2022-03-31-accounts

Charity Registration No. 254393

SAS REGIMENTAL ASSOCIATION

CONSOLIDATED ANNUAL REPORTS AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

SAS REGIMENTAL ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 31 MARCH 2022

Founder	The Late Colonel Sir David Stirling DSO OBE
Correspondent	The Treasurer
Charity number	254393
Registered office	PO Box 35051
	London
	NW1 4WF
Auditor	Whittle & Partners LLP
	The Old Exchange
	64 West Stockwell Street
	Colchester
	Essex
	CO1 1HE
Bankers	HSBC Plc
	13-14 Sloane Square
	London
	SW1W 8AL
Solicitors	Greene & Greene
	80 Guildhall Street
	Bury St Edmunds
	Suffolk
	IP33 1QB
Investment advisors	J Stern & Co LLP
	4 Carlton Gardens
	London
	SW1Y 5AA

SAS REGIMENTAL ASSOCIATION

CONTENTS

	Page
Trustees’ report	1 – 3
Statement of Trustees’ responsibilities	4
Independent auditor’s report	5 – 8
Consolidated statement of financial activities	9
Consolidated balance sheet	10
Charity balance sheet	11
Consolidated statement of cash flows	12
Notes to the financial statements	13 – 27

SAS REGIMENTAL ASSOCIATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their report and the consolidated financial statements for the year ended 31 March 2022.

The consolidated financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s constitution, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

The charity’s objects of the Association as set out in the constitution are:

• maintaining contact between serving and former members of the Regiment and providing for social gatherings for them;

• fostering esprit de corps, comradeship and the welfare of the Regiment and perpetuating its deeds and preserving its traditions;

• providing and maintaining a memorial or memorials to those members of the Regiment who have died in the service of their country;

• providing and maintaining a burial ground for the Regiment;

• advancing the education of members of the Regiment;

• promoting the advancement in life of members of the Regiment by the provision of assistance to enable such persons to prepare for or to assist their re-entry into civilian life.

To relieve members or former members of the Regiment or their dependents who are in need by virtue of hardship, sickness or old age by :-

• Making grants of money to them; or

• Providing or paying for goods, services or facilities for them including education or training; or

• Making grants of money to other persons or bodies who provide goods, services or facilities to those in need.

The main concern of the Association continues to be the provision of welfare in various forms, including medical and training, together with the organisation of reunions and communication with members.

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Association’s aims and objectives and in planning future activities.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

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SAS REGIMENTAL ASSOCIATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance

The Association has continued to identify welfare cases and help them. During the period of the accounts the direct charitable expenditure was £857,061 (2021: £521,077) which includes welfare expenditure of £715,686 (2021: £440,730) representing 135 individual cases (2021: 199). In certain welfare cases, assistance is provided to and received from SSAFA and other sources. These amounts are included as incoming and outgoing resources. The Association has also created and maintains appropriate memorials.

At the end of the financial year, the Executive Committee judges that it has sufficient funds to cover its obligations. There are no outstanding obligations or incomplete projects which will have material costs. There have been no changes in accounting policies.

Future Plans

The Association will continue its fundraising and welfare activities.

Financial review and reserve policy

The Association does not regularly seek or rely on donations from other than its own members. In 1991, the Jubilee Appeal, which was aimed at the specific individuals and organisation sector, resulted in a firm financial base from which a predictable income could be assured. The individuals and organisations who gave to that appeal did so on the basis that their donations would be employed and managed to produce an endowment for the future. In 1993 the various smaller appeals were consolidated, in preparation for the SOFA so that only additional individual fund which remains is the Russell King Fund. This was set up in the 1980s and is used to help finance challenging and character-building projects or expeditions undertaken by children of members.

At the same time, and in line with the Charity Commission exposure draft on Charity Reserves, the Executive Committee agreed to identify and protect £3,500,000 as an endowment for the Jubilee Appeal and £150,000 as an endowment for the Russell King Fund for education. (The Jubilee Appeal endowment was made to accurately reflect the amounts raised before and during the 1991 Jubilee.) The capital on the main Association fund will, after allowing for sensible capital growth, provide the operating income for the charity.

