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2023-03-31-accounts

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

Report and financial statements For the year ended 31 March 2023

The Army Cadet Charitable Trust ACCT UK

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For the Year Ended 31 March 2023

Contents

Reference and administrative information 1
Trustees’ annual report 4
Independent auditor’s report 15
Statement of financial activities (incorporating an income and expenditure account) 19
Balance sheet 20
Statement of cash flows 21
Notes to the financial statements 22

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For the Year Ended 31 March 2023

Reference and Administrative Information

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

C Duncan Capps Appointed 19 Nov 22

A B Sarah Dickson Appointed 8 Dec 22

C Jemma Ralph

C Wendy Adams

D David Chipp

A Ruadhri Duncan Alan Goodwin Resigned 16 Feb 23 David Kane Resigned 25 Mar 23

C E Shirley Montgomery Appointed 8 Dec 22

A B Justin Tarka Christopher Tearney

A Oliver Rice

B C F Joyce Quin

A Agata Zukowska

Co-opted member

B Catherine Harrison

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 numbers 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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Other Names the ACCT Cymru, ACCT Wales, Army Cadet Charitable Trust Wales, ACCT NI, ACCT Cymru, ACCT Wales, Army Cadet Charitable Trust Wales, ACCT NI,
Charity Operates UnderACCT Northern Ireland, Army Cadet Charitable Trust Northern Ireland,
ACCT Scotland, Army Cadet Charitable Trust Scotland and ACCT UK
Key management Murdo Urquhart Chief Executive
personnel Richard Walton Deputy Chief Executive
Faye Meakin Director 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 2023

Trustees’ Annual Report

The trustees present their report and the audited financial statements for the year ended 31 March 2023.

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 enable 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” 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. The charity also provides membership support services in the interests of the entire ACF, such as the provision of insurance cover against accidents, travel difficulties and to provide legal advice and assistance.

To further the charity’s second object, ACCT UK assists the Army’s chain of command to co-ordinate national training for the non-military aspects of the ACF training syllabus, notably 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 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

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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 this 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 can 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.

Our Values

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

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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.

Following two years of reduced grant-making due to the COVID-19 pandemic, alongside the exceptional grant-making of the Hardship Relief Fund and Rejuvenation Fund, this year saw a return to more normal levels of activity. In support of cadets and volunteers we paid grants of £343,073 (2022 - £183,807). In support of ACF Counties, Regions and Centres we paid grants of £31,276 (2022 - £107,659), which included a large grant in support of CVQO vocational awards.

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.

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:

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Detachment (A Coy) and LCpl O’Connell Gabalfa (A Coy) told us, “We are immensely grateful to ACCT UK, who generously granted £100 per cadet! This is our first battlefield tour since before COVID-19, and without this grant, many cadets and their families would have been unable to afford the trip. COVID-19 has had a significant impact on families worldwide, and the added expenses of events like battlefield tours are often beyond their means. This experience has been truly exceptional for us as cadets, creating cherished memories that will endure a lifetime. We extend our heartfelt thanks to everyone involved in planning, organising, and joining us on this battlefield tour, providing us with this invaluable opportunity.”

Financial review

The statement of financial activities for the year is set out on page 18 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 £4,253,061 (2022 – £3,948,825), income for supporting cadets and volunteers of £595 (2022- £919), other trading activities of £70,888 (2022 – £13,622) and investment income and interest of £89,108 (2022 - £63,930). Total gross income amounted to £4,413,652 (2022 - £4,027,296).

Expenditure for the year comprised costs of raising funds of £600 (2022 - £600), costs of activities in support of ACF Counties of £2,246,685 (2022 – £2,302,050) and costs of supporting cadets and volunteers of £2,359,661 (2022 – £1,891,813). Total expenditure amounted to £4,606,946 (2022 – £4,194,463).

Net expenditure for the year before investment (losses)/gains amounted to £193,294 (2022 – £167,167). This was owing to the planned expenditure of funds earmarked for marketing and digital services.

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 March 2022; 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 losses on the fair value of investments amounted to £169,274 (2022 – net gains of £224,321). The investment objective is to generate a return of CPI plus 3% per annum over the long

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term. The five-year average (CPI + 3%) to the end of March 2023 has been calculated as 6.96% (March 2022 - 5.72%). As at 31 March 2023 the five-year average shows a return of 5.14% (2022: four-year average of 7.7%). The trustees recognise that the performance since inception has taken a dip, hit particularly hard by this year’s depreciation. Given the performance of the portfolio against similar investment houses the trustees are satisfied with the investment performance in the year.

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 are £300,000 (2022 - £1,000,624). Fixed term deposits with a maturity date before 1 July 2023, 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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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.

