Charity number: 273386
THE LIGHT DRAGOONS HERITAGE TRUST
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
THE LIGHT DRAGOONS HERITAGE TRUST
| CONTENTS | |
|---|---|
| Page | |
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 5 |
| Independent examiner's report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 - 19 |
THE LIGHT DRAGOONS HERITAGE TRUST
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2023
| Trustees | C F S May, Chair |
|---|---|
| Major (Retd) M Tazey MBE (resigned 29 July 2022) | |
| Captain (Retd) C N Bird | |
| Captain E G Legard | |
| Captain C R Renwick | |
| Captain M Reed MBE (appointed 17 November 2022) | |
| Charity registered number 273386 Principal office Home Headquarters Fenham Barracks Barrack Road Newcastle upon Tyne NE2 4NP Accountants Ryecroft Glenton 32 Portland Terrace Newcastle upon Tyne NE2 1QP Solicitors Gibson & Co. 77-87 West Road Newcastle upon Tyne NE15 6PR Investment manager Brewin Dolphin Time Central Gallowgate Newcastle upon Tyne NE1 4SR |
Page 1
THE LIGHT DRAGOONS HERITAGE TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2023
The Trustees present their annual report together with the financial statements of the Charity for the 6 April 2022 to 5 April 2023. The financial statements have been prepared in accordance with the accounting policies to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Objectives and activities
Policies and objectives
The objectives of the charity are :-
-
(i) To uphold the history and traditions of the Light Dragoons and the antecedent Regiments;
-
(ii) The maintenance and preservation of the Regimental Collection;
-
(iii) The furtherance of the public's education and awareness of the Light Dragoons and the antecedent Regiments through the museum display of the Regimental Collection.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Strategies for achieving objectives
The trust aims to maintain the long-term purchasing power of the unrestricted fund against inflation, whilst producing a reasonable and growing income. The Trustees recognise the importance of maintaining the capital value and of ensuring that the income adequately covers annual expenditure.
Main activities undertaken to further the Charity's purposes for the public benefit
This fund provides public benefit by maintaining and upkeep of regimental property, including the Gallery which is available to the public to visit for free at Discovery Museum Newcastle. In setting the objectives and activities of the charity, the Trustees have had due regard to guidance published by the Charities Commission on public benefit.
Review of activities
Total incoming resources for the year amounted to £32,142 (2022: £8,764), which after total resources expended of £20,001 (2022: £23,288) and realised/unrealised losses on investments of £56,940 (2022: gains of £11,437), produced a deficit of £44,799 for the year (2022 : £3,087).
Page 2
THE LIGHT DRAGOONS HERITAGE TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
(continued)
Investment policy and performance
In accordance with the Statement of Recommended Practice, quoted investments have been accounted for on a market value basis.
It is the Trustees' responsibility to ensure that the Trust’s investments are at all times kept under review by one or more experts. The Trustees may delegate to an investment manager so appointed, power at his discretion to buy and sell investments for the Trust on behalf of the Trustees.
Investment returns amount to 1.9% for the year.
Financial review
Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Reserves policy
The Trustees have instructed The Light Dragoons Heritage Trust, to maintain a cash reserve of £1,000. The Trust can also drawn down funds from the investment portfolio if required.
At the year end, reserves totalled £643,536 (2022: £688,335) being all unrestriced.
Financial risk management objectives and policies
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Structure, governance and management
Constitution
The Light Dragoons Heritage Trust is a registered charity, number 273386, and is constituted under a Trust deed. The Trust formed on 9 December 1976 and governed by a scheme of the Charity Commission of the same date.
The charity is run by a body of not less than 4 and no more than 8 competent fit and proper persons being 3 exofficio Trustees and not less than 4 Trustees.
Page 3
THE LIGHT DRAGOONS HERITAGE TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
Structure, governance and management (continued)
Methods of appointment or election of Trustees
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
Organisational structure and decision-making policies
The Trust is administered by the body of Administrative Trustees, which consists of not less than four and not more than eight competent persons being:-
Two Ex-officio Administrative Trustees; and
Not less than two and not more than six Co-opted Administrative Trustees.
The Ex-officio Administrative Trustees are:-
The Officer in Charge, Home Headquarters of the Regiment and his assistant.
Financial risk management
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Page 4
THE LIGHT DRAGOONS HERITAGE TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023
Statement of Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees on 13 September 2023 and signed on their behalf by:
Captain C R Renwick
C F S May
Page 5
THE LIGHT DRAGOONS HERITAGE TRUST
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 5 APRIL 2023
Independent examiner's report to the Trustees of The Light Dragoons Heritage Trust ('the Charity')
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 5 April 2023.
