## **THE HEADLEY COURT CHARITY** **The Trustees’ Annual Report and Accounts For the Year Ended 31 December 2022** **Registered Charity No. 256382** **THE HEADLEY COURT CHARITY** **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2022** **—————————————————————————————————————————————** ## **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 2022 are listed below. Trustees will continue to disperse the assets of the Charity and to conclude arrangements for the winding up of the Charity, or its 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 1 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. ## **OBJECTS** The objects of the Charity are: - (1) The rehabilitation of serving, reserve and auxiliary members and veterans of the Armed Forces of the United Kingdom (the beneficiaries). - (2) Research into the medical rehabilitation of serving, reserve, and auxiliary members and veterans of the Armed Forces of the United Kingdom. - (3) The relief of hardship of the beneficiaries and their families. ## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT** The Trustees gave careful consideration to the Charity Commission’s general guidance on public benefit when reviewing the Charity’s 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 2022 was to continue the process of closing the charity by making grants to charities with comparable purposes. They achieved this by awarding the following grants: Turn to Starboard £20,000.00 The Royal Hospital Chelsea £18,115.00 ## **PLANS FOR FUTURE PERIODS** The Trustees’ objectives for 2023 are: - To wind up the charity; or - To merge the charity with a charity of comparable purpose; or - To continue the charity, possible appointing another charity to act as a corporate trustee ## **FINANCIAL REVIEW** The Statement of Financial Activities is set out on page 7 and shows a net surplus of £ 26,535 (2021: net deficit of £9,093,790). Income for the year amounted to £84,283 (2021: £140,063). Expenditure on charitable activities amounted to £57,748 (2021: £9,272,173). 2 **THE HEADLEY COURT CHARITY** ## **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2022** **—————————————————————————————————————————————** ## **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 2022. 3 **THE HEADLEY COURT CHARITY** **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2022** **—————————————————————————————————————————————** ## **REFERENCE AND ADMINISTRATIVE INFORMATION** **Name:** The Headley Court Charity – also known as the Headley Court Trust. ## **Registered Charity Number:** 256382 **Principal Address:** C/o 16 Westpoint, 49 Putney Hill, London SW15 6RU ## **Trustees** 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 (Hons) FRSA **Solicitors:** Charles Russell Speechlys LLP 5 Fleet Place London, EC4M 7RD **Bankers:** CAF (Charities Aid Foundation) 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA **Investment Managers:** CCLA Senator House 85 Queen Victoria Street London EC4V 4ET **Independent examiners** : Moore Kingston Smith LLP 6[th] Floor 9 Appold Street London EC2A 2AP 4 law applkth to tharitiÈs ifi Er¥l•rKI and W•Jes req￿ the Tntsttts th prepare firwnrijl ststements for finarK3è1 year vthich gi¥e. a trur arKI tsir ol the of affair5 of the Ch•rity aThl of the incomry resource5 aThl of resources of ch￿￿ for that P￿d. In wepar these fbnancial ststements. the Trusiees requirpd to: 5elecr Wbt•bSe a￿UntI￿ FrfKies then apply them Obsefve the methods •nd prirKi*s in ttre charl￿ SORP. Make judgements ests"mates that roasonable •rKI wthit St•le ￿l￿tI* •p￿raI￿e UK AruwDti￿ StsTrlards have been foknnd. subpato wry materiJl dewrrures dischyAd ar*J explai￿d in the r7narti415tster￿.n1T: Pre￿M* that ihe Ch*rity will cmlinue in busi The Trustees •re responwble for keeping FKopef acowniine records that di5d05e *Tth rpa50nJble atturacy ai ary tim• thv tinancial positM)n ot the Charity and enable them to ensurn that th• finarKiil atempnts with ihp. charl￿ Art 201 l. ore al￿ re4X￿O￿A¢ for s•fe¢u4rdinB ihp assets This feixyt was tr* Tnfflees ￿ 26 2023. **THE HEADLEY COURT CHARITY** **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF HEADLEY COURT CHARITY** I report to the trustees on my examination of the accounts of The Headley Court Charity (the Charity) for the year ended 31 December 2022. ## **Responsibilities and basis of report** As the charity trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the Charity’s 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 145(5)(b) of the Act. ## **Independent examiner’s statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. 