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2022-03-31-accounts

For the Year Ended 31 March 2022

ACCT UK

Company number: 293432 Charity Number: 305962 Scottish Charity Number: SC039057

Report and financial statements For the year ended 31 March 2022

The Army Cadet Force Association trading as ACCT UK

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For the Year Ended 31 March 2022

Contents

Reference and administrative information 1
Trustees’ annual report 4
Independent auditor’s report 17
Statement of financial activities (incorporating an income and expenditure account) 21
Balance sheet 22
Statement of cash flows 23
Notes to the financial statements 24

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For the Year Ended 31 March 2022

Reference and Administrative Information

Patron

Her Majesty The Queen

President

Lieutenant General Sir Andrew Graham Bt CB CBE

Trustees

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Chair

Treasurer

Co-opted member

A denotes membership of the Finance and General Purposes Committee B denotes membership of the HR and Remuneration Committee C denotes membership of the Nominations and Governance Committee D denotes membership of the ACCT Wales Committee E denotes membership of the ACCT Northern Ireland Committee F denotes membership of the ACCT Scotland Committee.

Company number 293432 Country of incorporation United Kingdom

Charity number 305962 SC039057 Country of registration England & Wales Scotland

Registered office Holderness House and operational address 51-61 Clifton Street London EC2A 4DW

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For the Year Ended 31 March 2022
Other Names the ACCT Scotland, ACCT Wales, ACCT Northern Ireland,
Charity Operates UnderArmy Cadet Force Association, ACFA
Key management Murdo Urquhart Chief Executive
personnel Richard Walton Deputy Chief Executive
Faye Meakin Head of Development
Bankers Lloyds Bank plc
Butler Place
London SW1H 0PR
Investment Waverton Investment Management
managers 16 Babmaes Street
London SW1Y 6AH
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditor
Invicta House
108-114 Golden Lane
London EC1Y 0TL
Solicitor Bates Wells
10 Queen Street Place
London EC4R 1BE

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For the Year Ended 31 March 2022

Trustees’ Annual Report

The trustees present their report and the audited financial statements for the year ended 31 March 2022.

Reference and administrative information set out on page 2 and 3 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The Army Cadet Charitable Trust UK (ACCT UK) has two charitable objects:

(1) To give mental, moral and physical training to young people and so to form and develop the character of each as to enable them to make a good start in life and to develop in them principles of good citizenship.

(2) To promote the efficiency of the Army Cadet Force through fostering the activities of Army Cadets and advancing the youth leadership abilities of Army Cadet Force Adult Volunteers

The charity’s first purpose is therefore to provide activities or access to activities that will educate, develop and broaden the interests of young people, including the 38,000 who are cadets in the Army Cadet Force (ACF). Young people meet in one of 1,700 community-based ACF Detachments across the whole of the UK; these detachments are grouped into “ACF Counties” roughly based in one or more geographical or historical Local Authority areas. ACCT UK looks to enhance young peoples’ development both through the delivery of support to ACF Counties and by the making of grants to support individual cadets; to support local initiatives; or, to help existing ACF Counties to improve their resilience and so ensure they are able to deliver development opportunities to young people for many years to come.

ACCT UK offers grants to enable cadets to take part in a wide range of activities and also runs an annual event at which cadets have the opportunity to perform music in front of a large audience or to attend a formal dinner with their instructors. Finally, the charity carries out functions in the interests of the ACF as a whole such as the provision of insurance cover against accidents, travel difficulties and to provide legal help.

To further the charity’s second object ACCT UK assists the Army’s chain of command to co-ordinate national training for the Duke of Edinburgh award scheme, Music, First Aid and Sport, also contributing to the delivery of courses for ACF adult volunteers across these areas. With a grant from the MoD, ACCT UK is able to support the delivery of Piping and Drumming Qualifications Board and BTEC accredited qualifications across the UK. Both the trustees and the staff of ACCT UK invest time in promoting the ethos and activities of the ACF to wide audiences including school leadership and local communities as

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For the Year Ended 31 March 2022

well as supporting ACF adult volunteers with access to information and introductions to useful organisations and individuals.

In respect of the second object, a particularly important but intangible role of ACCT UK is to act as an adviser to HM Government, predominately the Ministry of Defence and Army, and other bodies on ACF matters. This is because ACCT UK is part of the ACF’s “corporate memory”, briefing and informing the leaders of the day, doing this whilst remaining an impartial but enthusiastic supporter of the important and ongoing development of the ACF as a modern and vibrant youth service.

In particular ACCT UK acts, informally, as the Army chain of command’s ‘conscience’ as it runs what in effect is a wonderful national youth movement (the ACF) made possible by adult volunteers (predominantly civilians with no previous military service) who as ACF officers and instructors give their time to train cadets. The financial and material support for the ACF comes from the Army, which quite rightly imposes necessary training safety and safeguarding regimes through its chain of command. ACCT UK plays a part in making this relationship work by representing the interests of the volunteers who train cadets by providing support and views to the Army, including contributing to the development of central policies and direction needed to run the ACF. This is done formally by attending Ministry of Defence and Army cadet steering and working group meetings, developing cadet strategy and policies, and informally through constant ongoing dialogue with the chain of command by ACCT UK’s President, Chair, trustees and senior members of the Secretariat.

The trustees review the aims, objectives and activities of the charity each year in the light of these charitable objects. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focussed on its stated purposes.

The enduring priority for ACCT UK’s trustees is to ensure that young people are able to develop through membership of the ACF. This means a focus on some key areas:

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

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For the Year Ended 31 March 2022

Our Values

As a charity dedicated to improving the lives of young people we feel it is important to have clearly articulated values. In particular as a charity that supports the Army Cadets, a values-led youth organisation, it is important that our values align. Our values are:

Renaming and rebranding the Charity

An object we set for ourselves last year was to conclude our review of the charity’s purpose and identity and launch its new name and identity. This happened in September 2021 when the charity changed its name from the Army Cadet Force Association (ACFA) to the Army Cadet Charitable Trust UK (ACCT UK). Prior to the change, a careful programme briefed our internal constituency and our external partners and friends. Without exception all understood the logic for change and applauded the new name and brand logo.