Responsibilities and basis of report
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 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 the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the Charity has prepared the accounts 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
-
the accounts do not accord with those records; or
-
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.
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.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed:
Dated: 13 September 2023
J Routledge FCA
Ryecroft Glenton 32 Portland Terrace Newcastle upon Tyne NE2 1QP
Page 6
THE LIGHT DRAGOONS HERITAGE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2023
| Note Income from: Donations and legacies 3 Investments 4 Other income 5 Total income Expenditure on: Raising funds 6 Charitable activities 7 Total expenditure Net income/(expenditure) before net (losses)/gains on investments Net (losses)/gains on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2023 £ 1,931 - - 1,931 - 1,931 1,931 - - - - - - |
Unrestricted funds 2023 £ 18,520 11,691 - 30,211 3,734 14,336 18,070 12,141 (56,940) (44,799) 688,335 (44,799) 643,536 |
Total funds 2023 £ 20,451 11,691 - 32,142 3,734 16,267 20,001 12,141 (56,940) (44,799) 688,335 (44,799) 643,536 |
Total funds 2022 £ 176 7,804 784 8,764 4,533 18,755 23,288 (14,524) 11,437 (3,087) 691,422 (3,087) 688,335 |
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 9 to 19 form part of these financial statements.
Page 7
THE LIGHT DRAGOONS HERITAGE TRUST
BALANCE SHEET AS AT 5 APRIL 2023
| Note Fixed assets Investments 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Total net assets Charity funds Unrestricted funds 15 Total funds |
1,980 21,415 23,395 (1,186) |
2023 £ 621,327 621,327 22,209 643,536 643,536 643,536 643,536 |
- 6,780 6,780 (1,824) |
2022 £ 683,379 |
|---|---|---|---|---|
| 683,379 4,956 |
||||
| 688,335 | ||||
| 688,335 | ||||
| 688,335 | ||||
| 688,335 |
The financial statements were approved and authorised for issue by the Trustees on 13 September 2023 and signed on their behalf by:
C F S May
Captain C R Renwick
The notes on pages 9 to 19 form part of these financial statements.
Page 8
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
1. General information
The Light Dragoons Heritage Trust is registered with the Charity Commission for England and Wales, number 273386. The principal address is Home Headquarters, Fenham Barracks, Barrack Road, Newcastle upon Tyne. NE2 4NP.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Light Dragoons Heritage Trust meets the definition of a public benefit entity under FRS 102.
2.2 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.4 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Page 9
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
2. Accounting policies (continued)
2.5 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
Investments held as fixed assets are shown at cost less provision for impairment.
2.6 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.7 Cash at bank and in hand
Cash at bank and 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.
2.8 Liabilities
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
2.9 Financial instruments
The Charity only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.10 Fund accounting
Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 10
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
3. Income from donations and legacies
| Donations Transfer from the Light Dragoons Charitable Trust Donations Transfer from the Light Dragoons Charitable Trust |
Restricted funds 2023 Unrestricted funds 2023 £ £ 1,931 4,058 - 14,462 1,931 18,520 Unrestricted funds 2022 £ 96 80 176 |
Total funds 2023 £ 5,989 14,462 |
|---|---|---|
| 20,451 | ||
| Total funds 2022 £ 96 80 |
||
| 176 |
4. Investment income
| Unrestricted funds 2023 £ Income from investments 11,589 Bank and Brewin Dolphin deposit account interest received 102 11,691 Unrestricted funds 2022 £ Income from investments 7,804 |
Total funds 2023 £ 11,589 102 |
|---|---|
| 11,691 | |
| Total funds 2022 £ 7,804 |
Page 11
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
5. Other incoming resources
| Virtual tours Unrestricted funds 2022 £ Virtual tours 784 Investment management costs Unrestricted funds 2023 £ Investment management fees 3,734 Unrestricted funds 2022 £ Investment management fees 4,533 |
Total funds 2023 £ - |
|---|---|
| Total funds 2022 £ 784 |
|
| Total funds 2023 £ 3,734 |
|
| Total funds 2022 £ 4,533 |
6. Investment management costs
Page 12
