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2024-03-31-accounts

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

Report and financial statements For the year ended 31 March 2024

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For the Year Ended 31 March 2024

Contents

Contents
Reference and administrative information 2
Trustees’ annual report 4
Independent auditor’s report 18
Statement of financial activities (incorporating an income and expenditure account) 22
Balance sheet 23
Statement of cash flows 24
Notes to the financial statements 25

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For the Year Ended 31 March 2024

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

A B D Sarah Dickson

C Jemma Ralph

C Wendy Adams

A G David Chipp

A D Ruadhri Duncan

C E Shirley Montgomery Resigned 2 Oct 24

A B D Justin Tarka

A D Christopher Tearney

C Oliver Rice-Adams

B C F Joyce Quin

A Agata Zukowska Resigned 23 Mar 24

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 Joint Investments & Audit Committee E denotes membership of the ACCT Northern Ireland Committee F denotes membership of the ACCT Scotland Committee G denotes membership of the ACCT Wales 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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For the Year Ended 31 March 2024

Other Names the ACCT Cymru, ACCT Wales, Army Cadet Charitable Trust Wales, ACCT NI, Charity Operates Under ACCT 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 110 Golden Lane London EC1Y 0TG Solicitor Bates Wells 10 Queen Street Place London EC4R 1BE

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For the Year Ended 31 March 2024

Trustees’ Annual Report

The trustees present their report and the audited financial statements for the year ended 31 March 2024.

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 39,000 who are cadets in the Army Cadet Force (ACF). Young people meet in one of 1,600 community based ACF Detachments across the whole of the UK; these detachments are grouped into “ACF Counties” (known variously as County, Battalion or Sector) based on 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, as well as grants to support Army Cadet Force Adult Volunteers to develop their youth leadership skills. The charity also provides membership support services in the interests of the entire ACF, such as the provision of confidential support to volunteers, 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 Army Cadets training syllabus, notably the Duke of Edinburgh’s (DofE) Award, Adventurous Training (AT), music, first aid and sport, also contributing to the delivery of courses for ACF adult volunteers across these areas. With a grant from the Ministry of Defence (MoD), ACCT UK is also able to support the delivery of Piping and Drumming Qualifications Board, Defence Awarding Organisation 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.

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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 MoD 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 this wonderful national youth movement (the ACF) made possible by adult volunteers who give their time to develop young people. 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 providing support and advice to the Army, including contributing to the development of central policies and direction needed to run the ACF. This is done formally by attending MoD 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, trustees and members of the senior leadership team.

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 remain 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 seeks 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’s Award, first aid and music qualifications. We help facilitate national public performances and ceremonial activity by the provision of resources to enable these key cadet activities.

ACCT UK furthers its objects through the awarding of grants to individual cadets and adult volunteers, or to ACF Counties. In support of cadets and volunteers we paid grants of £142,805 (2023 - £374,349). In support of ACF Counties, Regions and Training Centres we paid grants of £17,425 (2023 - £31,276).

Grant Programmes

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. Some of our grants also enable individuals to evidence the skills and experience they have developed through the ACF to prospective employers by funding recognised qualifications.

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Grants to ACF Counties, Regions and Centres are generally made 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:

Beneficiaries of our services

There are two main ways in which ACCT UK delivers benefit to its beneficiaries: through the provision of grants and through the provision of support to the ACF in terms of people to deliver activity that supports the efficiency of the ACF. 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 or deliver 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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it possible for cadets to travel to South Africa without financial burden, ensuring that financial hardship is not a barrier to them having exceptional and life changing experiences. Lieutenant Colonel Dionne Konstantinious, Lead Expedition Officer, told us: “This whole adventure has shaped them in so many positive ways. The Army Cadet Force teaches our young people to be resilient, confident and self-reliant, something they all demonstrated throughout the Exercise. They all overcame the daily challenges, from the heat, diet, environment and being away from home. They demonstrated a maturity in dealing with these issues, far from home in a strange environment faced with demands that took them all, at some stage, outside their comfort zone. It has made them into even more positive, confident and self-assured young citizens. It really was a once in a lifetime opportunity and I am sure that they will look back on with fond memories long into the future.”

Financial review

The statement of financial activities for the year is set out on page 22 of the financial statements. A summary of the financial results and the work by ACCT UK is set out below.

