OpenCharities

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

2022-12-31-accounts

SOLDIERS’ & AIRMEN’S SCRIPTURE READERS ASSOCIATION

Annual Report 2022

Registered Company Number: 329268 (England and Wales) Registered Charity Number: 235708

This page does not form part of the statutory financial statements

CONTENTS

REPORT OF THE TRUSTEES ______ 3 Structure, Governance and Management______ 3 Reference and Administrative Details _______ 3 1. Governance __________ 4 2. Strategic Report ___________ 7

This page does not form part of the statutory financial statements.

2

REPORT OF THE TRUSTEES

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31[st] December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1[st] January 2019).

Structure, Governance and Management

Reference and Administrative Details

REGISTERED COMPANY NUMBER 329268 (England and Wales)

REGISTERED OFFICE Havelock House, Barrack Road, ALDERSHOT, Hampshire, GU11 3NP TRUSTEES

Col J W Lewis (Chairman) Brig D Reeve Col C R Rider CBE Gp Capt M E Bunting RAF (resigned 12th Feb 2022) Lt Col J Allen MB ChB FRCS Lt Col N C E Dawes Lt Col D Ellison (appointed 22nd August 2022) Lt Col C M StG Kirke PhD Maj P Bray RIFLES Maj M Claydon Maj A C Massey QARANC Maj P D Shannon MBE Maj W Wells RGJ Sqn Ldr R A Gallaugher MBE Sqn Ldr J Greenald Flt Lt D H Heath Mr S R Pryor Mr J P M Wooldridge

AUDITORS HPCA Ltd Chartered Accountants and Statutory Auditors Station House, Connaught Road, Brookwood, Woking, Surrey, GU24 0ER

This page does not form part of the statutory financial statements.

3

SOLICITORS Moore Barlow Concorde House, 165 Church Street East, Woking, Surrey, GU21 6HJ

BROKERS

Brewin Dolphin Securities Ltd 12 Smithfield Street, London, EC1A 9BD

EXECUTIVE DIRECTOR

Sqn Ldr (Retd) Rev Dr A A Hill BSc MSc MBA PhD Dip Mgt Dip CPC Dip Comp RAF (resigned 30[th] October 2022)

PRESIDENT

Major General (Retd) R J Thomson CBE DSO

PRESIDENT EMERITUS

General the Lord Dannatt GCB CBE MC DL

VICE-PRESIDENTS Major General Rev R M Llewellyn CB OBE Major General Sir Laurence New CB CBE Brigadier W I C Dobbie OBE Colonel E B L Armitstead CBE Rev Gp Capt (Retd) T Wright RAF (Resigned 28[th] Feb 2022) Lady J Farmer

COMPANY SECRETARY

Sqn Ldr (Retd) Rev A A Hill BSc MSc MBA PhD Dip Mgt Dip CPC Dip Comp RAF (resigned 30[th] October 2022)

PATRON

Her Majesty the Queen (until Her Majesty’s death on 8[th] September 2022)

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

1. Governance

1.a Management of the Soldiers’ & Airmen’s Scripture Readers Association (SASRA)

The Board of SASRA met on four occasions during the year to establish overall strategy and policy, to determine matters of principle, deal with budgeting and other financial matters, including the oversight of properties, to confirm recruitment decisions and to review progress towards achieving plans and goals. The Directors of SASRA, appointed by the Board, manage the day-to-day operations. Management decisions are relayed to field staff through HQ staff. Communications with all employees are maintained through regular meetings, fraternal groups, video conference, staff conference, email, telephone and written documentation.

This page does not form part of the statutory financial statements.

4

1.b Management Structure

SASRA HQ Senior Staff are accountable to the Board of Trustees to lead and serve the

Association. Under the leadership of the Executive Director they have responsibility to recommend and implement the strategy of the Association.

MEMBERS OF SASRA HQ

Senior Staff: Executive Director Andrew Hill (resigned 30[th] October 2022) Ministry Director Warran Fawcett (resigned 31[st] March 2022) Ministry Director Tim Wright (appointed 1[st] March 2022) Operations Director Warren Berdo Finance Director Phil Rush Facilities Director Colin Williams HQ Staff: Administration Officer Shirley Henderson (resigned 31[st] October 2022) Development Officer Gareth Bartlett Donor Relations Officer Sandra Stockwell Finance Officer Jacqueline Thomas Prayer Coordinator Laura Reuter Support Officer Sophie Pomeroy Communications Officer Olia Mitskevich Lead Communications Officer John Surtees

ASSOCIATION MEMBERSHIP

The Association has a membership limited to 50 in its Articles of Association; these are the members of the Company from whom the Trustees (Council or Board) are appointed. There are currently 16 members, who are synonymous with the Trustees. (This membership is distinct from the category 'serving members', which comprises those currently serving in the Military who have chosen to join the Association to be associated with, and to contribute to its activities). Members sign a written consent to become a member. Subject to any regulations which the Association may make in a General Meeting, the Council has the right to choose members of the Association, but no person shall be admitted to membership unless and until he or she signs a form expressing adherence to the basis of belief upon which the work of the Association is carried out. The Chairman, assisted by the members, seeks to identify potential new members who have appropriate military experience and/or professional or other qualifications and experience which would equip them to assist with the management of the Association.

This page does not form part of the statutory financial statements.

5

GOVERNING DOCUMENTS

The Memorandum and Articles of Association of the Soldiers' & Airmen's Scripture Readers Association were incorporated on the 29[th] of June 1937. Under the Companies Act the Association was incorporated as a Company limited by guarantee and not having a share capital. The Governing Documents set out the objects for which the Association was established, and how the Association is to be managed.

COUNCIL OF MANAGEMENT

The Council of Management (or Trustees), drawn from the membership, shall not number less than 12 or more than 24. The Council may appoint any member of the Association as a member of the Council until the next Ordinary General Meeting, when the individual shall then be eligible for re-election.

ELECTION, ROTATION AND TRAINING OF TRUSTEES

At the Ordinary General Meeting to be held each year members of the Council who have served for three years will retire; a retiring member of the Council shall be eligible for re-election. Only members of the Association are empowered to vote in such elections. New Trustees, on appointment, are given an induction training package to introduce them to their responsibilities. They are provided with copies of the Association's governing documents, and the guidance provided for trustees by the Charity Commission. Additionally, they receive briefings from HQ staff on the financial processes and accounts of the Association, the policies of the Association and any issues or challenges faced by the Association. Trustees are encouraged to attend third-party training on the role and responsibilities of their office.

