THE ROYAL ARTILLERY ASSOCIATION (RAA) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Registered Charity No: 238197
CONTENTS Trustee and Administrative Information Trustee's Report Independent Auditors, Report 9-12 Statement of Finantlal Actlvities 13 Balance Sheet 14 Cash Flow Statement 15 Notes to the Financlal Statements 16-22
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2023 Trustee During the year ended 31 December 2023, and up to the date of approval of this report, the Corporate Trustee of the Association was.. The Royal Artillery Charitable Fund IRACFI ICC No.. 2102021.. President of the RAA Lieutenant General Sir Andrew Gregory KBE CB DL Chalrman ofthe RAA Brigadier MN Pountain CBE Chairman of the RACF Trustees & RA Board of Management IBOMI Major General DM Cullen CB OBE RACF trustees during the accounting perlod Brigadier MN Pountain CBE Colonel MB Bishop MBE VR Colonel RC Christopher MBE Colonel CE Comport OBE DL TD Colonel CL Coton Colonel MAA Dornan Colonel C Fletcher-wood OBE Colonel RA Forester Colonel RC Harmer ADC Colonel S l Hav Colonel BMD Ingham MBE Colonel C Palmer Colonel MD Relph MBE Colonel G Taylor Lieutenant Colonel SJ Howe Major Ai DSnes TD Major10 Leighton TD Warrant Officer Class I IRASMI L Lightfoot IAppointed 31 May 20241 Warrant Officer Class I IRASMI L Sanders IRetired 31 May 20241 IAppointed 20 September 2023. Retired 6 May 20241 IRetired 8 lune 20231 (Appointed 9 October 20231 IAppointed 22 April 20241 IAppointed 22 November 20231 IRetired 17 October 20231 (Retired 28 July 20231 A number of trustees are a150 involved in ihe govefnance of other charities referred to in this report. All triistees have made a declaratlon IlstSnE any related parties and potential conflicts of interest. Reglmental Secretary Col (Retdl M G J Carter ankers Lloyds TSB PIC 19121 Powys Street W(iolwich SE18 6JZ Solicitors Wilsons Alexandra House St John's Street Salisbury Wiltshire SPI 2SB Auditors Saffery LLP 71 Queen Vlctoria Street London EC4V4BE Address Artillery House,Royal Artillery Barracks, Registered Charlty No: 238197 Wiltshire SP4 8QT Page I
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Introdu¢tlon The trustee presents the RAA report and accounts forthe year ended 31, December 2023. The charity's funds are also included in the Group Accounts of the RACF. The RAA was established in 1920 for the purpose of furthering Gunner comradeship and looklnB after the welfare of ex-members of the Royal ArtllSery and thelr dependents. The objects of the RAA are.. To promote the efficiency of the Royal Artillery by,. Mainlaining contact between past and present members of the Royal Artillery, fosterlng mutual friendship between them and piovlding for social gatherings for them and.. bl Fostering esprit de corp5, comradeship and the welfare of the Royal Artillery and preserving its tradltions. To relieve either generally oi Indivldually members of the RAA or past and present members of the Royal Artillery, and their dependants, who are in conditlons of need, hardship or distress. an15ation Or The RAA'S sole trustee 15 the incorporated charity known as the RACF- Charity Number 210202. The RAA works closely with a number of other charities, in particular the Royal Artillery General Charitable Trust IRAGCTI, the Royal Artillery Institution IRAII and the RACF, whose objects also support and promote efficiency within the Royal Artillery. The trustees of the RACF meet as part of the Royal Artillery Board of Management IRA BOMI, which is the body responsible for the efficient coordinatlon and management of the RACF, RAA and RAI. The RA Bom meets under its Chairman at least twice each year. In the month leading up to the Board meetings, the meetlngs of the Investment Committee, the Welfare Committee, the Flnan and General-Purpose Committee and the RAA National Executive Committee INECI take place. The reports of these comrnlttees form part of the agenda for the RA Bom meetings at which policy concerning the RAA is dlscussed and decisions are made. The Chairman of the RA Bom is a member of the Master Gunnerfs Committee and updates members bi-annually on business undertaken by the Board. The RAA Is a membershlp organlsation. Member5 may belong to local or national branche5, serving batteries of the Royal Artillery or as individual members. Members, views, concerns and suggestions are channelled through their branch or Battery to regional representatives who are members of the National Executive CommitteelNECI. A Royal Artillery Assembly, which include5 the RAA'S AGM is held each year, usually In May. At the AGM members are elected to go forward as nominee5 to represent the RAA on the RACF board of trustees. There are three RAA representatives at any one time. They are nominated for a three-year term and may be re- elected at the end of that term. Nominations go forward to the RACF trustees who are invited to appoint nominees in accordance with the RACF Articles of Associatlon. The governlng documents of the RAA are.. the Charity Commission Scheme,. the Rules of the RAA and. the RAA General Administrative Instructions IGA151. GAIS were reviewed in 2022 and a number of minor change5 were approved by the trustee. Page 2
