CENTRAL Fufyo Supporting The British Army ANNUAL REPORT OF THE TRUSTEE & FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 CONTENTS PAGE Reference and Administrative Details Board of Directors, Annual Report IndependentAuditors' Report 20 Statement of Financial Activities 25 Balance Sheet 27 Statement ofcashflows 28 Notes to the Financial Statements 29 The following pages do not form part of the Financial Statements Detailed Statement of Financial Activities 38
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 REFERENCE AND ADMINISTRATIVE DETAILS Charity Number 245700 Registered Office Floor i | Zone6 Ramilies Building Marlborough Lines Monxton Road Andover SPII 8HJ The Patrons Members ofthe Army Board of the Defence Council Corporate Trustee The Army Central Fund Trustee Limited Corporate Trustee's Company Number 11820705 Directors of The Army Central Fund Trustee Limited MajorGeneral SL Humphris MBE (Chairl Colonel AK Brown OBE Brigadier EJ R Chamberlain CBE luntil 30.06.251 Warrant Officer Class l J Clarke (until 01.09.241 Mr GC Davies luntil 30.04.251 Brigadier A Fraser-Hitchen DL (from 01.09.241 Mr RC Hughes-Penney Ifrom 01.04.251 Airvice Marshal The Hon DP Murray CVOOBE DL Colonel MCA Palmer (from 01.09.241 Warrant Officer Class l ML Queripel (from 01.09.24 to 31.03.251 Warrant Officer Class l R Sugden (from 01.04.251 Mrs EA Thomas Ifrom 01.09.241 Duringthe year no Directors ofThe Army Central Fund Trustee Limited were also Trustees or Committee Members of other charities which benefited from grants made by the Army Central Fund I'the Charity"). Company Secretary Caroline Crewe-Read Treasurer The Trust Partnership 6Trull Farm Buildings Tetbury Gloucestershire GL88SQ
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 REFERENCE AND ADMINISTRATVE DETAILS {continued) Investment Advisor Mr GC Davies (until 30.04.20251 Mr RC Hughes-Penney (from 01.05.20251 Legal Advisor Wilsons Solicitors LLP Charities Team 4 Lincoln's Inn Fields London WC2A 3AA Auditor Dunkley's Woodlands Grange Woodlands Lane Bradley Stoke Bristol B532 4JY Investment Managers BlackRock Fund Managers Limited 12 Throgmorton Avenue London EC2N 2DL Swiss Life Asset Managers UK 55 Wells Street London WIT3PT CCLA Fund Managers Limited One Angel Lane London EC4R 3AB Bankers Holt's Military Banking 200 Fowler Avenue Fowler Business Park Farnborough Hampshire GU14 7JP
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT The Board of Directors ofthe Charity's corporate trustee company present their report along with the financial statements of the Charity for the year ended 30 June 2025. The financial statements have been prepared in accordance with the accounting policies set out on pages 28-29 ofthe attached accounts and comply with the Charity's trust deed, the Articles ofAssociation ofThe Army Central Fund Trustee Limited, the Companies Act 2006, the Charities Act 2011, regulations applicable to that Act, and Accounti ng and Reporting by Charities: Statement of Recommended Practice ISORPI applicable to charities preparing thei r accounts i n accordance with the Financial Reporting Standard applicable i n the U K and Republic of Ireland IFRS 1021, effective from l January 2019. The Board has also voluntarily aligned its Annual Report with the proposed Tier 2 SORP to enhance transparency and preparedness for the changes anticipated in 2026. In some cases, and where appropriate, best practice indicated for Tier 3 charities has also been adopted. BACKGROUND The Charity was established in 1948 by the merger of existing mi litary welfare funds, some dating back to the First World War. The capital of the Charity was invested, and its income was used to help improve the welfare of serving British Army personnel and their fami lies. That ai m continues today and is achieved by awarding grants to military organisations and to U K registered charities that support the serving Army community. In FY24125 the Board of the Charity extended eligibility for grantmaking to Community I nterest Companies ICICS) su bject to additional due diligence being undertaken to consider fully the fi nancial health of each organisation and its commitment to deliveri ng commu nity benefit. The Charity operates without any subscriptions, sponsorshi p, government grants or fundraising. It is also extremely cost-effective, dispersing over 960/0 of its income in grants. Further information about the Charity and the grant application process is available on the website www.arm centralfu nd.or .uk and the 2023 Impact Report can be found at htt issuu.com arm centralfund.or docs acf 2023 im act re ort issuu CHAIRMAN'S OVERVIEW The financial year 2024-25 has been another very good year for the Charity, in terms of its strategic development, its i nvestments and its grantmaking. This year has also seen the Charity relocate to the Ramillies Bu ilding at Marlborough Li nes, Army HQ, having been offered shared office space with the Army Families Federation.
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Aside from the regular rhythm of governance and grantmaking meetings, the Board met in February to considerthe Charity'5 theory of change and to discuss adopting a more strategic approach to its grantmaking. External attendees from Army HQ, the Army Families Federation, Army Sport and the ArmyAdventurous Training Group were invited to join and inform the discussions. The Board reaffirmed that the Charity exists to promote the efficiency of the British Army for public benefit and that the development and retention of a well-supported. resilient, and engaged workforce is key to delivering and mai ntaining both efficiency and operational effectiveness. As a result of discussions at the strategy day, the Charity reaffirmed its mission to improve the physical, social, emotional and occupational wellbeing of seNing Army personnel through the award of financial grants. As a result, it will conti nue to target its grantmaking on i nitiatives which improve retention by delivering a better quality of life and improving morale. The Charity believes that this will contribute to a more effective and committed Army, directly supporting its capabi lity, cohesion and readi ness. The new grantmaking strategy will be published in FY25126. The Charity's investment portfolio delivered robust returns despite an exceptionally challenging global financial envi ronment, marked by persistent trade tensions, elevated geopolitical risks, volatile bond markets and inflation dynamics. Global economic growth decelerated notably in 2025 as a direct consequence of intensifying trade frictions, especially from escalating U.S. tariffs, which have disrupted supply chains and unsettled markets. Through the same period, rising long-term bond yields and record-high gold prices reflected investor anxiety over fiscal pressures and inflation. Nonethelesg, the Charity's d iversified strategy and active management approach enabled its i nvestments to perform strongly, generating solid returns that underpi nned the distribution of £3.18 million in support of the serving Army. These results underscore the resilience of the Charity's investment framework and its capacity to deliver both value and vital support in the face of global market volatility. Throughout FY24125 the Charity continued its approach of awarding both core and project grants. Core Grants1£2,025,082). Army Welfare Funds are the biggest single recipient of funding through the programme of annual Command Grants. This year£760,000 was awarded to HQ Regional Command for allocation through grant committees to support unit welfare and sport. Through an internal application process dozens of small grants were made to Army units and organisations. In addition, £545,391 was awarded to the Army Families Federation to underpin thei r vital work and £719.691 to Army Sport towards its central running costs. These three Core Grants supplement MOD provision and help improve health, wellbeing, recovery and rehabilitation, as well as family, welfare and community support. These core grants meet our pri ncipal charitable object as laid out in the governing document to promote the efficiency ofthe Army forthe public benefit,.