This action on the Association’s reserves was taken for two reasons:

• So that future committees would not be able to use the charity’s reserves without the Charity Commission’s permission.

• To crystallise the Appeal Funds, so that their income and gains could be accurately identified.

The reserves policy is reviewed regularly by both the Executive Committee and Investment Sub-committee. The Association benefits from the provision of accommodation and facilities by the Ministry of Defence. The amount included for donated services (£55,000) represents a reasonable estimate of the costs.

The net increase in overall funds of £934,902 comprises investment gains of £1,354,769 less the deficit of incoming resources over resources expended of £419,867. The former represents profits on disposal of investments and the difference between opening and closing market value.

Following the 2020 market reactions to the global coronavirus pandemic, in the previous financial period the Trustees took the decision to consolidate all funds under the management of J Stern & Co, based on performance and as a prudent step to protect investments. The investments are primarily held in a combination of unit based funds, fixed income stocks and equities to mitigate risk within the portfolio. This approach has delivered acceptable returns overall for the period against the broader economic background for 2021 as markets began to recover following the global COVID pandemic.

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SAS REGIMENTAL ASSOCIATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Investment Policy

During the year, the Association’s investments were held in segregated funds managed by J Stern & Co. The funds are diversified across unit based holdings, equities and bonds. Cash is held to meet anticipated requirements.

Risk Review

The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the Association, and are satisfied that systems are in place to mitigate exposure to the major risks.

The trustees consider that on balance the charity has sufficient resources to continue for the foreseeable future, and accordingly the financial statements have been prepared on a going concern basis.

Structure, governance and management

The Association, which was founded in 1945, is governed by a constitution which was updated and approved by the Charity Commission in October 1991 and adopted in 1993. The constitution has been further updated in October 1997, October 2001, March 2002, October 2004, October 2007, November 2009, November 2013 and October 2018. Its registration with Charity Commission is No 254393.

The Association is managed by an Executive Committee comprising 13 trustees. For security purposes and with the agreement of the Charity Commission, the names on the Executive Committee are available only from the correspondent at the address shown in the introduction. The Executive Committee receive no remuneration. The Association employs three further staff based at their office in London, the address of which is a Post Office Box within a secure military area. Each major unit of the Regiment is represented ex-officio by a regular serving or reserve soldier. The committee is responsible for the strategic direction of the charity and for monitoring the activities of the executive staff. During the year one Annual General Meeting and two Executive Committee meetings were held.

Trustees are appointed by the Members for a four-year term, after which they are eligible for re-election for a further four-year term. The president and vice president can serve a further year if it is deemed necessary. New trustees are selected with a view to ensuring that the Board has an appropriate balance of experience relevant to the needs of the Association. A number might have served on the members committee prior to selection in order to gain the necessary understanding of what the Association is trying to achieve. New trustees are provided with training appropriate to their needs.

The Association owns 100% of the share capital of 1941 Ventures Limited, which donates all profits to the Association.

The Trustees’ report was approved by the Board of Trustees.

Lieutenant Colonel A M Smith

Treasurer

12 October 2022

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SAS REGIMENTAL ASSOCIATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. The financial statements are required by law to 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 financial statements, the Trustees are required to undertake the following:

• Select suitable accounting policies and then apply them consistently;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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SAS REGIMENTAL ASSOCIATION

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Opinion

We have audited the financial statements of SAS Regimental Association and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial 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 Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting 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 International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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SAS REGIMENTAL ASSOCIATION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF SAS REGIMENTAL ASSOCIATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or

• sufficient accounting records have not been kept; or

• the parent charity’s financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditors under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• We obtained an understanding of the laws and regulations applicable to the Group and the parent Charity and the sector in which they operate. We determined that the following laws and regulations were the most significant: the Charities Act 2011, UK GAAP, Charities SORP and tax legislation.

• In addition, the Charity is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: employment law and data protection. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of Those Charged with Governance and other management and inspection of regulatory and legal correspondence if any.