MANAGEMENT OF THE ASSOCIATION

The Council plans to meet 4 times each year in ordinary council meetings, one of which is also the Annual General Meeting. Extraordinary Council meetings may be called as required. The Council meets for the dispatch of business, to adjourn and otherwise regulate their meetings as they think fit, and to determine the quorum necessary for the transaction of business. Unless otherwise determined, five (5) shall be a quorum. Questions arising at any meeting are decided by a majority of votes. In case of an equality of votes the Chairman has a second or casting vote.

The Council may delegate any of its powers to committees consisting of such member or members of the Council as they think fit, and any committee so formed shall conform to any regulations imposed on it by the Council.

This page does not form part of the statutory financial statements.

6

VICE PRESIDENTS

Rev (Gp Capt) Tim Wright moved from the Vice-Presidential bench to become the Ministry Director for the Association following the departure of Warran Fawcett.

1.c Pay Policy for Staff

SASRA's Trustees give their time freely and receive no remuneration. They are entitled to

expenses, but none were claimed in 2022. The pay of the Staff is reviewed annually and normally increased in line with the SASRA Pay Policy. A Pay Review Body under the chairmanship of Major Philip Bray was convened in 2016 to review all pay and allowances for SASRA Staff. This Body made its recommendations to the Board in October 2016. The approved recommendations were put into effect from 1[st] January 2017, subject to affordability.

2. Strategic Report

2.a Aims and Objectives of SASRA

The principal objectives of the Association are to:

Scripture Readers endeavour to explain the Gospel of Jesus Christ and demonstrate its power by living their lives in accordance with the teaching of the Bible. Scripture Readers also encourage regular individual and corporate Bible study and the formation of fellowship gatherings.

2.b Strategies Adopted and Activities Undertaken to Achieve the Aims and Objectives

SASRA works on a wide variety of British Army establishments and some RAF Bases in accordance with the following strategies:

This page does not form part of the statutory financial statements.

7

2.c Ministries

The Association has continued to enjoy the support and encouragement of the Ministry of Defence Chaplains Branches who provide the formal sponsorship without which our work could not continue on MOD bases. For many years SASRA has operated in the Army under the terms of a Charter agreed with the Royal Army Chaplain's Department. In 2016 extensive work was undertaken to craft a Memorandum of Understanding (MoU) to govern SASRA's work with the British Army, and on the 5th of August 2016 this was signed by Reverend Doctor David Coulter QHC, Chaplain General; Major General Richard Stanford MBE, General Officer Commanding Regional Command; and Colonel John Lewis, SASRA Chairman. This MoU provides a firm base from which the work of the Association can be continued and developed, and we thank the Lord for His provision. Following consultation with the Chaplain in Chief of the Royal Air Force and his staff work was completed on reviewing and updating General Administrative Instruction 1005, which governs SASRA's work with the Royal Air Force.

Throughout 2022 SASRA continued to provide spiritual instruction and support to members of the British Army and the Royal Air Force through the labours and hard work of our Scripture Readers, both full and part-time. This has included providing pastoral support and values and standards instruction to numerous young soldiers and aviators. Our Regional Managers have worked within the constraints of Covid restrictions to bring the work of the Association before the Christian public to stimulate and garner prayer and financial support.

Our Scripture Readers are active on a wide range of military bases throughout the UK. Work commenced in 2020 to deploy a Scripture Reader to Cyprus, with the Executive Director visiting British Forces Cyprus at the invitation of our President, the Commander British Forces Cyprus, in December 2021. At the close of 2022 no deployment had been achieved, but with further work and the agreement of the parties involved such a post on Cyprus remains a possibility.

For security reasons it is not possible to publish a list of the military establishments visited by our Scripture Readers.

This page does not form part of the statutory financial statements.

8

2.d Achievements and Performance

FUNDRAISING & SUPPORTER RELATIONS

SASRA would like to thank all individual and church supporters for their continuing partnership in the gospel through their prayers, financial gifts and volunteering their time. This support is vital to the continuing work of SASRA and the future growth of the ministry, and we are thankful to God for all our gospel partners. The Association would also like to thank our supporting trusts who contribute towards the cost of the ministry.

In compliance with the Charities (Protection and Social Investment) Act 2016 section 13:

While the Association is not registered with the Fundraising Regulator, the Trustees are cognizant of the Fundraising Code and the Fundraising Promise.

Donations in 2022 totalled £997,550 which was an increase of 7.5% over the previous year's figure of £928,381.

Gift Aid income fell slightly in 2022 by 8% to £52,320 (2021: 56,884).

Legacy income increased by 26% from £121,088 to £152,472.

Investment income grew by 62% to £84,749 compared to £52,102 last year. Dividends received from stock market investments grew £4,396 (12%) and rental income increased £27,615 (195%) This page does not form part of the statutory financial statements.

9

as it was not possible to rent out a total of three of the properties on short term leases. The Association is profoundly grateful for the Lord's provision through the giving of His people.

The Association communicates with supporters across various media including traditional print publications and digital channels, and continues to review and improve these communications with the aim to provide supporters with the resources they need to engage fully in support of the work of the Association.

PROPERTY

Where possible Scripture Readers are accommodated in Service Family Accommodation (SFA), as this places them in the heart of the communities to which they minister. These properties are normally provided to SASRA staff at charitable rates, which are lower than open market rates, and this benefit is reflected in the accounts as Intangible Income of £60,000. With most UK Military Personnel based at home there remains a high demand for military housing, and this makes it more difficult for SASRA staff to obtain SFA. Where service-provided housing is unavailable the Association purchases suitable properties for our staff on the open market.

PUBLIC BENEFIT

The Trustees have had regard to the Charity Commission's guidance on public benefit. Public Benefits Offered by SASRA:

Whilst the Association concentrates its efforts upon British Military personnel and their families, it also seeks to minister to any others who might be present. SASRA's Christian ministry is offered to all, regardless of rank or class, financial status, ethnicity, educational standard, mental, intellectual, or physical abilities, sexual and gender orientations or belief.

This page does not form part of the statutory financial statements.

10

2.e Financial Review

Our total incoming resources in 2022 were £1,347,351 which was 6% higher than the £1,266,525 achieved in 2021. Total resources expended increased by 3% across the year to £1,375,069. For 2022 our net position before investment gains and losses showed a deficit of £27,718 (2021: deficit £67,357).