Impact of Coronavirus Restrictions on the Charity’s Operation

In the previous report we reported that the trustees had established temporary grant programme to support ACF counties to return to training after prolonged lockdowns (the Rejuvenation Fund). Although conceived in the previous financial year, the Rejuvenation Fund was executed in this financial year and was well received by the ACF community. Separately, we had hoped that the ACF would be able to return to a full and normal annual camp programme in Summer 2021 and therefore see applications for grants increase, however the annual camp programme was severely curtailed and disrupted, therefore grant applications did not pick up.

The charity’s work to find additional funding in order to diversify the work we do in support of our charitable objects is ongoing.

Achievements and performance

ACCT UK's main activities and who it tries to help are described below. All its charitable activities focus on the cadets, volunteers and counties of the ACF and are undertaken to further ACCT UK’s charitable purposes for the public benefit.

ACCT UK uses MoD funding to deliver programmes of activity for young people in the ACF. This includes acting as the licenced provider for the Duke of Edinburgh Award and music qualifications. We help facilitate national public performances and ceremonial activity by the provision of resources to enable these key cadet activities.

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ACCT UK’s grant programme was reduced for a second consecutive year due to the impact on all cadet training imposed by COVID-19 restrictions and disruption. In support of cadets and volunteers we paid grants of £76,148 (2021 - £377,402) reflecting a drop in cadet activity and in hardship grants. In support of ACF Counties, Regions and Centres we paid grants of £107,659 (2021 - £3,500) predominately in support of supporting counties to restart cadet activity through the rejuvenation fund.

Grant Programmes

ACCT UK furthers its objects through the awarding of grants to individual cadets and adult volunteers, or to ACF Counties. ACCT UK normally makes grants each year to cadets, adult volunteers and to ACF Counties. This year, with the ongoing and significant reduction of cadet activities, the trustees continued to be proactive in assessing the potential risks of COVID-19 on the long-term sustainability of the ACF. Of note the rejuvenation fund made grants of £92,501 to the 45 ACF counties that applied for grants during the year.

Grants to cadets are made in order to make activities more accessible, irrespective of a young person’s financial means. Adult volunteer grants are intended to make qualifications accessible to all, thus improving the youth leadership abilities of adult volunteers. This also enables individuals to evidence the skills and experience they have developed through the ACF to prospective employers. Here are some examples of how ACCT UK grants have supported cadets and volunteers this year:

Grants to ACF Counties, Regions and Centres are generally to support the purchase of equipment or the development of facilities that will improve the experience of many cadets over a number of years. Here are some examples of ACCT UK grants in this category:

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Beneficiaries of our services

There are two main ways in which ACCT UK delivers benefit to its beneficiaries, which are through the provision of grants and the provision of support to the ACF in terms of people to deliver activities that support the Army’s chain of command. As explained earlier in this report, grants are made either to support the ACF County and its ability to deliver the cadet programme, or to individual cadets and volunteers to enable them to access the full range of opportunities in the ACF.

In order to measure the difference that these grants and activities have made the trustees ask for reports from grant recipients. These detail the impact of the grant and are used to help the trustees to decide both what funding to bid for and how best to structure ACCT UK’s grant programmes in the future.

Some examples of the impact on the beneficiaries of our grants include:

For the Year Ended 31 March 2022

Financial review

The statement of financial activities for the year is set out on page 21 of the financial statements. A summary of the financial results and the work by ACCT UK is set out below.

Income for the year included donations and legacies of £3,948,825 (2021 – £4,824,823), income for supporting cadets and volunteers of £919 (2021- £2,845), other trading activities of £13,622 (2021 – £45,401) and investment income and interest of £63,930 (2021 - £68,141). Total gross income amounted to £4,027,296 (2021 - £4,941,210).

Expenditure for the year comprised costs of raising funds of £600 (2021 - £600), costs of activities in support of ACF Counties of £2,302,050 (2021 – £2,126,737) and costs of supporting cadets and volunteers of £1,891,813 (2021 – £2,015,731). Total expenditure amounted to £4,194,463 (2021 - £4,233,068).

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Net expenditure for the year before investment gains amounted to £167,167 (2021 – net income of £708,142). In particular this was owing to increased activity as a result of the coronavirus restrictions in the previous year being phased out.

Investment Policy and Performance

The trustees expect the charity to exist in perpetuity and its investment policy is designed to support the long-term financial health of the charity. ACCT UK adopted its current investment policy in July 2020; its stated objectives are to:

ACCT UK has adopted a total return approach to investment, generating the investment return from income and capital gains or losses. It is expected that if in any one year the total return is insufficient to meet the growth target, in the long term the real value of the investments will still grow in accordance with the investment objectives above.

ACCT UK has decided not to invest in assets that the trustees consider to be contrary to the spirit of its objects, particularly if they run counter to the values of the charity. In particular tobacco, alcohol and pornography are excluded from our investments. The trustees have agreed a process with our investment managers as to how these restrictions are to be applied.

During the year net gains on the fair value of investments amounted to £224,321 (2021 – £488,933). The investment objective is to generate a return of CPI plus 3% per annum over the long term. The five-year average (CPI + 3%) to the end of March 2022 has been calculated as 5.72% (March 2021 - 4.78%). As at 31 March 2022 the four-year average (since moving the portfolio to Waverton) shows a return of 7.7% (2021: three-year average of 7.86%). The trustees recognise that this four-year average is a shorter period than the five-year average that is the benchmark and are therefore satisfied with the investment performance in the year.