In making this policy the trustees have chosen to designate a portion of its long-term investments (known as the “Income Generation fund") as funds invested to generate income for the charity. They are therefore excluded from the reserves calculation. Funds invested for this purpose generated an income of £74,693 (2022: £63,071).

The minimum reserves allowed under this policy is £1,154,337 (2022: £1,154,353). Free reserves were £1,270,704 (2022: £1,347,585). 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

The charity’s work to find additional funding in order to diversify the work we do in support of our charitable objects is ongoing. We do not currently use a professional fundraiser or a commercial participator. Instead, in 2022 we sought to establish a more formal fundraising function by recruiting a dedicated member of staff to do this important work. She has set the function up from scratch and, understandably, this is taking time. The development our fundraising activity has now reached a point that in June 2023 we registered with the Fundraising Regulator.

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 offer the facility for individuals to make one off or repeat donations online and offer membership of ACCT UK to ACF Counties. We are encouraging the ACF community to come together to fundraise for ACCT UK and to help with this have launched the ‘Cadet Challenge 2023’ which has already see individuals, detachments and counties undertake fundraising challenges and events. We have received no complaints about fundraising.

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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

2021/2022 was a time of significant and good evolutionary change for the charity, renaming and rebranding and them seeking to establish new lines of charity activity to support increased ambitions. The establishment of these changes is still ongoing. Additionally, the way the charity provides enabling support to the chain of command was reorganised significantly, the new arrangements taking effect at the start of the 2023/2024 financial year, which are now bedding in and taking up much of the Secretariat’s time. The trustees have therefore decided that 2023/2024 is to be a year of consolidation and then take stock.

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 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 25 March 2023.

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, Director of Development and an additional 61members of staff.

The trustees subscribe to the principles of the Charity Governance Code. The trustees believe in it and are committed to maintaining an inclusive and diverse Board; using a transparent recruitment process designed to encourage eligible applications from applicants with a wider range of backgrounds.

The Finance and General Purposes Committee agree the annual budget. 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 several 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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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.

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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.

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 Director 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. Trustees from both the CCFA and ACCT UK sit on the Joint Remunerations Committee to ensure that they exercise their responsibilities for oversight of the remuneration of their employees. 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 joint remuneration policy.

Statement of responsibilities of the trustees

The trustees (who are also directors of 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 2023 was 161 (2022: 161). 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 28 July 2023 and signed on their behalf by

Duncan Capps Chair

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Army Cadet Charitable Trust UK | Independent auditor’s report

Independent auditor’s report to the members of Army Cadet Charitable Trust UK

Opinion

We have audited the financial statements of Army Cadet Charitable Trust UK (the ‘charitable company’) for the year ended 31 March 2023 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).

In our opinion, the financial statements:

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 Army Cadet Charitable Trust UK’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.

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,

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Army Cadet Charitable Trust UK | Independent auditor’s 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 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.

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Army Cadet Charitable Trust UK | Independent auditor’s report

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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Army Cadet Charitable Trust UK | Independent auditor’s report

made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

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)

17 August 2023

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 Statemeni of financial activities (incorporating an incorne and expenditure account) For the ar ended 31 March 2023 2023 Total Unrestricted 2022 Total Unrestricted Restricted Restricted Note Income from.. Donations and legacie5 2,289,219 1,963,842 4.253.061 2,941,833 1,006,992 3,948,825 Supporting cadet5 and volunteer5 Other trading activities Inve5tment5 595 1 S,628 89,108 595 70.888 89.108 919 13,622 63,930 919 13,622 63,930 55,260 Total income 2,394,550 2,019,102 4.413.652 3,020,304 1,006,992 4,027,296 Expenditure on.. Raising funds 600 600 600 600 Supporting ACF Counties, Regions and Supportlllg cadet5 and volunteer5 338,113 2,123,413 1,908,572 236,248 2.246.685 2.359.661 332,661 1,857,037 1,969,389 34,776 2,302,050 1,891,813 Toial expenditure 2,462,126 2,144,820 4.606.946 2,190,298 2,004,165 4,194,463 Net incomellexpenditurel before net Ilossesllgains on investmenis 167,5761 1193.2941 830,006 1997,1731 (167,16D Net Ilossesllgain5 on inve5tment5 (169,2741 1169.2741 224,321 224,321 Net incomellexpenditurel for the year 1236,8501 1362.5681 ,054,327 1997,1731 57,154 Transfers between fund5 12,7221 2,722 1630,9381 630,938 Net movemeni in funds 1239,5721 1122,9961 1362.5681 423,389 1366,2351 57,154 Reconciliation of funds.. Total funds brought forward Toial funds carried forward 4,743,477 557,024 5.300.501 4,320,088 923,259 5,243,347 4,503,905 434,028 4.937.933 4,743,477 557,024 5,300,501 All of the above results are derlved from contlnuin9 actlvltles. There were no other recognlsed galns or losses other than those stated above. Movements in funds are disclosed In Note 20 to the flnanclal statements.

