**THE VICTORY (SERVICES) ASSOCIATION (A company limited by guarantee)**
**CONSOLIDATED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
Registered Company No. 429298 Registered Charity No. 261307
**THE VICTORY (SERVICES) ASSOCIATION REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**CONTENTS**|**Page**|
|---|---|
|Reference and administrative details|1|
|Chair’s statement and the strategic report|2|
|Trustees’ report|3-9|
|Independent auditors’ report|10-12|
|Consolidated statement of financial activities|13|
|Consolidated balance sheet|14|
|Association balance sheet|15|
|Consolidated cash flow statement|16|
|Notes to the financial statements
|17 - 27|
## **THE VICTORY (SERVICES) ASSOCIATION**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **PATRON-IN-CHIEF**
Her Majesty the Queen GCVO
## **PRESIDENT**
General Sir Richard Barrons KCB CBE
## **CHAIR**
Major General J S Kerr CBE
## **VICE-CHAIR**
Colonel P R Rossiter
## **HONORARY TREASURER**
Mr S Gunning (appointed 5[th] October 2023)
## **DIRECTORS**
Mr P Brackley Air Vice-Marshal S Chisnall CB Mrs P Clayton Mr S Gunning (appointed 5[th] October 2023) Major General C J Harvey OBE QVRM TD Mr R Johnson (appointed 25 March 2024) Major General J S Kerr CBE Mr C N B Lacey (retired 25[th] March 2024) Major C Marment FCSI Major General J S Mason MBE RM Mrs C Newhall-Caiger Mr G Roberts Colonel P R Rossiter Lieutenant Colonel R Ward (retired 5[th] October 2023)
## **SECRETARY**
Air Commodore N P Beet CBE (retired 31[st] May 2024) Colonel C Francis CBE (appointed 3[rd] June 2024)
## **BANKERS**
NatWest plc 69 Baker Street PO Box No 2 London W1U 6AT
## **SOLICITORS**
Charles Russell Speechlys 5 Fleet Place London EC4M 7RD
## **AUDITORS**
Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG
## **REGISTERED ADDRESS**
63-79 Seymour Street London W2 2HF
Bates Wells LLP 10 Queens Street Place London EC4R 1BE
1
## **THE VICTORY (SERVICES) ASSOCIATION**
## **CHAIR’S STATEMENT AND THE STRATEGIC REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2024**
I am delighted to submit my report on the financial statements for the year which ended on 31st of March 2024.
The Directors of the Victory (Services) Association, which controls the Victory Services Club. together with the exceptional team of professional staff have all worked hard to deliver a successful year in the face of a challenging backdrop caused by geopolitical and national economic factors. I am extremely grateful for the resilience of the staff, the enduring support of the members of the Victory Services Club and all those who use our impressive facilities who collectively have ensured that our recovery has continued with a number of notable highlights which are detailed in the following paragraphs.
The war in Ukraine, continuing disruption caused by transport strikes, and the economic distress caused by financial uncertainty, sharply rising prices and inflation have had a marked effect on the Club's operations and our staff and members. The Club is nothing without our excellent staff and in response to the financial pressures the Remuneration Committee and the Board responded with a number of measures to ease the burden including pay rises, the award of a discretionary extra week’s pay and a number of other measures to support the staff. Our members have repeatedly expressed their gratitude to the staff for their exceptionally high standards of work and loyalty. We are also very grateful to our diverse membership who repeatedly write in recognition of the staff. In December 2023, our membership donated £30,273 for the Staff Fund. In the year we saw membership increase from the 1st April 2023 by 2,177 to 626,011 members by 31[st] March 2024. Our members have engaged with the Club in considerable numbers and the average occupancy of our available bedrooms was 86% across the whole year. We have also witnessed an increasing use of the Club’s seven event rooms for members functions (celebrating birthdays and anniversaries), in addition to an increase in utilisation by Regimental Associations and Corporate clients, many of which are return bookings which is a positive indicator of both the high levels of standards and value which we provide.
We are very proud that during the year we fulfilled our charitable objectives by providing an excellent venue for esprit de corps activities, but also the relief of hardship through the delivery of our Respite and Welfare Break scheme. In the year we provided 199 two-night free stays in the Club to families drawn from the UK Armed Forces and those who have recently left. A total of 614 individuals stayed with us for free during the year, and in addition we provided 42 breaks to servicemen and servicewomen (together with their children) who are recommended to us by the Armed Forces for Reward and Recognition breaks for their exceptional military service. The Club has again provided discounted event spaces for all sizes of charitable activities including award evenings, conferences, and small meetings. Wherever possible the Club continues to provide free meeting rooms to assist other charities to deliver their objectives.
The Club has undertaken a number of necessary infrastructure projects, the largest of which was the redecoration of the façade of the Centenary Wing, and the refurbishment of the en-suite bathrooms on the 2[nd] floor of the Centenary Wing. Other key notable projects included the replacement of Air Conditioning equipment in the Centenary Wing and the refurbishment of the Memorial Wing passenger lift.
The Club was able to achieve all of the aforementioned, without overburdening our members with high charges, while also increasing our cash position through increased utilisation of our bedrooms, event spaces and dining facilities. This led to an increase in income from FY 2022/23 from £9,470,912 to £11,247,009. Last year I reported our end-of-year cash position as £4,265,045 and through the loyalty of our members, sheer industry and effective cost control, our end-of year position on 31[st] March 2024 was £5,434,551, which again includes our residual and declining Coronavirus Loan which remains untouched. In Financial Year 2024-25 we look forward to continuing to deliver our charitable activities and take forward the works to re-absorb one of our sub-lets, in addition to the refurbishment of the Clubhouse’s front facade on Seymour Street (which is a lease condition) and making further improvements to our bedroom stock for the enjoyment of our members. More detail will follow at page eight. The retention and recruitment of high-quality staff will be a constant feature as it has been during the reporting period.
The Board of the Victory (Services) Association has every confidence that we are very much a going concern and we look forward to another successful year in 2024-25.
Major General Seumas Kerr CBE Chair
The Board of Trustees submits its report together with the audited financial statements of the Association for the year ended 31[st] March 2024.
2
## **THE VICTORY (SERVICES) ASSOCIATION**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2024**
The Trustees (who are also the Directors for the purposes of the Companies Act) present their report, incorporating the Strategic Report, for the year ended 31[st] March 2024.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Reference and Administrative Information**
The Victory Services Club was founded in 1907 and is registered with the Charity Commission of England and Wales under charity number 261307. The Trustees, Secretary, principal advisors and addresses are listed on page 1.
The Victory (Services) Association, company registration number 429298, was incorporated on the 7[th] February 1947 and it controls the Victory Services Club. The Victory (Services) Association is a charitable company limited by guarantee and does not have a share capital. The Charity is governed by its Memorandum and Articles of Association and limits the liability of each member to £1. The Trustees are Directors of the company for the purposes of the Companies Act 2006.