ENDOWMENT FUNDS

The stock market performance through 2022 resulted in our Endowment Funds falling slightly in value to £3,032,253 at the close of 2022 (2021: £3,093, 383) a decrease of 2%. Whilst these funds are of considerable importance to the Association as the means of providing staff with housing, this is the only use to which the capital can currently be put. The Association is in the perverse position of appearing to be a relatively wealthy charity because of these restricted funds, whereas the reality is that our unrestricted investments available for operational spending amount to the much smaller sum of £972,769, equivalent to around 7 months' operating costs. Council policy is that available reserves should be between 3- and 6-months’ operating costs.

ALLOCATION AND APPORTIONMENT OF COSTS

For many years total support costs had been allocated against 'Generating Funds' at a rate of 15%, and the direct costs relating to Area Representatives had been allocated to 'Generating Funds' at the rate of 50%. These apportionments resulted in high costs for the activity 'Generating Funds'. The basis of allocation was set a number of years ago and had not been subject to review. With the introduction of the new Charity SORP and the establishment of the Fundraising Regulator, it was considered an appropriate time to revisit the calculations. Consequently, the Trustees in conjunction with the relevant staff re-examined the apportionment values used to determine the resources expended on fundraising, and this yielded a value of £69,133 in 2022. The intention to use Volunteer Representatives to undertake the bulk of deputation visits in the future means that it is expected that the cost of generating funds will continue to be limited. The Association normally benefits from the voluntary service given by local representatives, but the Covid-19 restrictions restricted such activity in 2021, and levels of engagement remain lower than before the pandemic. Many volunteers choose not to claim legitimate expenses, although they are encouraged in these cases to make a claim and donate the proceeds. This then reflects at least some of the true costs of running the Association.

RESERVES POLICY

The Trustees' policy is that the Association should hold between 3- and 6-months' operational expenditure in cash or near cash to cope with cash flow fluctuations and any short-term This page does not form part of the statutory financial statements.

11

unexpected demands such as a sudden dramatic fall in dividend income. At the time of preparation of these accounts the Association held the equivalent of 7 months' general reserves in cash and near cash. In view of the economic pressures resulting from both the Covid pandemic and the conflict in Ukraine the Trustees considered it prudent to hold an increased level of general reserves. It has yet to be seen what effect the rapid cost of living increases will have on the ability of supporters to provide funding for the work of the Association.

Additionally, the Association holds housing stock for the conduct of its ministry, and the Trustees recognise the potential need to provide housing for either additional workers or existing workers who may have to move out of military quarters. This requirement would be met from restricted reserves.

2.f Risk Management, Principal Risks and Uncertainties

RISK MANAGEMENT

The Council has overall responsibility for risk management and for the risk management statement required annually by the Charities SORP. The duties of the Council in this respect are to:

Executive Director and Directors

The responsibilities of the Executive Director and Directors are to:

Risk management methodology

The risk management methodology includes the following key stages:

This page does not form part of the statutory financial statements.

12

Annual review of effectiveness

In reviewing the effectiveness of risk management the following sources are considered:

a) The adequacy of the controls as evidenced by reports from external auditors and third parties.

b) SASRA's performance in achieving its objectives and its financial and non-financial targets.

In implementing our risk management policy the Association will:

SIGNIFICANT RISKS

REPUTATION

The Soldiers' & Airmen's Scripture Readers Association is a Christian organisation. Any scandal could have an adverse effect upon relations within our supporter base and our standing with the Christian public, the Chaplaincy and Military authorities. Training is provided to field staff each year by both the Military Authorities and by the Association, dealing in particular with the wise and appropriate handling of current issues and concerns.

MINISTRY TO THE RAF

The Association currently has one full-time RAF Scripture Reader but anticipates deploying a second Scripture Reader with the RAF. We are deeply grateful for the help and support we have received from Chaplaincy and other RAF personnel to enable this increased level of ministry to RAF personnel.

This page does not form part of the statutory financial statements.

13

COMMUNICATION WITH STAKEHOLDERS

SASRA must communicate effectively with our supporters, staff, partner organisations (including supporting churches and trusts) the Chaplaincy and Military authorities. Failure to do so will put income streams at risk and could threaten permissions to operate on military bases. The Association seeks to adopt a relational approach with stakeholders and aims to respect their preferences for the type and frequency of communication. The Association does not engage in telephone fundraising, nor does it outsource fundraising to professional agencies. The aim is never to intentionally put vulnerable people or any supporters under pressure to give to support the ministry.

In order to strengthen the links with the Royal Army Chaplains Department the Association has negotiated the establishment of two Chaplaincy Liaison Officers. Under Protocol 1 to the MoU they are tasked with assisting the Association in recruiting, training and deploying new Scripture Readers, providing advice and guidance as required, and assisting with the resolution of any disputes or unhappiness with our deployed Scripture Readers. Work is progressing to establish RAF Chaplaincy Liaison Officers to further cement the working relationships with the RAF. ALLEGATIONS OF IMPROPER CONDUCT TOWARDS CHILDREN AND VULNERABLE ADULTS

Some of the Staff work with young people (under 18's). Adverse public relations would result in SASRA losing integrity within the community and so impact funding and other support for ministry. To minimise any potential situation all staff working in this area have received Disclosure and Barring Service clearance. In-house and regular military training is given on safeguarding to all staff members who work with young people. There is no regular work with vulnerable adults. SASRA STAFF

SASRA must recruit staff of appropriate calibre in order to achieve the charitable aims. The Association continues to revise and develop the selection procedures, especially for Scripture Readers, currently focussed around a 48-hour residential process which incorporates role-play, team activities, written exams and interviews in order to evaluate Scripture Reader candidates more effectively.

2.g The Future

SASRA operates in a complex environment with rapidly changing values and much uncertainty. Within the Christian community it is also a time of changing attitudes to Christian societies and giving, and it is essential that SASRA adapts its methods and structures accordingly. The Association will focus on supporting and sharing the love of God and the good news of Jesus Christ with the military community. The aim is to increase the numbers of our staff to provide a SASRA Scripture Reader in every major military establishment, and to partner with other churches and Christian organisations. This ambition requires us to significantly increase our income, and to this end the Association will work to enhance the fundraising ability through the more effective

This page does not form part of the statutory financial statements.