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Project Grants (£1,064,553}. Equally importantly, the Charity accepts grant applications from national and military charities and other organisations to enable activities and resources across the Army community. This funding can contri bute to both specialist help for those in need and facilities and resources for the whole serving community. During FY24125 this i ncluded- Health, wellbeing, recovery and rehabilitation Adventurous Traini ng1£26,1251. Defined contributions towards the costs associated with four expeditions: Ex Atlas Enduro and Ex Eagle's Endurance (Army Motorised Adventures across Morocco and Nami bia respectively), the Honourable Artillery Company's Everest Expedition and TEAM V3NTURE's participation in the World's Toughest Row- Atlantic. HighGround1£16.9321. Horticultural therapy sessions delivered to serving Army personnel at the Defence Medical Rehabilitation Centre at Stanford Hall. University Hospitals Birmi ngham Charity1£50,0001. Contribution towards the cost of supporting the health and wellbeing of Army families staying at Fisher House welfare facility. Warrior Programme1£200,0001. Mental strength and resi lience training for those whose performance is adversely affected by stress or anxiety or requiring additional support to return to work after trauma or medical intervention. Funding for 100 places a year for serving personnel and adult family members. Fomily. welfore and communitysupport Addiction Family Support I£IO,0001. Support for the Forces Family Support programme, providing services for family members ofserving personnel who have been affected or bereaved by a loved one's harmful use of alcohol, gambling or drugs. Army Welfare SeNice1£60,0001. Delivery ofthe Out of School Adventures programme, supporting the costs associated with the residential adventurous activities element with the Youth Hostel Association. Forces, Children Scotland1£5,0401. Delivery of short residential experiences for children and young people from Army families, helping them develop change- maki ng skills, and build teamwork, decision making and leadership skills. Home-start UK1£75,0001. Helping families struggling to care for young child ren by funding home visits by trained volu nteers, and community groups to help families make friends and reduce isolation. Education, training, employment and skills Forces Employment Charity1£50,0001. Support for the Families Programme, providingemployment and employability support to the partners and spouses of serving British Army personnel. The Gwenilli Trust1£9,5001. Provision of sai ling respite opportunities to serving Army Personnel on Recovery Duty as well as to spouses ofserving Army personnel through the Forces Wives Challenge.
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Recruit for Spouses1£8,6401. Funding to purchase 120 Statements of Comparability from ECCTIS, to enable the spouses of non-UK servingArmy personnel to convert their home nation qualifications into U K equivalents Army Rollof Honour. The Charity has continued to supportthe compilation ofthe Army Roll of Honour, comprising volumes listing the names of British Army personnel who have, si nce 1948, died whilst in the service of the United Kingdom. An official event was held in November 2024 to mark the installation and display of the first three Volumes of the Roll i n the National Army Museum INAMI in London. The Army Roll of Honour is being displayed at the NAM to enable the public and the bereaved to view all avai lable Volumes, includi ng a set of copy books which will be held in the NAM'S Templar Study Centre, to facilitate public viewings of specific entries. A further set of copy books is displayed at Army HQ in Andover, having been unveiled by Lieutenant General David Eastman M BE following the Service of Remembrance in November 2024. Whilst the administrative responsibility for updating the Roll now lies with the Army Dependants, Trust, the Charity has continued to fund the required updates to Volume 4. The Soldiers, Centre, Pirbright. The new welfare centre at the Army Training Centre Pirbright was officially opened on 31 January 2025 by Major General Richard Clements CBE, Director of Basing and Infrastructure. This £llm centre, towards which the Charity provided £7m in funding, provides a modern, sustai nable facility that supports the welfare of recruits undertaking their initial military training. Spread over two storeys, it comprises retail and food outlets, a cinema and social areas. It also functions as a gathering space for fam ilies attending passing out parades. Army Inshore SailTraining Centre. The Charity is also pleased to report the opening of new stores, training and workshop facilities at the Army Inshore Sail Traini ng Centre on Thorney Island, which was made possible through combined funding provided by the Charity alongside Army Sport. An estimated 1,300 serving personnel will use the water sports facility each year, with 500 estimated to use the centre's other buildings and accommodation. Parkdean Resorts. ServingArmy personnel and theirfamilies have been able to benefit from a charitable offeringto the Charity by Parkdean Resorts of holiday accommodation in 3-bedroom mid-range holiday home units at a series of eligible parks. The administration ofthis donation in kind is undertaken on the Charity's behalf by HQ Regional Command, who assess need and allocate the holidays to deserving serving personnel.
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl STRUCTURE, GOVERNANCE AND MANAGEMENT Structure The Charity is constituted as an unincorporated charity and is governed by a Scheme of the Charity Commission sealed on 21 July 2004 las amended by resolutions of the Board passed on 13 May 2014 and 6 December 2016 and by a Deed ofAmendment. Appointment and Retirement dated 19 November 20191. The Army Central Fund Trustee Limited was appointed as the sole trustee of the Charity on Il, February 2019 and acts as the Charity's corporate trustee. Appointment of Directors Directors of the corporate trustee are appointed by resolution of the Board. The Board may advertise vacancies and also invite senior members of the Army to nominate servi ng personnel. The Board is required to be a minimum of six persons with a minimum of three present at each meeting to conduct business. Directors serve for an initial term of three years and may serve for additional terms with the approval ofthe whole Board. During FY24/25 five new Directors were appointed by the Board. Fourwere nominated by the Army and a fifth was selected following an external recruitment process. Key Management Personnel The Directors and the Company Secretary comprise the key management personnel who direct, control, and operate the Charity. Board Training and Advice The Board keeps its skill levels under review. Directors will normally have served as trustees of other charities. As part of thei r induction, they are offered add itional trai ning on thei r responsibilities under company and charity law, and refresher trai ning during their tenure. Relevant updates and briefings are shared by the Secretary. The Board is advised by the Secretary, Treasurer, and Investment Advisor. Further professional advice is provided by the Charity's solicitor, bank, fund managers and auditor.