## **Board of Trustees**
The Board of Trustees determines the general policy of the Association. The Trustees are legally responsible for the overall management, finances and control of the Club. The recruitment and selection of new Trustees to serve on the Board and the Association’s sub-committees is first considered by the Governance and Audit Committee, prior to the submission of recommendations to the Board of Trustees and necessary approval. Potential new Trustees, and all appointees to subcommittees and senior Trustee roles, are assessed for their suitability in terms of knowledge, skills, experience and availability. New Trustees are inducted into the workings of the Charity by the Chair and Chief Executive/Club Secretary, with the latter providing a pack including the Charity Commission’s guidance for Trustees and the Club’s Business Plan. Trustees attend up to five meetings a year and all Trustees receive the minutes of each meeting.
Changes to the Board of Trustees within the year are highlighted as follows:
Mr S Gunning (appointed 5[th] October 2023) Mr R Johnson (appointed 25 March 2024 Mr C N B Lacey (retired 25[th] March 2024) Lieutenant Colonel R Ward (retired 5[th] October 2023)
No Trustee has any financial interest in the Association, nor draws any benefits. The Association reimbursed travelling expenses of £802 (2023: £764) to certain Trustees for attendance at meetings.
3
## **THE VICTORY (SERVICES) ASSOCIATION**
## **TRUSTEES’ REPORT (Continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
The Association operates the following sub-committees and working group:
|**Committee/Working Group**|**Chaired by**|
|---|---|
|Nominations Committee (disbanded 25thMarch 2024)|Major General Seumas Kerr|
|Marketing and Communications Committee|Mrs Petra Clayton|
|Membership Committee|Mr Gethin Roberts|
|Remuneration Committee|Major General Seumas Kerr|
|Investment Committee|Major Charles Marment|
|Trading Committee|Mrs Catherine Newhall-Caiger|
|Governance and Audit Committee (Formerly Governance
Working Group)|Colonel Philippe Rossiter|
The day-to-day management of the Association is delegated to the Chief Executive/Club Secretary, who is supported by the Operations Director and the Finance and HR Director, who together comprise the Senior Management Team. The Chief Executive/Club Secretary attends all Trustee meetings and meetings of the Association’s Sub-committees. Relevant members of the Senior Management Team also attend meetings of sub-committees when required.
## **VSC (Trading) Limited**
The Association holds 100% of the share capital of VSC (Trading) Limited, registered number 03532841. This company is responsible for using the Association’s facilities and resources which fall outside the charitable objectives of the Association by generating income to support the charitable objectives. All trading surpluses are distributed by Gift Aid to the Association. A summary of the results of the company are shown in note 11 of the financial statements.
## **Investment powers and policy**
## **Powers**
In furtherance of the objects of the Association, but not otherwise, the Association shall have the power to invest monies of the Association not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions (if any) as may for the time being, be imposed or required by law. The investments of the Victory Services Association Limited are managed by Investec, Blackrock and M&G.
4
## **THE VICTORY (SERVICES) ASSOCIATION**
## **TRUSTEES’ REPORT (Continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **Policy**
It is the policy of the Association to run the Club from trading surpluses and only to call upon investment reserves when essential for capital improvements. For the present it is the Association’s aim to achieve maximum growth while at the same time protecting the real value of investments. The Investment Committee re-invests the dividends in the fund. The value of the Association’s long-term investments should not be reduced below £1,000,000 at market value unless exceptional circumstances are approved by the Board of Trustees.
## **Risk management**
The Board of Trustees is required to include a statement that the major risks to which the Association is exposed, as identified by the Board of Trustees, have been reviewed and that the systems in place will mitigate those risks. The Board of Trustees reviews the formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the charity faces, listing them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. The Board of Trustees fully recognises the significant importance of effective internal controls on expenditure and payment and takes every action to minimise this risk. At each Trustees’ meeting one risk is considered in detail. The Senior Management Team is responsible for day-to-day monitoring of all risks on behalf of the Board of Trustees. The principal risks the Association faces and their mitigation strategies are as follows:-
|
follows:-||
|---|---|
|**Risk**|**Mitigation and Controls**|
|Risk 1: Business Downturn. Supplier price increases,
competition from other Clubs/hotels, erosion of prices and
inflation affecting consumer.|-
Regular cashflow review by SMT and Honorary
Treasurer.
-
Prompt identification and action on price increases
through purchasing and stock control procedures.
-
Regular benchmarking with industry associations
and competitors.
-
Comprehensive review process through various
reports (End of Day, Weekly Sales, Monthly
Management).
-
Cashflow and Business Performance Reports
reviewed at every meeting by the Board.|
|Risk 2: HSAW Failure. Impact on Members, Staff, and
Events, Investments and Cashflow. Health and Safety
breach leading to injury/adverse publicity and sanctions.|-
Ensure Club remains fully HSAW compliant.
-
Hold effective HSAW Staff Quarterly meetings
attended by Managers.
-
SMT to ensure that appropriate investment in new
equipment is made and staff training is completed.
-
Respond quickly and appropriately to Government
changes and requirements.
-
Re-profile cashflow lines to ensure that expenditure
on legalcommitments aremet.|
|Risk 3: Failure to retain and then recruit a quality, motivated
workforce which causes the Club to be unable to deliver our
three values of Value, Service and Courtesy.|-
Ongoing monitoring of staff turnover, pay, benefits,
and facilities.
-
Benchmarking with the London hospitality sector for
appropriate compensation.
-
Monitoring of leave taken, sickness rates, and
overtime worked.
-
Close engagement with Managers to gauge morale
and workload.|
|Risk 4: Cyber-crime or inadequate IT policies leading to
reputational risk and an inability to manage the Club.|-
IT and Disaster Recovery policies developed with
advice from 3rd party consultants.
-
Measures in place to minimise cyber risk: managed
IT support, automated patching and updates, firewall,
DNS protection, user email security training, cyber
insurance.
-
Application patch management and failover internet
lines.
-
Consultancy for Disaster Recovery.|
5
|Risk 5: The Club is unable to raise sufficient cash to pay
the lease extension premium. The Church Commissioners
decide not to renew our lease.|-
Planned rebuilding of reserve funds to meet lease
extension/purchase.
-
The Board of Trustees’ focus on the matter and
financial target setting.
-
Effective management of sub-let leases to fulfil
contractualduties.|
|---|---|
## **CHARITABLE OBJECTIVES, VISION, MISSION AND ACTIVITIES**
The objectives of the Charity are:
- (i) To promote military efficiency and esprit de corps by bringing together members of the Armed Forces of the Crown, former members of the Armed Forces of the Crown and members of the Armed Forces of the Commonwealth and Foreign countries with whom they are currently allied and by improving the conditions of life of such persons.
