**Charity number: 305152** ## **Surrey Army Cadet Force Association** **Unaudited** **Trustees' report and financial statements** **For the year ended 31 December 2021** **Surrey Army Cadet Force Association** ## **Reference and administrative details of the charity, its trustees and advisers For the year ended 31 December 2021** ## **Trustees** Rev. Canon N P Nicholson DL Colonel (Ret’d) D K G Cox OBE Brigadier (Ret’d) G E Bartlett MBE DL M J Gerrard QPM DL Brigadier (Ret’d) P A D Evans OBE DL Colonel (Ret’d) P T Crowley MBE DL ## **Charity registered number** 305152 ## **Registered office** 15 Carfax, Horsham, West Sussex, RH12 1DY ## **Accountants** Kreston Reeves LLP, Springfield House, Springfield Road, Horsham, West Sussex, RH12 2RG ## **Bankers** Barclays Bank, 2 Carfax, Horsham, West Sussex, RH12 1DN ## **Solicitors** DMH Stallard incorporating Rawlison Butler, 15 Carfax, Horsham, West Sussex, RH12 1DY **Surrey Army Cadet Force Association** ## **Contents** ||Page| |---|---| |**Reference and administrative details of the charity, its trustees and advisers**|| |**Trustees' report**|1 - 2| |**Independent examiner's report**|3| |**Statement of financial activities**|4| |**Balance sheet**|5| |**Notes to the financial statements**|6 - 11| ## **Surrey Army Cadet Force Association** ## **Trustees' report For the year ended 31 December 2021** The Trustees present their annual report together with the financial statements for the year 1 January 2021 to 31 December 2021. The trustees have adopted the provisions of 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. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The Trust was created by a Declaration of Trust dated 1 October 1971 as amended by the Resolutions of the trustees dated 17 November 1986 and 21 April 1996. The trustees are invited to join the Board of trustees after appropriate consultation with the Committee and other interested parties. The trustees who acted during the year are stated in the reference and administrative details information page at the front of the financial statements. The administration of the trust is controlled by the trustees. The trustees have delegated to a Committee (Rev. Canon N P Nicholson; Major S Hopkin; and three other members) the tasks, among others, of vetting and prioritising requests for funds that come from Surrey Army Cadet Force. The officers and members of the Committee shall be elected by ballot from the members of the Association at the Annual General Meeting. ## **OBJECTIVES AND ACTIVITIES** The Trust was established for the furtherance of education and the training and development of young people through their leisure-time activities so as to develop their physical, mental and spiritual capacities so that they may grow to full maturity as individuals and members of society and that their conditions of life may be improved. The trustees continue to apply the income derived from the invested funds to meet the objectives laid down in the Declaration of Trust through the payment of grants. Preference is given to the cadets serving in the Surrey Army Cadet Force and their associated activities but if funds are available the trustees will consider applications from other youth orientated organisations with similar aims. ## **ACHIEVEMENTS, PERFORMANCE AND FINANCIAL REVIEW** The accounting period of the Association ends on 31 December of each year. The Association continues to maintain substantial funds mainly due to the generous bequest of the late Major Richard Maydwell. At 31 December 2021 the fund balance stood at £2,133,111 of which £1,775,755 is a permanent endowment. Grants to cadets and for their associated activities amounted to £23,672 while grants to other youth organisations amounted to £6,000. Grants to other youth organisations included a one-off grant to Action for Carers (Surrey) for £5,000. This grant was specifically given for Young Carers, aged 18 years old and under. The Association has expended a significant amount in the year out of unrestricted funds and intends to continue doing this as long as funds are available. Governance costs were £5,011. During the year the Association had realised and unrealised gains of £139,288 on its investments. The trustees will continue to make the adjustments necessary, whether to grant approvals or to investment policy, to ensure that funds are sufficient to meet expenditure. They have reiterated their wish to see the allocation of monies to assist as many cadets and cadet activities as possible whilst at the same time looking for any other worthy organisations to support where they fall within the objectives of the charity. Page 1 Surrey Arniy Cadel Force Asso¢latlon Tvustees. report Icontlnued) For the year ended 31 December 2021 RESERVES The trustees h8ve resolved upon a policy dealing with reserve funds as follows:. The level of reserves available for meeting the expenditure of the Association was £357,356 as at 31 December 2021. 2. The As50Ciation has a pemianent endowment, th8 income from vthich 15 used to meet general unrestricted expenditure. The tnjslees consTrder it prudent never to let the available resafves fall below the level of one yeals income. GOING CONCERN After making appropriate enquiries. the Iruslees have a reasonable expectation that the charity will continue in operational existence for the foreseeable fijture. Therefore, Ihey considw it approwiate to prepare the fin8ncial stslements on a going concem basls. PUBLIC BENEFIT REPORTING The trustees ttave had due regard to the Charity Commission guidance on public benefit whilst setting the objects and actlvities of the ¢hanty. Detsils of the public benefit provided by the Assoclalion are set out eadier In thls report. RISK ASSESSMENT The trustees review financial and other risks where appropriate and have established procedures to ensure that all tran88Ctions, actiwties and projects are propedy authorised. This repLYI was approved by the Trustses, on and signed on their behall by- Rev. C Tnjstee Nicholson DL Page 2 ## **Surrey Army Cadet Force Association** **Independent examiner's report For the year ended 31 December 2021** ## **Independent examiner's report to the Trustees of Surrey Army Cadet Force Association (the 'charity')** I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2021 as set out on pages 4 to 11. ## **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 all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I can confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination. 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. G Hunt FCA ## **Kreston Reeves LLP** Chartered Accountants Springfield House Springfield Road Horsham West Sussex RH12 2RG 4 May 2022 Page 3 ## **Surrey Army Cadet Force Association** ## **Statement of financial activities For the year ended 31 December 2021** |**Note**
**Income from:**
Investments
Other Income
**Total income and endowments**
**Expenditure on:**
Cost of raising funds
2
Charitable activities:
Grants payable to SACF
Grants payable to Action for Carers (Surrey)
Grants payable to other organisations
Support and governance costs
2
**Total expenditure**
**Net expenditure before investment gains**
Realised and unrealised gains on investments
**Net income for the year**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**40,839**
**4**
**40,843**|**Permanent**
**endowment**
**funds**
**2021**
**£**
**-**
**-**|**Total**
**funds**
**2021**
**£**
**40,839**
**4**
**40,843**
**17,784**
**23,672**
**5,000**
**1,000**
**5,132**
**52,588**
**(11,745)**
**139,288**
**127,543**
**127,543**
**2,005,568**|Total
funds
2020
£
32,215
1,611
33,826