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Management Routinely the Board meets twice a year and calls additional meetings as required. The Spring meeting is concerned mainly with applications for grants, the year-end forecast, and the following year's income and expenditure budget. The Autumn meeting considers the Annual Report and Financial Statements. the Audit Report, and any additional grant applications. At each meeting the Board monitors investment performance. Policies are reviewed accordingto their individual schedules. The day-to-day management and administration of the Charity is delegated to the Secretary. Directors are required to disclose any relevant interests and withdraw from any decisions where a conflict of interest may arise. This is recorded in each meeting's Records of Decisions. Risk The Board conducts a full risk audit every two years to consider the major risks to which the Charity is exposed. a house-keeping audit i n intervening years considers any sign ificant changes. Risks are categorised as Governance and Compliance. Operational. Financial. The most significant risks to the Charity are noted below. The Directors have satisfied themselves that systems or procedures are established to mitigate all identified risks. The Board is alert to the potential impact of long-term financial market instability on the charity sector as a whole and on those charities that support the Army community. Risk: Composition of Board - diversity and continuity of membership. Mitigations: Ensure a mix of serving and non-serving Directors. undertake an annual skills audit and gap-analysis. consider use of an external recruitment process for new Directors. ensure both setving personnel (Regular and Reserve) and families are represented on the Board. Risk: Failure to assess impact of grants and use evidence to inform decisions. Mitigations: Increase scruti ny of core grants through annual review meetings. agree Memorandum of Understanding with Army Sport in FY24/25- plan to introduce Memorandum of Understanding with Army Families Federation in FY25126' work with Regional Command to analyse distribution ofgrants awarded by Unit and geographical location. schedule visits to all grant recipients to assess project deliverables and outcomes. Risk: Reputational damage arising f rom third party beneficiary or media incident. Mitigations: Review due d iligence processes around grant awards. maintain regular contact and open li nes of communication with grant recipients to ensure issues are raised and resolved quickly and transparently. respond quickly to media i ncidents to clarify the Charity's role and reinforce governance decisions. -io-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Risk: Volatile income stream and loss in value of investments and other income streams impacting on grant making operations. Mitigations: Maintain diversification of the Charity's funds to ensure current grant making levels can be sustained. continue to ensure the investment fund includes a reserve sufficient to fund at least four quarterly d ividends which would allow time to manage any reduction in the grants programme, if requi red. continue rolling review of investment strategy. continue to pay close attention to the UK economy and performance of international financial markets. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT Under Clause 4 of the Scheme, the objects of the Charity are.. iii To promote the efficiency of the Army for the public benefit in such charitable ways as the trustee may decide. 121 The reliefof persons who: lal are in need, hardship and distress. and Ibl are serving personnel ofthe Army orthe dependants ofsuch persons. 131 The trustee may relieve persons in need by: lal making grants of money to them. or Ibl providing or paying for goods, services or facilities for them. or Icl making grants of moneyto other persons or bodies who provide goods, services or facilities to those in need. The Board has taken account of the Charity Commission's general guidance on public benefit when reviewing aims and objectives and in planning futu re activities. It considers that the Charity's activities match the objectives, and that this provides public benefit by improving conditionsforthoseserving inthe Army and fortheirfamilies, sustaining morale and retaining trained personnel. -li-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Grantmaking Strategy The Board undertook a strategic review of the Charity's activities in FY24125 and in line with its desire to align its funding more clearly with its charitable object to promote the efficiency of the British Army for public benefit, developed its first ever grantmaking strategy which has been shared with key stakeholders ahead of full publication in FY25126. In common with other grantmaking bodies, the Charity wishes to increase its i mpact and maximise the value of its funding, but with limited resources must focus efforts on those organisations and activities which deliver the greatest benefit to serving personnel and thei r families, both Regular and Reserve, in the UK and overseas. The Charity awards grants across the servingArmy community for collective welfare and sports projects, and to charities that support the physical, mental and social wellbeing of serving Army personnel and their families. The Charity does not routinely provide direct financial support to i ndividuals in need, as this is either provided through off icial sources or by charities that can access casework and properly assess needs. Post-grant reports are requi red from all grantees and feedback from these reports informs the Board on its future grant making activities. In summary the strategy is to.. Fund grants from annual income. Consider making additional grants from capital for major projects. Prioritise support to projects that support those in need. Support projects that particularly benef it Junior Ranks and their families. Address inequalities and support minority communities. Support core welfare activities by making annual awards to.. o The Army Families Federation o Army Sport Army Unit Welfare (the Army Command Grant which is outlined below) Sustain relationships with charities providing key activities through multi-year agreements. Maintain close relationships with the Army and with other grant making bodies to help coordinate charitable funding across the Army community. -12-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl FINANCIAL REVIEW Income and Expenditure Valuation of the Charity (Total Net Assets) The Charity's investments account for around 98010 of its assets and investment performance is usually the main determinant of the Charity's valuation year on year. Investment performance in FY24125 has been affected by geopolitical and economic uncertainties, including the i mposition of trade tariffs by the USA. Table l- Total Net Assets 2021-20251£1 Year Ending 30Jun 2025 2024 2023 2022 2021 Valuation Start of Year Valuation End ofyear Change Yearon Year 177,3921 13,958,125) 14,576,480) 13,784,587) 7.739,018 14,657,566) 66,391,680 66,314,288 70,349,805 66,391,680 74,926,285 70,349,805 78,710,872 74,926,285 70,971,854 78,710,872 Increase 2021-2025 Income and Expenditure The Charity has two main sources of income.. investment income and donations. As Table 2 below shows, over the last five years there has been a deficit of expend iture over income of £8,684,829, caused by the