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Governance In addition to the Charity's Scheme, the Investment Committee and the Finance & General-Purpose Committee have their own directives laid down by the RA Bom. Direction to the RAA NEC is CDntalned in the RAA Rules and GAIS. Secretariat policies, which are agreed by the committees, trustee and the Bom, are in place in order to ensure the smooth and effective running of the charity. The charity'5 risk register is reviewed annually by the trustee. The register follows the model recommended by the Charity Commission. Identified risks are managed as laid down the Risk Management Plan. For speclflc items detailed briefs are sent to the trustee so that members can consider issues in depth before meetings. Membets also receive reEular reports on the value and movement of the charity's investment portfolio. The Chairman of the trustee and the Regimental Secretary meet regularly lusually weekly) to discuss Issues. Charl Commi55ion Governance Code The trustee, a5 one of the Royal Artillery charities, cornes under the umbrella of the Confederation of SeNice Charitie5 Icobseol. Cobseo in consultatlDn with the Charity Commission has produced a Service charity toolkit based on the 2017 Charity Commlssion Governance guide. The trustee board carried out a self- assessment process using the toolkit in 2019. Thls has enabled the board to identify where a number of enhantement5 can be consldered to improve governance. Thi5 included a resolution to limit the tenure of trustees. A further self-asses5ment review was conducted in 2022. Overall this showed an improvement since 2019 but identified some areas for further revlew. Ke Mana ement Personnel The Regimental Secretary is the Chief Executive of the RAA and is re5ponslble for- the day-to-day management of the charity'5 business; implementing policies agreed by the RACF trustee and; the management of the staff. He is supported by the RAA Secretary and his staff of two. The Finance Secretary is responsible to the Reglmental Secretary for the accounting of funds and all financial records. Review of Flnanclal Attivitles The charity's funds contlnue to be employed to support the efficiency of the Royal Artillery by supportlng comradeship and promoting esprit de ¢orp5, and to relieve need, hardship or distress as stated In Its Objects. The results of the charity's attivltie5 are summarised on page 13. In 2023 the charlty had an exces5 of expenditure over income, before gains on investments, of £55,37312022'. Excess of expenditure over Income £66,706). After investment gains of £61,292,12022.. losses of £125,858) there was a net increase of funds of £5,91912022.' net decrease of £192,5641- Investment gains We dlrectly attributable to market movements and stock selections whilst the market slowly recovered. There are five main income streams. They are.. ranth Income and Subscriptlons Service Pay Givlng Scheme ISPGSI, where all serving personnel are encouraged to glve part of thelr pay to the charitv. Donations including donation5 from RACF Page 3
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Review of Financial ActSvltles continued Investment income. Legacies. Thls year a large proportion of Income came from branch income and subscriptions which was 53% of our Income. lncome.from SPGS 15%, Income from donations 15% and Investment income 8% remalned a consistent source of revenue. Total central income incleased by £5,929 to £127,128. Thls was mainly due to a an increase in bank interest, donation and subscriptions, the largest increases were donations from RACF due to increase in Battery Grants in 2023 and the sharp rise in bank Interest. In 2023, there was i legacy totalling £3,79412022.' 1 totallin8 £5,0001 and 30 donations giving £4,57312022'. 29 totalling £7,1891. Income from Branch events and subscriptions to date are £142,52212022.' £120,093). Income collected through the SeNice Pay Glving Scheme from officer5, soldiers and members of the ReseNe regiment has increased slightly by £522 to £40,392. Thls year RAA received a grant of £35,841 from RACF for Battery grants12022: £29,163). Investment income was £21,114. Total expendlture increased by £17,025 to £325,023. This is due a steady increase in branch activities returnin8 to normal attendance rate5 and the shaip increases in inflation that 2023 have presented, The trustee approves the forecast of Income and expenditure annually and monltors It regularly through the Finance & General Purpose Committee and at Board meetings. Charltable Actlvities The RAA supports charitable activity by.. makin8 grants to support comradeship and welfare; ralsing and maintaining the profile of the RAA In order to improve comradeshlp for Gunners, both serving and retired,. providSnE support to members and,. planning and organising national RAA events. Apart from support to national RAA events, branches, staff and running cost5, the RAA made 42 grants worth £35,841 to batteries to promote comradeship and esprit de corps12022- 32 totalling £29,913). No grants were made in support of branches12022- totalling £7501. Grants are allocated to enhance the collective well-being of the Regiment and its individual members, serving and retired, by supplementing shortfalls in funding on comradeship projects. Public Beneflt The Object of the RAA is to promote efficiency within the Royal Artillery by.. providing Comradeship to Serving ènd retired members of the Regular and Reserve reglment,. and by aiding those same members and their dependants in cases of need. Inextricably linked with this Object is the alm of contributing to the publlc good by selvice to the Sovereign the country and all its Cltizens. The RAA contributes conslderable public benefit to the local and national community by relieving need and providing comradeship to members of the regimental family. This in turn maximi5es the likelihood of the charlty's beneficiarie5 maintalning their Page 4
