THE HEADLEY COURT CHARITY The Trustees, Annual Report and Accounts For the Year Ended 31 December 2021 Registered Charity No. 256382 THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2021 CHAIRMAN'S INTRODUCTION Having formally resolved to close the Charity and following advice from the Charity Commission, Trustees have agreed to support, through the award of financial grants, a number of armed forces charities whose purposes are comparable with the objects of the Charity, principally rehabilitation, research and wellbeing. The grants awarded in 2021 are listed below. Trustees will continue to disperse the a55ets of the Charity and to conclude arrangements for the winding up of the Charity, or it5 merger with a charity with similar objects, in 2023. STRUCTURE, GOVERNANCE AND MANAGEMENT The Headley Court Charity was established under a Charity Commission Scheme dated l April 1968 and subsequently amended by a Charity Commission Schemes dated 17 October 2000, 11 july 2017 and 29 July 2020 and a resolution passed by the Trustees on 31 July 2019. The Charity is governed and managed by a Board of Trustees, who are supported by their Clerk. OBJEcrs The objects of the Charity are- 111 The rehabilitation of serving, reserve and auxiliary members and veterans of the Armed Forces of the United Kingdom (the beneficiaries). 121 Research into the medical reh3bilit3tion of serving, reserve, and auxiliary members and veterans of the Armed Forces of the United Kingdom. 131 The relief of hardship of the beneficiaries and their families. oBJE￿IVEs AND A￿1VITIEs FOR THE PUBLIC BENEFIT The Trustees gave careful consideration to the Charity Commission's general guidance on public benefit when reviewing the Charitvs aims and objectives and in planning future activities. In particular, the Trustees considered how any grants they make would contribute to the Charity's aims and objectives. The Trustees, objective for 2021 was to continue the process of closing the charity by making Brants to charities with comparable purposes. They achieved this by awarding the following grants.. For Rehabilitation The RBL Battle Back Centre £270,000 The Scar Free Foundation £20,000 The SBS Association £30,000 For Research The ADVANCE StudyTBI The ADVANCE Study Biomarkers £1,989,457 £956,501 THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2021 PLANS FOR FUTURE PERIODS The Trustees, objectives for 2022 are.. to continue to monitor the progress of the building of the Headley Court Veterans Centre at the Robert lones and Agnes HLJnt Orthopaedic Hospital in Oswestry for which a grant of £6m was awarded in 2020. The grant is payable in instalments of £lm subject to key milestones being reached. By the year-end £3m of the grant had been paid. to make grants to charities with comparable purposes. to decide if the charity should be wound up in 2023 or merged with a charity with similar objerts. FINANCIAL REVIEW The Statement of Financial Activities is set out on page 7 and shows a net deficit of £9.093,790 12020.. net deficit of £19,153,488). Income for the year amounted to £140,063 12020.. £111,438). Expenditure on charitable activities amounted to £9,272,17312020'. £19,265,555). At 31 December 2020 investments held by the Charity were valued at £1,795,920. These investments were encashed on 9 February 2021 and £1,834,240 was received. RESERVES The Trustees, reserves policy is to hold in reserve sufficient funds to cover the costs of winding up the Charity. STAFFING The Trustees wish to thank the Clerk for her work in 2021. THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2021 REFERENCE AND ADMINISTRATIVE INFORMATION Name: The Headley Court Charity- also known as the Headley Court Trust. Registered Charity Number: 256382 Principal Address,. C/0 16 Westpoint, 49 Putney Hill, London SW15 6RU Trustee5 Air Vice-marshal A. J. Stables CBE FRAeS (Chairman) Mr M. S. Debens Air Commodore P. J. Hughesdon MA Air Vice-marshal C. S. Walton CB QHP Clerk: Ms K. Kirkland BA (Honsl FRSA Sollcitors: Charles Russell Speechlys LLP 5 Fleet Place London, EC4M 7RD Bankers: CAF (Charities Aid Foundation) 25 Kings Hill Avenue Kings Hill West MallinE Kent ME19 4TA Investment Managers: St James's Place Wealth Management St James's Place House, l Tetbury Road Cirencester Gloucestershire GL7 IFP CCLA Senator House 85 Queen Victoria Street London EC4V 4ET Independent examiners.. Moore Kingston Smith LLP 6 Floor 9 Appold Street London EC2A 2AP THE HEAOLEY COURT CHARrrY Thv. Trtystees we ftsponslble for prÈparir% thè Ilnnual Repcrt Jnd the finarKial ststemonts In *F4obltlaw￿d United KirEdom AccoLmt1￿ StJrfwd5 Iufwted ￿ngdLxn Gerwal Actepled A¢¢Nntsr¥ ProctKEI. law appllGil>le to dwrtles in EnEland and Wales reqwres th•. Twstees io prEparq tinanci stst•ments for *a¢h finknoal YL'*Ji wliith give a true ar￿ fairvipw of rhe stote of affairs Dt the Charrty and ofthe Incomi￿ res￿1 Costs of charitable activity: These relate to charitable expenditure and the support costs of the Charity. Charitable expenditure is recognised when it is incurred. Support costs are made up of professional fees, administrative and governance costs. Governance costs are incurred to ensure good public accountability and compliance with regulation and good practice. e) Financial instruments: The charity has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. fl Cash and cash equivalents: Cash and cash equivalents include cash in hand, deposits held at C311 with banks and other short-term liquid investments with original maturities of three months or less. gl Crltlcal accountlng estlmates and areas of lud8ements'. In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2021 2. EXPENDITURE ON CHARITABLE ACTIVITIES 2021 2020 Charitable expenditure 9,255,958 19,256,740 Professional fees 9,772 Administrative expenses 6,443 8,815 Total expenditure 9.272,173 19,265,555 3. GAINSIILOSSESI ON INVESTMENT ASSETS 2021 2020 General Fund 38,320 670 4. INVESTMENTS Disposal Proceeds 01-Jan-21 Additions Realised Gain5 31-Dec-21 General Fund UK High Income UT International Equity North American UT 318,042 350,815 350,762 244,312 161,706 203,566 166,717 322,468 360,098 363,986 251,589 164,579 205,025 166,496 4,426 9,283 13,224 7,277 2,873 1,459 122221 Global Equity Income Global Class UT Equity Income Class Allshare Income Class Total 1,795,250 1,834,240 38,320 All investments were liquidated in the year to 31 December 2021. 5. CREDITORS 2021 2020 Grant creditors 3,000,000 Professional fees 5,040 4,071 Total 3,005,040 4,071 THE HEADLEY COURT CHARITY TRUSTEES. ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2021 6. MOVEMENT OF RESERVES 2021 2020 General Fund Balance brought forward 10,818,107 29,971,555 Incoming Resources for the year 140,063 111,438 Outgoing Resources for the year 19,272,173) 119,265,556) Net gain/llossl on investments 38,320 670 Balance carried forward 1,724,317 10,818,107 7. ENDOWMENT FUND This Fund, previously called the Capital Reserve Fund, is a permanent endowment created from the compulsory purchase of land. The original capital of £317,000 was invested in M&G Charifund units, and during 2009 the investment was transferred to St James's Place. To comply with SORP regulations this investment is now shown at market value and unrealised gains and losses have been added to the Endowment Fund. Income from the investment Is credited to the General Fund for the Charity's Use. Following approval from the Charity Commission 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 administrative expenses are payments reimbursed to 212020.. 11 Trustees during the year which amounted to £91012020.. £1941.