Charity number: 305152
## Surrey Army Cadet Force Association
Unaudited
Trustees’ report and financial statements For the year ended 31 December 2023
Surrey Army Cadet Force Association
## Contents
||Page|
|---|---|
|Reference and administrative details ofthe charity, its Trustees and advisers|1|
|Trustees’ report|2-3|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Balance sheet|6|
|Notestothefinancialstatements|7-14|
## Surrey Army Cadet Force Association
Reference and administrative details of the charity, its Trustees and advisers For the year ended 31 December 2023
|Trustees|Rev. Canon N P|Nicholson DL|Nicholson DL|Nicholson DL|
|---|---|---|---|---|
||Colonel (Ret'd)|D|KG|G CoxOBE|
||Colonel (Ret'd) EA|||Mulder|
||M J Gerrard QPM||DL||
||Brigadier (Ret'd)|P||AD Evans OBE DL|
||Colonel (Ret'd) PT|||CrowleyMBE DL|
|Charity registered|||||
|number|305152||||
|Principal office|15 Carfax||||
||Horsham||||
||West Sussex||||
||RH12 1DY||||
|independent examiner|Graham Hunt FCA||||
||Kreston Reeves|LLP|||
||Chartered Accountants||||
||Springfield House||||
||Springfield Road||||
||Horsham||||
||West Sussex||||
||RH122RG||||
|Bankers|Barclays Bank||||
||2 Carfax||||
||Horsham||||
||West Sussex||||
||RH12 1DN||||
|Solicitors|DMH Stallard||||
||15 Carfax||||
||Horsham||||
||West Sussex||||
||RH121DY||||
Page 1
## Surrey Army Cadet Force Association
## Trustees’ report
## For the year ended 31 December 2023
The Trustees present their annual report together with the financial statements for the year 1 January 2023 to 31 December 2023. 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 consideration amongst existing trustees and other interested parties.
The trustees at the year end are stated in the reference and administrative details information on page 1. The trustees who acted during the year are below: Rev. Canon N P Nicholson DL Colonel (Ret'd) D K G Cox OBE Colonel (Ret'd) E A Mulder M J Gerrard QPM DL Brigadier (Ret'd) P AD Evans OBE DL Colonel (Ret'd) P T Crowley MBE DL
The administration of the trust is controlled by the trustees.
Colonel (ret’'d) D Cox acts as the Administrating Trustee, co-ordinating matters between trustees, officers, third parties, professional advisers and providers.
## 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.
The trustees provide Surrey Army Cadet Force (SACF) with an annual grant budget of £20k for which there are pre-agreed expenditure headings and can be drawn down by application via Hon Treasurer. Any SACF requirement outside of the budget headings and /or in excess of the £20k as well as any applications from other organisations must be approved by the trustees.
## 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 2023 the fund balance stood at £1,997,364 of which £1,654 ,049 is a permanent endowment.
Grants to cadets and for their associated activities amounted to £29,347.
Page 2
## Surrey Army Cadet Force Association
## Trustees’ report (continued) For the year ended 31 December 2023
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 £3,640.
During the year the Association had realised and unrealised gains of £72,217 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.
## RESERVES
The trustees have resolved upon a policy for dealing with reserve funds as follows:-
1. The level of unrestricted funds of the Association was £343,315 as at 31st December 2023 of which £312,819 are represented by Fixed Asset Investments. The trustees policy is to retain the investment in the long term with the income being utilised for grants. The level of reserves to meet the expenditure of the Association was therefore £30,496.
2. The Association has a permanent endowment, the income from which is used to meet general unrestricted expenditure.
3. The trustees consider it prudent to maintain sufficient available reserves to meet the objectives of the Association for the forthcoming year. The trustees review the level of reserves against potential demand and, where appropriate, may reinvest a surplus into the investment portfolio.
- 4, Further details of the funds are set out in note 8 of the financial statements.
## GOING CONCERN
After making appropriate enquiries, the trustees have a reasonable expectation that the charity will continue in operational existence for the foreseeable future. Therefore, they consider it appropriate to prepare the financial statements on a going concern basis.
## PUBLIC BENEFIT REPORTING
The trustees have had due regard to the Charity Commission guidance on public benefit whilst setting the objects and activities of the charity. Details of the public benefit provided by the Association are set out eariier in this report.
## RISK ASSESSMENT
The trustees review financial and other risks where appropriate and have established procedures to ensure that all transactions, activities and projects are properly authorised.
Approved by order of the members of the board of Trustees and signed on their behalf by:
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Date: | () Aralt doy
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Page 3
## Surrey Army Cadet Force Association
## Independent examiner's report
For the year ended 31 December 2023
Independent examiner's report to the Trustees of Surrey Army Cadet Force Association (‘the charity’)
! report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 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’).