In order to support the efficient delivery of our programme of charitable work and to efficiently manage cash flow, the trustees have directed that funds earmarked for use in the next two years are to be held in cash deposit accounts of no more than 24 months in duration. At present the funds held on deposit of £1,000,624 (2021 - £700,192). Fixed term deposits with a maturity date before 1 July 2022, or a notice period under 90 days, are treated as cash.

Principal risks and uncertainties

The trustees examine the major risks that ACCT UK faces each financial year during routine board meetings and in meetings between the senior trustees and the Chief Executive. The charity has systems in place to monitor and control these risks to mitigate any impact that they may have on ACCT UK 's activities in the future.

The key risks for ACCT UK, as identified by the trustees, are described below together with the principal way in which they are mitigated:

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For the Year Ended 31 March 2022

Reserves policy and going concern

The Reserves Policy defines the target level of reserves as an amount sufficient to maintain ongoing operations and programmes for three months. The calculation of average monthly operating costs includes all recurring, predictable expenses such as salaries, office costs, expenses, marketing, insurance and charity projects including bursaries and grants. Depreciation, in-kind, and other non-cash expenses are not included in the calculation. The calculation of average monthly expenses also excludes one-time or unusual, capital purchases. The amount of the reserve fund target minimum will be calculated each year after approval of the annual budget, reported to the Finance and General Purposes Committee and included in the regular financial reports.

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For the Year Ended 31 March 2022

In making this policy the trustees have chosen to treat long term investments as funds invested to generate income for the charity and they are therefore excluded from the reserves calculation. Funds invested for this purpose generated an income of £63,071 (2021: £65,901).

The minimum reserves allowed under this policy is £1,154,353 (2021: £1,088,926). Free reserves were £1,347,585 (2021: £1,118,538). The trustees are therefore satisfied that the reserves are within the target level.

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Fundraising

ACCT UK is not a member of the Fundraising Regulator because it does not engage in the kind of fundraising activity that would make this a requirement. ACCT UK’s approach to fundraising activity is to seek grants from organisations in order to achieve a particular aim, for example to invest in the sustainability of existing ACF Counties. Where an individual or group with an interest in the cadet movement would like to support cadets, we invite them to donate to ACCT UK. We do not currently use a professional fundraiser or a commercial participator. We are in the process of establishing a more formal fundraising function at which point we will register with the Fundraising Regulator.

We offer the facility for individuals to make one off or repeat donations online and offer membership of ACCT UK to ACF Counties. We have received no complaints about fundraising.

We do not contact our members or supporters to solicit donations, although this is something we might consider doing should we have a specific fundraising objective in the future.

Plans for the future

The trustees’ principal objective in the coming year is to build on the renaming and rebranding in 2021. This will entail a number of work strands: developing a new core narrative; establishing what we call ACCT Insights, which is a programme of meetings by topic with our principal beneficiaries (cadets and adult volunteers) to find out what they would like from the charity; grow a network of friends who can support the charity either with donations or influence; develop new fundraising initiatives; and develop new charitable programmes we are calling ‘Pathways Programmes’ to introduce young people with no knowledge of the cadet forces to the benefits of the cadet training programme.

Structure, governance and management

ACCT UK is a registered charity and a company limited by guarantee, not having a share capital. The entity was incorporated on 26 October 1934 and registered as a charity with the Charity Commission for

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England and Wales on 24 September 1962 and the Office of the Scottish Charity Regulator on 10 November 2007. It is governed by its memorandum and articles of association which were most recently adopted on 21 November 2015.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts.

The Chief Executive of the charity is Murdo Urquhart, who heads a small team of staff comprising Richard Walton, the Deputy Chief Executive, Faye Meakin, The Head of Development and an additional 13 members of staff who carry out the primary work of the charity across the UK. In addition, there are 37 members of staff who are employed to carry out various functions for the ACF.

The trustees subscribe to the principles of the Charity Governance Code. The trustees believe in it and conducted a major review of governance in 2020 leading to a refreshing evolutionary and cultural change. Most of the changes are already implemented, which hopefully has been brought to life in the course of reading this report. Of note the trustees are committed to maintaining an inclusive and diverse Board; using a transparent recruitment processes designed to encourage eligible applications from applicants with a wider range of backgrounds.

The annual budget is agreed by the Finance and General Purposes Committee. The senior trustees (Chair, Vice Chair, and Treasurer) are consulted by the Chief Executive on a regular basis and on all matters that are considered by him to be strategic, novel or contentious. These consultations are largely conducted by telephone and e-mail or at informal “management board” meetings.

There are a number of formal trustee meetings. The ACCT UK Board of Trustees meets in summer, autumn and winter. Amongst other papers the Board receives:

The Board has six sub committees. They are:

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volunteers. The Committee consists of the ACCT UK Chair of Trustees, ACCT UK Treasurer, two members from the CCFA Board of Trustees and a co-opted HR specialist. It meets twice per year: in summer to consider policy and structure; and in winter to set the pay and conditions for employees from the following April. It reports back to both Boards of Trustees.

Appointment of trustees

Trustees are appointed for a period of three years and encouraged to serve for only a single term to ensure regular turnover of trustees. Where a successor cannot be found, or where a particular skill or attribute is needed, a trustee could stand for re-election and there is no restriction in the articles on the number of times an individual can stand for re-election.

Trustees are private individuals who are recruited to bring particular skills to the board in order to improve the ability of the trustees to govern the charity.

The board seeks to balance members with lived experience of the ACF and members with specialist skills. Careful thought by the board goes into ensuring that they are diverse, but not only in the commonly accepted sense of gender, ethnicity etc. Collectively they also need to represent a fair balance of more senior and more junior cadet force adult volunteers who each bring different experience to the board.