14

employment of current staff and the expansion of fund-raising capabilities. The aim is for excellence in the work so that all staff serve the Lord Jesus Christ to the very best of their abilities STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including its income and expenditure, of the charity for the year. In preparing financial statements the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Trustees' Statement

Each of the Trustees has confirmed that so far as they are aware there is no relevant audit information of which the auditors are unaware, and that they have taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The Trustees have also ensured that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005.

This page does not form part of the statutory financial statements.

15

AUDITORS

The auditors, HPCA Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 24/05/2023 and signed on its behalf by:

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

Col J W Lewis - Trustee

This page does not form part of the statutory financial statements.

16

REGISTERED COMPANY NUMBER: 329268 (England and Wales) REGISTERED CHARITY NUMBER: 235708

S.A.S.R.A.

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

HPCA Ltd Chartered Accountants and Statutory Auditors Station House Connaught Road Brookwood Woking Surrey GU24 0ER

S.A.S.R.A.

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 December 2022

Page
Report of the Independent Auditors 20 to 22
Statement of Financial Activities 23
Balance Sheet 24 to 25
Cash Flow Statement 26
Notes to the Cash Flow Statement 27
Notes to the Financial Statements 28 to 45
Detailed Statement of Financial Activities 46 to 48

18

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF S.A.S.R.A.

Opinion

We have audited the financial statements of S.A.S.R.A. (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

19

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF S.A.S.R.A.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

20

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF S.A.S.R.A.

Our responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

21

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF S.A.S.R.A.

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

A further description of our responsibilities for the audit of the financial statements is located on the IAASA's website at https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsiblities_for_audit. This description forms part of our Report of the Auditors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees 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 assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Lance Redman (Senior Statutory Auditor) for and on behalf of HPCA Ltd Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Station House Connaught Road Brookwood Woking Surrey GU24 0ER Date: .............................................

22

S.A.S.R.A.

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the year ended 31 December 2022

Notes
INCOME AND
ENDOWMENTS FROM
Donations and legacies
2
Other trading activities
3
Investment income
4
Other income
5
Total
EXPENDITURE ON
Raising funds
Charitable activities
6
Scripture Readers - contact with
Military Personnel
Total
Net gains/(losses) on investments
NET
INCOME/(EXPENDITURE)
Transfers between funds
19
Net movement in funds
RECONCILIATION OF
FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
funds
£
1,258,942
3,660
58,759
-
1,321,361
63,824
1,305,936
1,369,760
(61,334)
(109,733)
25,990
(83,743)
2,161,759
2,078,016		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Endowment
funds
£
-
-
25,990
-
25,990
5,309
-
5,309
(55,821)
(35,140)
(25,990)
(61,130)
3,093,383
3,032,253		 2022
Total
funds
£
1,258,942
3,660
84,749
-
1,347,351
69,133
1,305,936
1,375,069
(117,155)
(144,873)
-
(144,873)
5,255,142
5,110,269		 2021
Total
funds
£
1,170,853
17,674
52,102
25,896
1,266,525
45,123
1,288,759
1,333,882
155,079
87,722
-
87,722
5,167,420
5,255,142

The notes form part of these financial statements

23

S.A.S.R.A.

BALANCE SHEET 31 December 2022

Notes
FIXED ASSETS
Tangible assets
13
Investments
14
CURRENT ASSETS
Stocks
15
Debtors
16
Cash at bank and in hand
CREDITORS
Amounts falling due within one
year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
PENSION LIABILITY
20
NET ASSETS
FUNDS
19
Unrestricted funds:
General fund
Designated Fund - Properties
Designated Fund - Investments
Endowment funds
TOTAL FUNDS		 Unrestricted
funds
£
1,164,416
491,925
1,656,341
15,723
166,891
346,187
528,801
(60,326)
468,475
2,124,816
(46,800)
2,078,016		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-		 Endowment
funds
£
2,130,131
765,034
2,895,165
-
1,782
135,306
137,088
-
137,088
3,032,253
-
3,032,253		 2022
Total
funds
£
3,294,547
1,256,959
4,551,506
15,723
168,673
481,493
665,889
(60,326)
605,563
5,157,069
(46,800)
5,110,269
437,985
1,138,693
501,338
2,078,016
3,032,253
5,110,269		 2021
Total
funds
£
3,308,213
1,382,912
4,691,125
24,640
181,641
478,870
685,151
(73,134)
612,017
5,303,142
(48,000)
5,255,142
473,635
1,138,693
549,431
2,161,759
3,093,383
5,255,142

The notes form part of these financial statements

continued...

24

S.A.S.R.A.

BALANCE SHEET - continued 31 December 2022

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

The financial statements were approved by the Board of Trustees and authorised for issue on 24/05/2023 and were signed on its behalf by:

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

J W Lewis - Trustee

The notes form part of these financial statements

25

S.A.S.R.A.

CASH FLOW STATEMENT
for the year ended 31 December 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(38,895)
Interest paid
(1,833)
Net cash used in operating activities
(40,728)
Cash flows from investing activities
Purchase of tangible fixed assets
(3,091)
Purchase of fixed asset investments
(81,026)
Sale of tangible fixed assets
-
Sale of fixed asset investments
67,168
Movement in investment cash account
22,656
Interest received
1,245
Dividends received
41,708
Net cash provided by investing activities
48,660
Cash flows from financing activities
Loan repayments in year
-
Expenditure attributable to endowment
(5,309)
Net cash used in financing activities
(5,309)
Change in cash and cash equivalents in the
reporting period
2,623
Cash and cash equivalents at the beginning
of the reporting period
478,870
Cash and cash equivalents at the end of the
reporting period
481,493		 2021
£
(173,119)
(1,446)
(174,565)
(406,786)
(347,192)
235,596
497,092
49,249
609
37,312
65,880
(13,000)
(38,253)
(51,253)
(159,938)
638,808
478,870

The notes form part of these financial statements

26

S.A.S.R.A.

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 December 2022

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Depreciation charges
Losses/(gain) on investments
Loss on disposal of fixed assets
Interest received
Interest paid
Dividends received
Expenditure attributable to endowment
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Decrease in creditors
Net cash used in operations		 2022
£
(144,873)
16,757
117,155
-
(1,245)
1,833
(41,708)
5,309
8,917
12,968
(14,008)
(38,895)		 2021
£
87,722
17,651
(155,079)
32,404
(609)
1,446
(37,312)
38,253
(2,893)
(97,796)
(56,906)
(173,119)

2.

ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank and in hand 478,870 2,623 481,493
478,870 2,623 481,493
Total 478,870 2,623 481,493

The notes form part of these financial statements

27

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The Financial statements have been prepared on the going concern basis.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Specifically, legacy income is recognised when the charitable company is first notified after grant of probate, and only if a value can be reasonably estimated for all elements of costs such as legal fees.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Raising funds

Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading.

Charitable activities

Costs of charitable activities are incurred principally in the provision of staff delivering the charitable objectives of the Association. These were formerly separately identified as the work of our Scripture Readers in providing spiritual and pastoral support to our beneficiaries and our Area Representatives in informing the Christian public of our work. As the charity has had a reorganisation and no longer has Area Representatives, there is now only one principle activity and the account presentation has been adjusted to reflect this. The support costs relating to the management and governance of the charity is apportioned to charitable activities.

Governance costs

This includes accountancy and professional fees incurred by the Charity to meet its statutory obligations.

Allocation and apportionment of costs

Support costs are made up of the management costs of running the charity. Part of these costs are directly allocated to Costs for Generating Funds and the remainder is allocated to Charitable Activities.

Tangible fixed assets

The policy for capitalising fixed assets is items >£200 each.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Furniture & Equipment - 10% to 33.33% on cost Motor Vehicles - 20% on cost

continued...

28

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Freehold properties

Properties are initially recognised at cost. Properties are subsequently carried at the revalued amount and not depreciated. Properties are valued on an annual basis, whenever their carrying amounts are likely to differ materially from their revalued amounts.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

The charity has five non-expendable endowment funds. These were capital gifts comprising of properties held for the specific use of housing Scripture Readers, and Trustee Status Investments. Income generated on the investments is treated as unrestricted.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable in the year are charged in the Statement of Financial Activities in the period to which they relate. Furthermore, in the past, the charitable company also made contributions to a defined benefit scheme up to 31st December 2005. More information on this is provided under the relevant note to the accounts.

Investments

The investments are quoted investments and stated at mid-market value at the balance sheet date. Surpluses and deficits on revaluation of the portfolio at the end of the year are reflected in the accounts in the Statement of Financial Activities separately between realised and unrealised gains.

continued...

29

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

2.
DONATIONS AND LEGACIES
Donations
Gift aid
Legacies
Intangible income
3.
OTHER TRADING ACTIVITIES
Sales
4.
INVESTMENT INCOME
Rents received
Dividend income
Deposit account interest
5.
OTHER INCOME
Coronavirus Grant income
6.
CHARITABLE ACTIVITIES COSTS
Scripture Readers - contact with Military
Personnel		 Direct
Costs (see
note 7)
£
603,858		 2022
£
997,550
52,320
152,472
56,600
1,258,942
2022
£
3,660
2022
£
41,796
41,708
1,245
84,749
2022
£
-
Support
costs (see
note 8)
£
702,078		 2021
£
928,381
56,884
121,088
64,500		 2021
£
928,381
56,884
121,088
64,500
1,170,853
2021
£
17,674
2021
£
14,181
37,312
609
52,102
2021
£
25,896
Totals
£
1,305,936		 2021
£
17,674
2021
£
14,181
37,312
609
52,102
2021
£
25,896

continued...

30

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

7. DIRECT COSTS OF CHARITABLE ACTIVITIES

2022
£
Staff costs
416,598
Other operating leases
32,725
Telephone
5,461
Postage and stationery
153
Rent & rates
33,220
Computer costs
729
Heating & cleaning
17,369
Travel & motor expenses
19,018
Other staff costs
5,320
Accommodation costs
56,600
Conferences expenses
9,319
Relocation costs
7,346
Sundries
-
Loss on sale of assets
-
603,858
8.
SUPPORT COSTS
Governance
Management
costs
£
£
Scripture Readers - contact with Military
Personnel
689,850
12,228		 2021
£
423,907
19,043
8,283
212
35,967
844
14,899
18,652
8,336
64,500
4,370
4,135
2,531
32,404
638,083
Totals
£
702,078

Support costs, included in the above, are as follows:

Management

2022
Scripture
Readers -
contact
with
Military
Personnel
£
Salaries and expenses
369,515
Social security
36,161
Pensions
30,198
Other operating leases
1,168
Insurance
12,986
Recruitment costs
5,405
Telephone
3,832
Copying, postage & stationery
7,367
Accommodation costs & maint
43,965
Carried forward
510,597		 2021
Total
activities
£
314,720
27,667
24,606
5,327
10,248
-
4,273
39,871
31,261
457,973

continued...

31

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

8. SUPPORT COSTS - continued

Management - continued

2022
Scripture
Readers -
contact
with
Military
Personnel
£
Brought forward
510,597
Rent & service charges
35,429
Computer expenses
14,936
Outsource service fees
3,786
Professional fees
16,689
Travel & motor expenses
8,670
Other staff costs
5,025
Training
4,349
Publication
70,494
Sundries
1,285
Depreciation of tangible and heritage assets
16,757
Bank interest
1,833
689,850
Governance costs
2022
Scripture
Readers -
contact
with
Military
Personnel
£
Auditors' remuneration
10,528
Auditors' remuneration for non audit work
1,700
Professional fees
-
12,228		 2021
Total
activities
£
457,973
36,644
16,321
4,438
15,294
7,377
2,995
16,618
60,493
2,076
17,651
1,446
639,326
2021
Total
activities
£
9,600
1,600
150
11,350

Governance costs

continued...

32

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Auditors' remuneration for non audit work
Depreciation - owned assets
Other operating leases
Deficit on disposal of fixed assets		 2022
£
10,528
1,700
16,757
33,893
-		 2021
£
9,600
1,600
17,650
24,370
32,404

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Please refer to note 26 for other transactions with Trustees.

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
724,000
67,217
67,179
858,396		 2021
£
696,741
62,319
63,582
822,642

The average monthly number of employees during the year was as follows:

HQ Staff
Scripture Readers
Regional Managers		 2022
13
14
2
29		 2021
13
15
2
30

No employees received emoluments in excess of £60,000.

The average number of volunteers were 92 this year (2021: 59).

The trustees have considered that the key management personnel comprise of the trustees, the Executive Director, the Finance Director, the Ministry Director, the Facilities Director and the Operations Director. The total compensation paid and payable of the key management personnel during the financial year was £207,472 (2021: £195,846).

continued...