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Income for the year included donations and legacies of £5,761,612 (2023 – £4,253,061), income for supporting cadets and volunteers of £529 (2023- £595), other trading activities of £77,821 (2023 – £70,888) and investment income and interest of £100,767 (2023 - £89,108). Total gross income amounted to £5,940,729 (2023 - £4,413,652).

Expenditure for the year comprised costs of raising funds of £6,394 (2023 - £600), the significant increase in the cost of raising funds this year reflects the fact that we moved our current assets from short-term deposit accounts to an immediate-access short-term investment fund. While the fees are higher, we benefit from significantly increased income in terms of interest and the funds have also increased in value by c.£79k. Costs of activities in support of ACF Counties comprised £2,463,602 (2023 – £2,246,685) and costs of supporting cadets and volunteers comprised £2,541,932 (2023 – £2,359,661). Total expenditure amounted to £5,011,928 (2023 – £4,606,946).

Net income for the year before investment (losses)/gains amounted to £928,801 (2023 – net expenditure of £193,294). This was owing to unplanned reductions in the number and scale of activities that took place in the year which in turn led to an increase of £901k in restricted funds. The charity anticipates an increase in activity in the next three years to utilise these funds in support of their intended purpose.

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 gains on the fair value of investments amounted to £477,802 (2023 – net losses of £169,274). The investment objective is to generate a return of CPI plus 3% per annum over the long term. The five-year average of CPI + 3% to the end of March 2024 has been calculated as 7.04% (March 2023 - 6.96%). As at 31 March 2024 the five-year average shows a return of 6.32% (2023: 5.14%). The trustees recognise that the 5-year performance includes a difficult period of high inflation in 2022-2023 but note that the strong gains this year (12.58%) have gone a long way to closing the gap between the actual performance and the benchmark. Given the performance of the portfolio against similar investment houses, the trustees remain satisfied with the investment performance.

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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 or near-cash products of no more than 24-months in duration. At present the funds held in such instruments are £2,450,186 (2023 - £300,000 held in fixed-term bank deposits). This year funds were moved from fixed-term deposits into a short-term investment fund. This has led to a significant increase in both fees and income and has additionally led to an increase in the value of the charity’s short-term investments of c.£79k.

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 to six 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 unrestricted, 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 £93,386 (2023: £74,693).

The minimum reserves allowed under this policy is £1,330,010 (2023: £1,154,337). Free reserves were £1,173,978 (2023: £1,270,704). The trustees note that they have designated funds for the purpose of generating funds (currently £3.6m) that could be released to improve the reserves position. Trustees also note that the charity has £2.5m in short-term investments, meaning the charity has sufficient liquidity to manage cashflow effectively.

The current reserves position is c.£156k below the target minimum but trustees consider this to be appropriate as there are funds that can be easily accessed to manage cashflow. They consider the benefit of maintaining the existing income-generation fund to be greater than the well-mitigated risk of holding 88% of the target minimum reserves and are satisfied with the reserves position.

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

In 2023 the charity began active fundraising for the first time that institutional memory can recall. The charity has identified two potential audiences from which to raise funds:

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charities such as the Royal British Legion and the Army Benevolent Fund, so we are asking the ACF to use this incredible talent to also raise funds for its own charity.

The charity’s focus in 2023 was to begin with the internal audience. We launched the ‘Cadet Challenge 2023’, asking the ACF community to come together to raise funds for ACCT UK. As one would expect in the first year of such a venture, the response was patchy. Some ACF counties ‘went for it’, raising respectable sums through a variety of imaginative and fun activities and events, with groups and individuals recognised at our annual awards ceremony in June 2024. Other counties however were slow to embrace the Cadet Challenge.

The sums raised from ‘Cadet Challenge 2023’ were satisfactory in the circumstances, but well below what was potentially possible. In 2024, engagement with the Cadet Challenge will be a priority for Fundraising and Marketing as we have not yet fully realised the Challenge’s potential. We hope a much greater proportion of the ACF community will embrace ‘Cadet Challenge 2024’.

In 2024 we will also continue to seek benefactors who might make significant donations to the charity; we hope and expect that supporting a wonderful youth movement (the ACF) through ACCT UK would appeal to many potential donors. We will work with companies looking to support the cadet forces as part of their membership of the Defence Employer Recognition Scheme, as well as seeking funding from trusts and foundations for specific projects that we have identified as requiring support in areas such as music, first aid, AT and equipment.