atypical grant made to the Pi rbright Soldiers, Centre in 2024. Table 2- Income and Expenditure 2021-20251£1 Year Ending 30 Jun 2025 2024 2023 2022 2021 Investment Total Income Income 2,763,914 79,692 2,843,606 2,887,567 107,796 2,995,363 2,734,439 286,986 3,021,425 2,541,926 165,575 2,707,501 2,515,696 102,324 2,618,020 13,443,542 742.373 14.185,915 Excess of income overex enditure 2021-2025 Donations Charitable Expenditure 3,180,034 9,843,582 3,635,837 2,453,930 3,757,361 22,870,744 18,684,829) Totals -13-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl INVESTMENTS AND RESERVES Investment Management The Charity's main capital investment is held i n the BlackRock Armed Forces Charities Growth and Income Fund IAFCG&II, which is a multi-asset Charity Authorised Investment Fund managed by BlackRock Fund Managers Limited. An Advisory Committee representing the collective interests of unitholders acts as a consu Itative body to BlackRock. Mr Guy Davies chaired this committee during the reporting period until his resignation from the Board on 30 Apri12025. Approximately 7 % of the Charity's capital is invested separately in the PITCH property fund managed by Swiss Life Asset Managers UK. Investment strategy The Board's investment strategy is to achieve real growth in capital and to generate enough income to maintain the current level of grant making. The investment in AFCG&I covers a broad spread of assets and has lower overheads than the Charity could achieve by investi ng independently. AFCG&I is mainly invested in equities, with the balance held i n bonds, alternatives, property, futures, and cash, offering the prospect for maximising growth whilst diversifying some risk. The Charity diversified a proportion of its holdings into the PITCH charity property fund when a source of capital for property investment was requi red. The fund has a similar aim of achieving real growth in capital and income. Investment Performance In the year to 30 June 2025, AFCG&I produced a total return of4.00/o Inetl. The Composite Benchmark returned 7.30/0 Inetl. The primary objective of the fund is to provide a return on investment over a period of five or more consecutive years beginning at the point of investment, generated through an i ncrease to the value of the assets held by the Fund andlor income received from those assets. Over the five years to 30 June 2025, the Fund achieved an annualised net total return of5.00/o compared to the Composite Benchmark performance of 6.40/0, underperforming the benchmark by 1.40/0. QI and Q2 2025 were some ofthe most volatile periods in recent market history. The first quarter of 2025 was marked by significant market volatility, with US equities posting their worst quarterly performance since 2022. The primary driver was a new wave oftariffs introduced under President Trump, which escalated trade tensions and fuelled inflation concerns. Investors grew increasingly worried about rising costs and supply chain disruptions, dampening market sentiment. Stagflation fears also became a key theme, with inflation expectations rising amid tariff-induced price pressures and persistent consumerconcerns. -14-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Q2 was one ofthe most turbulent quarters in recent memory though in aggregate. overthe period, markets generally performed well. The quarter began with sharp volatility after the US announced sweeping reciprocal tariffs, far exceeding expectations. Markets reacted violently, with equities and long-term government bonds both selli ng off sharply. However, sentiment quickly reversed after President Trump introduced a 90-day delay for non-retaliating countries, helping restore calm. Also supporting markets was the fact that economic growth and inflation data remained benign. With that backdrop, the fund's performance in the yearto June 2025 has been significantly different between QI and Q2. In April 2025, the Fund implemented changes to address divergence between asset allocation and manager selection outcomes. Asset allocation decisions (such as positioning across asset classes, regions, and sectors) have positively i mpacted the fund, while Manager Selection decisions (contribution to active performance from underlying managers the fund allocates tol broadly detracted from performance. Thus, the Fund has reduced exposure to underlying active managers and listed alternatives, and increased emphasis on our asset allocation decisions, such as dynamically managing the allocation to precious metals, which have contri buted positively YTD. Performance of the fund in Q2 2025 saw the positive impact of these changes, with the fund delivering 7.40/olnetl over the quarter, outperformingthe benchmark by 3.7Vo and being strongly positioned to continue this outperformance into Q3 2025. Income distributions in the year totalled 9.15 pence per unit12024: 8.7 pence per unit), providing investment income of £2,478,833.49, an increase of£121,909.85 from the previous year.12024: £2,356,923.64). The PITCH property fund generated a dividend of £245,52512024.' £256,313). The investmentvalue increased by £94,078 to £4,362,230. PITCH has maintained a robust performance in FY24/25 delivering a total annual return of 8.2010. Despite broader weakness in the economy, PITCH has delivered an attractive total return over 12 months benefiting from the active repositioning strategy implemented over the past few years. The Fund has a lean, focussed portfolio of high quality, energy efficient properties, which continues to be invested in those areas of the market offering attractive, resi lient income and real rental growth. This provides excellent opportunities to add further value to the portfolio through letting and refurbishment i nitiatives. Financial Management and Reserves The Charity operates in a similar manner to an endowed charity. it has a permanent source of u nrestricted i ncome from capital i nvestments which it uses to fund a structu red grants programme. The Board has complete discretion to decide the number and value of grants awarded and may apply both capital and income to meet need. In settingthe annual grants budget, the Board balances the funds to be made available against the long-term aim of retaining sufficient capital to protect future income. In effect, all of the fund's assets are its reserves. these are divided into an immediate cash reserve held in an RBS -15-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Holts interest account1£486,0001, a medium-term reserve held in the PITCH fund and CCLA COIF Fund1£5MI and a strategic reserve of the invested funds in the BlackRock Armed Forces Growth and I ncome Fund, which, at current levels, is equal to over 20 years of annual grants. In recent years funds available have been sufficient to maintain expenditure levels year-on-year and the Board has set the following priorities for grants.. Priority I Sustaining grants to core activities.. funding Army Sport. the Army Families Federation and the Army Command Grant. Fulfilling existing multi-year and meeting long-term commitments. Funding new grant applications. Priority 2 Priority 3 In parallel, the Board seeks to maintain the highest standards of governance while ensuringcost-effective management and administration. This year Support and Governance costs were £91,000 which equates to 3010 oftotal expenditure. The Reserves Target aligns with the investment and grant strategy. The Board