution. Similarly, there is no fixed amount or maximum of each award as need is the determining factor in assessing the amount granted.
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Applications for Benevolence grants are normally made through veteran’s support agencies, predominantly SSAFA Forces Help and The Officers’ Association who carry out the preliminary work in assessing the “need criteria” and grants are paid to such agencies for disbursement on behalf of the Charity. Benevolence grants may also be received directly or through local Association Branches.
We no longer have any benevolence annuities. In 2022 the Association made grants totaling £977.32
These acts of Benevolence have significant impact on the quality of life of the beneficiaries and equally significant impact on the sense of ‘esprit de corps’ of the serving and retired membership of the Association. They also demonstrate that our benevolence funds are not just to support the old but are there for the whole REAC and ETS ‘family’.
As well as making grants from its own funds, the Association again received support from other service charities and the Trustees would like to thank the following organisations for their support:
The Soldiers’, Sailors’ and Airmen’s Family Association Forces Help (SSAFA) The Royal British Legion (TRBL)
The Benevolence Fund is maintained at a capital value and growth rate set by the Trustees in the Association’s Investment Strategy for use as determined by the Trustees and governed by the Governance Manual.
GENERAL FUND GRANTS
Grants under Object 4 of the Constitution are payable only to Full, Life, Associate, Honorary and Honorary Associate Life members of the Association. Grants are limited to maximum of £250 per annum per member. Grants may be approved for a range of activities and events:
- a. Sports and Adventurous Training activities and events are self-explanatory. Grants are limited to a maximum of 30% of the personal contribution.
b. ‘Esprit de Corps’ is a broader category that can include social, professional and special interest events. These may include Dinners, Lunches and other networking events where grants are limited to 50% of the personal contribution up to a maximum of £25 per member.
During 2022 we approved grants to a total of £4,573.71 in support of members. Activities ranged from lunches and dinners attended by both serving and retired members of the Association to sports and adventurous training activities in the UK, and worldwide. This was significantly lower than pre-covid years. Unfortunately, our major event being held at Eltham Palace was cancelled due to the passing of HRH The Queen, we hope to be able to hold it during 2023.
The Association’s General Fund is used for the day-to-day administrative costs of running the Association plus costs involved in meeting Object 4 of the Constitution. Administrative costs include, for example, costs involved in communications, function support and the publication and distribution of “Torch”, the annual Journal of the ETS Branch and the Association. The Trustees’ current financial strategy is to grow the capital value of investments in this Fund as set by the in the Association’s Investment Strategy as determined by the Trustees and governed by the Governance Manual.
MEMBERSHIP
Full Membership of the Association is open to anyone who served in the Antecedent Corps: those who served or are serving in the current Educational and Training Services Branch, those who served in the Royal Army Educational Corps, and those who served in the Women’s Royal Army Corps and were permanently employed with the Royal Army Educational Corps. The retired membership is made up of Full, Life, Honorary, Associate and Honorary Associate Life (widows and widowers of previous Full or Life members).
Our Serving membership continues to increase each year, and we have also reconnected with retired members who have now joined the association.
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ACTIVITIES
There are 6 branch areas that provide the local focus for members. Active Branches arrange their own calendar of events and meetings to suit their local needs. The Association headquarters provides support and advice as and when required.
The Association and the Branch jointly publish the journal “Torch” annually which is distributed to all members and other subscribers. The journal includes articles about the Branch, articles from serving and retired members, technical educational articles, Association branch matters, news of future events and generally keeps members in touch with each other. It also keeps the serving members informed about the traditions of Army education with the inclusion of articles from the retired members who served in the antecedent Corps.
To provide the opportunity for serving and retired members to meet and network, the Association organises an annual luncheon. This is held at various locations on a rotational basis within local Branch areas so that it gives every opportunity for local, often ageing members to attend a main event without having to travel too far. Since its inception, the luncheon has been held at various locations throughout the UK and in Germany.
In June of each year, “Education Sunday” is held worldwide (i.e. wherever the Branch is serving) to celebrate the establishment of the Army Educational Corps on 15 June 1920. The event commences with a church service followed by a luncheon. The events are organised by the Branch alongside the Association and is very much considered to be a family day, with serving and retired members of the AEC, RAEC and ETS together with their families encouraged to attend.
In November, serving and retired officers traditionally attend Remembrance ceremonies worldwide. Association members specifically attend the Field of Remembrance, Westminster Abbey in remembrance of the personnel who lost their lives in service.
FINANCIAL REVIEW, INVESTMENTS AND RESERVES
The financial activities are summarised in the Accounts included in this report and should be read in conjunction with the Notes on the last page.