- (ii) To relieve need, hardship or distress among persons who have served in the Armed Forces of the Crown and their dependants.
The Club’s Vision is to be the leading military members’ Club, where membership is cherished, and outstanding standards of services are the norm.
The Club’s Mission is to deliver outstanding Value, Service and Courtesy.
## **Public Benefit**
The Board of Trustees has had due regard to the Charity Commission guidance in deciding how to implement the Charity’s object for the benefit of the public. The work carried out by the Charity to further the charitable objectives is highlighted in the Chair’s statement.
By way of expansion on those points the Trustees and staff have been focused on our two objectives to ensure that we continue to provide a benefit to our members and the wider military ‘family’. To meet the Charity’s first objective we provide a smart, comfortable, and modern venue for esprit de corps activities. Specifically, these include informal and formal meetings, and Ships, Regimental and Squadron dinners, and conferences. The Club hosts an increasing number of military Association events due to a more effective marketing programme, and a pricing model which is 25% cheaper than a commercial non-military event being held in the Club. The intent of providing an enjoyable event that is affordable, which allows individuals from all ranks to participate and be accommodated at very reasonable prices has again been maintained. In FY 2023/24 single shared facility bedrooms which are only available for members were £70.
Our RWB scheme, as mentioned by the Chair earlier, is a unique offer in London which provides free accommodation and all meals for a two-night stay to a family consisting of two adults and usually up to three school age children; this offer is extended to an accompanying carer if necessary. Over the last six years we have hosted 2,555 individuals under this scheme. Our Trustees are committed to annually increasing the numbers benefitting from this offer. This is achieved by the Club’s staff frequently engaging with the leading military charities and the single Service and Defence Medical Rehabilitation staff to seek nominations. The Club also continues to offer eighty free weekend Reward and Recognition breaks to members of the serving Armed Forces who are recommended to us. This scheme is generously funded by the Nuffield Trust for the Forces of the Crown. With the previously noted support for other charities the Club has given discounted charges for meeting and event rooms.
## **Remuneration of senior staff**
The Board of Trustees, supported by the salaried Senior Management Team, comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Association on a day-to-day basis. All trustees give their time freely and no trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in note 8 to the accounts. The pay of the Senior Management Team and all staff is reviewed biannually by the Remuneration Committee which reports to the Board of Trustees. The Remuneration Committee considers comparative data from several external sources including the Association of London Clubs, and the Institute of Hospitality.
6
## **THE VICTORY (SERVICES) ASSOCIATION**
## **TRUSTEE’S REPORT (Continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **Capital and Works Expenditure**
In the reporting period the Club carried out a range of capital and maintenance projects. The Chair highlighted the redecoration of the façade of the Centenary Wing. This project was completed in September 2023 at a cost of £326,000 and was work we were required to carry out as a condition of our lease. In February 2024 the Club completed the upgrade of the Memorial Wing passenger lift at a cost of £36,000. We are grateful to our members for their forbearance while we carried out these disruptive works. The Club completed the updating of the 2[nd] Floor Centenary Wing bathrooms at a cost of £142,000. These rooms were reopened in time for the King’s coronation in May 2023. In addition, the rolling programme of air conditioning plant replacement commenced with the 2[nd] Floor Centenary Wing bedrooms at a cost of £65,000. The Club now has 154 bedrooms with air conditioning and increasing this number is a longer-term aim, which will be an expensive and complex project and undertaken in stages.
## **Plans for the Future** .
The Club’s linkages to the Armed Forces community, both serving and retired, will continue to be developed through the Membership Committee, which has increased the number of invitations to garrison family days and military conferences. A programme of actions has been developed with an increased marketing budget which will see the continuing increase in membership numbers going forward. We also anticipate hosting higher numbers of the free respite breaks which the Club provides, owing to the increasing awareness of these special opportunities at the VSC.
In FY 2024/25 the Club will carry out a project to refurbish the en-suite bathrooms on the 3[rd] Floor Centenary wing at a cost of £400,000. In August 2024 we will be closing the ground floor kitchen for three weeks in order to allow for some important plant and equipment to be installed. In FY 24/25 work will be undertaken to replace the air conditioning plant in the 3rd Floor Centenary Wing bedrooms at a cost of £80,000.
## **FINANCIAL REVIEW**
The Consolidated Statement of Financial Activities reveals income in the financial year of £11,247,08 (2023: £9,470,912) and expenditure of £9,876,833 (2023: £8,630,943) which after gains on investments of £312,822 (2023: loss £149,765 has resulted in a net surplus of £1,682,997 (2023: £690,205). As the Investments are held for the long term, the Investment Committee does not propose a change in investment strategy. The accumulated funds at the balance sheet date total £16,842,745 (2023: £15,277,389).
## **Fixed assets**
In the opinion of the Board of Trustees the market value of the leasehold premises is significantly higher than the book value, details of which are given in the notes to the financial statements. However, because of the various covenants in the lease, it is not practicable to ascertain with any degree of precision, the market value of the leasehold premises.
The investments held by the Association have been acquired in accordance with the powers available to the Trustees.
7
## **THE VICTORY (SERVICES) ASSOCIATION**
## **TRUSTEE’S REPORT (Continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **Fundraising**
The Association does not actively fundraise from the public although grants are sought from grant making bodies. Some members have left bequests to the Association, and have voluntarily made some donations, for which we are most grateful. We have not received any complaints in respect of fundraising activity. In 2023/24 there were also no complaints.
## **Reserves policy**
In the year to 31st March 2020 the Trustees carried out a review of the Reserves Policy. Using the Charity Commission guidance, the Trustees decided that the Charity needed to better ensure the long-term interests of the Charity and its beneficiaries were protected. The VSC Reserves Policy was approved in October 2019 and consists of the following elements:
- The Charity’s unrestricted reserve to cover business downturn, property and staff risk would be built up to twelve months of operating costs (currently calculated at £9.9m);
-
- At 31[st] March 2024 the designated fixed asset fund at net book value was £8,254,337 (2023: £8,686,010);
- At 31[st ] March 2024, the Charity had total reserves of £16,960,386 (2023: £15,277,389). Of the total, £117,641 relates to restricted funds (2023: £192,641) and £8,329,337 is held in designated funds which reflects the net book value of tangible fixed assets (2023: £8,686,010).
The Trustees further decided to review the Reserves Policy going forward as part of the annual budgeting process, or when the Charity’s strategy is reviewed and when the risks faced by the Charity significantly change.
As at 31[st] March 2024, the Charity had general, unrestricted reserves, excluding restricted and designated reserves of £8,513,408 (2023: £6,398,738).