sets the level of grant making to match available income to protect the value of the fund in perpetuity. ACHIEVEMENTSAND PERFORMANCE The Charity achieved its objectives duri ng the year, payi ng out £3,089,634 in direct grants 12024: £9,843,681). The Charity awards grants in three main areas: Army Welfare The Charity's grant of £789,500 to HQ Regional Command is distributed by the Army Welfare Grants Committee and the Regional Command Welfare Grants Committee for welfare and sports projects in Army units and clubs both in the U K and overseas. For the first ti me, command grants to British Forces Cyprus1£21,0001, British Forces South Atlantic Islands1£6,3001 and Hamworthy Barracks1£2,2001 were amalgamated into the award to HQ Regional Command for onward distribution through the Committees, which have delegated authority to award grants of up to £25,000 and £7,000 respectively. Larger projects are submitted to the Charity's Board for consideration, following discussion by the Army Grants Planning Forum. HQ Regional Command publishes quarterly reports provid ing an analysis of activities and an itemised list of expend iture. Army-wide Organisations Army Sport. The Charity's grant of £719,691 contributes to central running costs enabling Army Sport to deliver its charter. This includes supporting the development and management ofsport and sports facilities in the Army. governingArmy Sports Associations- and authorising sports competitions and events. Competitive sport remains a critical element in maintaini ng Army health and fitness and is a key component of the Army's'offer, to its people. -16-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl Army Families Federation {AFFI. The Charity's grant of £545,391 contributes to central runni ng costs enabling the AFF to continue to represent families at Government, Army Command, and local levels. It also enables the AFF to communicate with and respond to enquiriesfrom familiesand to campaign on currentissues including housing, immigration, money, and employment. AFF continues to provide exceptional support to Army families which is particularly valuable for those families experiencing hardship. Grantsto Charities As outlined in the Chairman's Overview, grants to charities provide a significant proportion of charitable support for the Army, supporting the physical, mental and social wellbeing of serving personnel and their immediate fam ilies. These awards are listed on page 39. PLANS FOR THE FUTURE As in previous years, whilst the Board is open to consideri ng further major grants from capital, this is balanced by concerns about the long-term strength of the economy and the potential impact of inflation or market corrections on the value of investments. The Charity's financial priority is to ensure it can sustain its core fund ing in the event of sign ificant investment losses or reduced income. Retaining substantial investment capital and reserves protects the future funding of critical services provided by partner charities to the Army community. The Charity will continue to pursue opportunities for collaborative working where the outcome meets charitable objectives. In particular, the Charity will work closely with the Army Benevolent Fund and The Nuffield Trust forthe Forces of the Crown as major supporters ofthe Army community. The Board plans to redevelop the charity's website in FY25/26 to ensure that it provides a clearer, more engaging and accessible window into the work ofthe Army Central Fund. The refreshed site will make it easier for applicants to understand the Fund's p riorities, eligi bility criteria and grant processes, while offering serving personnel and thei r families a better insight into how charitable funds are being used to support their wellbeing and quality of life. The new design will also strengthen transparency, improve user experience across all devices, and support more efficient administration of grants and communications. The Board is also workingtowards the production of a further Impact Report in 2026 and has appointed Bean Research to take this work forward. Building on the success of the previous report, this new study will provide an updated, evidence-based assessment of how the Army Central Fund's grants are improving the welfare and wellbeing of serving personnel, their families and the wider Army community. The research will draw on data from funded organisations, beneficiary feedback and i ndependent evaluation to demonstrate outcomes, identify emerging needs, and inform future funding priorities. -17-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl The Board views this as an important opportunity to strengthen accountability, measure long-term impact, and communicate the value ofthe Fund's charitable supportto stakeholders across Defence and beyond. STATEMENT OF TRUSTEE'S RESPONSIBILITIES The trustee is responsi ble for preparing the trustee's report and accounts in accordance with applicable lawand United KingdomAccountingStandards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustee to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustee is required to.. select suitable accounting policies and then apply them consistently. observe the methods and principles i n Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts i n accordance with the Financial Reporti ng Standard applicable in the UK and Republic of Ireland IFRS 1021. makejudgements and estimates that are reasonable and prudent. state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departu res disclosed and explained in the accounts- and prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will conti nue in operation. The trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the charity's constitution. It is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other i rregularities. In so far as the trustee is aware- there is no relevant audit information of which the Charity's auditors are unaware. and -18-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BOARD OF DIRECTORS, ANNUAL REPORT Icontinuedl the trustee has taken all steps that they ought to have taken to make itself aware of any relevant audit information and to establish that the aud itors are aware of that information. The Army Central Fund Floori | Zone 6 Ramillies Building Marlborough Lines Monxton Road Andover SPII 8HJ Signed by Order ofthe Trustee Board SL Ihthl kki S L Humphri5 (Nov I 2025 16.'51'.34 GMT) SL Humphris Major General Chair ofthe Corporate Trustee Approved by the Board on 1911112025 -19-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ARMY CENTRAL FUND Opinion We have audited the financial statements of The Army Central Fund (the 'Charity'l for the year ended 30 Ju ne 2025 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 thei r preparation 15 applicable law and U nited Kingdom Accounti ng Standards (United Kingdom Generally Accepted Accounti ng Practice). In our opinion the financial statements- give a true and fai r view of the state of the charity's affairs as at 30 June 2025 and of its incoming resources and application of resources, for the year then ended. have been properly prepared in accordance with United Kingdom GenerallyAccepted Accounti ng Practice. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with I nternational Standards on Auditing IU KI IISAS IU Kll 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the U K, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requi rements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatingto going concern In auditing the financial statements, we have concluded that the Board's 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 charity's ability to conti nue 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 trustee with respect to going concern are descri bed in the relevant sections of this report. -20-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ARMY CENTRAL FUND (continued) Other information The Board is responsi ble for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report ofthe 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 i nformation and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otheNise 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 fi nancial statements themselves. If, based on the work we have performed, we conclude thatthere is a material misstatement ofthis other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opi nion.. the i nformation given in the Report of the Trustees is inconsistent in any material respect with the financial statements. or sufficient accou nting records have not been kept. or the fi nancial statements are not in agreement with the accounting records and returns. or we have not received all the i nformation and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsi bilities, the trustees are responsible for the preparation of the financial statements which 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. -21-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ARMY CENTRAL FUND (continued) In preparing the financial statements, the trustees are responsible for assessi ng the charity's ability to continue as a going concern, disclosi ng, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either i ntend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Our responsibilitiesforthe audit of the financial statements We have been appointed as auditors under Section 144 of the CharitiesAct 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud orerror, and to issue a Report of the I ndependent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an aud it conducted in accordance with ISAS IU Kl will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or i n the aggregate, they could reasonably be expected to influence the economic decisions of users taken based on these financial statements. 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 i n respect of irregularities, including fraud. The extent to which our procedures can detect irregularities, includ ing fraud is detailed below: Extentto which the audit was considered capable of detecting irregularities. including fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: The nature of the charitable sector, control environment and performance includ ing the design of the organisation's remuneration policies. -22-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ARMY CENTRAL FUND (continued) Any matters we identified, having obtained and reviewed the organisation's documentation of thei r policies and procedures relating to.. Identifying, evaluati ng and complying with laws and regulations and whether they were aware ofany instances of non-compliance. Detecting and respondingto the risks of fraud and whetherthey have knowledge ofany actual, suspected or alleged fraud. The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. - The matters discussed amongthe audit engagement team regarding how and where fraud might occur in the financial Statements and any potential ind icators of fraud. As a result ofthese procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas of management override ofcontrols, going concern, income recognition, and the appropriateness of expenditure. We also obtained an understanding of the legal and regulatory framework that the organisation operates i n, focusing on provisions of those laws and regulations that had a di rect effect on the determination of material amounts and disclosures in the financial statements. Audit response to risks identified Our procedures to respond to risks identified included the followi ng: Enquiring of management, concerning actual and potential litigation and claims. Substantive testing to vouch source records to the financial statements. Performing analytical procedures to identify any unusual or unexpected relationships that may ind icate risks of material misstatement due to fraud. Enquiring of management the internal controls in, evaluating each control for weakness and vouching to evidence of the control taking place- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments. assessing whether the judgements made in making accounting estimates are indicative of a potential bias. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. -23-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ARMY CENTRAL FUND (continued) We also communicated relevant identified laws and regulations and potential fraud risks to all engagementteam members and remained alert to any indications offraud or non- compliance with laws and regulations throughout the audit. A fu rther descri ption of our responsibilities for the audit of the fi nancial statements is located on the Financial Reporting Counci I's website at www.frc.org.uk/aud itorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities IAccounts and Reports) Regulations2008. Ourauditwork has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an aud itors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsi bility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Dunkley's Chartered Accountants Statutory Auditors Eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Woodlands Grange Woodlands Lane Bradley Stoke Bristol BS32 4JY 2011112025 Date: ...............-.......................... -24-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 STATEMENT OF FINANCIAL ACTIVITIES forthe yearended 30 June 2025 Total Unrestrirted Funds Total Unrestricted Funds 2025 2024 Note INCOME Incomefrom Donations Investment income In Kind Income 79,692 2,763,914 21,874 107,796 2,887,567 TOTAL INCOME 2,865,480 2,995,363 EXPENDITURE Charitable activities In Kind Expenditure 3,180,034 21,874 9,843,582 TOTAL EXPENDITURE 3,201,908 9,843,582 NET IEXPENDITUREI I INCOME 1336,4281 16,848,219) Gains/lLossesl on investment assets 259,036 2,890,094 NET MOVEMENT IN FUNDS 177,3921 13,958,125) RECONCILIATION OF FUNDS 12113 Fund balances brought fomard 66,391,680 70,349,805 FUND BALANCES CARRIED FORWARD 66,314,288 66,391,680 The statement of financial activities includes all gains and losses recognised in the year All income and expenditure derive from continuing activities. The notes on pages 29 to 37 form part of the financial statements. -25-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 BALANCE SHEET as at 30 June 2025 2025 2024 Note FIXED ASSETS Investments 65,212,228 64,953,192 65,212,228 64,953,192 CURRENT ASSETS Debtors io 34,905 38,308 1,086,172 1,422,630 Cash at bank and in hand 1,121,077 1,460,938 {19,017) 122,4501 CREDITORS: amountsfallingdue within one year li NET CURRENT ASSETS 1,102,060 1,438,488 TOTAL NET ASSETS 66,314,288 66,391,680 FUNDS 12113 Unrestricted Income Funds 66,314,288 66,391,680 TOTAL FUNDS 66,314,288 66,391,680 19 November The financial statements were approved by the members of the Board on 2025 and are signed on their behalf by: S L Ifmw hti 2025 16..51..34 GMT) SL Humphris Major General Chair