• We considered management’s opportunities for fraudulent manipulation of the financial statements (including revenue recognition and the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.

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SAS REGIMENTAL ASSOCIATION

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Audit response to risks identified

• In respect of the considerations for fraud we incorporated within our audit testing compliance with the procedures for approving and authorising payments and also reviewed the minutes of the trustee meetings to confirm payments made to approvals at those meetings.

• We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

• We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities Act 2011 and UK tax legislation.

• Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

• We made enquiries in relation to the allocation of income and expenditure between restricted and unrestricted funds.

• We addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

• The Senior Statutory Auditor has assessed and concluded that the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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SAS REGIMENTAL ASSOCIATION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF SAS REGIMENTAL ASSOCIATION

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 (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Rachel Skells BA FCA (Senior Statutory Auditor)

for and on behalf of Whittles

12 October 2022

Chartered Accountants Statutory Auditor

Whittle & Partners LLP The Old Exchange 64 West Stockwell Street Colchester Essex CO1 1HE

Whittles is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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SAS REGIMENTAL ASSOCIATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Notes Income from: Donations & legacies 3 Charitable activities 4 Other 5 Investments 6 Total income Expenditure on: Raising funds 7 Charitable activities 8 Total resources expended Net gains/(losses) on investments 12 Net movement in funds Fund balances 1 April Fund balances 31 March	Unrestricted funds Restricted funds Endowment funds Total funds 2022 2021 2022 2021 2022 2021 2022 2021 £ £ £ £ £ £ £ £ 645,412 161,783 - - - - 645,412 161,783 58,890 65,318 - - - - 58,890 65,318 13,954 18,320 - - - - 13,954 18,320 154,631 193,683 17,371 8,690 - - 172,002 202,373
	872,887 439,104 17,371 8,690 - - 890,258 447,794 112,748 96,223 - - - - 112,748 96,223 1,191,627 835,774 5,750 (1,000) - - 1,197,377 834,774
	1,304,375 931,997 5,750 (1,000) - - 1,310,125 930,997 1,371,275 2,455,353 (16,506) 35,844 - - 1,354,769 2,491,197
	939,787 1,962,460 (4,885) 45,534 - - 934,902 2,007,994 9,679,520 7,717,060 238,355 192,821 3,650,000 3,650,000 13,567,875 11,559,881
	10,619,307 9,679,520 233,470 238,355 3,650,000 3,650,000 14,502,777 13,567,875

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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SAS REGIMENTAL ASSOCIATION

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2022

Notes Fixed assets Tangible assets 13 Investments 14 Current assets Stocks 16 Debtors 17 Cash at bank and in hand Creditors: amounts falling due within one year 18 Net current assets Total assets less current liabilities Capital funds Endowment funds – general 20 Income funds Restricted funds 21 Unrestricted funds	2022 £ 28,680 12,726 278,478 319,884 (266,262)	£ 62,841 14,386,314 14,449,155 53,622 14,502,777 3,650,000 233,470 10,619,307 14,502,777	2021 £ 32,109 11,132 73,290 116,531 (54,757)	£ 66,745 13,439,356
				13,506,101 61,774
				13,567,875
				3,650,000 238,355 9,679,520
				13,567,875

The financial statements were approved by the Trustees on 12 October 2022

Lieutenant Colonel A M Smith Treasurer

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SAS REGIMENTAL ASSOCIATION

CHARITY BALANCE SHEET

AS AT 31 MARCH 2022

Notes Fixed assets Tangible assets 13 Investments 14 Current assets Stocks 16 Debtors 17 Cash at bank and in hand Creditors: amounts falling due within one year 18 Net current assets Total assets less current liabilities Capital funds Endowment funds - general 20 Income funds Restricted funds 21 Unrestricted funds	2022 £ 27,380 12,726 274,980 315,086 (266,044)	£ 62,841 14,386,316 14,449,157 49,042 14,498,199 3,650,000 233,470 10,614,729 14,498,199	2021 £ 30,809 9,133 53,992 93,934 (54,631)	£ 66,745 13,439,358
				13,506,103 39,303
				13,545,406
				3,650,000 238,355 9,657,051
				13,545,406