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Whether recruiting individuals with specialist and skills and knowledge to help the board mitigate risks or recruiting volunteers from within the ACF to represent the beneficiary community, the same recruitment process is used. A vacancy is advertised as widely as possible and applications invited and then applicants who fulfil the criteria are interviewed by the Nominations and Governance Committee. If a trustee is appointed during the year they are co-opted by the trustees and then formally elected at the next AGM for a period of three years.

Related parties and relationships with other organisations

ACCT UK has relationships with all ACF Counties and adult volunteers from across the UK. The trustees ensure that they keep good records of who is associated with which ACF County and absent themselves from any decision making that could give a real or perceived benefit to their ACF County (most commonly the award of a grant). Such related party transactions are disclosed in note 11 to the accounts.

ACCT UK shares offices and staff with an independent sister charity, the Combined Cadet Force Association (charity number 1170994). The two charities employ staff on joint contracts which are managed through ACCT UK and the staff costs relating to CCFA are recharged to that charity.

Remuneration policy for key management personnel

The Trustees consider that they together with the Chief Executive, the Deputy Chief Executive and the Head of Development comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

All employees are jointly contracted by ACCT UK with our sister charity the Combined Cadet Force Association. Five trustees sit on the Joint Remunerations Committee from the CCFA and ACCT UK to ensure that they exercise their responsibilities for oversight of the remuneration of their employees. In setting the salary levels for both charities, the trustees commissioned a benchmarking exercise in 2020 which was conducted by senior staff supported by an external professional body. The Remunerations Committee is tasked each year to ensure that all salaries, including those of the senior officers of the charity, are commensurate with the policy.

Statement of responsibilities of the trustees

The trustees (who are also directors of the Army Cadet Force Association, trading as ACCT UK, for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2022 was 161 (2021: 127). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to act in that capacity.

The trustees’ annual report has been approved by the trustees on 29 July 2022 and signed on their behalf by

Jemma Ralph Chair

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For the Year Ended 31 March 2022

Independent Auditor’s Report to the Members of ACCT UK

Opinion

We have audited the financial statements of the Army Cadet Force Association, trading as ACCT UK, (the ‘charitable company’) for the year ended 31 March 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the

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preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Judith Miller (Senior statutory auditor) 2 August 2022 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

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The Army Cadet Charitable Trust UK

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

Note
Income from:
2
3
4
5
6
6
6
8
Reconciliation of funds:
Net income/(expenditure) for the year
Total funds carried forward
Transfers between funds
Net movement in funds
Total funds brought forward
Net income/(expenditure) before net
(gains)/losses on investments
Supporting cadets and volunteers
Net gains on investments
Investments
Total income
Expenditure on:
Raising funds
Total expenditure
Charitable activities
Supporting ACF Counties
Other trading activities
Donations and legacies
Charitable activities
Supporting cadets and volunteers		 Unrestricted
£
2,941,833
919
13,622
63,930		 Restricted
£
1,006,992
-
-
-		 2022
Total
£
3,948,825
919
13,622
63,930		 Unrestricted
£
2,976,823
2,845
45,401
68,141		 Restricted
£
1,848,000
-
-
-		 2021
Total
£
4,824,823
2,845
45,401
68,141
3,020,304 1,006,992 4,027,296 3,093,210 1,848,000 4,941,210
600
332,661
1,857,037		 -
1,969,389
34,776		 600
2,302,050
1,891,813		 600
1,251,145
2,008,234		 -
965,592
7,497		 600
2,216,737
2,015,731
2,190,298 2,004,165 4,194,463 3,259,979 973,089 4,233,068
830,006
224,321		 (997,173)
-		 (167,167)
224,321		 (166,769)
488,933		 874,911
-		 708,142
488,933
1,054,327
(630,938)		 (997,173)
630,938		 57,154
-		 322,164
-		 874,911
-		 1,197,075
-
423,389
4,320,088		 (366,235)
923,259		 57,154
5,243,347		 322,164
3,997,924		 874,911
48,348		 1,197,075
4,046,272
4,743,477 557,024 5,300,501 4,320,088 923,259 5,243,347

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 to the financial statements.

21

The Army Cadet Charitable Trust UK

Company no. 00293432

Balance sheet

As at 31 March 2022

Note
Fixed assets:
13
14
Current assets:
15
16
Liabilities:
17
20
Total unrestricted funds
Restricted income funds
Unrestricted income funds:
Designated funds
Stock
Debtors
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investments
Cash at bank and in hand
Short term deposits
Tangible assets
General funds
Total charity funds		 £
22,503
157,403
1,000,624
1,091,343		 2022
£
50,482
3,341,896		 £
27,605
96,653
700,192
1,530,226		 2021
£
63,481
3,118,175
3,392,378
1,908,123		 3,181,656
2,061,691
2,271,873
(363,750)		 2,354,676
(292,985)
3,345,410
1,398,067		 3,138,069
1,182,019
5,300,501 5,243,347
557,024
4,743,477		 923,259
4,320,088
5,300,501 5,243,347