of the Corporate Trustee The notes on pages 29 to 37 form part of the financial statements. -26-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 STATEMENT OF CASHFLOWS forthe yearended 30 June 2025 2025 2024 Note See below CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used) from operating activities 13,100,372) 19,800,407) Cash flows from investing activities: Dividends and interest from investments Proceeds from sale of investments Net cash provided by investing activities: 2,763,914 2,887,567 2,763,914 2,887,567 Change in cash and cash equivalents in the reporting period Cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 1336,4581 16,912,840) 1,422,630 8,335,470 11,086,172) 1,422,630 RECONCILIATION OF NET INCOMETO NET CASHFLOW FROM OPERATING ACTIVITIES Net Income forthe reporting period per the statement of financial activities 177,3921 13,958,125) Adjustments for: Depreciation charges IGainsllLosses on investments Dividends and interest from investments Decreaselllncreasel in debtors IDecreasel/lncrease in creditors 132 1259,0361 12,890,094) 12,763,914) 12,887,567) 3.403 29,254 13,4331 194,0071 Net cash (used) from operating activities 13,100,372) 19,800,407) The notes on pages 29 to 37 form part of the financial statements. -27-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2025 I ACCOUNTING POLICIES Basis of accounting The financial statements have been prepared under the historical cost convention, except for investments which are included at market value, and include the results of the Charity's operations which are described in the Trustees, Report and all of which are continuing. The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191, Charities Act 2011 and the Companies Act 2006. The trust constitutes a public benefit entity as defined by FRS 102. Income All incoming resources are recognised when the charitable trust has entitlement to the funds, the receipt is probable, and the amount can be measured reliably. Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable, and the amount can be reliably measured. Investment income from loans and short-term deposits is accrued in relation to the period to which it relates. Other investment income from assets held in asset portfolios or current accounts is included when reported as received by the portfolio manager. Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Grant expenditure A constructive obligation for grants payable exists once it has been communicated to the recipient. Upon the obligation existing, where payment is probable and can be measured reliably, the entire grant is accounted for in the Statement of Financial Activities, less any amounts that rely upon the recipient meeting performance-related conditions. Charitable activities These are costs incurred on the charity trust's individual charitable activities, including support costs and costs relating to the governance of the charitable trust apportioned to charitable activities. Tangible fixed assets Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rate in use is as follows.. Office Equipment 3 years, straight line Investments The charity's investment in managed portfolios is included in the balance sheet at fair value, being the open market value specified by the portfolio managers at the balance sheet date. -28-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2025 I ACCOUNTING POLICIES Icontinuedl Provisions Provisions are recognised when the charitable trust has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. Fund accountTng Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the charitable trust at the discretion of the trustees. Designated funds comprise a strategic fund reserved to the value of two years expenditure. Financial instruments The charity only has financial assets and financial liabilities of a kind that qLJalify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. DONATIONS Total Unrestricted Funds 2025 Total Unrestricted Funds 2024 Blue Light MOD Discount Scheme Other donations Legacy (Carpenter Estate) 79,692 107,771 25 79,692 107,796 3 INVESTMENT INCOME Total Unrestricted Funds 2024 Total Unrestricted Funds 2023 Incomefrom a UK managed fund Incomefrom Property Income Trust Bank interest receivable 2,478,833 245,525 39,556 2,763,914 2,356,924 256,313 274,330 2,887,567 -29-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2025 4 COST OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE Total Unrestricted Funds Total Unrestricted Funds 2024 2025 Grant commitments at the start ofthe year Grants awarded during the year Grant commitments at the end ofthe year Total grant5 paid in year Isee page 321 9,516 3,088,878 18,7601 3,089,634 106,156 9,747,041 19,5161 9,843,681 Total charitable activities Total Funds 2025 Total Funds 2024 Grants awarded during the year Isee above) Support Costs (see note 51 3,088,878 91,156 3,180,034 9,747,041 96,541 9,843,582 S SUPPORT AND GOVERNANCE COSTS Total Unrestricted Funds Total Unrestricted Funds 2024 2025 Salaries and contributions to pension & healthcare Treasurers, fees 53,600 11,121 9,289 3,040 3,333 5,868 319 59,447 11,021 6,107 5,963 4,200 3,170 2,645 2,079 1,070 421 Legal Fees and Consultancy Audit fees Irrecoverable VAT Secretariat expenses Publication costs Subscription5 Trustees training Trustees travel 2,722 243 1,449 172 Insurance costs 172 Office equipment depreciation Costs of Trustees, meetings 132 114 91,156 96,541 -30-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2025 6 NET EXPENDITURE I INCOME FOR THE YEAR This is stated after charging= 2025 2024 Depreciation Treasurers, remuneration Auditors, remuneration - audit of the financial statements Irrecoverable VAT 132 11,121 3,IVIO 3,333 11,021 5.963 4,200 17,494 21,316 7 STAFF COSTSAND EMOLUMENTS Total staff costs were a5 follows: 2025 2024 Key management personnel Wages and salaries Employers, Nl Employers, Pension Contributions Healthcare Contribution and Death in Service Benefit for Secretary 46,167 51,494 706 7,433 6,532 715 53,600 59,447 Particulars of employees; The average number of employees during the year was 112024 11. and calculated on the basis of full-time equivalents. this was as follows.. 2025 No 2024 No Number of administrative staff.. 0.75 0.75 The Charity consider5 its key management personnel comprise the Directors and the Company Secretary. No Director received any remuneration during the year. No employee received emoluments of more than £60,000 during the year. Wages and salaries figure 2024 includes lump sum payment of £10,000 paid to an employee. The requirement to accrue holiday pay has been considered but thi5 has not been included in the accounts at 30 June 2025 due to the imrnaterial value of the potential adjustment. -31-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 Ju ne 2025 NOTES TO THE FINANCIAL STATEMENTS forthe year ended 30 June 2025 8 IN KIND INCOMEIEXPENDITURE Parkdean Resorts and ACF support British Army Servi personnel with free holiday breaks. The value of this gift is £21,874, based on bookings made in the period 1 SL July 2024 to 30th June 2025. 