THE HEADLEY COURT CHARITY The Trustees, Annual Report and Accounts For the Year Ended 31 December 2020 Reglstered tharfty No. 256382 THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND AccovKfs FOR THE YEAR ENDING 31 DECEMBER 2￿20 CHAIRMAN'S INTrODUCTION Having formally resolved to close the Charity and following advi￿ from the Charity Commission, Trustees have agreed to support. through the award of financial grdnts, a number of armed forces chartLies whose purposes are comparable with the objetts of the Charity. principally rehabilitation, research at)d wellbeing. These awards are detailed in the main report. Trustees have further entered into detailed discussion with the Robert Jones and Agnes Hunt Orthopaèdic Hospital NHS Foundation Trust with the aim of funding the construction of the Headley Court Veterans Orthopaedic Centre at the Hospital. Trustees will continue to disperse the assets of the Charity and to ¢ondude arrangements for the closure of the Charity in 2022. STrUCTURE. GOVERNANCE AND MANAGEMEI The Headley Court Charity was established under a Charity Commission Scheme dated l April 1968 and subsequently amended by a Charty Commission Schemes dated 17 October 2(KKJ, 11 July 2017 and 29 July 2020 and resolutions passed by the Trustees on 18 October 2006. 31 July 2019 and 21 July 2020. The Charity is Eovemed and managed by a Board of Trustees, who are sUPPOrted by their Clerk. OBJEcfs The objetts of the Charity are: IIIThe rehabilitation of serving. reserve and auxiliary members and veterans of the Armed Forces of the United Klngdom (the beneficiaries). 12) Research into the medical rehabilltation of servin& reserve. and auxiliary members and veterans of the Anned For￿ of the United Kingdom. 131 The relief of hardship of the beneficiaries and their families, OBJEcnvES AND AcnwnES FOR THE PUBLIC BENEFIT The Trustees gave careful consideration to the Charity Commission's general guidance on public beneftt when reviewing the Charitrfs aims and objectives and in planning future artiv¢tie5. In particular, the Trustees considered how any grants they make would contribute to the CharitVs aims and objectives. The Trustees, objÈ¢tive for 2020 was to continue the process of closing the charity by making grants to charities with comparable purposes. They achieved this lil by making the following grdnts: For Rehabllltatlon Robert Jones and &gnes Hunt Orthopaedlc Hospital NHS FoundationTrust Help for Heroes Highground Stoll The Not Forgotten Turn to Starboard £6.000,000 £5.118.930 £450,OCM) £362,810 £300,000 £25,000 THE HEADLEY COURT CHARITY TrUSTEES' ANNUAL REPORT AND AcCOuP￿ FOR THE YEAR ENDING 31 DEceMBER 2ff20 For Researth The ADVANCE Study £i0,0￿.0[￿) FOT Rellef ol Hardshlp Royal Air Force Benevolent Fund ABF The Soldiers Chartty Royal Navy & Royal Marines Charity £i,ooo,000 £i,000,OCM) £1,cw,￿x) lill By agreeing to make a grant of £6m to fund the construction of the Headley Court Veterans Orthopaedic Centre at the Robert Jones and Agne5 Hunt Orthopaedic Hospital. {ili} By inviting charities with similar objects to apply for funding. PLANS FOR FiITURE PERIODS The T￿￿te￿ objective for 2021 is to continue the priKess of closing the charity by making donation5 to charltles with comparable purposes. FINANCIAL REVIEW The Statement of Financial Activwties is set out on page 8 and shows a net deficit of £19.153,448 12019- net surplus of £28.459,8961. Income for the year amounted to £111,43812019: £142,152). Expendtture on charitsble activities amounted to £19,265,55612019-. £10,794,266). At 31 December 2020. investments held bythe Charitywere valued at £1,795.92012019: £1,795,250). RISK The Trustees have continued to monitor the risks facing the Charity and are content that adequate 5yStems are in place to monitor and mitigate them. The only major risk identified was a lack of return on the investment portfolio. The risk of this materialising was mitigated by dele8*ing day to day management of the portFolio to an FSA authorised firni of investment managers and by the Trustees reviewing the performance of the portFolio twice a year. The investment portfolio was encashed in February 2021. All other risks identified were calculated as low. RESERVES The Trustees, reserve5 policy is to hold in reserve sufficient funds cover the costs of winding up the Charity. STAFFING The Trustees wish to thank the Clerk for her work in 2020. THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND Accoui¥fs FOR THE YEAR ENDING 31 DECEMBER %r20 REFERENCE AND ADMINISTrATIVE INFORMATION Name: The Headley Court Charity- also known as the Headley Court TrusL Registered Charlty Number". 256382 Principal Address: Clo 16 Westpoint. 