Approved by the trustees on 29 July 2022 and signed on their behalf by

Agata Zukowska Trustee

Alan Goodwin Treasurer

22

The Army Cadet Charitable Trust UK

Statement of cash flows

For the year ended 31 March 2022

Note
£
£
Cash flows from operating activities
Net income for the reporting period
57,154
(as per the statement of financial activities)
Depreciation charges
27,421
(Gains)/losses on investments
(224,321)
Losses on disposal of fixed assets
-
Dividends, interest and rent from investments
(63,930)
(Increase) in debtors
(60,750)
(Increase)/decrease in creditors
70,765
(Increase)/decrease in stock
5,102
Net cash provided by operating activities
(188,559)
63,930
(14,422)
-
-
49,508
(139,051)
Cash and cash equivalents at the beginning of the year
2,232,590
2,093,539
Analysis of cash and cash equivalents
At 1 April
2021
Cash flows
£
£
Cash at bank and in hand
1,530,226
(438,883)
Short Term Deposits
700,192
300,432
Cash held by investment managers
2,172
(600)
Total cash and cash equivalents
2,232,590
(139,051)
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net cash provided by investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
2022		 Note
£
£
Cash flows from operating activities
Net income for the reporting period
57,154
(as per the statement of financial activities)
Depreciation charges
27,421
(Gains)/losses on investments
(224,321)
Losses on disposal of fixed assets
-
Dividends, interest and rent from investments
(63,930)
(Increase) in debtors
(60,750)
(Increase)/decrease in creditors
70,765
(Increase)/decrease in stock
5,102
Net cash provided by operating activities
(188,559)
63,930
(14,422)
-
-
49,508
(139,051)
Cash and cash equivalents at the beginning of the year
2,232,590
2,093,539
Analysis of cash and cash equivalents
At 1 April
2021
Cash flows
£
£
Cash at bank and in hand
1,530,226
(438,883)
Short Term Deposits
700,192
300,432
Cash held by investment managers
2,172
(600)
Total cash and cash equivalents
2,232,590
(139,051)
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net cash provided by investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
2022		 Note
£
£
Cash flows from operating activities
Net income for the reporting period
57,154
(as per the statement of financial activities)
Depreciation charges
27,421
(Gains)/losses on investments
(224,321)
Losses on disposal of fixed assets
-
Dividends, interest and rent from investments
(63,930)
(Increase) in debtors
(60,750)
(Increase)/decrease in creditors
70,765
(Increase)/decrease in stock
5,102
Net cash provided by operating activities
(188,559)
63,930
(14,422)
-
-
49,508
(139,051)
Cash and cash equivalents at the beginning of the year
2,232,590
2,093,539
Analysis of cash and cash equivalents
At 1 April
2021
Cash flows
£
£
Cash at bank and in hand
1,530,226
(438,883)
Short Term Deposits
700,192
300,432
Cash held by investment managers
2,172
(600)
Total cash and cash equivalents
2,232,590
(139,051)
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net cash provided by investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
2022		 £
£
1,197,075
22,377
(488,933)
880
(68,141)
(58,143)
(85,859)
(27,605)
491,651
68,141
(21,276)
153,612
-
200,477
692,128
1,540,462
2,232,590
Other non-
cash changes
At 31 March
2022
£
£
-
1,091,343
-
1,000,624
-
1,572
-
2,093,539
2021		 £
£
1,197,075
22,377
(488,933)
880
(68,141)
(58,143)
(85,859)
(27,605)
491,651
68,141
(21,276)
153,612
-
200,477
692,128
1,540,462
2,232,590
Other non-
cash changes
At 31 March
2022
£
£
-
1,091,343
-
1,000,624
-
1,572
-
2,093,539
2021
63,930
(14,422)
-
-		 68,141
(21,276)
153,612
-
At 1 April
2021
£
1,530,226
700,192
2,172		 Other non-
cash changes
£
-
-
-
(139,051)
2,232,590		 692,128
1,540,462
2,093,539 2,232,590
Cash flows
£
(438,883)
300,432
(600)		 At 31 March
2022
£
1,091,343
1,000,624
1,572
2,232,590 (139,051) - 2,093,539

23

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies

a) Statutory information

The Army Cadet Charitable Trust UK is a charitable company limited by guarantee and is incorporated in England and Wales. It is registered with the Charity Commission for England and Wales and with the Office of the Scottish Charity Regulator.

The registered office address and principal place of business is Holderness House, 51-61 Clifton Street, London, EC2A 4DW.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged by not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfuilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfulled in the reporting period.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Dividends are recognised once the dividend has been declared and notifcation has been received of the dividend due.

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.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

24

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

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.

h) Fund accounting Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of 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.

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on an estimate of staff time spent on each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

l) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £200. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

 Leasehold improvements 4 years  Fixtures and fittings 4 - 5 years  Computer equipment 4 - 5 years

25

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. 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. The charity does not acquire put options, derivatives or other complex financial instruments.

o) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

p) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

q) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

r) Creditors and provisions

s) 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.

t) Pensions

The Trust makes contributions to defined contribution pension schemes on behalf of its employees. Contributions are charged to the statement of financial activities in the periods to which they relate. The Trust has no liability under the scheme other than for the payment of those contributions.

Income from donations and legacies
Donations
Legacies
Ministry of Defence grant
Donated services		 Unrestricted
£
42,521
-
2,875,442
23,870		 £
146,992
-
860,000
-
Restricted		 2022
Total
£
189,513
-
3,735,442
23,870		 Unrestricted
£
15,236
-
2,929,547
32,040		 £
285,534
-
1,562,466
-
Restricted		 2021
Total
£
300,770
-
4,492,013
32,040
2,941,833 1,006,992 3,948,825 2,976,823 1,848,000 4,824,823

The Ministry of Defence makes an annual Grant in Aid to enable the charity to operate in support of the Army Cadets. It also makes grants for specified purposes, predominately in support of the Cadet Digital Services project and for Army Cadet Marketing.

The Marine Society and Sea Cadets (MSSC) made a large donation (£110,000) this year to support the Cadet Digital Services project. The Charles Brotherton Trust (Leed fund) continue their long-standing support (£275) enabling Adventure Training for young people in Leeds.

The Reserve Forces and Cadets Association for Greater London kindly donates office space to the ACCT UK. This is recognised at the estimated cost of securing suitable alternative office space

26

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

Income from charitable activities
2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Supporting cadets and volunteers
Subscriptions 919 - 919 2,845 - 2,845
- - - - - -

Subscriptions continue to decline as the closed membership scheme winds up.