The financial statements were approved by the Trustees on 12 October 2022

Lieutenant Colonel A M Smith Treasurer

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SAS REGIMENTAL ASSOCIATION

CONSOLIDATED STATEMENT OF CASHFLOWS

AS AT 31 MARCH 2022

2022 Notes £ Cash flows from operating activities Cash absorbed by operations 25 Investing activities Purchase of tangible fixed assets - Purchase of investments (462,070) Proceeds on disposal of investments 716,512 Investment income 172,002 Net cash generated from investing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Relating to: Cash at bank and in hand Short term deposits included in fixed asset investments	2021 £ £ (342,187) - (6,289,619) 6,589,702 202,373 426,444 84,257 279,611 363,868 278,478 85,390 363,868	£ (617,949) 502,456 (115,493) 395,104 279,611 73,290 206,321 279,611

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SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

SAS Regimental Association is a charity registered in the United Kingdom. Its address is given in the charity information of the Trustees' Report. The nature of the charity's operations and principal activities are described in the Trustees' Report.

1.1 Accounting convention

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Charities Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The principal accounting policies adopted are set out below.

1.2 Going concern

The trustees have considered factors including the resources available to the charity and the impact of broader economic matters in their assessment of going concern. With the investments managers the trustees continue to monitor the investment portfolio and returns. The trustees consider that on balance the charity has sufficient resources to continue in operational existence for the foreseeable future, and accordingly the financial statements have been prepared on a going concern basis.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

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SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity, for example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

No amount is included in the financial statements for volunteer time in line with SORP 2015 (FRS 102).

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established.

1.5 Resources expended

All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all cost related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Costs of raising funds includes publicity, draw costs and investment management.

Expenditure on charitable activities includes welfare, reunions and memorials.

Other expenditure represents those items not falling into the categories above.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants.

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SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Support costs allocation

Support cost are those that assist the work of the charity but do not directly represent charitable activities and include office costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers 20% on cost Roll of Honour Not depreciated Works of Art and Artefacts Not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. These are measured at cost less impairment.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

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SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.11 Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

Financial assets comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital.

Investments, including those in subsidiary undertakings are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure.

Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, deferred income and provisions.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The assets of which are held separately from those of the Association. Contributions are expensed for the year in which they are payable to the scheme.

1.14 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/expenditure for the period.

• 16 -

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following estimates have the most significant effect on amounts recognised in the financial statements:

The depreciation policies for fixed assets, which write off the costs of assets over their useful economic life, are set according to the estimated useful lives of those assets.

The Association benefits from the provision of accommodation and facilities by the Ministry of Defence. The amount included for donated services (£55,000) represents a reasonable estimate of the costs.

3	Donations and legacies
		2022	2021
		£	£
	Donations and gifts	564,682		99,088
	Legacies receivable	80,730		62,695
		645,412	161,783
4	Charitable activities
		2022	2021
		£	£
	Christmas draw income	31,557		33,534
	Stock sales	24,279		15,559
	Others	3,054		16,225
		58,890		65,318
5	Other
		2022	2021
		£	£
	Book sales	4,066		11,901
	Journal income	6,206		5,915
	Life Subscriptions and Reunions income	3,682		504
		13,954		18,320

• 17-

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

6 Investments

Investments
	Unrestricted	Restricted	Total	Total
	funds	funds	2022	2021
	£	£	£	£
Dividends	63,328	-	63,328	139,886
Income received on Russell King Investment	-	17,371	17,371	8,690
Interest on bonds	91,303	-	91,303	53,797
Interest on bank accounts	-	-	-	-
	154,631	17,371	172,002	202,373

For the year ended 31 March 2021

For the year ended 31 March 2021
	Unrestricted	Restricted	Total
	funds	funds	2021
	£	£	£
Dividends	139,886	-	139,886
Income received on Russell King Investment	-	8,690	8,690
Interest on bonds	53,797	-	53,797
Interest on bank accounts	-	-	-
	193,683	8,690	202,373