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Public Benefit ¢ontinued place as valuable self-sufficSent members of the community, who are able to make a positive contribution to soclety. The trustee has had regard to the Charity Commission's guidance on Public Benefit. Future Plans The charity has sufficlent ndS to support its future operatlons to deliver its charitable Objects. Research carried out by the Royal British Legion has shown that there is Still a very large ex-service communitv, however those ex-servicemen who saw service in the Second World War and during National Service will gradually diminish Dver the next 10 years. Work has cornmenced on Improving the Association's ability to promote the RAA amongst the recently retired and servlng soldiers and recruit new members. Re erves Pollc The trustee's policy is to malntain a sufficient level of reseNes, within the investment portfolio to provide.. a stable base for the charity's continuing activities,. suff icient funds to cover routine management and administrative costs,. make provision for any emergency application5 for grants which arise from tSme to time. The effect on the charity's investments as a iesult of the situatlon in Ukraine demonstrates the beneflt of maintaining strong reserves in order to be able weather such market flurtuatlons while maintaining requlred levels of investment income. Total funds as at 31 December 2023 were £1,867,24812022- £1,861,329). Unrestricted reseNes included funds for the ladies section of £79212022.. £7921 were £1,609,54212022'. £1,623,434) of whlch are all free reserves. Designated Funds were £257,70612022: £237,895) for the purpose of RAA Branches. Our ri5k-based approach to determining our free reserves requirement is carried out, based on the anticipated future needs of the regimental family, and the management of flnancial risks, particularly the uncertainty of future Income from other sources. Trustees review the level of reserves re8ularly to ensure funds are avallable to deliver commrade5hip, welfare seNices and programmes, and to secure, as far as possible, future financial viability. Following the 2023 review, the trustee determined that the RAA should hold a minimum of £1,500,000 in free reserves to be assured that we are able to sustain the support we provide to the regimental family in the long term as well a5 meet other obligations, irrespective of fluctuations in income and without creating the need to actively fundraise. Thi5 sum, held as part c>f our investment portfollo, is judged to be capable of generating sufficient investment income to meet foreseeable n@eds. With free reserves of £1,609,54212022.. £1,623,434) currently exceed thls requirement. The trustee is content that the additional funds we hold provide ability to disinvest in order to support major capital projects if and when required, but in the meantime are held as investments generating additional income income. In 2023 the charity's investments generated £21,114 of income. This was 8% of total income, Investment income increased by £1.252 from 2022, which was due to the current volatility of the markets, which has impacted on dividends. Desplte the fall in returns, without thi5 income. the tharity's attivitles and support to those in need would be significantly curtailed. Page 5
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 ReseNes Polic ontinued The trustee believes that investments should be maintained at the current levels, In order to generate ncome and provide for current needs whi15t ensuring the chèrity remaSns well placed to meet future requirements. The trustee recognlses that it has no long term mandated liablllty for any particular level of benevolence. There 15 therefore the ability either to reduce expenditure to match any reduction in income or to liquidate unrestricted asset5 to make additional funds available in year, however as Indlcated above, this would need to be balanced by the requirement to maintain investment as a means of providing income for future generations. Unrestricted funds were £1,609,54212022.' £1,623,434) most of which is represented by Snvestments, which provide a signlficant part of the charity's income but are available for spendlng if necessary. Investment Pollc The trustee's Investment Commlttee meets twice a year to conslder the performance of the RAA'S investments, which are managed on a discretionary basis by 8lackRock Investment Management IUKI Ltd. The investment objective is to create sufficient income and capital growth to enable the charity to carry out its charitable objettives. The charity is expected to exist in perpetuity and investment5 are managed to meet the investment oblective and ensure this sustainability. The charity'5 funds are invested on an aliquot proportion in the same funds as the other Gunner welfare l efficlency charities. This is in order to achleve economies of scale in relation to investment cost. The trustees have given the fund managers discretion to manage the portfolio within an agreed risk profile and against agreed benchmarks. Thi5 is contalned In a written directive. At the bi-annual meetlng with the investment managers the Investment Committee considers the state of the financial markets and measures the fund managers, on-going performance against specific agreed benchmarks, namely 25% FTSE All Share Index, 35% MSCI World ex UK Index, IO% MSCI Emerging Markets Index, 7.5% FTSE All Stock5 Gilt Index, 5% iBoxx Sterling Non-Gilts Index, IO% IPD UK All Balanced Funds Index, 5% Alternative (IA Sector Targeted Absolute Return) and 2.5% Cash (Sterling Overnight Index Average). Having compared performances over the last 1, 3 and 5 years, the Investment Commtttee are of the view that the investrllents have done reasonably well in relation to the market and relevant benchmarks over the longer term. While there is currently no case to prompt a change of investment policy, the performance of the fund manager will be subject to further review this year. Environmental Governance and Social Conslderations The RAA'S investments are not managed with any specific environmental, social and governance IESGI restrictions. However it is expected that the RA charlties, investment managers have clearly defined ESG Investment policies and that the investments are managed by an investment company whleh Is a signatorv the UN Principles of Responsible Investment and which takes account of ESG factor5 in their research and Investment decislon making process. Page 6