Income from other trading activities
Collective insurance policy premiums
Events and awards
Merchandise sales
Other
Total		 Unrestricted
£
-
-
13,622
-		 £
-
-
-
-
Restricted		 2022
Total
£
-
-
13,622
-		 Unrestricted
£
19,446
10,320
12,869
2,766		 £
-
-
-
-
Restricted		 2021
Total
£
19,446
10,320
12,869
2,766
13,622 - 13,622 45,401 - 45,401

Income from collective Insurance policy premiums is nil this year as no overseas activity has taken place. This means that no collective travel policies have been required.

5 Income from investments

Income from investments
Dividends
Bank interest		 2022
Total
£
63,071
859		 2021
Total
£
65,901
2,240
63,930 68,141

All income from investments is unrestricted.

27

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

6a Analysis of expenditure (current year)

Staff costs (Note 9)
Grant making (Note 7)
Direct activity costs
Cadet Digital Services
Insurance
Marketing and advertising
Audit fees
Legal and professional
Trustee expenses
Investment manager fees
Office expenses
Travel
Depreciation
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Raising
funds
£
-
-
-
-
-
-
-
-
-
600
-
-
-
600
-
-
600
600		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
13,080
13,828
1,563
-
-
-
-
28,471
-
(28,471)
-
-		 Support
costs
£
33,644
-
-
-
22,458
40,066
-
-
-
-
81,370
9,837
27,421
214,796
(214,796)
-
-
-		 2022
Total
£
1,450,145
183,807
383,174
939,249
22,458
1,067,931
13,080
13,828
1,563
600
81,370
9,837
27,421
4,194,463
-
-
4,194,463		 2021
Total
£
1,432,388
380,902
370,381
1,249,960
22,701
622,175
8,625
36,720
155
600
82,559
3,544
22,358
Supporting
ACF
Counties
£
84,490
107,659
128,277
939,249
-
1,027,865
-
-
-
-
-
-
-
2,287,540
12,812
1,698
2,302,050
2,216,737		 Supporting
cadets and
volunteers
£
1,332,011
76,148
254,897
-
-
-
-
-
-
-
-
-
-
1,663,056
201,984
26,773
1,891,813
2,015,731
4,233,068
-
-
4,233,068

28

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

6b Analysis of expenditure (prior year)

Staff costs (Note 9)
Grant making (Note 7)
Direct activity costs
Cadet Digital Services
AGM dinner costs
Insurance
Marketing and advertising
Audit fees
Legal and professional
Trustee expenses
Investment manager fees
Office expenses
Travel
Other
Depreciation
Support costs
Governance costs
Total expenditure 2021		 Raising
funds
£
-
-
-
-
-
-
-
-
-
-
600
-
-
-
-
600
-
-
600		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
-
8,625
36,720
155
-
-
-
-
-
45,500
-
(45,500)
-		 Support
costs
£
36,885
-
-
-
-
22,701
-
-
-
-
-
82,559
3,544
-
22,358
168,047
(168,047)
-
-		 2021
Total
£
1,432,388
380,902
370,381
1,249,960
-
22,701
622,175
8,625
36,720
155
600
82,559
3,544
-
22,358
Supporting
ACF
Counties
£
174,903
3,500
139,533
1,249,960
-
-
622,175
-
-
-
-
-
-
-
-
2,190,071
20,984
5,682
2,216,737		 Supporting
cadets and
volunteers
£
1,220,600
377,402
230,848
-
-
-
-
-
-
-
-
-
-
-
-
1,828,850
147,063
39,818
2,015,731
4,233,068
-
-
4,233,068

29

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

7 Grant making

ACCT UK provides financial grants to ACF Counties, adult volunteers and cadets for a wide variety of individual development needs including provision of sports equipment and help to attend courses and expeditions.

A list of the ACF Counties and Regions that have received grants in the year from the ACCT UK is at note 23.

2022
2021
No of awards
No of
awards
Supporting ACF Counties and Regions
51
1
11
-
8
7
-
-
-
1
5
412
20
7
5
6
Grants in Scotland
General Grants
Duke of Edinburgh's Award
Equipment
Audit - current year
Net income / (expenditure) for the year
Operating lease rentals payable:
Auditor's remuneration (excluding VAT):
This is stated after charging / (crediting):
Depreciation
At the end of the year
Supporting Individuals
Matthew Bacon Bursary
Sports
General Grants
CVQO vocational awards
Hardship Relief Fund		 2022
£
107,659
28,853
4,563
24,491
1,159
3,272
8,030
5,780		 2021
£
3,500
-
4,397
-
2,081
359,139
6,005
5,780
183,807 380,902
2022
£
27,421
4,987
10,950		 2021
£
22,377
4,987
10,450

Staff costs were as follows:

Staff costs were as follows:
Redundancy and termination costs
Salaries and wages
Employer’s contribution to defined contribution pension schemes
Recruitment and other payroll costs
Social security costs		 2022
£
1,191,510
11,687
111,401
101,903
33,644		 2021
£
1,181,531
5,380
110,315
98,277
36,885
1,450,145 1,432,388

The redundancy and termination costs were settled and paid at the balance sheet date.

Recruitment and other payroll costs were support costs for running and providing payroll activities during the year.

No employee earned more than £60,000 during the year (2021: nil).

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprises the trustees, the Chief Executive, and the Deputy Chief Executive. The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £91,432 (2021: £90,523).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £1,563 (2021: £200) incurred by 4 (2021: 2) individuals relating to attendance at meetings of the trustees.

30

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

10 Staff numbers

The full time equivalent staff carrying out work for the ACCT UK during the year was 46 (2021: 39).

Because the ACCT UK shares its back office functions with the Combined Cadet Force Association it has chosen to employ all staff across both charities on joint contracts. This means that the charities gain flexibility and economies in how staff support the charities. However this joint contract arrangement requires ACCT UK to disclose the average number of employees for the two charities combined. This is taken as a head count based on number of staff employed. During the year this was 53 (2021: 51).