## **Investment performance**
At 31[st] March 2024 investment balances were:
- Armed Forces Common Investment Fund: £638,010 (2023: £601,758).
- M&G Charifund: £2,073,576 (2023: £1,988,103).
- M&G Charibond: £292,408 (2023: £279,468).
- Investec Wealth & Investment Limited: £1,577,660 (2023: £1,393,650).
8
## **THE VICTORY (SERVICES) ASSOCIATION**
## **TRUSTEE’S REPORT (Continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
The gain on investments was £312,822 (2023: loss £149,765). At the end of the financial year, the Charity’s total investments stood at £4,581,654 (2023: £4,262,979).
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees are responsible for preparing Trustees’ Report and the financial statements in accordance with applicable law and regulations **.**
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements 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 the affairs of the charitable company and of the group and of the surplus or deficit of the charitable company for that period. In preparing these financial statements the Trustees are required to:
- Select suitable accounting policies and apply them consistently.
- Observe methods and principles in the Charities SORP.
- Make judgements and estimates that are reasonable and prudent.
- State whether applicable 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 assume that the charitable company will continue in operation.
The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees also confirm that they have made all necessary enquiries and taken such steps that they ought to, to ensure that they become aware of any relevant audit information and that they confirm that the Association’s auditors have been made aware of such information.
In approving this Trustees’ Report, the Board are also approving the Strategic Report included herein in their capacity as company directors.
## **BY ORDER OF THE BOARD**
Major General Seumas Kerr CBE
63/79 Seymour Street London, W2 2HF
9
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE VICTORY (SERVICES) ASSOCIATION**
## **Independent auditor’s report to the members of The Victory (Services) Association Limited**
## **Opinion**
We have audited the financial statements of The Victory (Services) Association Limited for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Association balance Sheet, the Consolidated 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 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 of the parent charitable company’s affairs as at 31 March 2024 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 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 trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report, incorporating the Strategic Report, and the Chair’s Statement. 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 information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
10
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE VICTORY (SERVICES) ASSOCIATION**
- the information given in the Trustees’ Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees for the financial statements**
As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 the parent charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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 is detailed below:
Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wales and Scotland , and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE VICTORY (SERVICES) ASSOCIATION**
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to income recognition. Audit procedures performed by the engagement team included:
11
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Reviewing the controls and procedures of the group relevant to the preparation of the financial statements to ensure these were in place throughout the year;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates, in particular donation and legacy recognition.
Because of 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's 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 charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Thomas Wilson (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen, Street Place, London EC4R 1AG
Date:
12
## **THE VICTORY (SERVICES) ASSOCIATION**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
**(including Income and Expenditure account)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**Note**
**INCOME FROM:**
Donations and legacies
3
Charitable activities
Membership
Catering and accommodation
Trading activities
Investments
4
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
Fundraising and publicity
Charitable activities
Catering and accommodation
Membership and central allocation
**TOTAL EXPENDITURE**
6
Net gains/(losses) on investments
10
**NET INCOME /(EXPENDITURE)**
5
Transfer between funds
**NET MOVEMENT IN FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**Funds**
**£**
306,166
1,313,790
7,976,937
1,306,805
343,310
11,247,008
1,542,128
6,787,167
1,547,538
9,876,833
312,822
1,682,997
75,000
1,757,997
15,084,748
16,842,745|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
(75,000)
(75,000)
192,641
117,641|**Total Funds**
**2024**
**£**
306,166
1,313,790
7,976,937
1,306,805
343,310
11,247,008
1,542,128
6,787,167
1,547,538
9,876,833
312,822
1,682,997
-
1,682,997
15,277,389
16,960,386|**Total Funds**
**2023**
**£**
369,637
1,144,723
6,779,690
932,513
244,349|
|---|---|---|---|---|
|||||9,470,912|
|||||1,166,599
6,122,289
1,342,055|
|||||8,630,943|
|||||(149,765)
690,205
-|
|||||690,205
14,587,184|
|||||15,277,389|
All transactions are derived from continuing activities. The split between unrestricted and restricted donations and legacies for the current and previous year is shown in note 3.
All recognised gains and losses are included in the Statement of Financial Activities.
13
**THE VICTORY (SERVICES) ASSOCIATION**
**Company Number: 429298**
## **CONSOLIDATED BALANCE SHEET**
## **AT 31 MARCH 2024**
|**Note**
**FIXED ASSETS**
Tangible assets
9
Investments
10
**CURRENT ASSETS**
Stocks
12
Debtors
13
Cash at bank and in hand
**CREDITORS: amounts falling due**
14
**within one year**
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS:**falling due after more than 1 year
14
**TOTAL NET ASSETS OR LIABILITIES**
**FUNDS**
15
Restricted funds
Unrestricted funds:
Designated funds
General funds|**£**
**£**
8,254,337
4,581,654
12,835,991
62,140
244,252
5,434,551
5,740,943
(1,216,549)
4,524,395
17,360,386
(400,000)
16,960,386
117,641
8,329,337
8,513,408
16,842,745
16,960,386
**2024**|**£**
**£**
8,686,010
4,262,979
12,948,989
48,906
314,787
4,265,045
4,628,738
(1,600,338)
3,028,400
15,977,389
(700,000)
15,277,389
192,641
8,686,010
6,398,738
192,641
**2023**|**£**
**£**
8,686,010
4,262,979
12,948,989
48,906
314,787
4,265,045
4,628,738
(1,600,338)
3,028,400
15,977,389
(700,000)
15,277,389
192,641
8,686,010
6,398,738
192,641
**2023**|
|---|---|---|---|
||||12,948,989
3,028,400|
||||15,977,389|
||||15,277,389|
||||192,641
8,686,010
6,398,738|
|||||
|||||
||||192,641|
The consolidated surplus of the Association was £1,682,997 (2023: surplus of £690,205 ).