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Fundraisin The trustee is very clear that all fundraising must be legal, open, honest and respectful. Nationally the charity does not actively engage in regular and orEanised fundraising, although it does make provision through its webslte to receive donations and legacie5. It recelves the bulk of its Income through Investments, the Royal Artillery's '5ervice giving scheme, and from grants made by the RACF. The facility exist5 for individuals or organisations to make voluntary donations onllne. The charity does not work wSth any commercial partner or professional fundraiser5 except in order to operate an online donation facility through onllne options such as 'Enthuse' and 'lust Giving. The charity does not solicit funds through direct approaches to individuals via mai15hots or online unle55 consent has been obtained. Branches and individuals, Sf they wlsh, may raise funds for the charity and if so are provided with sealed collectlon buckets. In most case5 branches prefer to raise funds for the RACF. In the event of a complaint about any such actlvity, It Ss Investigated by the Regimental Secretary. (No complaint5 were recelved In 20231. As a charlty that deals with vulnerable veteran5 and thelr dependants, all staff are aware of the requirement to treat everyone fairly and kindly with no intrusive or per51Stent requests or approaches for funds or pressure to donate. Trustee Trainin Trustee responsibilities and necessary training are taken very seriously. All new members of the trustee board are brlefed by the Regimental Secretary on their roles and respon51bilities. They are provided with the Charity Commissioners handbook 'The Essential Trustee" as well as a copy of the Scheme. Recent RAA accounts, rneeting minutes and policy documents are also provided. Trustee brlefings and training take place and members of the Board are encouraged to attend external trustee training and investment briefs. Risk Mana ement The trustee maintains a continuou5 oversight of the prlncipal areas of the RAA'S operations and the major rlsks whlch may arise. In the opinion of the trustee, the charity has established resources and review systems which, under normal conditions, should allow the risks identified to be mitigated to an acceptable level. A rlsk management plan is produced and approved by the trustee each year and actively managed by the trustee, the Regimental Secretary and his staff. The main risks are.. Insufficient income to meet the need.. This is managed by careful budgetin81 the investment and reserves policy and controlling the level of support provided to beneficiarie5. Fraud.. This is guarded against by having policles in place to ensure regular checks are made and that all transactions are properly authorised by two Signatories. Conflict of interest amongst trustee members: A reglster of trustee's interests Is kept and updated annually. At the start of committee and Bom meetings, trustees are reminded to declare anv conflict arising from the agenda so that appropriate action can be taken. Reputational damage arising from activities such as inappropriate fundraising: Thls Ss mitigated by robust Rules and General Administrative Instructions IGAlsl and the monitoring of branch fundralsing activities. Remuneration Pollc No member of the trustee board 15 paid for services as a trustee or related work, though travel and subsistence costs incurred as a trustee are relmbursed. The trustee review5 Staff salarie5 annually and takes into account the MOD pay awards for similar grades, when agreeing any pay increases. Page 7
THE ROYAL ARTILLERY ASSOCIATION TRUSTEE'S REPORT FOR THE YEAR ENDED 310ECEMBER 2023 The RAA aims to be an organi5ation for which employee5 enjoy working and where they feel 5UPPOrted, valued, empowered and developed. Employee5 are kept fully Informed about the aims and objective5 of the charity and how it 15 achieving them. Employees are encouraged to make suggestions to help improve working processes and to achSeve best practice. The charity is an equal opportunities employer and 15 committed to training and developing its staff and consider the MOD pay awards for similar grade5, when recommending any pay increases. Statement of Trustee's Res onsibilitles The trustee Is responsible for preparing the Trustee's Report and the financial statements In accordance with appllcable law and United Kingdom Accounting Standards Iunited KinBdom Generally ACpted Accounting practi1. Charity law requires the trustee to prepare financial statements for each financial year that glve a twe and falr view of the state of affairs of the charity. These include detai15 of income and expenditure and of the application of resources for the accounting period. In preparing these financial Statements, the trustee is requlred to.. Selett suitable accounting policies and