7 Raising funds

Raising funds
	2022		2021
	£		£
Activities for raising funds
Direct trading costs		996	4,516
Fundraising and publicity
Stock purchases		19,178	14,537
Draw costs & publicity		32,404	31,998
		51,582	51,051
Investment management		60,170	45,172
	112,748		96,223

• 18 -

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

8 Charitable activities

Welfare and Education Reunions & pilgrimages Memorials & funeral expenses Research & archives Regimental journal Governance costs £ £ £ £ £ £ Charitable activities 715,886 46,088 38,772 44,794 11,521 - Share of support costs (see note 9) 188,033 62,678 31,339 - 31,339 - Share of governance costs (see note 9) - - - - - 26,927 903,919 108,766 70,111 44,794 42,860 26,927 Analysis by fund Unrestricted funds 898,169 108,766 70,111 44,794 42,860 26,927 Restricted funds 5,750 - - - - - 903,919 108,766 70,111 44,794 42,860 26,927 For the year ended 31 March 2021 Welfare and Education Reunions & pilgrimages Memorials & funeral Research & archives Regimental journal Governance costs £ £ £ £ £ £ Charitable activities 444,730 4,617 33,332 27,793 10,605 - Share of support costs (see note 9) 172,937 57,646 28,823 - 28,823 - Share of governance costs (see note 9) - - - - - 25,468 617,667 62,263 62,155 27,793 39,428 25,468 Analysis by fund Unrestricted funds 618,667 62,263 62,155 27,793 39,428 25,468 Restricted funds (1,000) - - - - - 617,667 62,263 62,155 27,793 39,428 25,468	Total 2022 £ 857,061 313,389 26,927 1,197,377 1,191,627 5,750 1,197,377 Total 2021 £ 521,077 288,229 25,468 834,774 835,774 (1,000) 834,774	Total 2021 £ 521,077 288,229 25,468
		834,774

Welfare expenditure, including grants made, included in direct charitable expenditure represents 135 (2021: 199) individual welfare cases.

• 19-

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

9 Support costs

Support costs
	Support	Governance		2022	2021		Basis of allocation
	costs	costs
	£	£		£	£
Staff costs	191,861		-	191,861	186,075		Charitable activities
Depreciation	3,904		-	3,904		3,832	Charitable activities
Office Costs	110,662		-	110,662		95,465	Charitable activities
Travel & Subsistence	6,962		-	6,962		2,856	Charitable activities
Audit fees	-		8,040	8,040		7,320	Governance
Meeting & Training costs	-		887	887		135	Governance
Financial Managers Fee	-		18,000	18,000		18,013	Governance
	313,389		26,927	340,316	313,696
Analysed between
Charitable activities	303,931		26,927	330,858	313,696

10 Trustees

None of the other trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

During the year travel and subsistence of £4,207 (2021: £856) was paid to 4 (2021: 2) Executive Committee members in recognition of their travel and subsistence costs on Association affairs.

The Association maintains indemnity insurance cover for the trustees and officers to a level of £2,000,000.

• 20 -

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

11 Employees

Number of employees

The average monthly number of employees during the year was:

	2022	2021	2021
	Number	Number
Office and administration	3		4
Employment costs	2022	2021
	£	£
Wages and salaries	163,441		158,727
Social security costs	16,760		15,791
Defined contribution pension costs	11,660		11,557
	191,861		186,075

One employee received total remuneration of £60,000 per annum or more, including benefits.