49 Putney Hill. London SW15 6RU T￿Stee5 AirVic&Marshal A. J. Stables CBE FRAe5 (Chairman) Mr M. S. Debens Commodore T. D. Elliott OBE RN (Resigned 21 July 2020} Air Commodore P. J. Hughe5don MA FIOD AirWic&Marshal C. S. Walton Clerk: Ms K. Kirkland BA (Honsl FRSA Solicitors: Charles Russell Speechtys LLP 5 Fleet place London. EC4M 7RD 8anker5: CAF (Charities Aid Foundatlonl 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA CCLA Senator House 85 Queen Victoria street London EC4V 4Er Investm¢nt Manager5: St James's Platr Wealth Management St James's Place House, l Tetbury Road Cirencester Gloucestershire GL7 IFP Independent examiners: Moore fingston Smith LLP Devonshire House 60 Goswell Road London ECIM 7AD THE HEADLEY COURT CHARttY TRUSTEES. ANNUAL REPORT AND Accouplfs FOR THE YEAR ENDING 31 DECEMBER 21120 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are ￿sponSible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom AccountirEgStandards {Unrted Kingdom Generallv Accepted Accounting Practice). The law applicable to charities in England and Wale5 requires the Trustees to prepare financlal statements for each financial year which give a true and fair vlew of the state of affairs of the Charity and of the incoming resources and application of resources otthe Charity for that period. In preparing these financial Statements, the Trustees a￿ required to: Select suitible accounting policies and then apply them con5iStentty- Obsetve the methods and principles in the Charities SORP- Make judgements and estimates that are reasonable and prudent. State whether applicable UK Accounting Standards have been followed, subjert 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 Chartty will Continue in busine5S. 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 also responsible for safeguarding the assets of the Charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. This ￿port was approved by the Trustees on 20 July 2021 Air Wice-marshal Anthony Stables CBE FIIAeS (Chaimanl THE HEADLEY COURT CHARITY INDEPENDENT EXAPIINER'S REPORT TO THE TRUSTEES OF HEADLEY COUITt CHARrrY l ￿port to the trustees on my examination of the accounts ofThe Headley Court Charity (the Charity) forthe year ended 31 December 2020. Responsibilitles and basis of report As the charity trustees of the Chartty you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Att 20111.the Art'l- I report in respect of my examination of the Charitvs accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl of the Act. Independent examlnerfs statement I have completed my examination. I confimi that no material matters have come to my attention in connertion with the examination giving me cause to believe that in any material respert: l. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requlrements concemiTrg the fomi and content of accounts Set out in the Charittes (Accounts and Reports) Regulation5 2008 other than any requirement that the a¢counts give a 'true and fair view which is not a matter considered as part of an independent examination. Otherthan the other matter explalned below I have no con￿M5 and have come across no other matters in connection with the examination to which attention should be drdwn in this report in orderto enable a proper understanding of the accounts to be reached. Other matter- going concern As further explained in the trustees report and note la in the financlal statements, the Trustee5 have decided to wind up the charity and are expecting to apply for it to be removed from the Charity Commission register before the end of 2022. The financial statements have been p￿Pared on a basis otherthan that of a going concern. Date: 13 August 2021 Devonshire House 60 Goswell Road London. ECIM 7AD Neil Finlay50n Independent Examiner For and on l)ehalf of Moore Kingston Smtth LLP THE HEADLEY COURT CHARITY TRUSTEES, ANNUAL REPORT AND ACCOUPItS FOR THE YEAR ENDING 31 DECEMBER 2020 Statement of Flnancial Artivitles for year ended 31 December 2020 2020 2019 Income and endowments fr¢)m: Donations 217 150 Ground rent Ic Lega(ies Bank interest 51.221 142,002 Other income 38,820,650 Ti>tal income 111,438 38,962.802 Expenditure on tharitable actlvrties 19.265,555 10,794.266 Net gainslllossl on investments 670 291,360 Gain on sale of Estate Movement In funds 119.153.448) 28.459.896 Total funds brought forward at l January 2020 29,971.555 1.511,659 Total fvnds earried forward at 31 t)ecember 2020 6 lo￿18.107 29.971,555 THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPOltt AND AccouKfs FOR THE YEAR ENDING 31 DECEMBER 2W20 Balance Sheet as at 31 December 2020 Notes 2019 FIXED ASSETS Investments CURRENT ASSETS Investments 1.795,920 1,795,250 Cash at Bank 9.026,258 28,680,203 CURRENT UABIUTIES Acc￿￿ES 4,0711 1503,8981 NEf CURRENf AsSEfsiiuABIL￿IES) 10,818.107 29,971,555 TOTAL NEfASSErs 10,818,107 29.911￿55 Represented by: GENERAL FUND: 10.818.107 29.971,555 ENDOWMENT FUNtr. ,107 29,971,555 Approved by the Trustees on 20July 2021 and signed on their behakF by: Air Vice-Mar5hal A J stsbles CBE FRAeS Ichairmanl The note5 on pages 10- 12 fomi an integral part of these accounts. THE HEADLEY COURT CHARrrY TRUSTEES, ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2020 I. ACCOUNTING POUCIES a) Basis of Attountlng: The financial statements have been prepared under the historfcal cost convention as modified to Include the revaluation of investments. The ststement of accounts has been prepared in accordance with the Financial Reporting Standard applicable in the LJK and Republic of Ireland IFRS 1021. The financlal 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 Standards applicable in the UK and Republic of Ireland IFRS1021 issued on 16 July 2014 and the Financial Reporting Standard applicable in the Unlted Kingdom and Republic of Ireland (FRS1021 and the