The Army Cadet Charitable Trust UK Balance sheet Company no. 00293432 As at 31 March 2023 2023 2022 Note Fixed assets.. Tangible assets Investments 37.049 3.172.022 50.482 3.341,896 3.209.071 3.392,378 Current assets: Stock Debtors Short term deposits Cash at bank and in hand 11.334 106.92 5 300.000 1,664.132 22,503 157,403 1.000,624 1.091,343 2,082.391 2.271,873 Liabilities= Creditors.. amounts falling due within one year 1353,529) 1363.7501 Net current assets 1.728.862 1.908,123 Total net assets 4.937.933 5.300,501 The funds of the charity.. Restricred income funds Unresrricted income funds.. Designated funds General funds 20 434.028 557,024 3,196.152 1 ,307.753 3.345,410 1.398,067 Total unrestricred funds 4.503.905 4.743,477 Total charity funds 4.937.933 5.300,501 Approved by the trustees on 28 July 2023 and signed on their behalf by Jemma Ralph Vice Chair Sarah Dickson Treasurer 20

The Army Cadet Charltable Trust UK Statement of cash flows For the ear ended 31 March 2023 Note 2023 2022 Cash flows from operatlng actlvltles Net expenditurellincomel for the reporting period la5 per the statement of financial attivitiesl Depreciation charge5 L05se5llgainsl on investments L055e5 on di5P05al of fixed assets Dividend5 and interest from investments Decreasellincreasel in debtors IDecrea5ellincrease in creditors Decrease in stock 1362,5681 57,154 24.241 169.274 425 189,1081 50.478 (10,2211 11.169 27,421 1224,3211 163,9301 160,7501 70,765 5,102 Net cash used In operatlng actlvltles Cash flows from Investlng actlvltles.. Dividend5 and Interest from investments Purchase of fixed assets {206.3101 1188,5591 89.108 111,2331 63,930 114,4221 Net cash provlded by Investlng actlvltles 77.875 49,508 Change In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year {128,4351 2.093,539 1139,0511 2,232,590 Cash and cash equlvalents at the end of the year 1.965,104 2,093,539 Analysls of cash and cash equlvalents At l April 2022 Other non- At 31 March Cash flows cash Ihanges 2023 Cash at bank and in hand Short Term Dep05itS Cash held by investment managers 1.091,343 1.000,624 1,572 572,789 1700,6241 16001 1,664,132 300,000 972 Total cash and cash equlvalents 2,093,539 1128,4351 1,965,104 21

The Army Cadet Charitable Trust UK Note5 to the financial statements For the ear ended 31 March 2023 l 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 Cornmis5ion for England and Wale5 and with the Office of the Scottish Charity Regulator. The registered office addres5 and principal place of business 15 Holderne5s House, 51-61 Clifton Street, London, EC2A 4DW. bl Basis of preparation The financial 51atement5 have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- (Charitie5 SORP FRS 1021, The Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and rhe Companies Act 2006. As5et5 and liabilities are initially recogni5ed at historical cost or rran5action value unless otherwise stated in rhe relevanr accounting policy or note. In applying the financial reporting framework, the trustees have made a nurnber of subjective judgemenrs, for example in respect of significant accounting e5timaies. E5timaies and judgement5 are continually evaluated and are based on historical experience and other factors, including expectation5 of future events that are believed to be reasonable under the circumstances. The nature of the e5timaiion means the actual outcome5 could differ from those estimate5. Any significant estimate5 and judgements affecting these financial Statements are detailed within the relevant accounting policy below. cl Public benefit entity The charity meet5 the definition of a public benefit entity under FRS 102. dl Going concern The trustees consider that there are no material uncerraintie5 about the charity's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainry at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of as5ers and liabilities within the next reporting period. el Income Income is recognised when the charity ha5 entitlement to the funds, any performance conditions attached to the income have been rnet, it 15 probable that the income will be received and that the amount can be rnea5ured reliably. Donations are recognised when rhe charity has confirmation of both the amount and settlernent date. In rhe event of donation5 pledged by not received, the amount 15 accrued for where the receipt 15 considered probable. In the event that a donation 15 Subject to conditions that require a level of perforrnance before the charity Is entitled to the fund5. the incorne 15 deferred and noi recognised until either those conditions are fully met, or the fulfuilment of those condition5 15 wholly within the control of the charity and it is probable that those conditions will be fulfulled in the reporting period. Income from governrnent and other grants, whether'capital, grant5 or 'revenue' grants, is recognised when the charity ha5 entitlement to the fund5, any performance conditions attached to the grant5 have been met, it is probable that the incorne 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 rhe criteria for income recognition are met. Dividends are recogni5ed once rhe dividend ha5 been declared and norifcation has been received of rhe dividend due. Interest on funds held on deposit is included when receivable and the amount can be rnea5ured reliably by the charity., this is norrnally upon notification of the interest paid or payable by rhe bank. 22