With world equity markets still under pressure, the market values of both the General Fund and Benevolence Fund throughout 2022 were reflective of the volatile market conditions, the continued effect of the coronavirus pandemic and the war in Ukraine.
The Investment Strategy requires balanced growth and income from both investment portfolios. As at 31 December 2022 the Benevolence fund has a value of £569,986 and the General Fund portfolio has a value of £201,431.
The Trustees are kept updated on a regular basis by the Association’s Brokers as to global financial markets and the state of the two investment portfolios so that appropriate decisions can be taken swiftly should the need arise.
BENEVOLENCE FUND
To enable it to meet its charitable objects, this fund derives its income from its investment portfolio.
Greater effort continues to be made to reach those in need of benevolence. Assistance is sought from the Association branches and individual members to identify cases of need and in 2021 the Association continued its programme of advertising in “Torch” and other charitable directories.
The Trustees envisage that future payments for benevolence may increase. A larger proportion of membership are reaching senior years during a time when world markets are far from stable. Everrising costs could lead to the inability of some members to meet their financial commitments.
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GENERAL FUND
Income is derived from membership subscriptions and donations, gift aid and from investment income.
The Trustees annually review the level of subscriptions to ensure these meet the requirements of the Fund. At the AGM in April 2018 an increase of £2 to Full Membership fees to £20 per year was agreed.
The Association’s head office also continued its quest for maximum efficiency by seeking ways of introducing new and cost-effective systems. In this respect, maximum use is made of the Internet/email system for keeping members updated.
INVESTMENT STRATEGY
The Trustees, with the guidance of the Association’s Brokers, continue to be cautious with the investment strategy, aiming for a balance between income and growth in both the Benevolence Fund and the General Fund portfolios.
The amendment of the Constitution in April 2016 was principally in order to enable more flexible management of the Association and its assets so that the Association has broader appeal and utility to serving members of the Branch and thus encourage increased Full Membership. This in turn increases both the lifespan of the Association and its relevance and utility as a charity in the Armed Services sector.
RESERVES POLICY
The Trustees’ agreed policy is that the Benevolence Fund is to hold sufficient assets in an immediate access current account to cover immediate benevolence requirements. The Benevolence Current Account is thus given an annual starting balance of £15,000. The General Fund current account is to hold sufficient assets to meet the provisions of Object 4 and to meet the administrative costs of running the Association. The General Fund current account is given an annual starting balance of £25,000. Excess income is invested in the Benevolence and General investment funds as detailed in the Investment Strategy.
This policy is reviewed annually by the Trustees and recommendations for any changes made to the Annual General Meeting.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
Trustees are appointed by an Annual General Meeting and serve for a period of three years. They are either retired officers who served with the Royal Army Educational Corps or officers currently serving with or retired from the Branch. Consequently, they all have the necessary skills and experience to promote the activities of the Charity. They are empowered, under the provisions of the Association’s Governance Manual, to manage the affairs of the Charity and to deal with all the monies and investments in furtherance of the foregoing Objects.
Charity Law requires Trustees to prepare financial statements for each financial year which give a true and fair view of the of the Charity and of its net movement in funds for that period. In preparing those financial statements, the Trustees are required to:
- a) select suitable accounting policies and then apply them consistently; b) make judgments and estimates that are reasonable and prudent; c) Prepare the financial statements on a ‘going concern’ basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the requirements of the Charity Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
INDEPENDENT EXAMINER
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The Trustees will appoint suitably qualified accountants to undertake the independent examination of the Association’s accounts in the following year. This year it was again BRC Accountants.
DECLARATION
The Trustees declare that they have approved the Trustees’ Report above. Signed on behalf of the Charity Trustees:
Signature A N King (signed electronically)
Full Name Andrew Nicholas King (Colonel, Retired)
Position Chairman of Trustees, The RAEC and ETS Branch Association
Date 1 Oct 23
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Independent Examiner's Report to the Trustees of The RAEC and ETS Branch Association
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31[st] December 2022 which are set out on pages 8 to 10.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
J Taylor FCCA BRC Accountants Suite 2, Healey House Dene Road Andover Hampshire. SP10 2AA
Date…19/12/2023……...