11 Related party transactions

On occasion grants are awarded to ACF Counties with which trustees are adult volunteers. Decisions about who to award funds to are made in accordance with the grants policy and formally delegated authority. On the rare occasion a trustee or staff member's ACF County has applied for a grant, that individual will not be a party to the discussion of that application. If they normally have a part to play in the grants decision making process, they will ensure that they are not involved in either the discussion or the decision.

There were Nil (2021: five) related party transactions of this type relating to Nil (2021: two) trustees totalling £Nil (2021: £537) during the year.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

12 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

13 Tangible fixed assets

Tangible fixed assets
Fixtures and Computer
fittings equipment Total
Cost £ £ £
At the start of the year 53,715 59,767 113,482
Additions in year - 14,422 14,422
Disposals in year - (841) (841)
At the end of the year 53,715 73,348 127,063
Depreciation
At the start of the year 28,548 21,453 50,001
Charge for the year 12,499 14,922 27,421
Eliminated on disposal - (841) (841)
At the end of the year 41,047 35,534 76,581
Net book value
At the end of the year 12,668 37,814 50,482
At the start of the year 25,167 38,314 63,481

All of the above assets were purchased with unrestricted funding and are used for charitable purposes.

31

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

14
15
16
17
During the year, the charity commenced selling merchandise to the public.
Fair value at the end of the year
Listed investments
Trade debtors
Pension contributions
Cash held by investment broker pending reinvestment
Deferred income (note 18)
Trade creditors
Stock
Debtors
Merchandise
Fair value at the start of the year
Additions at cost
Net gain on change in fair value
Cash
UK Common investment funds
Investments comprise the following:
Disposal proceeds
Accrued income
Other debtors
Other creditors
Accruals
Prepayments
Taxation and social security
Grants payable
Creditors: amounts falling due within one year		 2022
£
3,116,003
-
-
224,321		 2021
£
2,780,682
-
(153,612)
488,933
3,340,324
1,572		 3,116,003
2,172
3,341,896 3,118,175
2022
£
3,340,324
1,572		 2021
£
3,116,003
2,172
3,341,896 3,118,175
2022
£
22,503		 2021
£
27,605
22,503 27,605
2022
£
-
-
142,576
14,827		 2021
£
348
541
82,211
13,553
157,403 96,653
2022
£
194,198
42,263
11,622
-
882
17,121
97,664		 2021
£
54,694
39,560
16,184
6,478
-
129,559
46,510
363,750 292,985

32

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

18 Deferred income

Deferred income comprises funds for ACCT UK insurance income

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2022
£
46,510
(46,510)
97,664		 2021
£
27,711
(27,711)
46,510
97,664 46,510

19a Analysis of net assets between funds (current year)

Tangible fixed assets
Net assets at 31 March 2022
Fixed asset investments
Net current assets		 General
unrestricted
£
50,482
206,529
1,141,056		 Designated
£
-
3,135,367
210,043		 Restricted
£
-
-
557,024		 Total
funds
£
50,482
3,341,896
1,908,123
1,398,067 3,345,410 557,024 5,300,501

19b Analysis of net assets between funds (prior year)

Tangible fixed assets
Fixed asset investments
Net current assets
Net assets at 31 March 2021		 General
unrestricted
£
63,481
192,741
925,797		 Designated
£
-
2,925,434
212,635		 Restricted
£
-
-
923,259		 Total
funds
£
63,481
3,118,175
2,061,691
1,182,019 3,138,069 923,259 5,243,347

33

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

20a Movements in funds (current year)

Restricted funds:
Total restricted funds
Total designated funds
General funds
Cadet Digital Services fund
Cadet Music fund
Matthew Bacon Bursary fund
Duke of Edinburgh Award fund
Total unrestricted funds
- Income generation fund
National Commemorative Events Fund
India Trip Fund
Sailing fund
South East Essex fund
Leeds fund
Grenadier fund
London fund
- Scottish Fund
- Welsh Fund
Unrestricted funds:
Designated funds:
- Northern Irish Fund
Army Cadet Marketing fund
Total funds
Cadet Sports fund
Chris Wood Memorial fund		 At 1 April
2021
£
560,179
198,311
8,576
120,942
355
1,000
500
275
785
4,332
1,104
26,900
-
-		 Income &
gains
£
860,000
110,000
5,050
-
-
5,081
-
275
1,250
2,895
-
-
494
21,947		 Expenditure
& losses
£
(1,030,140)
(939,249)
-
(24,491)
-
(5,722)
-
-
-
(4,563)
-
-
-
-		 Transfers
£
-
630,938
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2022
£
390,039
-
13,626
96,451
355
359
500
550
2,035
2,664
1,104
26,900
494
21,947
923,259 1,006,992 (2,004,165) 630,938 557,024
2,925,434
22,030
137,358
53,247		 -
-
-
-		 -
-
-
-		 209,933
(2,837)
(738)
983		 3,135,367
19,193
136,620
54,230
3,138,069 - - 207,341 3,345,410
1,182,019 3,244,625 (2,190,298) (838,279) 1,398,067
4,320,088 3,244,625 (2,190,298) (630,938) 4,743,477
5,243,347 4,251,617 (4,194,463) - 5,300,501

The narrative to explain the purpose of each fund is given at the foot of the note below.