19,394

15,360
-

500
3,015
38,269
(4,443)
416,759
412,316
412,316
1,593,252
2,005,568| |---|---|---|---|---| |||**-**||| ||**17,784**
**23,672**
**5,000**
**1,000**
**5,132**|**-**
**-**
**-**
**-**
**-**||| ||**52,588**|**-**||| ||**(11,745)**
**63,601**
**51,856**
**51,856**
**305,500**|**-**
**75,687**||| |||
**75,687**
**75,687**
**1,700,068**||| ||**357,356**|**1,775,755**|**2,133,111**|| The notes on pages 6 to 11 form part of these financial statements. Page 4 Surrey Arniy Cadèt Force Assoclatlon Balance sheet As at 31 Decèmber 2021 2021 2020 Note Flxed ¥￿ets Investrnents 00 CuThent as80ts Other debtcn and awued income 5.873 6.721 Cash at bank and in hand 299 786 139.446 306.507 Creditorg: arnounts falling due within one year Net currenl assets 301 174 Net •￿ets Charlty Funds Pem7anent endowment fvnds 1,775.755 1,700.068 Unrestricted fvnds 05 Total funds The financial ststements were approved by the Trustees on and signed on Iheir behalf, by.. Nlcholson DL nelDK The notes on pages 8 to 11 fom part of these financial statements. Page 5 **Surrey Army Cadet Force Association** ## **Notes to the financial statements For the year ended 31 December 2021** ## **1. Accounting policies** ## **1.1 Basis of preparation of financial statements** 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) (second edition - 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 financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. The Charity does not include a cash flow statement on the grounds that it is a small charity. Surrey Army Cadet Force Association constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in Sterling and rounded to the nearest £. ## **1.2 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. ## **1.3 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 is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Costs of Raising Funds are costs incurred in managing the fixed asset investment portfolio and the investment property until the date of sale. Grants payable are included in the Statement of Financial Activities when approved for payment by the trustees. Grants payable are payments made to third parties in the furtherance of the charitable objectives. Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the Statement of Financial Activities once the recipient of the grant has provided the specific service or output. Grants payable without performance conditions are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grant which remain in the control of the charity. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Page 6 **Surrey Army Cadet Force Association** **Notes to the financial statements For the year ended 31 December 2021** ## **1. Accounting policies (continued)** ## **1.4 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 fair 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 shown in the heading 'realised and unrealised gains on investments’ in the Statement of Financial Activities. ## **1.5 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 Bank. ## **1.6 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. ## **1.7 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. ## **1.8 Freehold Investment Property** The freehold investment property was sold during the prior year. It was previously included at Trustees' valuation which took into account the life tenancy granted to the occupant. The surplus on sale of the property is included in the heading 'realised and unrealised gains on investments’ in the Statement of Financial Activities. ## **1.9 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. Page 7 **Surrey Army Cadet Force Association** **Notes to the financial statements For the year ended 31 December 2021** ## **1. Accounting policies (continued)** ## **1.10 Fund accounting** General funds are unrestricted 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. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Income from the permanent endowment is available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Investment gains and losses and changes in market value of assets comprising the endowment are accumulated as part of the endowment to maintain its long-term capital value. Further details of each fund are disclosed in note 8. ## **2. Other costs** |Bank charges and sundry
Accountancy fees (Governance cost)
Investment management fees
Property Costs - Waitituna
Independent examiner's fee
(Governance cost)
Trustees' meeting (Governance cost)
Total 2020
|**Cost of**
**raising**
**funds**
**£**
**-**
**-**
**17,784**
-
**-**
**-**|**Support and**
**governance**
**costs**
**£**
**221**
**4,511**
-
-
**500 **
**- **|**Total**
**2021**
**£**
**221**
**4,511**
**17,784**
-