The Army Cadet Charitable Trust UK Note5 to the financial statements For the ear ended 31 March 2023 f) Donations of gifts, service5 and facilitie5 Donated professional 5ervice5 and donated facilities are recognised as income when the charity ha5 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 rnea5ured reliably. In accordance with the Charitie5 SORP IFRS 1021, volunteer time 15 not recogni5ed 50 refer to the tru5tee5' annual report for more information about their contribution. On receipt. donated gifts, professional services and donated facilitie5 are recogni5ed on the ba515 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 facilitie5 of equivalent economic benefit on the open market,. a corresponding amount 15 then recogni5ed in expenditure in the period of receipt. l Accounting policies Icontinuedl gl Interest and dividend5 receivable Interest and dividend5 on fund5 held on dep05ir or in the investment portfolio 15 included when receivable and the amount can be measured reliably by the charity,. this 15 normally upon notification of the interest paid or payable by the bank or investment manager. h) Fund accounting Restricted fund5 are to be used for Specific purpose5 a5 laid down by the donor. Expenditure which meer5 these criteria 15 charged to the fund. Unrestricted fund5 are donations and other incoming resources received or generated for the charitable purposes. Designated fund5 are unre5tricred funds earmarked by the trustee5 for particular purposes. i} Expenditure and irrecoverable VAT Expenditure 15 recogni5ed once there 15 a legal or constructive obligation to make a payment to a third party, it 15 probable thai settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings.. C05t5 of raising fund5 relare ro rhe c05r5 incurred by the charity in managing its investment portfolio. Expenditure on charitable activities include5 the costs undertaken to further the purposes of the charity and their associated Support C0515. Irrecoverable VAT is charged a5 a cost against the activity for which the expendirure wa5 incurred. il Grants payable Grants payable are made to third parties in furtherance of the charity's object5. Single or rnulti-year grants are accounted for when either the recipient ha5 a reasonable expectation that they will receive a grant and the tru5tee5 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 rhe grant 15 Outside of the control of the charity. Provisions for grants are rnade when the intention to make a grant has been comrnunicared to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. kl Allocation of support costs Resources expended are allocated to the particular activity where the cost relate5 directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead cost5 of the central function. is apportioned based on an estimate of Staff time Spent on each activity. Governance c05t5 are the costs associated with the governance arrangements of rhe charity. These cost5 are associated with con5tiiutional and statutory requirement5 and include any costs associated with the strategic management of the charity'5 11 Operating leases Rental charges are charged on a straight line basis over the term of rhe lease. 23

The Army Cadet Charitable Trust UK Note5 to the financial statements For the ear ended 31 March 2023 ml Tangible fixed assets Items of equipment are capiralised where the purchase price exceeds £200. Depreciation c05t5 are allocated to activities on the basis of the use of the related a55et5 in ih05e activitie5. As5et5 are reviewed for impairment if circumstances indicate their carrying value may exceed their nei realisable value and value in use. Major components are treated as a Separate a55et where they have significantly different pattern5 of consumption of economic benefits and are depreciated separately over its useful Where fixed assets have been revalued, any exce55 between rhe revalued amount and the hi5roric 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 estimared residual value over irs expected useful life. The depreciation rate5 in use are a5 follow5.. Leasehold improvement5 Fixtures and fitting5 Computer equipment 4 years 4-Syears 4-Syears l Accounting policies Icontinuedl n) Listed investments Inve5tment5 are a form of basic financial instrurnent and are initially recogni5ed at their transaction value and Subsequently rnea5ured at their fair value as at the balance sheet date using the c105ing quoted market price. Any change in fair value will be recogni5ed in the statement of financial activitie5. Investment gain5 and 1055e5. whether reali5ed or unreali5ed, are combined and shown in the heading 'Net gainsll1055esl on investments" in the 5taternent of financial activities. The charity does not acquire put option5, derivative5 or other complex financial in5trument5. ol Debtors Trade and other debtors are recogni5ed at the settlernent amount due after any trade discount offered. Prepayments are valued at the arnount prepaid net of any trade discounts due. pl Short term deposits Short term deposits includes cash balances that are invested in accounts with a maturity dare of between 3 and 12 Months. ql Cash at bank and in hand Cash at bank and cash in hand include5 cash and short terrn highly liquid investments with a short maturity of three months or les5 from rhe date of acqui51tion or opening of the dep05ir or Similar account. rl Creditor5 and provisions Creditor5 and provisions are recognised where rhe charity has a present obligation resulting frorn a past event that will probably result in the transfer of fund5 to a third party and the amount due 10 settle the obligation can be measured or estimated reliably. Creditor5 and provisions are normally recognised at their settlement amount after allowing for any trade discount5 due. 51 Financial instruments The charity only ha5 financial a55et5 and financial liabilities of a kind that qualify as basic financial in5trument5. Basic financial instruments are initially recogni5ed at transaction value and subsequently measured at their Settlement value with the exception of bank loan5 which are subsequently rnea5ured at amort15ed cost Using the effective interest method. tl Pensions The Trust make5 contribution5 to defined contribution pension scheme5 on behalf of its employees. Contributions are charged to the statement of financial activitie5 in the periods to which they relate. The Trust has no liability under the Scheme other than for the payrnent of those contribution5. 24