34

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

20b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
South East Essex fund
Sailing fund
Matthew Bacon Bursary fund
- Northern Irish Fund
- Scottish Fund
- Welsh Fund
Total funds
Duke of Edinburgh Award fund
Grenadier fund
Army Cadet Marketing fund
Leeds fund
Cadet Digital Services fund
Cadet Music fund
Restricted funds:
Total unrestricted funds
Designated funds:
- Income generation fund
Cadet Sports fund
Chris Wood Memorial fund
London fund
Unrestricted funds:		 At 1 April
2020
£
-
-
7,041
-
355
1,000
500
-
585
7,763
1,104
30,000		 Income &
gains
£
1,209,500
514,582
1,535
120,942
-
-
-
275
200
966
-
-		 Expenditure
& losses
£
(649,321)
(316,271)
-
-
-
-
-
-
-
(4,397)
-
(3,100)		 Transfers
£
-
-
-
-
-
-
-
-
-
-		 At 31 March
2021
£
560,179
198,311
8,576
120,942
355
1,000
500
275
785
4,332
1,104
26,900
- - (973,089) - 923,259
2,736,640
-
-
-		 -
-
-
-		 -
-
-
-		 188,794
22,030
137,358
53,247		 2,925,434
22,030
137,358
53,247
- - - 401,429 3,138,069
1,261,284 3,582,143 (3,259,979) (401,429) 1,182,019
1,261,284 3,582,143 (3,259,979) - 4,320,088
1,261,284 3,582,143 (4,233,068) - 5,243,347

Purposes of restricted funds

Army Cadet Marketing fund - These funds are granted to the ACCT UK in order to promote the Army Cadets and to recruit new cadets and adult volunteers.

Cadet Digital Services fund - These funds are granted to the ACCT UK in order to run and develop a variety of digital services for the cadets.

Cadet Music fund - This fund is to support Army Cadets to learn an instrument or take part in music performances around the world. Activities supported by this fund include instrument purchase, uniform purchase and support for cadets to travel overseas.

Cadet Sports fund - The sports fund exists to support Army Cadet sport across the UK.

Chris Wood Memorial fund - Colonel Chris Wood ACF had a long career in the Territorial Army and the ACF. His sudden death in August 2018 led to the creation of this fund to support adult volunteer leadership development.

Duke of Edinburgh Award fund - This fund is to support Army cadets and adult volunteers to undertake the volunteering section of the Duke of Edinburgh award.

Grenadier fund - The ACCT UK is grateful to the Grenadier Guards Trust for supporting cadets in affilliated detachments to take part in cadet activities.

Leeds fund - The ACCT UK is grateful to the Charles Brotherton Trust for supporting cadets in the Leeds area to take part in Adventure Training activities.

London fund - The ACCT UK is grateful to the Knights of the Round Table and the Masonic Charitable Foundation for supporting cadets in the London area to take part in cadet activities.

35

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

20 Purposes of restricted funds (continued)

Matthew Bacon Bursary fund - In September 2005, Major Matthew Bacon of the Intelligence Corps was tragically killed by a roadside bomb in Iraq. Major Bacon was a former Surry ACF cadet, as well as being a career soldier. He was a keen participant in many types of adventurous training, which also formed an important part of his life.

His parents, Mr and Mrs Roger Bacon, set up a bursary in their son's name as a means of celebrating his life. The bursary enables army cadets to take part in an Outward Bound Trust 'Skills for Life Award', which would otherwise be beyond their means.

Sailing fund - This fund seeks to support Army Cadets to undertake a range of short sailing expeditions around the UK .

South East Essex fund - The ACCT UK received a generous legacy of £30,000 from the estate of Arthur Jopson, a former CFAV in C Company of Essex ACF. Mr Jopson specified his gift was for the benefit of cadets and CFAVs in the South East of Essex.

India Trip - The fund was raised for the cadet to attend the National Youth India Exchange programme 2022 but due to covid restrictions, the trip was postponed. Some refunds have been made, and the trip is rescheduled for the new financial year.

National Commemorative Events Fund - This fund exists to support cadets to study battlefield history and take part in commemorative events to better understand the impact of war.

Purposes of designated funds

Income generation fund - The trustees have set aside these funds specifically for the purpose of generating income to support the grants programme. This fund is invested and more details about the perfomance of the investments can be found in note 14.

Northern Irish fund - These funds are set aside to enable local decision making in running the Northern Irish Branch.

Scottish fund - These funds are set aside to enable local decision making in running the Scottish Branch.

Welsh fund - These funds are set aside to enable local decision making in running the Welsh Branch.

21 Operating lease commitments payable as a lessee

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods


periods
Less than one year
One to five years		 2022
2021
£
£
4,987
4,987
4,987
8,728
11,996
15,736
Equipment
11,996 15,736

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

36

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2022

1 Bn Highlanders ACF Greater Manchester ACF 1 Northern Ireland Bn ACF Gwent & Powys ACF 2 Bn Highlanders ACF Hampshire & IOW ACF 2 Northern Ireland Bn ACF Hereford & Worchester ACF Agnus & Dundee ACF Humberside & South Yorkshire ACF Argyll & Sutherland Highlanders ACF Kent ACF Berfordshire & Hertfordshire ACF Lancashire ACF Berkshire ACF Leicester, Northants & Rutland ACF Blackwatch Bn ACF Lincolnshire ACF Bristol ACF Lothian & Borders ACF Buckinghamshire ACF Merseyside ACF Cambridgeshire ACF Middlesex & NW London ACF City of London & NE London ACF Norfolk ACF Cleveland ACF Northumbria ACF Clwyd & Gwynedd ACF Nottinghamshire ACF Cornwall ACF Royal County of Berkshire ACF CTC Frimley Park Shropshire ACF Cumbria ACF South East London ACF Derbyshire ACF South West London ACF Devon ACF Staffordshire & West Midlands ACF Dorset ACF Suffolk ACF Durham ACF Sussex ACF Dyfed and Glamorgan ACF Warwickshire ACF Essex ACF West Lowland ACF Glasgow & Lanarkshire ACF Wiltshire ACF Glouchestershire ACF Yorkshire (N&W) ACF

37