**500**
**-**|Total
2020
£

58

2,468

12,623
6,771

400
89| |---|---|---|---|---| ||**17,784**|**5,132**|**23,016**|22,409| |||||| ||19,394|3,015|22,409|| Total governance costs for the year amounted to £5,011 (2020: £2,957). Total remuneration paid to the independent examiner relates to independent examination fees of £500 (2020: £400) and other accountancy services fees of £4,511 (2020: £2,468). Page 8 ## **Surrey Army Cadet Force Association** **Notes to the financial statements For the year ended 31 December 2021** ## **3. Fixed asset investments** |**Market value**
At 1 January 2021
Additions
Disposals
Revaluation - gains on investments
At 31 December 2021|**Fixed Asset**
**Investment**
**£**
**1,704,394**
**428,125**
**(271,142)**
**139,288**| |---|---| ||**2,000,665**| ## **4. Taxation** The charity is a registered charity and its income falls under the various exemptions available to registered charities. ## **5. Other debtors and accrued income** |Accrued income
**Creditors**
Accruals|**2021**
**£**
**5,873**|2020
£
6,721| |---|---|---| ||**2021**
**£**
**7,000**|
2020
£
5,333| ## **6. Creditors** Page 9 ## **Surrey Army Cadet Force Association** **Notes to the financial statements For the year ended 31 December 2021** ## **7. Statement of funds** ## **Statement of funds - current year** |**Designated funds**
Cadet 150
**General funds**
General Funds
Total Unrestricted funds
**Endowment funds**
Permanent Endowment funds
Total of funds
**Statement of funds - prior year**
Cadet 150
General Funds
Permanent endowment funds
Total of funds|**Balance at**
**1 January**
**2021**
**£**
**168,474**|**Balance at**
**1 January**
**2021**
**£**
**168,474**|**Balance at**
**1 January**
**2021**
**£**
**168,474**|**Income **
**£**
**-**|**Income **
**£**
**-**|**Expenditure**
**£**
**- **|**Expenditure**
**£**
**- **|**Expenditure**
**£**
**- **|**Gains/**
**(Losses)**
**£**
**29,165**|**Gains/**
**(Losses)**
**£**
**29,165**|**Gains/**
**(Losses)**
**£**
**29,165**|**Gains/**
**(Losses)**
**£**
**29,165**|**Balance at**
**31**
**December**
**2021**
**£**
**197,639**
**159,717**| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |||**137,026**|||**40,843**|**(52,588)**|||**34,436**||||| |||**305,500**|||**40,843**|**(52,588)**|||**63,601**||||**375,356**| |||**1,700,068**|||**-**||||**75,687**||||**1,775,755**
**2,133,111**| |||**2,005,568**|||**40,843**||||**139,288**||||| ||||||||||||||Balance at
31
December
2020
£
168,474
137,026
1,700,068
2,005,568| ||||73,560||33,826||(38,269)|||
67,909|||| ||||1,322,364||-||
-|||377,704|||| ||||1,593,252||33,826||(38,269)|||416,759|||| Page 10 **Surrey Army Cadet Force Association** ## **Notes to the financial statements** **For the year ended 31 December 2021** ## **8. Analysis of net assets between funds** ## **Analysis of net assets between funds – current year** |Fixed asset investments
Current assets
Creditors due within one year|**Unrestricted**
**funds**
**2021**
**£**
**320,507**
**43,849**
**(7,000)**|**Permanent**
**endowment**
**funds**
**2021**
**£**
**1,680,158**
**95,597**
**-**|**Total**
**funds**
**2021**
**£**
**2,000,665**
**139,446**
**(7,000)**| |---|---|---|---| ||**357,356**|**1,775,755**|**2,133,111**| ## **Analysis of net assets between funds – prior year** |Fixed asset investments
Current assets
Creditors due within one year|Unrestricted
funds
2020
£
273,044
37,789
(5,333)|Permanent
endowment
funds
2020
£

1,431,350

268,718
-|Total
funds
2020
£

1,704,394

306,507
(5,333)| |---|---|---|---| ||305,500|1,700,068|2,005,568| The unrestricted funds comprise the Cadet 150 fund and general unrestricted funds. The Cadet 150 fund, a designated fund, was set up by the trustees for funds donated, collected and promised to celebrate the 150th anniversary of the Cadet Forces. The funds under this designation are earmarked for the sole benefit of the cadets of Surrey Army Cadet Force but any grants are to be made in accordance with the objects of the Surrey Army Cadet Force Association. During the year the trustees transferred £nil from the Cadet 150 fund to General funds (2020 - £31,391). The capital of the permanent endowment is required to be maintained but the income from the endowment is available to fund the general objectives of the charity. ## **9. Trustees' remuneration and expenses, employees and related party transactions** No trustees received reimbursed expenses (2020 – one trustee received reimbursed expenses of £5,417). No trustees received any remuneration in the year (2020 - £nil). The charity had no employees in the year or prior year. There have been no related party transactions in the current or prior year. Page 11