then apply them consi5tentlv,' Adhere to the methods and prlnclples in the Charities Statement of Recommended Practi (Charities SORP IFRS 10211,. Make judgements and estlmates that are reasonable and prudent,. State whether applicable accounting standards have been followed, subjert to any material departures which are to be dlstlosed and explained in the flnancial statements,. Prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the charity will continue in business. The trustee is also responsible for safeguarding the assets of the charity, including taklng reasonable steps to prevent and detect fraud and other irregularities. The flnancial statements have been prepared in accordance wlth the accounting policies set out in the note5 to the accounts and comply with the Charities Acts 2011 and,. the Statement of Recommended Practice appllcable to charities preparing thelr accounts in accordance wlth the Flnancial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (Charities SORP IFRS 10211. Statement as to Disclosure of Information to Audltors In so far as the trustee is aware: there is no relevant audit information of whlch the charity's auditor Is unaware,. and the trustee has taken all Steps that they ought to have taken to make themselve5 aware of any relevant audlt information and to establlsh that the auditor is aware of that informatlon. behalf of the trustee.. rL 2024 Chairman of the RAA trustee IRACFI Board Ma Gen ral DM Cullen CB OBE Page 8
THE ROYAL ARTILLERY ASSOCIATION INDEPENDENT AUDITORS, REPORTTO THETRUSTEE FOR THE YEAR ENDED 31 DECEMBER 2023 Oplnlon We have audited the finèncial statement5 of the Royal Artlllery Associatlon for the year ended 31 December 2023 which comprise the statement of financial activities, balance sheet, cash flow statement and notes to the financlal statements, including significant accounting policies. The financlal reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Klngdom Generally Accepted Accounting Practlcel. In our opinlon the financial statements.. give a true and falr view of the state of the charity's affalrs as at 31 December 2023 and of tts incoming resources and applicatlon of resources for the year then ended; have been properly prepared In accordance with United Klngdom Generally Accepted AccountSng Practice- and have been prepared in accordance with the requirements of the Charities Act 2011. Basls for opinion We conducted our audit in accordance with International Standards on Audlting IUKI IISAS IUKII and applicable law. Our responsibi1Stles under those standards are further described in the Auditorfs responsibilitie5 for the audit of the financial statements section of our report. We are independent of the charity 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 responsibillties in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basi5 for our opinion. Conclusions relatlng to going concem In auditing the financial statements, we have concluded that the trustee's use of the goinE 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 relatlng to events or conditions that, individually or collectively, may cast slgnificant doubt on the charity's ability to Continue as a going concern for a period of at least twelve months from when the financial statements a authorised for issue. Our responsibilities and the responsSbilities of the trustee with respect to going concern are described in the relevant sections of this report. Other information The trustee is responsible for the other informalion. The other informatlon comprises the Snformation Included in the annual report, other than the financial statements and our audStorfs report thereon. Our opinion on the firiancial 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. Our responsibility is to read the other informatlon and, in doing $0, consider whether the other information is materially inconsistent with the financial Statements or our knowledge obtalned in the course of the audit or othenKise appears to be materially misstated. If we identify such material incon5iStencies or apparent material mi55tatements, we are requSred,to determlne whether this gives rlse to a materlal misstatement in the financial statements themselve5. 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. Page 9
THE ROYAL ARTILLERY ASSOCIATION INDEPENDENT AUDITORS, REPORTTO THETRUSTEE FOR THE YEAR ENOED 31 DECEMBER 2023 We have nothing to report in thls regard. Matters on which we are requlred to report by exception We have nothing to report In respect of the following matters in relation to which the Charltles (Accounts and Reports) Regulations 2008 require u5 to report to you if, in our opinion: the information given In the Trustee's Annual Report is inconsistent in any material respert with the financial 5tatements,' or the charity has not kept sufflcient accounting records,. or the financial statements are not in agreement with the accountlng records and returns,. or we have not received all the information and explanations we require for our audit. Responsibllltles of the trustee As explained more fully in the Trustee's Responslbilities Statement set out on pages 8, the trustee is 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 trustee determine5 15 necessary to enable the preparation of financial statements that are free from material mi5Statement, whether due to fraud or erlor. In preparing the financial statements, the trustee is responsible for assessing the charitvs ability to continue as a going concern, disclosing, as applicable, mètters related to going concern and using the going concern basls of accountlng unless the trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Audltors, responsibilities for the audh of ihe flnanclal statements We have been appointed as auditors under the Charities Art 2011 and report in accordance with re8ulations made under that Act. Our objectives are to obtain reasonable assyrance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors, report 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 IUKI will always detect a material misstatement when it exists. Misstatement5 can arlse from fraud or error and are considered material if, individually or in the aggre8ate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulatlons. We design procedures in line with our responsibilitles, outlined above, to detect material mi55tatements In respect of irregularities. including fraud. The specific procedures for this engagement and the extent to which these are capable of detectin@ irregularlties, includlng fraud are detailed below. Identifying and assessing rSsks related to Irregularities: We assessed the susceptibility of the charity's financial statements to material misstatement and how fraud might occur, including through discusslons with informed management, discussions wlthin our audit team planninE meeting, updating our record of internal controls and ensuring these contro15 operated as intended. We evaluated possible inntiveS and opportunities for fraudulent manipulatlon of the financial statements. We identified laws and regulation5 that are of significance in the context of the charlty by discussions with informed management and updating our understanding of the sector in which the charity operates. Page 10
THE ROYAL ARTILLERY ASSOCIATION INDEPENDENT AUDITORS, REPORTTOTHE TRUSTEE FOR THE YEAR ENDED 31 DECEMBER 2023 Laws and regulations of direct signiflcance in the context of the charity Include the Charilles Att 2011, the Charities IAccounts and Reports) Regulations 2008 and guidan issued by the Charlty Commission for England and Wales. Audit response to fis identified.. We considered the extent of Compliance with these laws and regulation5 as parE of our audit pmcedures on the related financlal stalement items including a review of financial statement disclosures. We reviewed the charittys records of breaches of law5 and regulations, minutes of n7eetings and correspondence wlth relevant authorlties to identify potential material misst3tements arisin8. We discussed the charlty's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. During the plannlng meeting wlth the audit team, the engagement partner drew attention to the key areas which might Involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compllance with laws and regulations or knowledge of anv actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transa¢tion5 that were unusual or outslde the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partnerfs review included ensuring that the team had approached thelr work with appropriate professional 5cepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent Ilmitations in the audit procedures described above and the further removed non- complSance with laws and regulations is from the events and transactions reflected in the financial statements, the less likeW we would become awaie of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not deterting one resulting from error, as fraud mav Involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities Is available on the Financial Reporting Council's website at- www.frc.or auditorsres onslbillties. This description forms part of our audltor's report. Use of our report This report 15 made solely to the charity's trustee, as a body, in accordance with Part 4 of the Charitles IAccounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might state to the trustee those matters we are required to state to them in an auditor's 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 charity and the trustee as a bodyi for ovr audit work, for this report, or for the opinions we have formed. Page 11
THE ROYAL ARTILLERY ASSOCIATION INDEPENDENT AUDITORS, REPORTTOTHE TRUSTEE FOR THE YEAR ENDED 31 DECEMBER 2023 LU- Saffery LLP Chartered Accountants Statutory Auditors 71 Queen Victoria Street London EC4 4BE Date: 12 J Io£(k Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Page 12
THE ROYAL ARTILLERY ASSOCIATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted Funds Income and ex enditure Note 2023 2022 Income Donations & Legacies Incl Subscriptions Investment income Registration fees Other Income 98,888 21,114 97,551 19,862 985 2,801 7,126 Total of Income 127,128 121,199 Branch events and subscriptions 142,522 120,093 Total Income 269,650 241,292 Ex endlture Charitable activities Branch expenditure Total ex enditure 202,312 122,711 325,023 175,473 132,525 307,998 Netlexpenditurelbefore 11055esl/galns on Investments 155,3731 166,7061 Net Ilossesl/gains on investments Net Income and net movement In funds 61,292 1125,8581 1192,5641 5,919 Total funds brought forward 1,861,329 2,053,893 Total funds carried forward 1,867,248 1,861,329 The notes on pages 16 to 22 form part of these flnanclal statements. Page 13
THE ROYAL ARTILLERY ASSOCIATION BALANCE SHEET 31 DECEMBER 2023 Note 2023 2022 FIKed assets Investments 1,121,793 1,058,128 Current assets Debtors Cash Branch cash 4,042 523,314 257,706 785,062 3,396 594,620 237,896 835,912 Current Ilabilities Creditors: Amounts fallin8 due within one 139,6071 132,7111 year Net current assets 745,455 803,201 Net assets 1,867,248 1,861,329 Funds Unrestricted Designated io li 1,609,542 257,706 1,623,434 237,895 1,867,248 1,861,329 roved by the trustee on fL S>fi & 2024 D M Cullen CB OBE Major General Chairman of the RAA Trustee IRACFI Board The notes on pages 16 to 22 form part of these financlal statements. Page 14