THE RAEC AND ETS BRANCH ASSOCIATION
COMBINED
RECEIPTS & PAYMENT ACCOUNT For the period 1 January 22 - December 2022
| RECEIPTS | Unrestricted Funds Restricted Funds Current Period Previous Period 2022 2021 |
|
|---|---|---|
| VOLUNTARY INCOME Transfer of Funds from General fund Membership Subscriptions - Current Year Donations INVESTMENT INCOME Investment Portfolio - Dividends and Interest OTHER INCOMING RESOURCES Shop - Stock Sales Profit Partial Refund of grant Refund postage Eltham event (includes AGC Grant) Total Income |
£0.00 £0.00 £10,000.00 £13,104.00 £13,104.00 £12,493.00 £184.75 £184.75 £188.00 £21,252.35 £21,252.35 £12,910.35 70.00 50.00 50.00 0.00 0.00 0.00 10.42 16,746.00 16,746.00 50.00 |
|
| £51,337.10 £0.00 £51,337.10 £35,721.77 |
THE RAEC AND ETS BRANCH ASSOCIATION
COMBINED FUNDS
RECEIPTS & PAYMENT ACCOUNT
For the period 1 January 2022 – 31 December 2022
| PAYMENTS | Unrestricted Restricted Current Period Previous Period Funds Funds 2022 2021 |
Unrestricted Restricted Current Period Previous Period Funds Funds 2022 2021 |
Unrestricted Restricted Current Period Previous Period Funds Funds 2022 2021 |
Unrestricted Restricted Current Period Previous Period Funds Funds 2022 2021 |
||
|---|---|---|---|---|---|---|
| BENEVOLENCE & WELFARE Benevolence Grants and Annuities Welfare gift MEMBERSHIP & SOCIAL ACTIVITIES Membership payments rejected by bank Grants Grants to Cos Trophies Purchase & engraving Events Costs (Eltham Palace in cludes ticket refunds) Education Sunday Refund Minerva 100 (Eltham) to individuals WELFARE ACTIVITIES Transfer of funds to Benevolence account Floral Tributes (Remembrance Wreaths) Field of Remembrance COMMUNICATIONS & PUBLICATIONS Postal Costs (Including stamps) Postal Costs - "Torch" Mailing “Torch” - Production GOVERNANCE Independent Financial Examination Costs MoorePay fees (direct debit management) AGM & Events Expenses Trustees & Other Representatives’ Travel Expenses Investment management Fees AWARDS Association prizes (Silver Statue engraving & BT Course prize) Prize - RAEC Memorial (Account now run out) Chris Butt Memorial prize GENERAL ADMINISTRATION Office Costs (includes scanning of all editions of Torch) IT Costs (Anti virus) SHOP Expenditure Branch Cards Total Expenditure Bank Balance as at 1 Jan 2022 Receipts during year Payments during year Bank Balance as at 31 December 2022 |
£977.32 £977.32 £1,850.00 £0.00 £1,130.00 £1,130.00 £960.00 £4,573.71 £4,573.71 £7,962.82 £1,000.00 £1,000.00 £500.00 £40.00 £40.00 £350.40 £23,761.32 £23,761.32 £0.00 £53.00 £53.00 £2,849.96 £0.00 £0.00 £2,125.00 £0.00 £0.00 £10,000.00 £55.50 £55.50 £144.95 £94.30 £94.30 £77.50 £170.65 £170.65 £100.78 £1,293.00 £1,293.00 £1,588.21 £3,174.00 £3,174.00 £4,234.00 £1,104.00 £1,104.00 £1,056.00 £740.46 £740.46 £731.01 £753.14 £753.14 £14.08 £174.98 £174.98 £0.00 £7,635.66 £7,635.66 £7,623.30 £75.00 £75.00 £125.00 £0.00 295.00 £295.00 £0.00 £3,652.85 £3,652.85 £114.29 £74.99 £74.99 £0.00 £0.00 £0.00 £23.40 £0.00 £0.00 £100.00 |
|||||
| £50,533.88 £295.00 £50,828.88 £42,530.70 |
||||||
| £34,069.52 | ||||||
| £51,337.10 | ||||||
| £50,828.88 | ||||||
| £34,577.74 |
THE RAEC AND ETS BRANCH ASSOCIATION
COMBINED FUNDS
STATEMENT OF ASSETS & LIABILITIES (as at 31 December 2022)
| FIXED ASSETS Investments at Market Value Total Fixed Assets CURRENT ASSETS Bank Current Account Unrestricted Restricted Total Current Assets TOTAL ASSETS Total Assets Minus Total Liabilties Funds Unrestricted Funds: General Investment Funds Designated Funds: Benevolent Investment Fund Total Unrestricted Funds Restricted Funds: Chris Butt Memorial Fund |
2022 Current Period |
2021 Previous Period |
|---|---|---|
| 771,417.00 840,542.00 771,417.00 840,542.00 32,872.74 32,069.52 1,705.00 2,000.00 34,577.74 34,069.52 805,994.74 874,611.52 805,994.74 874,611.52 226,224.68 251,676.14 578,065.06 620,935.38 804,289.74 872,611.52 1,705.00 2,000.00 1,705.00 2,000.00 |
||