33

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

12.
COMPARATIVES (2021) FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
1,170,853
-
-
Other trading activities
17,674
-
-
Investment income
27,984
-
24,118
Other income
25,896
-
-
Total
1,242,407
-
24,118
EXPENDITURE ON
Raising funds
39,274
-
5,849
Charitable activities
Scripture Readers - contact with Military
Personnel
1,254,739
1,616
32,404
Total
1,294,013
1,616
38,253
Net gains on investments
59,108
-
95,971
NET INCOME/(EXPENDITURE)
7,502
(1,616)
81,836
Transfers between funds
24,118
-
(24,118)
Net movement in funds
31,620
(1,616)
57,718
RECONCILIATION OF FUNDS
Total funds brought forward
2,130,139
1,616
3,035,665
TOTAL FUNDS CARRIED FORWARD
2,161,759
-
3,093,383		 Total
funds
£
1,170,853
17,674
52,102
25,896
1,266,525
45,123
1,288,759
1,333,882
155,079
87,722
-
87,722
5,167,420
5,255,142

continued...

34

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

13. TANGIBLE FIXED ASSETS

COST
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Freehold
property
£
3,297,622
-
3,297,622
19,890
7,497
27,387
3,270,235
3,277,732		 Furniture
& Equipment
£
110,690
3,091
113,781
86,976
7,860
94,836
18,945
23,714		 Motor
vehicles
£
7,000
-
7,000
233
1,400
1,633
5,367
6,767		 Totals
£
3,415,312
3,091
3,418,403
107,099
16,757
123,856
3,294,547
3,308,213

Included in Freehold properties, is a property beneficially owned by the charity, of which title is held by the W H Dawson Trust. All freehold properties are held for direct charitable purposes.

All the freehold residential properties were revalued by management during the year on the basis of a prudent estimate of residual value.

Also included in Freehold properties is a property with carrying value of £44,028 which is tied into a leasehold which is due to expire in Nov 2028. This revaluation is based on the estimated future rental income since the property does not have a market value. This property will be depreciated over the remaining life of its lease.

14. FIXED ASSET INVESTMENTS

Shares
Other		 2022
£
1,209,289
47,670
1,256,959		 2021
£
1,357,898
25,014
1,382,912

continued...

35

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

14. FIXED ASSET INVESTMENTS - continued

Additional information as follows:

MARKET VALUE
At 1 January 2022
Additions
Disposals
Revaluations
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Listed
investments
£
1,357,898
35,714
(76,157)
(108,166)
1,209,289
1,209,289
1,357,898

The historical cost for the above Fixed Asset Investments is £1,014,315 (2021: £1,041,352).

There were no investment assets outside the UK. No investment exceeded 5% of the market value of the portfolio.

Cost or valuation at 31 December 2022 is represented by:

Valuation in 2022
Investments (neither listed nor unlisted) were as follows:
Cash held for investment		 2022
£
47,670		 Listed
investments
£
1,209,289
2021
£
25,014

continued...

36

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

15.
STOCKS
Stocks
This included a provision for slow moving stock of £5,000 (2021: £6,593)
16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Miss Daniell's Soldiers' Homes
Dividend and int receivable
Legacy debtors
Other debtors
Gift aid tax reclaim due
Prepayments
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Social security and other taxes
Other creditors
Women's Fellowship
Welfare Fund
Accrued expenses
18.
LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
Within one year
Between one and five years		 2022
£
15,723
2022
£
32,222
3,037
115,000
-
1,700
16,714
168,673
2022
£
16,095
31,731
-
-
12,500
60,326
2022
£
25,056
6,802
31,858		 2021
£
24,640
2021
£
16,577
1,076
145,075
696
1,976
16,241		 2021
£
24,640
181,641
2021
£
17,959
27,495
3,592
9,500
14,588
73,134
2021
£
26,725
22,488
49,213

continued...

37

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

19. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated Fund - Properties
Designated Fund - Investments
Endowment funds
The King Edward VII Soldiers & Sailors
Ins. Fund
The Consolidated Fund
The W H Dawson Trust
Granville-Smith Fund
The Marter Reader Fund
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
Designated Fund - Investments
Endowment funds
The King Edward VII Soldiers & Sailors
Ins. Fund
The W H Dawson Trust
TOTAL FUNDS		 At 1.1.22
£
473,635
1,138,693
549,431
2,161,759
500,517
399,682
2,181,510
8,889
2,785
3,093,383
5,255,142
as follows:
Incoming
resources
£
1,321,361
-
1,321,361
5,669
20,321
25,990
1,347,351		 Net
movement
in funds
£
(61,640)
-
(48,093)
(109,733)
(5,661)
-
(29,479)
-
-
(35,140)
(144,873)
Resources
expended
£
(1,369,760)
-
(1,369,760)
(1,191)
(4,118)
(5,309)
(1,375,069)		 Transfers
between
funds
£
25,990
-
-
25,990
(5,669)
-
(20,321)
-
-
(25,990)
-
Gains and
losses
£
(13,241)
(48,093)
(61,334)
(10,139)
(45,682)
(55,821)
(117,155)		 At
31.12.22
£
437,985
1,138,693
501,338
2,078,016
489,187
399,682
2,131,710
8,889
2,785
3,032,253
5,110,269
Movement
in funds
£
(61,640)
(48,093)
(109,733)
(5,661)
(29,479)
(35,140)
(144,873)

continued...

38

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Designated Fund - Properties
Designated Fund - Investments
Restricted funds
Bible Fund
Endowment funds
The King Edward VII Soldiers & Sailors
Ins. Fund
The Consolidated Fund
The W H Dawson Trust
Granville-Smith Fund
The Marter Reader Fund
TOTAL FUNDS		 At 1.1.21
£
506,643
1,138,693
484,803
2,130,139
1,616
525,486
394,969
2,103,536
8,889
2,785
3,035,665
5,167,420		 Net
movement
in funds
£
(46,320)
-
53,822
7,502
(1,616)
(20,677)
6,443
96,070
-
-
81,836
87,722		 Transfers
between
funds
£
13,312
-
10,806
24,118
-
(4,292)
(1,730)
(18,096)
-
-
(24,118)
-		 At
31.12.21
£
473,635
1,138,693
549,431
2,161,759
-
500,517
399,682
2,181,510
8,889
2,785
3,093,383
5,255,142

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated Fund - Investments
Restricted funds
Bible Fund
Endowment funds
The King Edward VII Soldiers & Sailors
Ins. Fund
The Consolidated Fund
The W H Dawson Trust
TOTAL FUNDS		 Incoming
resources
£
1,242,407
-
1,242,407
-
4,292
1,730
18,096
24,118
1,266,525		 Resources
expended
£
(1,294,013)
-
(1,294,013)
(1,616)
(33,880)
(360)
(4,013)
(38,253)
(1,333,882)		 Gains and
losses
£
5,286
53,822
59,108
-
8,911
5,073
81,987
95,971
155,079		 Movement
in funds
£
(46,320)
53,822
7,502
(1,616)
(20,677)
6,443
96,070
81,836
87,722

continued...