THE ROYAL ARTILLERY ASSOCIATION ASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Net cash used In operating actlvltles 170,2371 145,5391 ash flows from investin actlvSties Dlvldends, interest and rents from investments Purchase of investments Proceeds from sale of investments 21,114 1835,8381 837,770 19,862 1193,4971 191,677 Net cash used In Investlng actlvltles 23,046 18,042 Net increase in cash & cash equivalents Cash & cash equlvalents at the beginning of the year 147,1911 832,743 127,4971 860,240 Cash and cash equivalents at end of the year 785,552 832,743 Notes to the cash flow statement Reconciliation of net movement In funds to net cash flow from operating activities 2023 2022 Net movement in funds Loss/lgainl Dn investments Investment income Decrease in debtors IDecreasellincrease in creditors Net cash used in operating actSvitles 5,919 161,2921 121,1141 16461 6,896 170,2371 1192,5641 125,858 119,8621 76,218 135,1891 145,5391 Analysis of cash and cash equlvalents and net debt Atljan 2023 Cash flow At 31 Dec 2023 Cash on short term déposlt Cash current account Cash held by branches Cash balance before Investments Cash held in Investments Net cash provided by operating activities 594,184 436 237,896 832,516 227 832,743 170,4131 18931 19,810 151,4961 4,305 147,1911 523,771 14571 257,706 781,020 4,532 785,552 Page 15
THE ROYAL ARTILLERY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountin olicies Basls of a¢¢ounting The financial statements have been prepared under the historic cost conventlon, except for listed investments which are Included at their market value. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparlng thelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (Charities SORP IFRS 10211,the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011 and UK Generally Accepted Accounting Practice. The accounts (financial statements1 have been prepared to give a 'true and falr, view and have departed from the Charlties (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view, This departure has Involved following Charities SORP IFRS 1021 rather than the Accounting and Reporting by Charltie5 Statement of Recommended Practice effective from 2005 which ha5 since been withdrawn. The Royal Artlllery Association constitutes a public benefit entity as defined by FRSIO2. Preparatlon of a cash flow statement A cashflow statement is provided at page 15. Branches Branch transactlons with thlrd parties are accounted for gros5 in the flnanclal statements and branch assets and liabilities are incorporated into the balance sheet. Individual branches receive donations to spend on comradeship within their branches and local area. Branch events are sponsored by these funds. Investments Investments are shown in the balance sheet at their market value. The unrealised movement in market value from one year to another is recognised in the Statement of Financial Activities. Donations and legacles Including Subscriptlon5 Subscriptions and donations are reco8r115ed as income when the amounts a receivable. Legacies are recognised when received or recelpt15 probable and the value can be measured with sufficient Investment In¢ome Investment income is credited to the statement of financial activities when its receipt is probable and the amount receivable can be measured reliably. Page 16
THE ROYAL ARTILLERY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 Fund Accounting Unrestricted funds are available to use to further any of the purposes of the charlty, Going Concern The trustee has reasonable expectation that the charlty has adequate resources to contlnue in operational existence for the foreseeable future. Thu5, they continue to adopt the going concern basi5 in preparlng the annual f inancial statements. Expenditure and support costs Expenditure is recognised in the perlod in which it is incurred and includes attributable VAT which cannot be recovered. Support costs are those costs which have not been directly allocated to an artIv¥ of the charity but nevertheless support these activitles. All costs relate to the core charitable activitie5 except branch expenditure whlch Is shown separatelv. Penslons Staff costs are recharged from RACF. Staff are enrolled In a NEST pen51on Scheme. Contributions are charged in the Statement of Financial Activities as they become payable. Grant expenditure Grant5 payable are payments made in furtherance of the charitable objects of the charity. These are accrued once the recipient has been notified of the grant award. The notificatlon give5 the recipient a reasonable expectatlon that they will receive the grant. Provisions for grants are made when the intention to make a grant has been communlcated to the recipient but there is tjncertainty as to the timing of the grant or the amount of 8rant payable. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks and other 5hort-term liquid investments with original maturities of three month5 or less. Financial Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognlsed at transactlon value at)d subsequently measured at their settlernent value except for bank loans which are subsequently measured at amortised cost using the effective interest method. Trade and other debtors are recognised at the settlement amoufit due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where the charity has a present obliEation resulting from past event that will probably result in the transfer of fund5 to a thlrd party and the amount due to Page 17