The financial statements were approved and authorised for issue by the members of the Council on 5th July 2024 and were signed below on its behalf by:
Major General J S Kerr CBE Chairman
Mr S Gunning Honorary Treasurer
14
**THE VICTORY (SERVICES) ASSOCIATION**
**Company Number: 429298**
## **ASSOCIATION BALANCE SHEET**
## **AT 31 MARCH 2024**
|**Note**
**FIXED ASSETS**
Tangible assets
9
Investments
10
Investment in trading company
11
**CURRENT ASSETS**
Stocks
12
Debtors
13
Cash at bank and in hand
**CREDITORS:**amounts falling within one year
14
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
Creditors falling due after more than 1 year
14
**NET ASSETS**
**FUNDS**
15
Restricted funds
Unrestricted funds:
Designated funds
General funds|**£**
**£**
8,254,337
4,581,656
12,835,993
62,140
2,450,169
2,871,483
5,383,792
(1,013,919)
4,369,873
17,205,866
(400,000)
16,805,866
117,642
8,329,337
8,358,888
16,688,225
16,805,866
**2024**|**£**
**£**
8,686,010
4,262,979
2
12,948,991
48,906
1,614,391
2,834,361
4,497,658
(1,469,260)
3,028,398
15,977,389
(700,000)
15,277,389
192,641
8,686,010
6,398,738
15,084,748
15,277,389
**2023**|**£**
**£**
8,686,010
4,262,979
2
12,948,991
48,906
1,614,391
2,834,361
4,497,658
(1,469,260)
3,028,398
15,977,389
(700,000)
15,277,389
192,641
8,686,010
6,398,738
15,084,748
15,277,389
**2023**|
|---|---|---|---|
||||12,948,991
3,028,398|
||||15,977,389|
||||15,277,389|
||||192,641
8,686,010
6,398,738|
||||15,084,748|
|||||
||||15,277,389|
The financial statements were approved and authorised for issue by the members of the Council on 5th July 2024 and were signed below on its behalf by:
Major General Seumas Kerr Chairman
Mr S Gunning Honorary Treasurer
15
**THE VICTORY (SERVICES) ASSOCIATION**
## **CONSOLIDATED STATEMENT OF CASHFLOWS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**Note**
**Cash Flow from operating activities**
21
**Cash flows from investing activities**
Rents receivable
Income from investments
Other interest receivable
Interest paid
Payments to acquire tangible fixed assets
Purchase of investments
Proceeds from sale of investments
**Net cash provided by (used in) investing activities**
**Cash flows from financing activities**
Cash inflows /(outflows) from borrowing
Cash and cash equivalents at the beginning of the year
**Total cash and cash equivalents at the end of the year**
**Analysis of changes in net debt**
Cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year
**Total**
**Analysis of cash and cash equivalents**
Cash at bank and in hand
Notice deposits (less than 3 months)
**Total Cash and cash equivalents**
**Change in cash and cash equivalents in the year**|**£**
**£**
1,819,506
242,626
19,508
81,176
(18,217)
(667,410)
(459,569)
451,885
(350,001)
(300,000)
1,169,506
4,265,045
5,434,551
**At start of year**
**Cash-flows**
4,265,045
1,169,506
4,265,045
1,169,506
(300,000)
300,000
(700,000)
-
3,265,045
1,469,506
**2024**
**£**
4,934,551
500,000
5,434,551
**2024**|**£**
**£**
2,264,578
205,975
18,543
19,831
24,481
(684,434)
(216,156)
207,187
(424,573)
(300,000)
1,540,005
2,725,041
4,265,045
**Other non-cash**
**changes**
**At end of year**
-
5,434,551
**2023**|**£**
**£**
2,264,578
205,975
18,543
19,831
24,481
(684,434)
(216,156)
207,187
(424,573)
(300,000)
1,540,005
2,725,041
4,265,045
**Other non-cash**
**changes**
**At end of year**
-
5,434,551
**2023**|
|---|---|---|---|
||**At start of year**
4,265,045|**Other non-cash**
**changes**
-||
||||(300,000)
1,540,005|
||||2,725,041|
|||||
||||4,265,045|
||||**At end of year**
5,434,551|
||4,265,045
(300,000)
(700,000)|-
(300,000)
300,000|5,434,551
(300,000)
(400,000)|
||3,265,045|-|4,734,551|
||||**2023**
**£**
3,765,045
500,000|
||||4,265,045|
16
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **1. ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **(a) Basis of Accounting**
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 (FRS 102) (Second edition effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Victory (Services) Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The accounts are prepared in pounds sterling, rounded to the nearest pound.
Group financial statements have been prepared in respect of the Association and its wholly owned trading subsidiary, VSC (Trading) Limited. The subsidiary has the same accounting reference date as the Association. No separate profit and loss account is presented for The Victory (Services) Association as provided by Section 408 of the Companies Act 2006.
## **(b) Subscriptions**
Subscription income is recognised in the period in which it is received.
## **(c) Grants, legacies and donations**
Grants, legacies and donations are accounted for when their payment to the Association is confirmed and quantifiable.
Government grant income represents the total amount claimed from HMRC under the Coronavirus Job Retention Scheme. The income is accounted for in the period in which the associated salary costs are made to furloughed staff.
## **(d) Investment income**
Investment income is accounted for in the period that it is receivable.
## **(e) Other income**
Other income is accounted for in the period in which it falls due. Income received in advance is treated as deferred income and included in creditors.
## **(f) Allocation of Expenditure**
Expenditure is charged directly to the cost centre to which it relates. Support costs area allocated based on an Expenditure pro-rota basis. Governance costs consist of those costs which relate to the overall running of the Association, including meeting statutory and regulatory requirements.
## **(g) Financial instruments**
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost 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. Financial liabilities held at
## **(h) Investments**
Investments are included at market value at the balance sheet date. Realised and unrealised gains and losses on investments are included in the Statement of Financial Activities.
## **(i) Tangible fixed assets**
Expenditure on fixed assets more than £1,000 is capitalised and depreciated over the asset’s expected useful life as follows:
- ●Leasehold premium is amortised over approximately 60 years.
- ●Furniture, equipment, electrical works and improvements to premises are depreciated by equal annual instalments over 5 to10 years
- ●Computer equipment is depreciated by equal instalments over 5 years.
- ●En suite bedrooms, lifts and other leasehold improvements are depreciated by equal instalments over 10 to 25 years
17
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **(j) Stocks**
Stocks are valued at the lower of cost or net realisable value.
## **(k) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
The Victory (Services) Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The accounts are prepared in pounds sterling, rounded to the nearest pound.
Debtors are reviewed at the year-end for evidence of required impairment to their settlement amount. A bad debts provision is calculated on a conservative basis.
## **(l) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **(m) Fund Accounting**
_**Unrestricted funds**_ comprise accumulated surpluses and deficits on general funds - they are available for use at the discretion of the Council in furtherance of the general charitable objectives.
_**Designated funds**_ are amounts that have been put aside at the discretion of the Council. At the year-end they comprise a fixed asset fund which represents the extent to which funds are invested in fixed assets for use by the charity and therefore not available for other purposes (see note 15).
_**Restricted funds**_ are funds subject to specific restricted conditions imposed by the donors or the Council.
## **(n) Leasing and hire purchase commitments**
Provision is made annually for the estimated cost of obligations under the lease of the Association’s premises.
Rentals under operating leases have been charged to the Statement of Financial Activities on a straight-line basis.
## **(o) Preparation of accounts on a going concern basis**
The Council Members consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives the Council confidence the charity remains a going concern for the foreseeable future.
## **(p) Critical accounting judgements and key sources of estimation uncertainty**
In the application of the accounting policies, Council Members are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. The main item within the financial statements where judgements and estimates have been made is in relation to estimating the useful economic life of tangible fixed assets.