9 INVESTMENTS Movement in market value 2025 2025 2025 2024 Mayfair AFCG&I Total Total Market value at l July 2024 Disposal proceeds Net Ilossesllgains on revaluations in the year ended 30 June 2025 Market value at 30 June 2025 4,268,152 60,685,040 64,953,192 62,063,098 94,078 164,958 259,036 2.890,094 4,362,230 60,849,998 65,212,228 64,953,192 Historical cost at 30 June 2025 5,000,000 29.395.919 34.395.919 34,395,919 2025 2024 Listed investments BlackRock AFCG&I Income Units 60,849,998 4,362,230 60,685.040 4,268.152 Swiss Life UK PITCH Property Income Fund 65,212,228 64,953,192 Historical Note On 2 September 2002 the ACF Capital Fund valued at £31,604,555 was exchanged for Income/Distribution units in the then ACIF at £1 per unit. On 9 December 2019 the Charity's investment of £62,515,051.11 in the Armed Forces Common Investment Fund IAFCIFI was transferred to the Armed Forces Charities Growth & Income Fund IAFCG&II at equal value and with the same number of shares. -32-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2025 Risk Management The Charity's main capital investment is held in the Armed Forces Charities Growth & Income Fund, a sub- fund of the BlackRock Charity Authorised Investment Fund. It is a multi-asset fund with holdings in UK Equities, Overseas Equities, Fixed Income, Property and Alternatives. The balance of investments in the portfolio is actively managed by BlackRock Fund Managers Limited. The Charity is represented on the Advisory Committee, a consultative body which liaises with BlackRock on behalf of unitholders. The Charity's strategic reseNe is invested in the Property Income Trust for Charities IPITCHI, a charity property fund, managed by Swiss Lile Asset Managers UK. 10 DEBTORS: Amounts falling due within oneyear 2025 2024 Prepayments Other Debtors 1,077 33,828 34,905 771 37,537 38,308 11 CREDITORS: Amounts falling duewithin one year 2025 2024 Grant commitments Accruals 8,760 10,257 19,017 9,516 12,934 22,450 -33-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2025 12 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2025 Investments Net assets Total Unrestricted Income Funds 65,212,228 1,102,060 66,314,288 Total Fund5 65,212,228 1,102,060 66,314,288 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2024 Investments Net assets Total Unrestricted Income Funds 64.953,192 1,438,488 66,391,680 Total Funds 64,953,192 1,438,488 66,391,680 -34-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS forthe year ended 30 June 2025 13 Analysisof Movement in Funds Funds Investment Funds 01.07.24 Income Expenditure Gains 30.06.25 Unrestricted Income Funds 66,391,680 2,865,480 13,201,908) 259,036 66,314,288 Total Funds 66,391,680 2,865,480 13,201.9081 259,036 66,314,288 Funds Investment Gains Funds 01.07.23 Income Expenditure 30.06.24 Unrestricted Income Funds 63,418.553 2,995,363 12,912,330) 2,890,094 66,391,680 Designated Funds 6,931,252 16,931,252) Total Funds 70,349,805 2,995,363 19,843,582) 2,890,094 66,391,680 -35-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2025 14 RELATED PARTY TRANSACTIONS Register of Trustees, Complementary Interests During the ACF accounting year from l July 2024 to 30 June 2025, Mr Guy Davies was the Chair of the Advisory Committee overseeing the investments of the Armed Forces Charities Growth & Income Fund which delivers dividend income. He did not receive any renumeration or benefit from membership of this committee. During the ACF accounting year from l July 2024 to 30 June 2025 there were no Directors of ACF Trustee Ltd who were also trustees of other charities which benefitted from grants made by the ACF. During the ACF accounting year from l July 2024 to 30 June 2025 there were six Dirertors of ACF Trustee Ltd who were reimbursed for travel expenses totalling £1,268 and one Director reimbursed for accommodation expenses of£51. 15 COMMITMENTS Grants202512026 At the meeting of the Board held on 21 May 2025 it was decided thatthe financial year of the Charity should be changed for FY25126 to run from l July 2025 to 31 March 2026. Subsequent financial years would then begin on l April each year. As a result, the grant applications initially agreed 'in principle, by the Board had to be reconsidered owingto a reduced grantmaking budget. The Board decided out of committee to award grants totalling £1,920,690 to recipients previously agreed 'in principle, for the year beginning l July 2025. Pledges ofsupport Due to the adoption of FR5102, forward grant commitments are now accrued in full and recognised at the time award letters are disseminated to recipients. I n previous years, forward grant commitments were noted in the accounts and recognised as they became due. -36-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 MANAGEMENT INFORMATION for the year ended 30 June 2025 The following pages do not form part of the statutory financial statements which are subject to the independent auditor's report on pages 21 to 25. -37-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 DETAILED STATEMENT OF FINANCIALACTIVITIES forthe yearended 30June 2025 2025 2024 INCOME FROM Donations Other donations 79,692 79,692 107,796 107,796 Investment Income Income from investments Bank interest receivable 2,724,358 39,556 2.613,237 274,330 Otherlncome In Kind Income 21,874 2,785,788 2,865,480 2,887,567 2,995,363 TOTAL INCOME EXPENDITURE Charitable Activities Grants awarded during the year In Kind Expenditure 3,088,879 21,874 3,110,753 9.747,041 9,747,041 Support and Governance Costs Salaries and contributions to pension & healthcare Treasurers, fees Legal Fees and Consultancy Audit fees Irrecoverable VAT Secretariat expenses Publication costs Subscriptions Trustees training Trustees travel Insurance costs Office equipment depreciation Costs of Trustees, meetings 53,600 11,121 9,289 3,040 3,333 5,868 319 59,447 11,021 6,107 5,963 4,200 3,170 2,645 2,079 1,070 421 2,722 243 1,449 172 172 132 114 TOTAL EXPENDITURE 3,201,908 9,843,582 NET IEXPENDITUREI I INCOME FOR THE YEAR 1336,4281 16,848,219) -38-
The Army Central Fund Annual Report and Financial Statements for the year ended 30 June 2025 2025 2024 CHARITABLE ACTIVITIES- GRANTS PAID Army Command Grant. Welfare funding Army Sport. Staffand rllanagement costs Army Families Federation. Staff and management costs Warrior Programme. Mental health resilience Defence Medical Welfare Service. Army patients in NHS hospitals Aurora New Dawn. Domestic Violence support service Home-start UK. Supp(>rting families with young children SSAFA- Norton HoLJse. Costs ofvisitor accommodation 760,000 719,690 545,391 200,000 98,000 80,000 75,000 65,000 61,500 60,000 51,038 50,000 50,000 44,080 40,000 30,000 29,500 20,670 15,624 15,000 11,200 10,000 9,500 8,640 8,000 6,425 6,180 6,000 5,040 4,900 2,500 756 760,000 674,107 513,318 50,000 90,000 80,000 62,500 65,000 Fares4Free AWS Activity Camps Relate 60,000 Fisher House (Queen Elizabeth Hospital Birmingham Charity) Forces Employment Charity HighGround SSAFA- Short Breaks. Children with additional need5 40,000 Families, Activities Breaks Command Grant- Army Iminor grants) Felix Fund Horseback UK Reading Force HAC Everest Expedition Addiction Family Support Gwennili Trust Recruit for Spouses Give Us Tirlle Team V3nture On Course Foundation Golf Activities 3.800 Ex Eagle's Endurance Forces Children Scotland Shared Parenting Scotland Ex Atlas Enduro Army Roll of Honour Project Pirbright Welfare Centre ASCB Army Sailing Thorney Island Army Sport Uplift Scottys Little Soldiers Armed Forces Equestrian British Forces Cyprus Command Grant Clervaux Trust, The Fold grant Military Wive5 Choirs. Choir development Army Widows Association. Training costs RM Poole. Welfare funding 51,640 6,931,216 275,000 33,700 30,000 25,000 21,000 16,400 Is,000 15,000 2,200 3,089,634 9,843,681 -39-