1 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 | have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## Independent examiner's statement
| have completed my examination. | 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.
| 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
## Date: 7 Aga LoLy
Page 4
## Surrey Army Cadet Force Association
## Statement of financial activities
For the year ended 31 December 2023
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||||||||||
|---|---|---|---|---|---|---|---|---|
|Permanent|
|Unrestricted|endowment|Total|Total|
|funds|funds|funds|funds|
|2023|2023|2023|2022|
|Note|£|£|£|£|
|Income|and|endowments|from:|
|Investments|39,236|-|39,236|39,526|
|Other|income|794|-|794|47|
|Total|income|and|endowments|40,030|-|40,030|39,573|
|Expenditure|on:|
|Raising|funds|2|16,814|-|16,814|17,589|
|Charitable|activities:|
|Grants|payable|to|SACF|29,347|-|29,347|15,666|
|Other|grants|payable|3,710|-|3,710|-|
|Support and|governance|costs|2|3,973|-|3,973|2,860|
|Total|expenditure|53,844|-|53,844|36,115|
|Net|(expenditure)/income|before|net|
|gains/(losses)|on|investments|(13,814)|-|(13,814)|3,458|
|Net|gains/(losses)|on|investments|3|21,898|50,319|72,217|(197,608)|
|Net movement|in|funds|8,084|50,319|58,403|(194,150)|
|Reconciliation|of funds:|
|Total|funds|brought forward|335,231|1,603,730|1,938,961|2,133,111|
|Net|movement|in|funds|8,084|50,319|58,403|(194,150)|
|Total funds|carried|forward|7|343,315|1,654,049|1,997,364|1,938,961|
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The notes on pages 7 to 14 form part of these financial statements.
Page 5
Surrey Army Cadet Force Association
Balance sheet As at 31 December 2023
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2023 2022
Note £ £
Fixed assets
Investments 3 1,952,675 1,732,426
Current assets
Other debtors and accrued income 5 - 5,804
Cash at bank and in hand 52,149 208,131
52,149 213,935
Creditors: amounts falling due within one
year 6 (7,460) (7,400)
Net current assets 44,689 206,535
Total net assets 1,997,364 1,938,961
Charity funds
Permanent endowment funds 7 1,654,049 1,603,730
Unrestricted funds 7 343,315 335,231
Total funds 1,997,364 1,938,961
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Rev. Dasa
Bot Paha, Colonel (Ret'd) D K G Cox OBE
Date: (0 AYA | jay
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The notes on pages 7 to 14 form part of these financial statements.
Page 6
## Surrey Army Cadet Force Association
## Notes to the financial statements
For the year ended 31 December 2023
## 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.
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.
Govemance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements
Page 7
Surrey Army Cadet Force Association
Notes to the financial statements For the year ended 31 December 2023
## 1. Accounting policies (continued)
## 1.4 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 Bank.
## 1.5 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 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 ‘Net gains/(losses) on investments’ in the Statement of Financial Activities.
- 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.
The balance includes cash held by the investment managers.
## 1.8 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.
## 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.
Page 8
Surrey Army Cadet Force Association
Notes to the financial statements For the year ended 31 December 2023
## 2. Other costs
||Cost of|Support and||
|---|---|---|---|
||raising|governance|Total|
||funds|costs|funds|
||2023|2023|2023|
||£|£|£|
|Bank charges and sundry|-|333|333|
|Accountancy fees (governance cost)|-|3,040|3,040|
|investment management fee|16,814|-|16,814|
|Independent examiner's fee (governance cost)|-|600|600|
||16,814|3,973|20,787|
|||Supportand||
||Cost of|governance|Total|
||raising funds|costs|funds|
||2022|2022|2022|
||£|£|£|
|Bank charges and sundry|-|260|260|
|Accountancy fees (governance cost)|-|2,050|2,050|
|Investment management fees|17,589|-|17,589|
|independent examiner's fee (governance cost)|-|550|550|
||17,589|2,860|20,449|
Total governance costs for the year amounted to £3,640 (2022: £2,600). Total remuneration paid to the independent examiner relates to independent examination fees of £600 (2022: £550) and other accountancy services fees of £3,040 (2022: £2,050).