THE ROYAL ARTILLERY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 DECEMBER 2023 Financial instruments contlnued settle the obligation can be measured or estimated reliably. Creditors and provislons a normally recognised at their settlement amount after allowing for any trade discounts due. Critical estimate and ludgements and key sources of tIMatIOn uncertainty In the application of the charity's accounting policies, the trustee is required to make judgements, estimates and assumptlons about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates are recognised In the period in which ihe estimate is revised where the revision affects only that period, or In the period of the revislon and future periods where the revision effects both current and future periods. There 15 no critical estimate, judgements or key sources of estlmatlon In 2023 or 2022. Donations & Le acies incl subscrl tions 2023 2022 Seiving re8iment Iservice pay Givlng Schemel Legacies General Donations Donations- RACF Donations- Branch Liaison Officer Intangible Income- Wages in Kind 40,392 3,794 4,573 35,841 39,840 5,000 7,189 29,163 2,923 13,436 14,288 98,888 97,551 Re istratlon fees 2023 2022 Current year 985 985 Other Income 2023 2022 RAA Event Income Merchandise IncDme Christmas Card Income Bank Interest 1,375 154 766 4,831 1,572 144 774 311 7,126 2,801 Page 18
THE ROYAL ARTILLERY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 Charltable actlvltles 2023 2022 RA Assembly RA Assembly Awards NMA Gunner Sunday RAA 100 ReEimental Welfarelcomradeship Mansergh Award Grant to RAM Mlscellaneous grants 6.221 325 5,220 1,399 10,416 35,841 - 587 5,000 4,147 4,424 382 3,615 1,684 10,020 29,913 579 12,200 1,060 69,156 63,877 Support costs to Charitable Artivities.. Administrative Salaries recharges by RACF Employer Pension Contribution Wages in kind 59,318 5,042 14,288 78,648 54,087 2,021 13,436 69,544 Travelling and subsistence lincl. Standard Bearersl NEC, Regional Reps, District travel & Subsistence Branch travel Office costs lincl. publicity & p05tagel Publicity Miscellaneous costs Governance costs.. Professional Fees Audit 15,155 2,125 20,556 10,632 339 1,141 10,297 1,376 18,236 4,449 12 1,996 280 5,406 4,560 54,508 42,052 Total charltable actlvltie5 202,312 175,473 Page 19
THE ROYAL ARTILLERY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 DECEMBER 2023 Charltable attlvltle5 continued The trustee / RACF trustees received no remuneration or any other payments other than refund of travel and Subsisten costs. £1,156 for out of pocket travel expenses was clalmed in 2023 by I trustee12022: £826 by one tru5teel. Flxed assets investments 2023 2022 Quoted investments- Market value at l January Net additions/cash movements at cost Sale Proceeds- Investments 1,058.128 835,838 1837,7701 1,182,151 193,497 1191,6771 Net realisedl unrealised Investment gains/l1055esl 61,292 1125,8581 Cash Commitments 4,305 15 Market value at 31 December 2023 1,121,793 1,058,128 Historical cost at 31 December 2023 1,020,133 1,044,553 There are no individual holding5 which are considered to be significant. Debtor5 2023 2022 RAGCT- Gift Aid 13 27 Accrued ServSce G)vlng Income 3,479 3,369 RACF 550 4,042 3,396 2023 2022 Cash on Short term De 05it Lloyds TSB Bank PLC- Current account Lloyd5 TSB Bank PLC- Dep051t account 14571 523,771 436 594,184 523,314 594,620 Creditors - amounts fallin due within one ear 2023 2022 RA Charitable Fund Creditors and accruals 34,917 4,690 28,777 3,934 39,607 32,711 Page 20
THE ROYALARTILLERY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 DECEMBER 2023 10 Movement in funds Balance at I January 23 Incoming Resources Outgoing Resources Net Galn on Balance at 31 December 23 Investment Unrestrlcted Ladles Section Amenities General Fund 792 792 1,622,642 1,623,434 127,128 127,128 202,312 202,312 61,292 61,292 1,608,750 1,609,542 Deslgnated funds Branches 237,895 142,522 122,711 257,706 Total 1,861,329 269,650 325,023 61,292 1,867,248 2022 Com arison Balan¢e at I January 22 Incoming Resources Outgoing Resources Net Galns on Balance at 31 December 22 Investment Unrestricted Ladies Section Amenitles General Fund 792 792 1,802,774 1,803,566 121,199 121,199 175,473 175,473 1125,8581 1125,8581 1,622,642 1,623,434 Deslgnated funds Branches 250,327 120,093 132,525 237,895 Total 2,053,893 241,292 307,998 1125,8581 1,861,329 Page 21
THE ROYAL ARTILLERY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 11 Anal sis of net assets between funds Net Total Investments Current assets Unrestricted funds,. General Ladies Sectlon Amenitles 1.121,793 486,957 792 487,749 1,608,750 792 1,609,542 1,121,793 Designated funds: Branche5 257,706 257,706 1,121,793 745,455 1,867,248 2022 Com ari50n Net Total Investments Current assets Unrestricted funds.. General Ladies Section Amenltles 1,058,128 564,514 792 565,306 1,622,642 792 1,623,434 1,058,128 Deslgnated funds: Branches 237,895 237,895 1,058,128 803,201 1,861,329 13. Related art transactions Income of £40,392 12022: £39,840) was received from the Royal Artillery General Charitable Trust IRAGCT). A number of the RACF trustees are also trustees of the RAGCT. This income relates to accrued Income from the Servite Giving Scheme, which were voluntary contributions from service personnel. At the year end, a balance of £3,47912022: £3,370) is included within debtors for this income. An amount of £32,544 12022.. £28,777) is included within creditors for the RACF. The RACF is the corporate trustee of the RAA. This income relate5 to Investment fees owed from RAA to RACF. The RACF made a £35,84112022.' £29,163) grant to the RAA in 2023. Page 22