The Army Cadet Charitable Trust UK Note5 to the financial statements For the ear ended 31 March 2023 2 Income from donations 2023 Total Unrestricted 2022 Total Unrestricted Restricted Restricted Donations Ministry of Defence grants Donated services 39,848 2,221,371 28,000 149,791 1,814,051 189.639 4.035,422 28.000 42,521 2,875,442 23,870 146,992 860,000 189,513 3,735,442 23,870 2,289,219 1,963,842 4.253,061 2,941,833 1,006,992 3,948,825 The Ministry of Defence make5 an annual Grant in Aid to enable the charity to operate in Support of the Army Cadets. It also makes grants for specified purpose5. predominately in support of the Cadet Digital Service5 project and for Army Cadet Marketing. The Marine Society and Sea Cadets IMSSCI made a large donation of £1 13,000 12022.. £11 0,0001 thi5 year to supporr rhe Cadet Digital Services project. The Charles Broiherton Trust ILeed5 fund) continue their long-standing support1£2751 enabling Adventure Training for young people in Leeds. The Reserve Force5 and Cadets Association for Greater London kindly donates office Space to the ACCT UK. This 15 recogni5ed at the estimated c05t of securing suitable alternative office space 3 Income from charitable activitie5 2023 Total Unrestricted 2022 Total Unrestricted Restricted Restricted Supporting cadets and volunteers Subscription5 595 595 919 919 Subscription5 continue to decline as the closed membership Scheme winds up. 4 Income from other trading activitie5 2023 Total Unrestricted 2022 Total Unrestricted Restricted Restricted Events and award5 Merchandise sales Other 55,260 55.260 7.383 8.245 7,383 8,245 13,622 13,622 Total 5,628 55,260 70.888 13,622 13,622 All income from rradinq activities is from unrestricted and restricted income. 5 Income from investments 2023 Total 2022 Total Dividends Bank interest 74,693 14,415 63,071 859 89,108 63,930 All income from investments is unrestricted. 25

The Army Cadet Charitable Trust UK Notes to the financial statements For the ear ended 31 March 2023 6a Analysis of expenditure (current year) Charitable activities Supporting ACF Counties Supporting cadets and Governance volunteers costs Raising funds Support costs 2023 Total 2022 Total Staff costs (Note 9} Grant making (Note 71 Direct activity costs Cadet Digital Services Insurance Marketing and advertising Audit fees Legal and professional Trustee expenses Investment manager fees Office expenses Travel Depreciation 129,310 31,276 141,817 870,598 1,414,277 343.073 381,193 33.990 1.577.577 374.349 523.010 870.598 32.570 1.057.441 12.720 26.157 3.029 600 75.612 29.042 24.241 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 32.570 3.975 1,053,466 12.720 5.273 3.029 20.884 600 75.612 29.042 24.241 600 2,226,467 2,138,543 21,022 220.314 4.606.946 4,194,463 Support costs 18,457 201,857 1220,314} Governance costs 1,761 19,261 121 ,0221 Total expenditure 2023 600 2,246.685 2,359.661 4.606.946 Total expenditure 2022 600 2,302.050 1,891.813 4.194,463 26

The Army Cadet Charltable Trust UK Notes to the flnanclal statements For the ear ended 31 March 2023 6b Analysls of expendlture (prlor year) Charitable activities Supporting ACF Counties Supporting cadets and Governance volunteers costs Raising funds Support costs 2022 Total Staff costs (Note 9) Grant making (Note 71 Direct activity costs Cadet Digital Services Insurance Marketing and advertising Audit fee5 Legal and professional Trustee expenses Investment manager fees Office expenses Travel Depreciation 84,490 107,659 128,277 939,249 1,332,011 76,148 254,897 33,644 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 22,458 40,066 1,027,865 13,080 13,828 1,563 600 81,370 9,837 27,421 600 2,287,540 1,663,056 28,471 214,796 4,194,463 Support costs 12,812 201,984 1214,7961 Governance costs 1,698 26,773 128,4711 Total expendlture 2022 600 2,302,050 1,891,813 4,194,463 27