Plans for the future

In November 2023, the trustees reviewed their 5-Year Vision 2022-2027. Their conclusion was that its points remain sound. The charity is therefore in a stage where it is still evolving from its rename and rebrand in 2021/2022 and that action towards achieving the elements of the 5-Year Vision are broadly work in progress. Driving this Vision is the ambition of the trustees, which is that ‘ We want to do more and better as a charity in support of our beneficiaries ’. Two particularly important conclusions from the November 2023 review were:

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Structure, governance and management

ACCT UK is a registered charity and a company limited by guarantee, not having a share capital. The entity was established in 1930 in response to the loss of government support to the Cadet Force. It 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 70 members 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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Review of the Board’s structure

In November 2023 the trustees reviewed the board’s structure. Having recently consciously reduced the size of the board to 12 to bring ACCT UK in line with Charity Commission best practice, the conclusion of the trustees’ review was that the mix of specialist and general trustees was about right and that the board’s structure was still sound.

Also reviewed was the national board’s relationship with our three branches in Scotland, Northern Ireland and Wales. Although the main board has one general trustee from each of the devolved nations to give the board some insight, we recognise that the branches themselves are hugely valuable because they have different dimensions, networks and communications channels that the trustees at the national level simply do not have or see. This review in autumn 2023 refreshed our working relationships in a number of ways, incorporating some very helpful bottom-up ideas and proposals from our branches.

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Appointment of trustees

Trustees are appointed for a period of three years 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 reelection and there is no restriction in the articles on the number of times an individual can stand for reelection.

Trustees are private individuals who are recruited to bring particular skills or lived experience 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 volunteers from the ACF 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 new 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.

Election of trustees at the March 2024 AGM

The trustees understand why it is essential that boards of trustees are refreshed and are committed to acting on this principle. In the context of both this principle and the Governance risk described above, it will be noted that, at the AGM in March 2024, no new trustees were appointed. This was the result of careful deliberation by the Nominations & Governance Committee, its recommendations being ratified by the full board.

In coming to this conclusion, the trustees took the view that whilst trustees might only serve one term of 3 years, there is great value in some trustees completing three terms and serving for up to nine years, which is within Charity Commission guidelines, thus building up a beneficial of knowledge of the charity and how it operates. In this context, we point out that at the AGM in March 2024, 8 of the 12 trustees were still in their first term as trustees, and the one trustee re-elected was completing her second term as a trustee. We envisage new trustees joining the board within the next 12-months.

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.

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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 CCFA. Trustees from both the CCFA and ACCT UK sit on the Joint HR & Remunerations Committee to ensure that they exercise their responsibilities for oversight of the remuneration of their employees. This 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 and periodically review salary levels against appropriate benchmarks.

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:

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

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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 2024 was 165 (2023: 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 12 December 2024 and signed on their behalf by

Duncan Capps Chair

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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 2024 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)

Date 18 December 2024

for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

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

21

The Army Cadet Charitable Trust UK

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

For the year ended 31 March 2024

Note
Income from:
2
3
4
5
6
6
6
14
8
Reconciliation of funds:
Other trading activities
Donations and legacies
Charitable activities
Supporting cadets and volunteers
Net income/(expenditure) before net
gains/(losses) on investments
Supporting cadets and volunteers
Net gains/(losses) on investments
Investments
Total income
Expenditure on:
Raising funds
Total expenditure
Charitable activities
Supporting ACF Counties, Regions and
Net income/(expenditure) for the year
Total funds carried forward
Transfers between funds
Net movement in funds
Total funds brought forward		 Unrestricted
£
734,722
529
77,821
100,767
913,839
6,394
134,282
806,000
946,676
(32,837)
477,802
444,965
60,919
505,884
4,503,905
5,009,789		 Restricted
£
5,026,890
-
-
-
5,026,890
-
2,329,320
1,735,932
4,065,252
961,638
-
961,638
(60,919)
900,719
434,028
1,334,747		 2024
Total
£
5,761,612
529
77,821
100,767
5,940,729
6,394
2,463,602
2,541,932
5,011,928
928,801
477,802
1,406,603
-
1,406,603
4,937,933
6,344,536		 Unrestricted
£
2,289,219
595
15,628
89,108
2,394,550
600
338,113
2,123,413
2,462,126
(67,576)
(169,274)
(236,850)
(2,722)
(239,572)
4,743,477
4,503,905		 Restricted
£
1,963,842
-
55,260
-
2,019,102
-
1,908,572
236,248
2,144,820
(125,718)
-
(125,718)
2,722
(122,996)
557,024
434,028		 2023
Total
£
4,253,061
595
70,888
89,108
4,413,652
600
2,246,685
2,359,661
4,606,946
(193,294)
(169,274)
(362,568)
-
(362,568)
5,300,501
4,937,933

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.