39

40 continued...

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

19. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Designated Fund - Properties
Designated Fund - Investments
Restricted funds
Bible Fund
Endowment funds
The King Edward VII Soldiers & Sailors
Ins. Fund
The Consolidated Fund
The W H Dawson Trust
Granville-Smith Fund
The Marter Reader Fund
TOTAL FUNDS		 At 1.1.21
£
506,643
1,138,693
484,803
2,130,139
1,616
525,486
394,969
2,103,536
8,889
2,785
3,035,665
5,167,420		 Net
movement
in funds
£
(107,960)
-
5,729
(102,231)
(1,616)
(26,338)
6,443
66,591
-
-
46,696
(57,151)		 Transfers
between
funds
£
39,302
-
10,806
50,108
-
(9,961)
(1,730)
(38,417)
-
-
(50,108)
-		 At
31.12.22
£
437,985
1,138,693
501,338
2,078,016
-
489,187
399,682
2,131,710
8,889
2,785
3,032,253
5,110,269

continued...

41

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

19. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated Fund - Investments
Restricted funds
Bible Fund
Endowment funds
The King Edward VII Soldiers & Sailors
Ins. Fund
The Consolidated Fund
The W H Dawson Trust
TOTAL FUNDS		 Incoming
resources
£
2,563,768
-
2,563,768
-
9,961
1,730
38,417
50,108
2,613,876		 Resources
expended
£
(2,663,773)
-
(2,663,773)
(1,616)
(35,071)
(360)
(8,131)
(43,562)
(2,708,951)		 Gains and
losses
£
(7,955)
5,729
(2,226)
-
(1,228)
5,073
36,305
40,150
37,924		 Movement
in funds
£
(107,960)
5,729
(102,231)
(1,616)
(26,338)
6,443
66,591
46,696
(57,151)

Included in total reserves, is a revaluation of £1,321,909 of which £1,126,935 represents the difference between the market value and the historical cost of properties. And £194,974 representing the difference between the market value and the historical cost of investments.

Designated Funds

These represent how much of the total general fund balance is tied into capital, specifically into properties and investments.

Restricted Funds

These comprise of various specific funds, the main one being the provision of fund to invest in much needed IT equipment and software together with appropriate IT support to benefit both the Area Representatives and also the main office.

Endowment Funds

The King Edward VII Soldiers & Sailors Institute Fund - The purpose for this fund is to provide accommodation for Scripture Readers, especially in geographical areas from which the Consolidated Fund is excluded, such as Scotland for instance. The cost of maintaining properties is met by the General Fund. This fund is mainly held in Trustee Status Investments. All cash income is received into the General Fund.

The Consolidated Fund - The purpose for this fund is partly to provide accommodation for Scripture Readers and the balance is held in Trustee Status Investments. All cash income is received into the General Fund.

The W H Dawson Fund - The purpose for this fund is partly to provide accommodation for Scripture Readers and the balance is mainly held in Trustee Status Investments. Income from investments and bank deposit interest is received into the General Fund.

continued...

42

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

19. MOVEMENT IN FUNDS - continued

The Granville Smith Fund - The purpose for this fund is partly to provide accommodation for Scripture Readers and the balance was initially held in Trustee Status Investments, but was since sold and the proceeds held in a deposit account. All cash income is received into the General Fund.

The Marter Reader Fund - This was also a fund held in Trustee Status Investment, and was since sold and the proceeds are held in a deposit account. All cash income is received into the General Fund.

Transfers between funds

The transfer from the Endowment Funds to the General Fund £25,990, represents dividend income received directly into the endowment funds which according to policy are ultimately transferred into the General Fund.

20. EMPLOYEE BENEFIT OBLIGATIONS

A referred to in note 23, the triennial actuarial valuation as at the 31st December 2019, showed a deficit against technical provisions of £48,000 which has been reflected in the financial statements. Additional contributions of £100 per month were made in the year under review.

21. RELATED PARTY DISCLOSURES

The Council of the Soldiers' and Airmen's Readers Association is Corporate Trustee and Beneficiary of various funds comprising non-expendable capital sums under the control of the Charity Commissioner for England and Wales.

The Council is Corporate Trustee and Beneficiary of The Consolidated Soldiers' and Airmen's Scripture Readers Fund (subsequently referred to as "The Consolidated Fund") is used in part to provide accommodation for Scripture Readers, with the balance of this, together with the capital of The Marter Reader Fund and The Granville Smith Memorial Fund, held in Trustee Status Investments.

The Council, under an order of the Gibraltar Supreme Court. is also Corporate Trustee and Beneficiary of The King Edward VII Soldiers' and Sailors Institute Fund. The capital is used to provide accommodation for Scripture Readers, especially in geographical areas from which the Consolidated Fund is excluded, like Scotland for instance. For the time being there are no properties held in Scotland, so all the fund is being held in Trustee Status Investments, until a new property is purchased.

The Council is Beneficiary of the W H Dawson Trust which was originally established solely to provide accommodation for the Association's Headquarters. The Trust has its own Trustees, responsible for the Charity Commissioners for England and Wales, but the Council has power to direct the Trustees within the limits of the Trust Deed and Trustees Investments Act 1961. As sole beneficiary, The Association acts as the secretariat for the Trustees.

The Council is also Corporate Trustee of Miss Daniell's Soldiers' Homes, a Registered Charity No. 233685 whose affairs are dealt with separately as this charity falls within the definition of a "connected charity" rather than a "branch" with respect to the Statement of Recommended Practice (Accounting by Charities). The charitable company pays rent and service charges to Miss Daniell's Soldiers' Homes in respect of office space at Havelock House. These totalled £33,617 (2021: £31,203).