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 Grant maklng Accr UK provides financial grants to ACF Counties, adult volunteers and cadets for a wlde varlety of Individual development needs Intluding provision of sports equipment and help to attend courses and expeditions. A Ilst of the ACF Counties and Regions that have received grants in the year from the Accr UK is at note 23. 2023 2022 Noof awards 2023 2022 No of awards Supporiing ACF Countles. Reglons and Centres Ceneral Grants 31.276 107,659 Supporting Indlvldual Cadets and Volunteers General Grants Matthew Bacon Bursary Sports Cadet Musit Fund Duke of Edinburgh's Award Hardship Relief Fund Votational Qualifications Crants in Wales Crants in Scotland 31 91.018 .431 27.197 350 6.110 28,853 4,563 24,491 3,272 8,030 20 155.020 55.842 6.105 5,780 At the end of the year 51 ioo 374.349 183,807 Net Income I lexpendlturel for the year This is stated after charging I Icreditingl.. 2023 2022 Depreclation Operating lease rentals payable-. Equipment Auditor's remuneration (excluding VATI-. Audit - current year 24.241 27,421 4.987 4,987 12.050 10,950 28

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 Analysls of staff costs. twstee remuneratlon and expenses. and the cost of key management personnel Staff costs were as follows". 2023 2022 Salaries and wages Redundancy and termlnation costs Social security tosts Employer's contribution to defined contribution pension schemes Recruitment and other payroll costs 1.291.612 12.859 130.488 108.628 33.990 11,687 101,903 33,644 1.577.577 1,450,145 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 activitles durlng the year. No employee earned more than £60,000 during the year12022'. nill. The key management personnel of the charity in charge of directing and controlling, running and operating the charlty on a day to day basis comprises the trustees, the Chief Exetutive, and the Deputy Chief Executive. The total employee benefits lintluding pension contributions and employer's national insurance) of the key management personnel were £96,401 12022.- f 91,4321. The charity trustees were neither paid nor received any other benefits from employment with the charity in the year12022-. £nlll. No charity trustee received payment for professional or other seNices supplied to the charity 12022-. £nill. Trustees. expenses represents the payment or reimbursement of travel and subsistence costs totalling £3,234 12022.. £1,563) Incurred by 8 12022. 41 individuals relating to attendance at meetings of the trustees. l O staff numbers The full time equivalent staff carrying Out work for the Accr UK during the year was 50 12022.. 461. Betause the ACCT UK shares its back office functions with the Combined Cadet Force Assotiation it has chosen to employ all staff atross both tharities on joint contracts. This means that the charities gain flexibility and economies in how staff support the tharities. However this joint contratt arrangement requires Accr UK to disclosÈ the average number of employees for the tV40 tharities combined. This is taken as a head count based on numbÈr of staff employed. During the year this was 50 12022.- 531. Related party transactlons On occasion grants are awarded to ACF Counties wlth which trustees are adult volunteers. Decisions about who to award funds to are made in accordance with the grants polity 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 12022.. nlll related party transactions of this type relating to nil 12022.. nill trustees totalling £nil 12022.. £nlll during the year. There are no donations from related parties which are outside the normal course of business and no restrlcted donations from related parties. 12 Taxatlon The charlty is exempt from corporation tax as all its income is charitable and Is applied for charitable purposes. 29

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 13 Tanglble fixed assets Flxtures and Computer equipment Total Cost At the start of the year Additions in year Disposals in year 53,715 73,348 11,233 15831 127.063 11.233 15831 At the end of the year 53,715 83,998 137.713 Depreclatlon At the start of the year Charge for the year Eliminated on disposal 41,047 7,320 35,534 16,921 76.581 24.241 11581 At the end of the year Net book value At the end of the year 48,367 52,297 100.664 5,348 31,701 37.049 At the start of the year 12,668 37,814 50,482 All of the above assets were purchased wlth unrestricted funding and are used for charitable purposes. 14 Llsted Investments 2023 2022 Fair value at the start of the year Additions at cost Disposal proceeds Net Ilossllgain on change in falr value 3.340.324 3,116,003 1169.2741 224,321 3.171.050 972 3,340,324 1,572 Cash held by investment broker pending relnvestment Fair value at the end of the year 3.172.022 3,341,896 Investments comprise the following.. 2023 2022 UK Common investment funds Cash 3.171.050 972 3,340,324 1,572 3.172.022 3,341,896 15 Stock 2023 2022 Merchandise 1.334 22,503 1.334 22,503 30