22

The Army Cadet Charitable Trust UK

Company no. 00293432

Balance sheet

As at 31 March 2024

----- Start of picture text -----
2024 2023
Note £ £ £ £
Fixed assets:
Tangible assets 13 228,611 37,049
Investments 14a 3,570,347 3,172,022
3,798,958 3,209,071
Current assets:
Short term investments 14b 2,450,186 -
Stock 15 17,548 11,334
Debtors 16 72,317 106,925
-
Short term deposits 300,000
Cash at bank and in hand 634,053 1,664,132
3,174,104 2,082,391
Liabilities:
Creditors: amounts falling due within one year 17 (628,526) (353,529)
Net current assets 2,545,578 1,728,862
Total net assets 6,344,536 4,937,933
The funds of the charity: 20
Restricted income funds 1,334,747 434,028
Unrestricted income funds:
Designated funds 3,607,200 3,196,152
General funds 1,402,589 1,307,753
Total unrestricted funds 5,009,789 4,503,905
Total charity funds 6,344,536 4,937,933
----- End of picture text -----

Approved by the trustees on 12 December 2024 and signed on their behalf by

Jemma Ralph Vice Chair

Sarah Dickson Treasurer

23

The Army Cadet Charitable Trust UK

Statement of cash flows

For the year ended 31 March 2024

Note
£
£
Cash flows from operating activities
Net income/(expenditure) for the reporting period
1,406,603
(as per the statement of financial activities)
Depreciation charges
45,290
(Gains)/losses on investments
(477,802)
Losses on disposal of fixed assets
-
Dividends and interest from investments
(100,767)
Decrease in debtors
34,608
Increase/(decrease) in creditors
274,997
(Increase)/decrease in stock
(6,214)
Net cash provide by/(used in) operating activities
1,176,715
100,767
(236,852)
1,422,054
(3,788,490)
(2,502,521)
(1,325,806)
Cash and cash equivalents at the beginning of the year
1,965,104
639,298
Analysis of cash and cash equivalents
At 1 April 2023
Cash flows
£
£
Cash at bank and in hand
1,664,132
(1,030,079)
Short Term Deposits
300,000
(300,000)
Cash held by investment managers
972
4,273
Total cash and cash equivalents
1,965,104
(1,325,806)
2024
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net cash (used in)/provided by investing activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments		 £
£
(362,568)
24,241
169,274
425
(89,108)
50,478
(10,221)
11,169
(206,310)
89,108
(11,233)
-
-
77,875
(128,435)
2,093,539
1,965,104
Other non-
cash changes
At 31 March
2024
£
£
-
634,053
-
-
-
5,245
-
639,298
2023

24

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

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.

c) Public benefit entity

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 but 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.

Interest and dividends received on Unrestricted and Designated Funds are recognised in the General Unrestricted Fund.

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.

25

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

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.

g) Interest and dividends receivable

Interest and dividends on funds held on deposit or in the investment portfolio 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 or investment manager.

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.

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.

k) Allocation of support costs

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.

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

26

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

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.

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:

4 years 4 years 3 - 4 years

n) Listed investments

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. These funds can be accessed with up to 5 days notice.

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.

Short term investments includes cash balances that are invested in a short term bond account with a maturity date of between 3 and 5 days.

q) Short Term Deposits

Short Term Deposits include cash balances that were invested in accounts with a maturity date of between 3 and 12 months.

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.

u) 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.