12 Net gains/(losses) on investments

Net gains/(losses) on investments
Unrestricted Restricted funds funds £ £ Revaluation of investments 1,284,738 (16,506) Gain/(loss) on sale of investments 86,537 0 1,371,275 (16,506)	Total Total 2022 2021 £ £ 1,268,232 1,339,340 86,537 1,151,857 1,354,769 2,491,197
		2,491,197

For the year ended 31 March 2021

For the year ended 31 March 2021
Unrestricted Restricted funds funds £ £ Revaluation of investments 1,314,095 25,245 Gain/(loss) on sale of investments 1,141,258 10,599 2,455,353 35,844	Total 2021 £ 1,339,340 1,151,857
	2,491,197

• 21-

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

13 Tangible fixed assets Group and charity

Tangible fixed assets Group and charity
	Computers		Roll of		Works	of Art	Total
			Honour		and Artefacts
	£		£		£		£
Cost
At 1 April 2021		35,991		34,588		24,551		95,130
Disposals	(12,311)			-			(12,311)
At 31 March 2022		23,680		34,588		24,551		82,819
Depreciation and impairment
At 1 April 2021		28,385		-		-		28,385
Depreciation charged in the year		3,904		-		-		3,904
Disposals	(12,311)			-		-	(12,311)
At 31 March 2022		19,978		-		-		19,978
Carrying amount
At 31 March 2022		3,702		34,588		24,551		62,841
At 31 March 2021		7,606		34,588		24,551		66,745

The net book value at 31 March 2022 represents fixed assets used for management and administration purposes, together with the Roll of Honour and work of art and artefacts.

Works of art and artefacts and the Roll of honour project are not depreciated as the Trustees consider the net realisable value to be at least equivalent to cost and therefore any depreciation charge would be nil.

• 22 -

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

14 Fixed asset investments Group Listed investments Cash in portfolio £ £ Cost or valuation At 1 April 2021 13,233,035 206,321 Additions 462,070 - Valuation changes 1,235,794 32,440 Profit/(loss) on disposal of investments 86,537 - Disposals (716,512) (153,371) At 31 March 2022 14,300,924 85,390 Carrying amount At 31 March 2022 14,300,924 85,390 At 31 March 2021 13,233,035 206,321 Fixed asset investments Charity Listed investments Cash in portfolio Other investments £ £ £ Cost or valuation At 1 April 2021 13,233,035 206,321 2 Additions 462,070 - - Valuation changes 1,235,794 32,440 - Profit/(loss) on disposal of investments 86,537 - - Disposals (716,512) (153,371) - At 31 March 2022 14,300,924 85,390 2 Carrying amount At 31 March 2022 14,300,924 85,390 2 At 31 March 2021 13,233,035 206,321 2 2022 Other investments comprise: Notes £ Investments in subsidiaries 24 2

Total £ 13,439,356 462,070 1,268,234 86,537 (869,883) 14,386,314 14,386,314 13,439,356 Total £ 13,439,358 462,070 1,268,234 86,537 (869,883) 14,386,316 14,386,316 13,439,358 2021 £ 2

• 23-

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

15 Financial instruments - Group Carrying amount of financial assets Debt instruments measured at amortised cost Financial instruments carried at fair value through income and expenditure Carrying amount of financial liabilities Measured at amortised cost Financial instruments - Charity Carrying amount of financial assets Debt instruments measured at amortised cost Financial instruments carried at fair value through income and expenditure Carrying amount of financial liabilities Measured at amortised cost 16 Stocks Group Stock Charity Stock 17 Debtors Charity 2022 2021 Amounts falling due within one year: £ £ Trade debtors 230 7 Other debtors 2 2 Prepayments and accrued income 12,494 9,124 12,726 9,133	2022 2021 £ £ 232 2,008 14,386,314 13,439,356 225,941 35,379 2022 2021 £ £ 232 9 14,386,316 13,439,358 225,941 35,379 2022 2021 £ £ 28,680 32,109 2022 2021 £ £ 27,380 30,809 Group 2022 2021 £ £ 230 7 2 2,001 12,494 9,124 12,726 11,132	2022 2021 £ £ 232 2,008 14,386,314 13,439,356 225,941 35,379 2022 2021 £ £ 232 9 14,386,316 13,439,358 225,941 35,379 2022 2021 £ £ 28,680 32,109 2022 2021 £ £ 27,380 30,809 Group 2022 2021 £ £ 230 7 2 2,001 12,494 9,124 12,726 11,132
		11,132

• 24 -

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

18 Creditors: amounts falling due within one year

Taxation and social security Trade creditors Accruals and deferred income	Charity Group 2022 2021 2022 2021 £ £ £ £ 12,337 8,257 12,555 8,383 27,766 10,995 27,766 10,995 225,941 35,379 225,941 35,379 266,044 54,631 266,262 54,757

19 Retirement benefit schemes

Defined contribution schemes

The charity operates defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the charity in independently administered funds.