## **(q) Pension arrangements**
## a) _Group personal pensions_
The Association provides group personal pension arrangements for certain employees. Contributions are made both by the Association and the employee into individual pension plans with a leading pension provider.
## b) _Automatic enrolment_
The Association joined the Government auto enrolment scheme in May 2014. Eligible members of staff are automatically enrolled unless the staff member explicitly chooses to opt out. The Association currently contributes 5% (2023: 5%) of pensionable salary to the scheme.
18
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **2. INCOME**
Income represents amounts receivable by the Association and its subsidiary from its membership and the services provided, net of value added tax recoverable. All income arose in the United Kingdom.
## **3. GRANTS, LEGACIES, DONATIONS AND FUNDRAISING**
|**GRANTS, LEGACIES, DONATIONS AND FUNDRAISING**
_Restricted voluntary income_
Grants
_Unrestricted voluntary income_
Grants
Legacies
Gift Aid on membership subscriptions and donations
Donations
**INVESTMENT INCOME**
Rents receivable
Investment income
Other interest receivable
**NET (EXPENDITURE)/INCOME FOR THE YEAR**
This is stated after charging the following:
- Amortisation of leasehold property
- Depreciation on other fixed assets
- Auditors remuneration for audit services
for audit services
for other services
- Operating lease rentals|**2024**
**£**
-
-
33,250
67,899
193,269
11,748
306,166
**2024**
**£**
242,626
19,508
81,176
343,310
**2024**
**£**
13,079
1,086,004
32,396
1,050
54,686|**2023**
**£**
-|
|---|---|---|
|||-
7,976,937
70,000
93,528
175,278
30,831|
|||369,637|
|||**2023**
**£**
205,975
18,543
19,831|
|||244,349|
|||**2023**
**£**
12,654
1,114,884
20,385
-
60,124|
## **4.**
## **5.**
19
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**6.**
**EXPENDITURE**
**a)**
**ANALYSIS OF EXPENDITURE**
**Raising Funds**
Fundraising and publicity
**Expenditure on charitable activities:**
Catering and accommodation
Membership and central allocation
**TOTAL EXPENDITURE**|**Support Costs**
**Staff Costs**
**Other Direct**
**Total**
**£**
**£**
**£**
**£**
325,004
667,482
549,642
1,542,128
2,447,804
3,161,344
1,178,019
6,787,167
403,347
1,032,086
112,105
1,547,538
3,176,155
4,860,912
1,839,766
9,876,833
**FOR THE YEAR ENDED 31 MARCH 2024**|**Support Costs**
**Staff Costs**
**Other Direct**
**Total**
**£**
**£**
**£**
**£**
325,004
667,482
549,642
1,542,128
2,447,804
3,161,344
1,178,019
6,787,167
403,347
1,032,086
112,105
1,547,538
3,176,155
4,860,912
1,839,766
9,876,833
**FOR THE YEAR ENDED 31 MARCH 2024**|
|---|---|---|
|||9,876,833|
Fundraising and publicity expenditure includes support, staffing and other costs associated with commericial events activity and marketing.
Expenditure includes £1,182,314 incurred by VSC (Trading) Limited (2023: £764,575). Of the total expenditure, £nil was restricted (2023: £37,314).
## **b) ANALYSIS OF SUPPORT COSTS**
## **The costs above include support costs which are allocated on the basis of income generated.**
|**Raising Funds**
Fundraising and publicity
**Expenditure on charitable activities:**
Catering and accommodation
Membership and central allocation
**TOTAL SUPPORT COSTS:**|**Office expenses**
**£**
25,440
185,912
31,391
242,743|**Property**
**costs**
**Other support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
228,578
70,986
-
1,670,454
518,771
72,666
282,050
87,592
2,314
2,181,082
677,350
74,980
**FOR THE YEAR ENDED 31 MARCH 2024**|**Total**
**£**
325,004
2,447,804
403,347|
|---|---|---|---|
||||3,176,155|
## **c) GOVERNANCE COSTS**
||||
|---|---|---|
|**GOVERNANCE COSTS**
Wages and salaries
Legal and professional, including audit
Council and Committee expenses|**2024**
**£**
-
72,666
2,314
74,980|**2023**
**£**
10,454
69,013
1,605|
|||81,072|
20
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**6.**
**EXPENDITURE (COMPARATIVE)**
**d)**
**ANALYSIS OF EXPENDITURE**
**Raising Funds**
Fundraising and publicity
**Expenditure on charitable activities:**
Catering and accommodation
Membership and central allocation
**TOTAL EXPENDITURE**|**Support Costs**
**Staff Costs**
**Other Direct**
**Total**
**£**
**£**
**£**
**£**
330,986
452,506
383,107
1,166,599
2,411,471
2,701,185
1,009,633
6,122,289
397,120
851,381
93,554
1,342,055
3,139,577
4,005,072
1,486,294
8,630,943
**FOR THE YEAR ENDED 31 MARCH 2023**|**Support Costs**
**Staff Costs**
**Other Direct**
**Total**
**£**
**£**
**£**
**£**
330,986
452,506
383,107
1,166,599
2,411,471
2,701,185
1,009,633
6,122,289
397,120
851,381
93,554
1,342,055
3,139,577
4,005,072
1,486,294
8,630,943
**FOR THE YEAR ENDED 31 MARCH 2023**|
|---|---|---|
|||8,630,943|
## **e) ANALYSIS OF SUPPORT COSTS**
**The costs above include support costs which are allocated on the basis of income generated.**
|**Raising Funds**
Fundraising and publicity
**Expenditure on charitable activities:**
Catering and accommodation
Membership and central allocation
**TOTAL SUPPORT COSTS:**|**Office expenses**
**£**
23,481
171,599
28,974
224,054|**Property**
**costs**
**£**
223,377
1,632,445
275,632
2,131,454|**Other support**
**costs**
**£**
73,674
538,414
90,909
702,997|**Governance**
**costs**
**£**
10,454
69,013
1,605
81,072|**Total**
**£**
330,986
2,411,471
397,120|
|---|---|---|---|---|---|
||||||3,139,577|
21
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**7.**
**STAFF NUMBERS AND COSTS**
The average number of persons employed during the year were as follows
Accommodation
Catering
Membership
Support
The aggregate payroll costs of these persons were as follows
Salaries and wages
Social security costs
Pension scheme contributions|**2024**
**No.**
72
48
3
16
139
**£**
4,259,961
413,156
187,795
4,860,912|**2023**
**No.**
61
48
3
9|
|---|---|---|
|||119|
|||**£**
3,541,788
325,477
148,262|
|||4,015,527|
Included in the above are termination payments of £nil (2023: £1,088). The number of employees whose emoluments, excluding pension contributions and employer's national insurance who were in excess of £60,000 were:
|£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£100,000 - £109,999
£120,000 - £129,999|**2024**
**2023**
**No.**
**No.**
5
4
1
1
1
1
-
1
-
1
1
1
-
1|
|---|---|
Contributions of £54,798 were paid on behalf of these employees into a money purchase pension scheme (2023: £43,948)
The total employee benefits of the key management personnel of the Charity were £311,318 (2023: £334,747).