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 16 Debtors 2023 2022 Trade debtors Prepayments Accrued income 900 87.470 18.555 142,576 14,827 106.925 157,403 17 Credltors= amounts falllng due wlthln one year 2023 2022 Trade creditors Taxation and social securitv Pension contributions Other creditors Atcruals Deferred income (note 181 127.026 56.823 17.055 194,198 42,263 11,622 882 14.154 138.471 97,664 353.529 363,750 18 Deferred Income Deferred income comprises funds for ACCT UK insurance income 2023 2022 Balance at the beginning of the year Amount released to intome in the year Amount deferred in the year 97.664 197.6641 138.471 46,510 146,5101 97,664 Balance at the end of the year 138.471 97,664 19a Analysls of net assets between funds (current yearl Ceneral nrestricted Total funds Deslgnated Restricted Tangible fixed assets Fixed asset investments Net current assets 37,049 196,015 1,074,689 37.049 3.172.022 1.728.862 2,976,007 220,145 434,028 Net assets at 31 March 2023 .307.753 3.196.152 434.028 4.937.933 19b Analysls of net assets between funds Iprlor yearl General nrestricted Total funds Deslgnated Restricted Tangible fixed assets Fixed asset investments Net current assets 50,482 206,529 1,141,056 50.482 3.341.896 1.908.123 3,135,367 210,043 557,024 Net assets at 31 March 2022 .398.067 3.345.410 557.024 5.300.501 31

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 20a Movements In funds (current yearl At l April 2022 Income & gains Expenditure & losses At 31 March 2023 Transfers Restritted funds.. Army Cadet Marketing fund Cadet Digital SeNites fund Cadet Musit fund Cadet Sports fund Chris Wood Memorial fund Duke of Edinburgh Award fund CrÈnadier fund Leeds fund London fund Matthew Bacon Bursary fund 390,039 860,000 914,401 6,781 11,037,974) 1870,5981 13501 18,1821 212.065 43.803 20.057 88.269 13,626 96,451 355 359 500 550 2,035 2,664 1,104 26,900 494 785 10,981 5.230 500 825 1.905 3.170 1.104 21.419 275 1,200 1,937 South East Essex fund India Trip fund Adventurous Training fund National Commemorative Events fund Vocational Qualifications fund 15,4811 14941 157,6331 11,4471 1152,6501 72,814 21,947 20.500 152,650 Total restrlcted funds 557,024 2,019,102 12,144,820) 2,722 434.028 Unrestrlcted funds.. Designated funds-. Income generation fund Northern Irish Fund Scottish Fund Welsh Fund 3,135,367 19,193 136,620 54,230 16001 15021 117,4621 1158,7601 3,880 8,830 1,029 2.976.007 24.053 140.508 55.584 1,482 12,520 1,650 Total designated funds 3,345,410 15,652 119,8891 1145,0211 3.196.152 General funds 1,398,067 2,378,898 142,299 1.307.753 Total unrestrlcted funds 4,743,477 2,394,550 12,631,400) 12,7221 4.503.905 Total funds 5,300,501 4,413,652 14,776,220) 4.937.933 The narrative to explain the purpose of each fund Is given at the foot of the note below. 32

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 20b Movements In funds Iprlor yearl At l April 2021 Income & gains Expenditure & losses At 31 March 2022 Transfers Restritted funds.. Army Cadet Marketing fund Cadet Digital SeNites fund Cadet Musit fund Cadet Sports fund Chris Wood Memorial fund Duke of Edinburgh Award fund CrÈnadier fund Leeds fund London fund Matthew Bacon Bursary fund 560,179 860,000 I i 0,000 5,050 11,030,140) 1939,2491 390.039 360,938 8,576 120,942 355 1,000 500 275 785 4,332 1,104 26,900 13.626 96.451 355 359 500 550 2.035 2.664 1.104 26.900 494 21.947 124,4911 5,081 15,7221 275 1,250 2,895 14,5631 South East Essex fund India Tip Fund National Commemorative Events Fund 494 21,947 Total restrlcted funds 923,259 1,006,992 12,004,165) 360,938 557.024 Unrestrlcted funds.. Designated funds-. Income generation fund Northern Irish Fund Scottish Fund Welsh Fund 2,925,434 22,030 37,358 53,247 209,933 12,8371 17381 983 3.135.367 19.193 136.620 54.230 Total designated funds 3,138,069 207,341 3.345.410 General funds 1,182,019 3,244,625 12,190,298) 1838,2791 1.398.067 Total unrestrlcted funds 4,320,088 3,244,625 12,190,298) 1630,9381 4.743.477 Total funds 5,243,347 4,251,617 14,194,463) 5.300.501 Purposes of restrlcted fvnds Army Cadet Marketlng fund These funds are granted to the ACCT UK in order to promote the Army Cadets and to recrult new tadets and adult volunteers. Cadet Dlgltal Servlces fund These funds are granted to the Accr UK in order to run and develop a variety of digltal services for the cadets. Cadet Muslc fund This fund Is to support Army Cadets to learn an instrument or take part in muslc performances around the world. Activities supported by this fund intlude instrument purthase, uniform purthase and support for cadets to travel overseas. Cadet Sports fund The sports fund exists to support Army Cadet sport across the UK. Chrls Wood Memorlal fund Colonel Chris Wood ACF had a long career in the Terrltorial Army and the ACF. HIS sudden death in August 2018 led to the creatlon of thls fund to support adult volunteer leadership development. Duke of Edlnbur9h Award fund Thls fund is to support Army cadets and adult volunteers to undertake the volunteering section of the Duke of Edinburgh award. Grenadler fund The ACCT UK is grateful to the Grenadier Guards Trust for supporting cadets in affilliated detachments to take part in cadet activities. 33