The charge to profit or loss in respect of defined contribution schemes was £10,615 (2021- £10,506).

20 Endowment funds

The Russell King endowment fund is restricted to expenditure on education and represents part of the amounts donated by Mr Russell King which the Executive Committee may not use without the prior permission of the Charity Commission. The value will be reviewed from time to time, so as to ensure that it keeps pace with inflation. The income on this fund is used to assist financially in character building adventure training, and on educational expeditions for sons and daughters of past and present members of the Regiment.

The Jubilee Fund represents the amounts raised before and during the 1991 Jubilee. It has been agreed with the Charity Commission that this protected sum may not be used by the Executive Committee without prior permission of the Charity Commission. The income of this fund contributes to the day-to-day running of the Association.

		Movement	in funds
	Balance at 1	Incoming	Resources	Balance at 31
	April 2021	resources	expended	March 2022
	£	£	£	£
Permanent endowments
Russell King fund	150,000	-	-	150,000
Jubilee Appeal	3,500,000	-	-	3,500,000
	3,650,000	-	-	3,650,000

• 25-

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

21 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

			Movement in funds	Movement in funds	Movement in funds	Movement in funds
		Balance at 1	Incoming	Resources		Revaluations,		Balance at 31
		April 2021	resources	expended			gains and	March 2022
							losses
		£	£		£		£	£
	Russell King fund	238,355	17,371		(5,750)		(16,506)		233,470
22	Analysis of net assets between funds
	Group
		Unrestricted		Restricted		Endowment			Total
			funds		funds		funds
			£	£			£	£
	Fund balances at 31 March 2022 are
	represented by:
	Tangible assets		62,841		-		-		62,841
	Investments		10,579,767	156,547			3,650,000	14,386,314
	Current assets/(liabilities)		(23,301)		76,923		-		53,622
			10,619,307	233,470			3,650,000	14,502,777
	Analysis of net assets between funds
	Charity
		Unrestricted		Restricted		Endowment			Total
			funds		funds		funds
			£	£			£	£
	Fund balances at 31 March 2022 are
	represented by:
	Tangible assets		62,841		-		-		62,841
	Investments		10,579,769	156,547			3,650,000	14,386,316
	Current assets/(liabilities)		(27,881)		76,923				49,042
			10,614,729	233,470			3,650,000	14,498,199

• 26 -

SAS REGIMENTAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

23 Related party transactions

During the year a donation of £20,000 (2021 – nil) was received from SAS Regimental Association Publishing Company Limited, a wholly owned subsidiary of SAS Regimental Association.

The Association occupies rent free office space owned by the Ministry of Defence, the estimated annual value of which is £55,000, is included as income in donations, and as a cost in 'Charitable activities' in the Statement of Financial Activities.

24 Subsidiaries

	Name of undertaking	Registered	Nature of business	Class of %
				Held
		Office		shares held Direct
	SAS Regimental Association	England & WalesBook Publishing		Ordinary 100
	Publishing Limited
25	Cash generated from operations			2022	2021
				£	£
	Surplus/(Deficit) for the year			934,902	2,007,994
	Adjustments for:
	Investment income recognised	in statement of financial activities		(172,002)	(202,373)
	Gain/Loss on disposal of investments			(86,537)	(1,151,857)
	Fair value gains and losses on investments			(1,268,234)	(1,339,340)
	Exchange gain/loss			32,440	43,187
	Depreciation and impairment of tangible fixed assets			3,904	3,832
	Movements in working capital:
	(Increase)/Decrease in stocks			3,429	(12,848)
	Decrease/(Increase) in debtors			(1.594)	12,418
	Increase/(Decrease) in creditors			211,505	21,038
	Cash absorbed by operations			(342,187)	(617,949)

• 27-