## **8. COUNCIL MEMBERS' REMUNERATION AND REIMBURSED EXPENSES**
No remuneration is paid to any member of the Board. Reimbursements of travelling expenses totalling £307 (2023: £764) were paid to certain Board members for attendance at the Charity's meetings.
22
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**9.**
**TANGIBLE ASSETS**
**Consildated and Association**
**Cost or Valuation**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**Depreciation & Amortisation**
At 1 April 2023
Charged in Year
Disposals
At 31 March 2024
**Net Book Value**
At 31 March 2024
At 31 March 2023|**£**
837,952
-
-
837,952
486,014
13,079
-
499,093
338,859
351,938
**Long Leasehold**
**Buildings**|**£**
19,805,244
667,410
-
20,472,654
11,471,172
1,086,004
-
12,557,176
7,915,478
8,334,072
**Leasehold**
**improvements,**
**fixtures, fittings**
**and equipment**|**£**
20,643,196
667,410
-
**Total**|
|---|---|---|---|
||||21,310,606|
||||11,957,186
1,099,083
-|
||||13,056,269|
||||8,254,337|
||||8,686,010|
Substantially all the fixed assets are for direct activities in furtherance of the Charity’s objectives. The lease on the property at 63/79 Seymour Street, London, W2 2HF was renewed during 2001 for a further 125 years.
The subsidiary company did not own any fixed assets during the year (2023: None).
|**10.**
**INVESTMENTS**
Market value at 1 April 2023
Additions
Disposal
Net gains/(losses) on investments
Market value at 31 March 2024
Historical cost at 31 March 2024|**£**
4,262,979
457,738
(451,885)
312,822|
|---|---|
||4,581,654|
|||
||2,951,716|
Investments are held as units in managed funds operated by M & G Securities Limited, listed on the UK Stock Exchange and with the Armed Forces Common Investment Fund, managed by BlackRock Investment Management Limited and Investec Wealth & Investment Limited as follows:
|Armed Forces Common Investment Fund
M & G Charifund
M & G Charibond
Investec Wealth & Investment Limited|**£**
638,010
2,073,576
292,408
1,577,660|
|---|---|
||4,581,654|
At 31 March 2024 the investment revaluation reserve was £ 1,579,001 (2023: £1,553,828 ). The subsidiary company did not own any investments during the year (2023: None).
23
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **11. INVESTMENT IN TRADING COMPANY**
The Association holds 100% of the share capital of VSC (Trading) Limited (Company registration number 03532841) which is responsible for the provision of accommodation, catering and conference facilities.
|The Association’s investment in the trading company was as follows:
VSC (Trading) Limited|**2024**
**£**
2|**2023**
**£**
2|
|---|---|---|
The subsidiary is registered in England and Wales and pays under Gift Aid its entire profits as computed for corporation tax purposes to the Association.
|**Profit and Loss Account**
Turnover
Cost of Sales
**Gross profit**
Administration expenses (net of interest receivable)
**Operating profit**
Interest receivable and similar income
**Profit before tax**
**Profit for the financial year**|**2024**
**£**
1,306,804
(279,241)
1,027,563
(903,074)
124,489
29,476
153,965
153,965|**2023**
**£**
932,579
(180,620)|
|---|---|---|
|||751,959
(583,955)|
|||168,004
4,634|
|||172,638|
|||172,638|
|**Balance sheet**
Current assets
Current liabilities
Amounts owed to the Association
**Net assets**
Share capital
Profit and loss account brought forward
Profit for the year
Gift aid to parent charity
Profit and loss account carried forward
**STOCK**
**Consolidated and Association**
Food and wine
Club shop|**2024**
**£**
2,687,377
(203,184)
(2,157,588)
**326,605**
2
172,638
153,965
(172,638)
153,965
**153,967**
**2024**
**£**
57,556
4,584
62,140|**2023**
**£**
1,527,257
(131,617)
(1,223,000)|
|---|---|---|
|||**172,640**|
|||2
173,725
172,638
(173,725)|
|||172,638|
|||**172,640**|
|||**2023**
**£**
43,280
5,626|
|||48,906|
## **12. STOCK**
24
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**13.**
**DEBTORS**
Trade debtors
Amounts due from group undertaking
Other debtors
Prepayments and accrued income
**14.**
**CREDITORS: Amounts falling**
**due within one year**
Trade creditors
Other creditors including taxation and social security
CBIL Loan
Accruals and deferred income
**CREDITORS: Amounts falling due after one year**
CBIL Loan
**Total**|**2024**
**2023**
**£**
**£**
104,301
135,861
-
-
19,717
30,623
120,234
148,303
244,252
314,787
**2024**
**2023**
**£**
**£**
117,333
524,204
688,441
500,094
300,000
300,000
110,775
276,040
1,216,549
1,600,338
400,000
700,000
1,616,549
2,300,338
**Consolidated**
**Consolidated**|**2024**
**2023**
**£**
**£**
21,700
43,797
2,330,225
1,223,000
19,717
197,237
78,527
150,357
2,450,169
1,614,391
**2024**
**2023**
**£**
**£**
117,333
524,204
500,484
386,851
300,000
300,000
96,102
258,205
1,013,919
1,469,260
400,000
700,000
1,413,919
2,169,260
**Association**
**Association**|**2024**
**2023**
**£**
**£**
21,700
43,797
2,330,225
1,223,000
19,717
197,237
78,527
150,357
2,450,169
1,614,391
**2024**
**2023**
**£**
**£**
117,333
524,204
500,484
386,851
300,000
300,000
96,102
258,205
1,013,919
1,469,260
400,000
700,000
1,413,919
2,169,260
**Association**
**Association**|
|---|---|---|---|
||||1,469,260
700,000|
||||2,169,260|
In April 2020, the Club obtained a government backed CBIL Loan for £1,500,000. The Trustees approved the loan to support the Club through the pandemic and maintain
|**CBIL Loan**
CBIL Loan - amount falling due within one year
CBIL Loan - amount falling due after more than one year
**15.**
**FUNDS**
**Unrestricted Funds**
Designated Funds
Fixed Assets
Respite & Welfare Breaks Reserve
Significant Capital Projects Fund
General Funds
**Restricted Funds**
The Nuffield Trust
Respite & Welfare Breaks Reserve
_Legacies_|**2024**
**2023**
**£**
**£**
300,000
(240,890)
400,000
700,000
700,000
459,111
**At 1 April 2023**
**Income**
**Expenditure**
**£**
**£**
**£**
#
8,686,010
-
-
75,000
-
-
-
-
-
8,761,010
-
-
-
6,398,738
11,247,008
(9,876,833)
-
17,641
-
-
75,000
100,000
-
-
192,641
-
-
15,352,389
11,247,008
(9,876,833)
**Consolidated**|**2024**
**2023**
**£**
**£**
300,000
300,000
400,000
700,000
700,000
1,000,000
**Transfers/**
**gains/**
**(losses)**
**At 31 March**
**2024**
**£**
**£**
(431,673)
8,254,337
75,000
-
-
(431,673)
8,329,337
744,495
8,513,408
-
17,641
(75,000)
-
-
100,000
(75,000)
117,641
237,822
16,960,386
**Association**|**2024**
**2023**
**£**
**£**
300,000
300,000
400,000
700,000
700,000
1,000,000
**Transfers/**
**gains/**
**(losses)**
**At 31 March**
**2024**
**£**
**£**
(431,673)
8,254,337
75,000
-
-
(431,673)
8,329,337
744,495
8,513,408
-
17,641
(75,000)
-
-
100,000
(75,000)
117,641
237,822
16,960,386
**Association**|
|---|---|---|---|
||||1,000,000|
||||**At 31 March**
**2024**
**£**
8,254,337
75,000
-|
||||8,329,337
8,513,408
17,641
-
100,000|
||||117,641|
||||16,960,386|
The year end restricted fund balance represents £17,641 from the Nuffield Trust for the funding of Reward and Recognition breaks, and a £100,000 legacy towards the refurbishment of adapted bedrooms. As part of our charitable objectives, the Club maintains its Respite & Welfare reserve of £75,000 to support those who take advantage of the Charity's respite and welfare breaks.