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 20 Purposes of restrlcted fvnds Icontlnuedl Leeds fund The Accr UK is grateful to the Charles Brotherton Trust for supporting cadets in the Leeds area to take part in Adventure Training activities. London fvnd The ACCT UK is grateful to the Knights of the Round Table and the Masonic Charitable Foundation for supportlng tadets in the London area to take part In cadet activities. Adventurous Tralnlng Fund The ACCT UK is grateful to the Ulysses Trust for supporting cadets in the Exercise Knoydart and Ex Telemark Challenger activities Cadet Voluntary Quallflcatlon Organlsatlon gain a BTEC Level 2 This fund is to support 430 ACF Cadets from the communlty of Devolved Nations to Matthew Bacon Bursary fund In september 2005, Major Matthew Bacon of the Intelligence Corps was tragltally killed by a roadside bomb in Iraq. Major Bacon was a former Surry ACF tadet, 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. Sallln9 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 Arthurlopson, a former CFAV in C Company of Essex ACF. Mr Jopson specified his gift was for the benefit of tadets and CFAVS in the South East of Essex. Indla Trfp The fund was raised for the cadet to attend the National Youth India Exchange programme 2022 but due to covld restrictions, the trlp was postponed. Some refunds have been made, and the trip is rescheduled for the new financlal year. Naiional Commemoratlve Events Fund - This fund exists to support cadets to study battlefleld history and take part in tommemorative events to better understand the impact of war. Purposes of deslgnated funds Income 9eneratlon 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 lrfsh fund These funds are set aside to enable local decision making in running the Northern Irlsh Branch. Scottlsh 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 Operatlng lease commltments payable as a lessee The charity's total future minlmum lease payments under non-cancellable operating leases is as follows for each of the following periods Equipment 2023 2022 Less than one year One to five years 4.987 4.987 4,987 9,974 9.974 14,961 22 Legal status of the charlty The charity is a company limited by guarantee and has no share capltal. The Ilability of each member in the event of winding up Is 34

The Army Cadet Charftable Trust UK Notes to the financlal statements For the ar ended 31 March 2023 23 ACF Countles and Reglons that have recelved grants from the Accr UK In the year.. 2nd IBnl Hiohlanders ACF 2nd INI) Bn ACF Bedfordshire & Hertfordshire ACF (7 Bde - East) Berkshire ACF Black Watch ACF Bristol ACF Cambridoeshire ACF City of London & NE Sector ACF Cornwall ACF Derbyshire ACF 17 Bde DorsÈt ACF Durham ACF Dvted & Clamoroan ACF ESSÈX ACF Frimley Park CTC Clasoow & Lanarkshire ACF Creater London & South East Sector ACF Creater London & South West Sector ACF Creater Manthester ACF Gwent & Powvs ACF Hampshire & IOW ACF Humberside & South Yorkshlre ACF Kent ACF Leicestershire. Northamotonshire & Rutland ACF 17 Bde Lincolnshire ACF 17 Bde - East) Lothian & Borders Bn ACF MiddlÈsex & NW London ACF Norfolk ACF Northumbria ACF Nottinohamshire ACF 17 Bde Eastl Octavia Hill - National ACF Museum Oxfordshire ACF ShroDshirÈ ACF Suffolk ACF 17 Bde - East) Surrey ACF Sussex ACF Warwickshire & West Mldlands ACF Wiltshire ACF Yorkshire IN&￿ ACF Eastl Eastl 35