Charities Act 2011. The Charkty constitLrtes a PLsblic benefft entity as defined by FRSIO2. Going Conorn: The Trustees have decided to wind up the Charity following the sale of the Headley Court estate in May 2019 and distribute all surplus funds to other charities with comparable purposes and therefore consider it inappropriate to prepare the financial statements on a going concern basis. bl Income: Income is recognised when there is ent¥ilement to the fund5, the receipt is probable and the amount can be measured reliably. Donations are recognised in full in the Statement of Financial Activities in the year in which they are receivable. Bank interest is accounted for on an accruals basis. c) Investment&" Income from investments is credited in the accourts on the date of receipt. Listed investments are stated at tnarket value at the year end. Any 8ains or losses incurred on the revaluation of investments are recognised in the statement of financial activttles. d) ReSoU￿e$ Expended: Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committingthe Charitytothe expenditure. All expenditure is accounted for on an accrua15 basis and has been classified under headings that aggregate all costs related to the category. The following accounting policies are applied to the different categories of expenditure: Costs of tharitable attivity. These relate to charitable expenditure and the support costs of the Charlty. Charitsble expenditure is recognised when it is incurred. Support costs are made up of professional fees, administrative and governan￿ costs. For reasons of transparency, professional fees relatingtothe disposal of the estate are shown separately. Governance costs are incurred to ensure good public accountability and Complian￿ with regulation and good practice. el Flnaneial Instruments: The charity has financial assets and liabilities of a kind that qualify as basic financial instruments. 8a5ic financial inttruments are initially retognised at transaction value and subsequently measured at their settlement value. Q Cash and Cash equivalen￿. Cash and cash equivalents include cash in hand. deposits held at call with banks and other short-term Ilquld Investments with original maturities of three months or less. gl Crltkal accounting estimates and areas of judgements: In the view of the trustees in applying the accounting policie5 adopted, no judgement5 were required that have a significant effert on the amounts recognised in the financial st3tement5 nor do any estimates or assumptions made carry a significant rlsk of materlal adlustment in the next financial year. THE HEADLEY COURT CHARITY TRUSTEES, ANNUAL REPORT AND Accoupifs FOR THE YEAR ENDING 31 DECEMBER 2020 2. EXPENDITURE ON CHARITABLE AcllviTIES 2020 2019 Charitable expenditure Professional fee5 relating to disposal of estate Administrative expenses T¢)tal expenditure 19.256,740 10.501.500 284,182 8,815 8,584 19,265555 10.794,266 3. GAINSIILOS5ESI ON INVESTMENT ASSETS 2019 2019 General Fund 670 291,360 4. INVESTMENTS 01-Jan-20 Additions Disposals Unrealised gains 31-Oec-20 GenerolFund UK High Income UT International Equity North American UT Global Equity Income Global aass UT 355.149 332.890 319,823 215.107 183,288 198,094 190,889 1.795.250 (37.1071 17,925 30,939 29.205 121.5821 5.472 124,1821 670 318.042 350,815 350,762 244,312 161.706 203,566 166,716 1.795,920 Equlty Income Class Allshare Income Class Totsl Historical Costs UK High Income Unit Trust Intemational Equlty Unit Trust North American Untt Trust Global Equity Income Unlt Trust Global Class Unit Trust Allshare Income Class Unit Trust Equity Income Class Unit Trust Totsl 31-Det-20 434,173 199,927 232.831 191.488 178.979 192.403 119.273 1,549,074 All investment5 have been classified as current assets at the year-end reflecting the trustees, intention of winding up the charity. io THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND Accoupifs FOR THE YEAR ENDING 310ECEMBER 2020 5. ACCRUAL5 2020 2019 Grant creditors 500.Cth) Professional fees 4,071 3,898 Totsl 3,898 72.584 6. MOVEMEKf OF RESERVES 2020 2019 General Fund Balance brou8ht forward Incoming Resources forthe year Outgoing Resources forthe year Net gainlllossl on investments 29,971.555 1,511,659 111.438 142,152 119.265.556) 110.794.266} 291,360 670 Surplus on disposal of Estate Balance carried foThvard 38,820,650 10.818,107 29.971,555 7. ENDOWMENT FUND This Fund, previously called the Capitsl Reserve Fund. is a permanent endowment created from the compulsory purthase of land. The original capital of £317.rJ)O was invested in M&G Charifund units. and during 21JJ9 the investment was tsansferred to St James's Place. To ¢omply with SORP regulations this investment is now shown at market value and unrealised 83ins and105ses have been added to the Endowment Fund. Income from the investment is credited to the General Fund for the Chariws use. Followlng approval from the Chartty Commisslon in 2018, the Trustees agreed to transfer the investments in the Endowment Fund investment into the General Fund, in preparation for the winding up of the Charity. 8. TRUSTEES EXPENSES Included in a(Iministrative expenses are payments reimbursed to 112019: 41 Trustee during the year which amounted to £19412019 £2,126).