Included in support costs, is the salary and other costs associated with the management of the Jackson Club on behalf of Miss Daniell's Soldiers' Homes, amounting to £46,865 (2021: £42,368).

At the year end, there was a balance receivable from Miss Daniell's Soldiers' Homes of £32,222 (2021: £16,576).

continued...

43

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022

22. POST BALANCE SHEET EVENTS

Subject to regulatory approval the SASRA Council, acting as the corporate trustee of Miss Daniell's Soldiers Homes (MDSH), after a detailed examination of the available options has taken the decision to merge the two charities. The legal work to achieve this merger is currently underway. It is intended that MDSH should remain an entity within SASRA both to maintain the Christian work at the Jackson Club, Gibraltar Barracks, Minley, and to explore opportunities of expanding her work to new locations as appropriate. The merger will benefit MDSH by providing access to the support and management functions available in SASRA, and will benefit SASRA by providing locations from which Scripture Readers can base and operate their ministries in support of serving personnel. For some years MDSH has been running at a modest annual loss, and it is the ambition of the Trustees that this should be reversed and the work be put on a secure footing to guarantee MDSH's future and permit expansion

23. PENSION COMMITMENTS

Up until 31st December 2005, the charity was contributing towards a defined benefit pension scheme providing benefits based on final pensionable pay. It was decided to close this pension fund following the advice of an Independent Actuary, and since then the charity started to contribute towards a defined contribution scheme. Contributions payable in the year are charged in the Statement of Financial Activities. The pension charge for the financial year was £67,179 (2021: £63,582).

The assets of the defined benefit pension scheme are being held separately from those of the charity, and are being invested with insurance companies. Full actuarial valuations are undertaken by an independent, qualified actuary at intervals not exceeding three years. The most recently completed full valuation was as at 31st December 2019 and figures have been updated from that date to the accounting date using data available to the qualified actuary at the time.

The method of valuation which has been adopted is the Current Unit Method, and the assumptions which have the most significant effect on the results of the 2016 valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions. The basis of inflation used for statutory pension increases and statutory revaluation for the scheme has changed from RPI (Retail Price Index) to CPI (Consumer Price Inflation). For members who have not yet retired, and wherever permissible, it was assumed that the investment returns would be 2.4% pa after retirement, and that present pensions would increase at the rate of 2%pa for those subject to CPI and to RPI, and future pensions would increase at the rate of 3.7% pa for those subject to CPI and 2.4%pa to RPI.

The fair value of the scheme's assets as at that date was £283,000 (2016:£326,000) and the present value of the scheme's liabilities was £331,000 (2016:£387,000) giving a deficit in the scheme of £48,000 (2016:£61,000). The movement in the deficit has not been recognised as a reduction in the provision for liabilities and charges in the charity's financial statements.

The next full assessment will be due at 31st December 2023.

continued...

44

S.A.S.R.A.

NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31 December 2022

24. MEMBERS' LIABILITY

Every member of the charitable company undertakes to contribute such amount as may be required (not exceeding 50p) to the charitable company's assets if it should be wound up while he/she is a member, or within one year after he/she ceases to be a member.

45

S.A.S.R.A.

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Legacies
Intangible income
Other trading activities
Sales
Investment income
Rents received
Dividend income
Deposit account interest
Other income
Coronavirus Grant income
Total incoming resources
EXPENDITURE
Raising donations and legacies
Salaries and expenses
Social security
Pensions
Telephone
Postage and stationery
Rent & rates
Computer costs
Heating & cleaning costs
Motor expenses
Publicity & advertising
Other trading activities
Purchases		 2022
£
997,550
52,320
152,472
56,600
1,258,942
3,660
41,796
41,708
1,245
84,749
-
1,347,351
5,207
486
231
85
17
60
-
16
725
38,053
44,880
9,829		 2021
£
928,381
56,884
121,088
64,500
1,170,853
17,674
14,181
37,312
609
52,102
25,896
1,266,525
26,822
2,610
2,310
133
24
305
8
15
492
3,333
36,052
-

This page does not form part of the statutory financial statements

46

S.A.S.R.A.

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022

Other trading activities
Investment management costs
Portfolio management
Rent collection
Property repairs
Charitable activities
Salaries and expenses
Social security
Pensions
Other operating leases
Telephone
Postage and stationery
Rent & rates
Computer costs
Heating & cleaning
Travel & motor expenses
Other staff costs
Accommodation costs
Conferences expenses
Relocation costs
Sundries
Loss on sale of tangible fixed assets
Support costs
Management
Salaries and expenses
Social security
Pensions
Other operating leases
Insurance
Recruitment costs
Telephone
Copying, postage & stationery
Accommodation costs & maint
Rent & service charges
Computer expenses
Outsource service fees
Professional fees
Travel & motor expenses
Other staff costs
Carried forward		 2022
£
8,814
5,610
-
14,424
349,278
30,570
36,750
32,725
5,461
153
33,220
729
17,369
19,018
5,320
56,600
9,319
7,346
-
-
603,858
369,515
36,161
30,198
1,168
12,986
5,405
3,832
7,367
43,965
35,429
14,936
3,786
16,689
8,670
5,025
595,132		 2021
£
7,800
843
428
9,071
355,199
32,042
36,666
19,043
8,283
212
35,967
844
14,899
18,652
8,336
64,500
4,370
4,135
2,531
32,404
638,083
314,720
27,667
24,606
5,327
10,248
-
4,273
39,871
31,261
36,644
16,321
4,438
15,294
7,377
2,995
541,042

This page does not form part of the statutory financial statements

47

S.A.S.R.A.

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022

Management
Brought forward
Training
Publication
Sundries
Freehold property
Fixtures and fittings
Motor vehicles
Bank interest
Governance costs
Auditors' remuneration
Auditors' remuneration for non audit work
Professional fees
Total resources expended
Net expenditure before gains and losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net expenditure		 2022
£
595,132
4,349
70,494
1,285
7,497
7,860
1,400
1,833
689,850
10,528
1,700
-
12,228
1,375,069
(27,718)
(8,989)
(36,707)		 2021
£
541,042
16,618
60,493
2,076
7,127
10,291
233
1,446
639,326
9,600
1,600
150
11,350
1,333,882
(67,357)
24,978
(42,379)

This page does not form part of the statutory financial statements

48