Charity number: 305152 Surrey Army Cadet Force Association Unaudited Trustees. report and financial statements For the year ended 31 December 2024
Surrey Am)y Cadet Force Association Contents Page Reference and administrative details of the charity, its Trustees and advisers Trustees. report Independent examinerfs report Statement of financial activities Balance sheet Notes to the financlal statements 7-13
Surrey Am)y Cadet Force Association Reference and administrative details of the charity, its Trustees and advisers For the year ended 31 December 2024 Trustees 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 A D Evans OBE DL Colonel {Ret'd) P T Crowley MBE DL N F Harnby (appointed 27 May 2024) Charity registered number 305152 Prlnclpal offlce 3rd Floor, Afon Building Worthing Road Horsham West Sussex RH12 1TL Independent Examlners Graham Hunt FCA Kreston Reeves LLP Chartered Accountants Springfield House Springfield Road Horsham West Sussex RH12 2RG Bankers Barclays Bank 2 Carfax Horsham West Sussex RH12 1DN Solicitors DMH Stallard 3rd Floor, Afon Building Worthing Road Horsham West Sussex RH12 1TL Investment Manager Evelyn Partners 45 Gresham Street London EC2V 7BG Page 1
Surrey Am)y Cadet Force Association Trustees. report For the year ended 31 December 2024 The Trustees present their annual report together with the financial statements for the year 1 January 2024 to 31 December 2024. 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 IFRS 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 ference and administrative details infomiation 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 A D Evans OBE DL Colonel (Ret'd) P T Crowley MBE DL N F Harnby {appointed 27 May 2024) The 8dministr8tion of the trust is controlled by the trustees. Colonel (ret'd) D Cox acts as the Administrating Trustee, COrdinatIng matters beeen 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 lor 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 2024 the fund balance stood at £2.115,345 of which £1,743,149 is a permanent endowment. Grants to cadets and for their associated activities amounted to £19.807. Page 2
Surrey Army Cadet Force Associatlon Trustees, report (contlnued) For the year ended 31 December 2024 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. Govemance costs were £5,520. During the year the Association had alISed and unrealised gains of £119.990 on its investments. The trustees will continue to make the adjustrnents necessary. whether to granl 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 activits'es as possible whilst at the same time looking for any other worthy organisalions to support where they fall within the objectives of the charity. RESERVES The trustees have r&solved upon a policy for dealing *ryth reserve funds as follows:_ The level of unrestricted funds of the Association was £372,196 as at 31 st December 2024 of which £303.283 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 meel the expenditure of the Association was therefore £68.913. The Association has a pemanent endowment. the income frorn whlch is used to meet general unrestricted expenditure. The trustees consicler it prudent to maintain sufficient available reserves to meet the objectives of the Association for Ihe forthcoming year. The trustees review the level of reserves against potential demand and, where appropriate, may reinvest a surplus into the investrnent portfolio. Further details of the funds 8r8 sot out in note 8 of the financial statemants. GOING CONCERN After making appropnate enquines, 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 concem 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 charlty. Details of the public benefit provided by the Association are set out eartier 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 property authorised. Approved by order of the members of the board of Trustees and signed on their beh81f by: ier A D Evans OBE DL Date: 7A, £823 Page 3
Surrey Army Cadet Force Association Independent examinerfs report For the year ended 31 December 2024 Independent examinerfs report to the Trustees of Surrey Amiy 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 2024. 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)Ibl of the 2011 Act. Independent examlner's statement 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 concems 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. Graham Hunt FCA Kreston Reeves LLP Chartered Accountants Springfield House Springfield Road Horsham West Sussex RH12 2RG Date.. 25 March 2025 Page 4
Surrey Am)y Cadet Force Association Statement of financial activities For the year ended 31 December 2024 Pemianent endowment funds 2024 Unrestricted funds 2024 Total funds 2024 Total funds 2023 Note Income and endowments from: Investments 43,257 1,269 43,257 1,269 39,236 794 Other income Total income and endowments 44,526 44,526 40,030 Expendlture on: Raising funds Charitable activities: Grants payable to SACF Other grants payable Support and governance costs 17,395 17,395 16,814 19,807 3,331 6,002 19,807 3,331 6,002 29,347 3,710 3,973 Total expendlture 46,535 46,535 53,844 Net expendlture before net galns on Investments Net gains on investments (2,009) 30,890 (2,009) 119,990 113,814) 72,217 89,100 Nat mov•m•nt in funds 28,881 89,100 117,981 58,403 Reconciliation of funds: Total funds brought forward Net movement in funds 343,315 28,881 1,654,049 89,100 1,997,364 117,981 1,938,961 58,403 Total funds carried forward 372,196 1,743,149 2,115,345 1,997,364 The notes on pages 7 to 13 form part of these financial statements. Page 5
Surrey Amy Cadet Force Assoclatlon Balance sheet As at 31 December 2024 2024 2023 Note Flxed assets Investments Current assets 2.046.432 1,952.675 Other debtors and accrued income Cash at bank and in hand 8.877 68.336 52.149 77.213 52.149 Creditors: amounts falling due within one year 18,3001 (7.460) Net current assets 68,913 44,689 Total net assets 2,115,345 1,997,364 Charity funds Permanent endowment funds Unrestricted funds 1,743,149 372,196 1,654.049 343,315 Total funds 2.115.345 1,997,364 The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: t'dj P A D Evans OBE DL Date: //L MILTIL 2a23 The notes on pages 7 10 13 fomi part of these financial statements. Colonel (Ret'd) D K G Cox OBE (Twstee) Page 6