25
**THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**15.**
**FUNDS (comparative)**
**Unrestricted Funds**
Designated Funds
Fixed Assets
Respite & Welfare Breaks Reserve
General Funds
**Restricted Funds**
_Grants_
The Nuffield Trust
ABF Soldiers' Charities
Army Central Fund
_Legacies_
**Other specific donations**|**At 1 April 2022**
**£**
9,062,220
75,000
9,137,220
5,327,119
14,464,339
21,047
1,798
-
100,000
122,845
14,587,184|**Income**
**£**
-
-
9,470,912
9,470,912
-
-
-
-
-
9,470,912|**Expenditure**
**£**
-
-
(8,625,738)
(8,625,738)
(3,406)
(1,798)
-
-
(5,204)
(8,630,942)|**Transfers/**
**gains/**
**(losses)**
**£**
(451,210)
(451,210)
301,445
(149,765)
-
-
-
-
-
(149,765)|**At 31 March**
**2023**
**£**
8,611,010
75,000|
|---|---|---|---|---|---|
||||||8,686,010
6,473,738|
||||||15,159,748
17,641
-
-
100,000|
||||||117,641|
||||||15,277,389|
The year end restricted fund balance represents £17,641 from the Nuffield Trust for the funding of Reward and Recognition breaks and £75,000 to fund those who take advantage of the Charities respite and welfare breaks and a £100,000 legacy towards the refurbishment of adapted bedrooms.
## **16. ANALYSIS OF FUND BALANCES BETWEEN NET ASSETS**
|**Restricted**
**Funds**
**£**
Tangible fixed assets
-
Investments
-
Net current assets
117,641
Long term liabilities
#
-
117,641
**Restricted**
**Funds**
**£**
Tangible fixed assets
-
Investments
-
Net current assets
192,641
Long term liabilities
-
385,282|**General Funds**
**Designated**
**Funds**
**£**
**£**
(240,890)
8,254,337
4,581,654
-
4,331,754
75,000
(400,000)
-
8,272,519
8,329,337
**General Funds**
**Designated**
**Funds**
**£**
**£**
-
8,686,010
4,262,979
-
2,835,759
-
(700,000)
-
12,797,476
17,372,020
**AT 31 MARCH 2024**
**AT 31 MARCH 2023**|**Total**
**£**
8,013,448
4,581,654
4,524,395
(400,000)|
|---|---|---|
|||16,719,497|
|||**Total**
**£**
8,686,010
4,262,979
3,028,400
(700,000)|
|||30,554,778|
26
## **THE VICTORY (SERVICES) ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **17. CAPITAL COMMITMENTS**
Commitments for capital expenditure for which no provisions have been made in these financial statements were as follows:
|**OPERATING LEASE COMMITMENTS**
**Land & Buildings**
**Other**
Leases which expire:
**£**
**£**
In one to five years
-
54,686
After five years
570,750
-
570,750
54,686
**2024**
Authorised and contracted for works for the lift upgrades (Memorial Wing), replacement AC units (Centenary
Wing) and new card system for bedrooms.|**2024**
**2023**
**£**
**£**
Nil
136,895
**Land &**
**Buildings**
**Other**
**£**
**£**
-
60,124
577,500
-
577,500
60,124
**2023**|**2023**
**£**
136,895|
|---|---|---|
|||60,124|
## **18. OPERATING LEASE COMMITMENTS**
## **19. MEMBERS' LIABILITY**
The Charity is governed by its Memorandum and Articles of Association and limits the liability of each member to £1. The members of the Council are Directors of the company for the purposes of the Companies Act 2006 and serve as Trustees of the charitable company.
## **20. PENSION COMMITMENTS**
The Association operates a Group pension arrangement. The overall pension charge for the year was £187,795 (2023: £148,262. At 31 March 2023, contributions of £30,195 were outstanding (2023: £34,740)
## **21. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW**
|**Net movement in funds**
Dividends, interest and rents from investments
Interest Paid
Net losses/ (gains) on investments
Depreciation and amortisation charges
Increase/ (Decrease) in creditors
Decrease/ (Increase) in debtors
(Increase)/ Decrease in stocks
**Net Cash generated by operating activities**|**2024**
**£**
**1,682,997**
(343,310)
18,217
(312,822)
1,099,083
(240,890)
(70,535)
(13,234)
**1,819,506**|**2023**
**£**
**690,205**
(244,349)
24,481
149,765
1,127,538
582,588
(53,928)
(11,723)|
|---|---|---|
|||**2,264,578**|
## **22. RELATED PARTY TRANSACTIONS**
||**2024**|**2023**|
|---|---|---|
||**£**|**£**|
|Payments from VSC (Trading) Limited to parent charity for shared resources|-|39,985|
|Profits donated by VSC (Trading) to The Victory (Services) Association|153,966|173,725|
## **23. POST BALANCE SHEET EVENTS**
There were no post balance sheet events to disclose.
27