## 3. Fixed asset investments
||Fixed Asset|
|---|---|
||Investment|
||£|
|Cost or valuation||
|At 1 January2023|1,732,426|
|Additions|541,234|
|Disposals|(393,202)|
|Revaluations|72,217|
|At31December2023|4,952,675|
Page 9
Surrey Army Cadet Force Association
Notes to the financial statements For the year ended 31 December 2023
## 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
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Due within one year
Accrued income
**----- End of picture text -----**
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2023 2022
£ £
- 5,804
**----- End of picture text -----**
## 6. Creditors
## Accruals
**----- Start of picture text -----**
2023 2022
£ £
7,460 7,400
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Page 10
Surrey Army Cadet Force Association
Notes to the financial statements For the year ended 31 December 2023
## 7. Statement of funds
Statement of funds - current year
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|||||||||
|---|---|---|---|---|---|---|---|
|Balance|at|
|Balance|at|1|31|
|January|Transfers|Gains/|December|
|2023|Income|Expenditure|in/out|(Losses)|2023|
|£|£|£|£|£|£|
|Unrestricted|
|funds|
|Designated|
|funds|
|Cadet|150|173,642|-|-|(189,410)|15,768|-|
|Capital|reserve|-|-|-|311,595|-|311,595|
|173,642|-|-|122,185|15,768|311,595|
|General|funds|
|General|Reserve|
|Funds|161,589|40,030|(53,844)|(122,185)|6,130|31,720|
|Total|
|Unrestricted|
|funds|335,231|40,030|(53,844)|-|21,898|343,315|
|Endowment|
|funds|
|Permanent|
|Endowment|
|funds|1,603,730|-|-|-|50,319|1,654,049|
|Total|of funds|1,938,961|40,030|(53,844)|-|72,217|1,997,364|
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Page 11
Surrey Army Cadet Force Association
Notes to the financial statements For the year ended 31 December 2023
7. Statement of funds (continued) Statement of funds - prior year
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|||||||||
|---|---|---|---|---|---|---|---|
|Balance|at|
|Balance|at|31|
|1|January|Gains/|December|
|2022|Income|Expenditure|(Losses)|2022|
|£|£|£|£|£|
|Unrestricted|funds|
|Designated|funds|
|Cadet|150|197,639|-|-|(23,997)|173,642|
|General|funds|
|General|Reserve|Funds|159,717|39,573|(36,115)|(1,586)|161,589|
|Total|Unrestricted funds|357,356|39,573|(36,115)|(25,583)|335,231|
|Endowment|funds|
|Permanent|Endowment|funds|1,775,755|-|-|(172,025)|1,603,730|
|Total|of funds|2,133,111|39,573|(36,115)|(197,608)|1,938,961|
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Page 12
## Surrey Army Cadet Force Association
## Notes to the financial statements
For the year ended 31 December 2023
## 8. Analysis of net assets between funds
## Analysis of net assets between funds - current year
||Unrestricted|Endowment|Total|
|---|---|---|---|
||funds|funds|funds|
||2023|2023|2023|
||£|£|£|
|Fixed asset investments|312,819|1,639,856|1,952,675|
|Current assets|37,956|14,193|52,149|
|Creditors due within one year|(7,460)|-|(7,460)|
|Total|343,315|1,654,049|1,997,364|
## Analysis of net assets between funds - prior year
||Unrestricted|Endowment|Total|
|---|---|---|---|
||funds|funds|funds|
||2022|2022|2022|
||£|£|£|
|Fixed asset investments|277,535|1,454,891|1,732,426|
|Current assets|65,096|148,839|213,935|
|Creditors due within one year|(7,400)|-|(7,400)|
|Total|335,231|1,603,730|1,938,961|
The unrestricted funds comprise the Cadet 150 fund, the capital reserve fund and general unrestricted funds.
Following a Trustees’ meeting on 15 November 2023, to preserve its capital, the charity reorganised its reserves into three distinct funds.
There was no change to the permanent endowment fund which requires its capital to be maintained. The income generated from the permanent endowment assets is available to fund the genera! objectives of the charity.
The funds previously held in the Cadet 150 fund, a designated fund set up by the trustees for funds donated, collected and promised to celebrate the 150th anniversary of the cadet forces, were transferred to a newly established, designated, unrestricted, capital reserve fund. While income generated from the capital reserve fund assets is available to fund the general objectives of the charity, the capital in the fund can only be depleted with the unanimous support of the trustees and then only subject to meeting the strict guidelines set out in the charity's rules.
A proportion of the funds previously held in the general reserve fund were transferred to the capital reserve fund. The general reserve fund now represents the balance of funds held in the charity's bank current account.
Page 13
Surrey Army Cadet Force Association
## Notes to the financial statements
For the year ended 31 December 2023
## 9. Trustees’ remuneration and expenses, employees and related party transactions
One trustee received reimbursed expenses of £150 (2022 — One trustee received reimbursed expenses of £110). No trustees received any remuneration in the year (2022 - £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 14