Surrey Am)y Cadet Force Association Notes to the financial statements For the year ended 31 December 2024 Accounting policies 1.1 Basis of preparation of financial statements The financial statements have been prepared to give a 'true and fairf view and have departed from the Charities {Accounts and Reporlsl 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 otheNise stated in the relevant notes to these accounts. The financial statements have been prepad 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 20191, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102>, the Charilies 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 Incom• All income is recognised once the charity has entitlement to the income, it is probable th8t the income will be received and the amount of income receivable can be measured reliably. 1.3 Expenditurè 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 beeen 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 paymenl 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 Se1 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 complian with constitutional and statutory requirements. Page 7
Surrey Am)y Cadet Force Association Notes to the financial statements For the year ended 31 December 2024 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 nonnally 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 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 Liabilities Liabilities are recognised when there is an obligation at the Balance sheet date as 8 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 anticipales it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 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 8
Surrey Am)y Cadet Force Association Notes to the financial statements For the year ended 31 December 2024 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 pemanent endowment is available for use at the discretion of the Truslees 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-tem capital value. Further details of each fund are disclosed in note 8. Other costs Cost of Support and raising governance funds costs 2024 2024 Total funds 2024 Bank charges and sundry Accountancy fees (governance cost) Investment management fee Independent examiner's fee (govemance cost) 482 4,870 482 4,870 17,395 650 17,395 650 17,395 6,002 23,397 Support and Cost of governance raising funds costs 2023 2023 Total funds 2023 Bank charges and sundry Accountancy fees (governance cost) Investment management fees Independent examiner's fee (governan cost) 333 333 3.040 3,040 16,814 600 16.814 600 16.814 3,973 20,787 Total governance costs for the year amounted to £5,520 (2023: £3,640). Total remuneration paid to the independent examiner relates to independent examination fees of £650 (2023: £600} and other accountancy services fees of £4,870 (2023: £3,040). Page 9
Surrey Am)y Cadet Force Association Notes to the financial statements For the year ended 31 December 2024 Analysis of grants The Charity has made the following material grants to institutions during the year.. 2024 2023 Surrey Army Cadet Force Association Other grants 19,807 3,331 29,347 3,710 23,138 33,057 Other grants are made up of 6 (2023". 4) grants to local charities. Flxed asset Investments Flxed Asset Investment Cost or valuatlon At 1 January 2024 Additions Disposals Revaluations 1,952,675 349,283 (375,516) 119,990 At 31 December 2024 2,046,432 Taxation The charity is a registered charity and its income falls under the various exemptions available to registered charities. Other debtors and accrued Income 2024 2023 Due within one year Prepayments and accrued income 8,877 Creditors 2024 2023 Accruals 8,300 7,460 Page 10
Surrey Am)y Cadet Force Association Notes to the financial statements For the year ended 31 December 2024 Statement of funds Statement of funds - current year Balance at 31 Gainsl December (Losses) 2024 Balance at 1 January 2024 Transfers inlout Income Expenditure Unrestrlcted funds Deslgnated funds Capital reserve 311,595 (945) 16,242 326,892 General funds General Reserve Funds 31,720 44,526 (46,535) 945 14,648 45,304 Total Unrestrlcted funds 343,315 44,526 (46,535) 30,890 372,196 Endowment funds Permanent Endowment funds 1,654,049 89,100 1,743,149 Total of funds 1,997,364 44,526 (46,535) 119,990 2,115,345 Page11
Surrey Am)y Cadet Force Association Notes to the financial statements For the year ended 31 December 2024 Statement of funds {continued) Statement of funds - prior year Balance at 31 December 2023 Balance at 1 January 2023 Transfers inlout Gainsl (Losses) Income Expenditure Unrestrlcted funds Deslgnated funds Cadet 150 Capital reserve 173.642 (189,410) 311.595 15,768 311,595 173,642 122.185 15,768 311,595 General funds General Reserve Funds 161,589 40,030 {53,844) (122,185) 6,130 31,720 Tolal 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 Page 12
Surrey Am)y Cadet Force Association Notes to the financial statements For the year ended 31 December 2024 Analysis of net assets between funds Analysis of net assets between funds - current period Unrestricted Endowment funds funds 2024 2024 Total funds 2024 Fixed asset investments Current assets Creditors due within one year 303,283 77,213 (8,300) 1.743.149 2,046,432 77,213 (8,300) Total 372.196 1,743,149 2,115,345 Analysls of net assets between funds - prlor perlod Unrestricted Endowment funds funds 2023 2023 Total funds 2023 Fixed asset investments 312,819 37.956 (7,460) 1,639,856 14,193 1,952,675 52,149 (7,460) Current assets Creditors due within one year Total 343,315 1,654,049 1,997,364 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 cRpital to be maintained. The income generated from the permanent endowment assets is available to fund the general 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 charitls wles. The general reserve fund now represents the balance of funds held in the charity's bank current account. 10. Trustees. remuneration and expenses. employees and related party transactions One trustee received reimbursed expenses of £434 (2023.. £150). No trustees reiVed any remuneration in the year (2023 - £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 13