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
7. Analysis of expenditure on charitable activities
Summary by fund type
| Direct costs Direct costs |
Restricted funds 2023 Unrestricted funds 2023 £ £ 1,931 14,336 Unrestricted funds 2022 £ 18,755 |
Total 2023 £ 16,267 |
|---|---|---|
| Total 2022 £ 18,755 |
8. Analysis of expenditure by activities
| Direct costs Direct costs |
Activities undertaken directly 2023 £ 14,676 Activities undertaken directly 2022 £ 17,715 |
Support costs 2023 £ 1,591 Support costs 2022 £ 1,040 |
Total funds 2023 £ 16,267 |
|---|---|---|---|
| Total funds 2022 £ 18,755 |
Page 13
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
8. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Regimental property upkeep costs Museum running and upkeep costs TWAM annual payment Regimental property upkeep costs Museum running and upkeep costs TWAM annual payment |
Activities 2023 £ 320 5,506 8,850 14,676 Activities 2022 £ 4,740 5,978 6,997 17,715 |
Total funds 2023 £ 320 5,506 8,850 |
|---|---|---|
| 14,676 | ||
| Total funds 2022 £ 4,740 5,978 6,997 |
||
| 17,715 |
Page 14
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
8. Analysis of expenditure by activities (continued)
Analysis of support costs
| Accountancy fees Sundries Accountancy fees Sundries Independent examiner's remuneration Fees payable to the Charity's independent examiner for the independent examination of the Charity's annual accounts |
Activities 2023 £ 1,186 405 1,591 Activities 2022 £ 735 305 1,040 2023 £ 1,186 |
Total funds 2023 £ 1,186 405 |
|---|---|---|
| 1,591 | ||
| Total funds 2022 £ 735 305 |
||
| 1,040 | ||
| 2022 £ 735 |
9. Independent examiner's remuneration
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .
During the year, no Trustee expenses have been incurred (2022 - £NIL) .
Page 15
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
11. Fixed asset investments
| Cost or valuation At 6 April 2022 Additions Disposals Revaluations At 5 April 2023 Net book value At 5 April 2023 At 5 April 2022 12. Debtors Due within one year Other debtors 13. Creditors: Amounts falling due within one year Accruals |
Listed investments £ 649,909 61,878 (59,883) (56,940) 594,964 594,964 649,909 |
Cash held for re- investment £ 33,470 69,594 (76,701) - 26,363 26,363 33,470 2023 £ 1,980 1,980 2023 £ 1,186 |
Total £ 683,379 131,472 (136,584) (56,940) 621,327 621,327 683,379 2022 £ - - 2022 £ 1,824 |
|
|---|---|---|---|---|
Page 16
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
14. Financial instruments
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 621,327 | 683,379 |
Financial assets measured at fair value through income and expenditure comprise of investments in stocks and shares.
Page 17
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
15. Statement of funds
Statement of funds - current year
| Balance at 6 | Gains/ | Balance at 5 | |||
|---|---|---|---|---|---|
| April 2022 | Income | Expenditure | (Losses) | April 2023 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| Unrestricted funds | 688,335 | 30,211 | (18,070) | (56,940) | 643,536 |
| Restricted funds | |||||
| Army Museums Ogilby Trust | |||||
| Fund | - | 1,931 | (1,931) | - | - |
| Total of funds | 688,335 | 32,142 | (20,001) | (56,940) | 643,536 |
| Statement of funds - prior year | |||||
| Balance at | Gains/ | Balance at | |||
| 1 April 2021 | Income | Expenditure | (Losses) | 5 April 2022 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| Unrestricted funds | 691,422 | 8,764 | (23,288) | 11,437 | 688,335 |
| Restricted funds | |||||
| Army Museums Ogilby Trust | |||||
| Fund | - | - | - | - | - |
| Total of funds | 691,422 | 8,764 | (23,288) | 11,437 | 688,335 |
Army Museums Ogilby Trust Fund - This fund was dedicated to providing a temporary exhibition at the Discovery Museum.
Page 18
THE LIGHT DRAGOONS HERITAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
16. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2023 £ Fixed asset investments 621,327 Current assets 23,395 Creditors due within one year (1,186) Total 643,536 Analysis of net assets between funds - prior year Unrestricted funds 2022 £ Fixed asset investments 683,379 Current assets 6,780 Creditors due within one year (1,824) Total 688,335 |
Total funds 2023 £ 621,327 23,395 (1,186) 643,536 Total funds 2022 £ 683,379 6,780 (1,824) 688,335 |
|---|---|
17. Related party transactions
During the year £14,462 was donated from the Light Dragoons Charitable Trust, a charitable trust that shares common Trustees with the Light Dragoons Heritage Trust (2022: £80).
Page 19