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 requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination. Other than the other matter explained below I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ## **Other matter – going concern** As further explained in the trustees report and note 1a in the financial statements, the Trustees 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 2023. The financial statements have been prepared on a basis other than that of a going concern. Date: 4 August 2023 6[th] Floor 9 Appold Street London EC2A 2AP ## **Neil Finlayson** Independent Examiner For and on behalf of Moore Kingston Smith LLP 6 **THE HEADLEY COURT CHARITY** ## **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2022** **—————————————————————————————————————————————** ## **Statement of Financial Activities for year ended 31 December 2022** |**Notes**|**2022**|**2021**| |---|---|---| ||£|£| |**Income and endowments from:**||| |Donations|339|198| |Legacies|58,824|139,027| |Bank interest|25,120|838| |**Total income**|84,283|140,063| |**Expenditure on charitable activities**2|57,748|9,272,173| |Net gains/(loss) on investments 3|
-|38,320| |**Movement in funds**|**26,535**|(9,093,790)| |Total funds brought forward at 1 January 2022|1,724,317|10,818,107| |**Total funds carried forward at 31 December 2022**5|1,750,852|**1,724,317**| 7 Ir* Cash ai Bank L753￿52 4.729.357 Grant Crediiors 13.(*X).tJX)I 15.0401 q3.IXKI) i.n4.317 i.fA)J52 L724.317 Represented trf. 1.7Y).852 L724317 1.750.852 L7Z4.317 Abr Vice-Morsh•l AJ stsbkn CBE FPPtS (Chairman) The notes on pa8e$ 9 aTrJ 10 (orm • inteyal x(ount **THE HEADLEY COURT CHARITY** **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2022** **—————————————————————————————————————————————** ## **1. ACCOUNTING POLICIES** - **a) Basis of Accounting:** The financial statements have been prepared under the historical cost convention as modified to include the revaluation of investments. The statement of accounts has been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 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 Standards applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011. The Charity constitutes a public benefit entity as defined by FRS102. **Going Concern:** 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. - **b) Income:** Income is recognised when there is entitlement to the funds, 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) Resources Expended:** Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals 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 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. - **d) 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. - **e) Cash and cash equivalents:** Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. - **f) Critical accounting estimates and areas of judgements:** 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. 9 ## **THE HEADLEY COURT CHARITY** ## **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2022** |**————————————————————————————**
**2. EXPENDITURE ON CHARITABLE ACTIVITIES**
Charitable expenditure
Professional fees
Administrative expenses
**Total expenditure**
**3. GAINS/(LOSSES) ON INVESTMENT ASSETS**
General Fund
**4. CREDITORS**
Grant creditors
Professional fees
**Total**
**5. MOVEMENT OF RESERVES**
**General Fund**
Balance brought forward
Incoming Resources for the year
Outgoing Resources for the year
Net gain/(loss) on investments
Balance carried forward|**—————————————————**
**2022**
**2021**
**£**
**£**
38,115
9,255,958
14,265
9,772
5,368
6,443
**57,748**
**9,272,173**
**2022**
**2021**
**£**
**£**
-
38,320
**2022**
**2021**
**£**
**£**
-
3,000,000
3,000
5,040
**3,000**
**3,005,040**
**2022**
**2021**
**£**
**£**
1,724,317
10,818,107
84,283
140,063
(57,748)
(9,272,173)
-
38,320
1,750,852
1,724,317| |---|---| ## **6. TRUSTEES’ EXPENSES** Included in administrative expenses are payments reimbursed to 2 (2021: 2) Trustees during the year which amounted to £1,227 (2021: £910). 10