27

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

Ministry of Defence grants
Donated services		 Unrestricted
£
706,722
28,000
734,722		 £
5,026,890
-
5,026,890
Restricted		 2024
Total
£
5,733,612
28,000
5,761,612		 Unrestricted
£
2,221,371
28,000
2,289,219		 £
1,814,051
-
1,963,842
Restricted		 2023
Total
£
4,035,422
28,000
4,253,061

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 of £234,000 (2023: £113,000) this year to support the Cadet Digital Services project. The Charles Brotherton Trust (Leeds fund) continue their long-standing support £275 (2023: £825) 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

Income from charitable activities
Supporting cadets and volunteers 2024
2023
Unrestricted
Total
Unrestricted
Total
£
£
£
£
£
£
Restricted
Restricted
Subscriptions 529
-
529
595
-
595

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

Events and awards
Merchandise sales
Other
Total
Dividends
Bank interest
Income from investments		 Unrestricted
£
15,000
11,303
51,518
77,821
Unrestricted
£
93,386
7,381
100,767		 £
-
-
-
-
£
-
-
-
Restricted
Restricted		 2024
Total
£
15,000
11,303
51,518
77,821
2024
Total
£
93,386
7,381
100,767		 Unrestricted
£
-
7,383
8,245
15,628
Unrestricted
£
74,693
14,415
89,108		 £
55,260
-
-
55,260
£
-
-
-
Restricted
Restricted		 2023
Total
£
55,260
7,383
8,245
70,888
2023
Total
£
74,693
14,415
89,108

28

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

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 2024
Total expenditure 2023		 Raising
funds
£
-
-
-
-
-
-
-
-
-
6,394
-
-
-
6,394
-
-
6,394
600		 Supporting
ACF
Counties
Supporting
cadets and
volunteers
£
£
400,653
1,400,812
17,425
125,379
136,611
806,303
1,092,345
-
-
-
756,666
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,403,700
2,332,494
55,242
193,145
4,660
16,293
2,463,602
2,541,932
2,246,685
2,359,661
Charitable activities		 Governance
costs
£
-
-
-
-
-
-
19,030
-
1,923
-
-
-
-
20,953
-
(20,953)
-
-		 Support
costs
£
61,023
-
-
-
15,897
-
-
-
-
-
92,074
34,103
45,290
248,387
(248,387)
-
-		 2024
Total
£
1,862,488
142,804
942,914
1,092,345
15,897
756,666
19,030
-
1,923
6,394
92,074
34,103
45,290
5,011,928
-
-
5,011,928		 2023
Total
£
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
4,606,946
-
-
4,606,946

29

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

6b Analysis of expenditure (previous year)

Charitable activities

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 2023		 Raising
funds
£
-
-
-
-
-
-
-
-
-
600
-
-
-
600
-
-
600		 Supporting
ACF
Counties
£
129,310
31,276
141,817
870,598
-
1,053,466
-
-
-
-
-
-
-
2,226,467
18,457
1,761
2,246,685		 Supporting
cadets and
volunteers
£
1,414,277
343,073
381,193
-
-
-
-
-
-
-
-
-
-
2,138,543
201,857
19,261
2,359,661		 Governance
costs
£
-
-
-
-
-
-
12,720
5,273
3,029
-
-
-
-
21,022
-
(21,022)
-		 Support
costs
£
33,990
-
-
-
32,570
3,975
-
20,884
-
-
75,612
29,042
24,241
220,314
(220,314)
-
-		 2023
Total
£
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
4,606,946
-
-
4,606,946

30

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

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.

----- Start of picture text -----
|||||| |---|---|---|---|---| |2024|2023|2024|2023| |No of| |No of awards|awards|£|£| |Supporting ACF Counties, Regions and Training Centres| |General Grants|5|8|17,425|31,276| |Supporting Individual Cadets and Volunteers| |General Grants|26|31|60,700|91,018| |Matthew Bacon Bursary|4|3|1,817|1,431| |Sports|8|10|21,200|27,197| |Cadet Music Fund|1|1|1,000|350| |Duke of Edinburgh's Award|18|9|12,569|6,110| |Vocational Qualifications|-|4|-|155,020| |Adventurous Training Fund|13|-|10,981|-| |Grants in Wales|6|3|15,113|55,842| |Grants in Scotland|2|5|2,000|6,105| |At the end of the year|83|74|142,805|374,349|

----- End of picture text -----

This is stated after charging / (crediting):

----- Start of picture text -----
|||| |---|---|---| |2024|2023| |£|£| |Depreciation|45,290|24,241| |Operating lease rentals payable:| |Equipment|4,987|4,987| |Auditor's remuneration (excluding VAT):| |Audit - current year|13,500|12,050|

----- End of picture text -----

31

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

Social security costs
Salaries and wages
Employer’s contribution to defined contribution pension schemes
Recruitment and other payroll costs
Redundancy and termination costs		 2024
£
1,520,639
-
153,139
127,687
61,023
1,862,488		 2023
£
1,291,612
12,859
130,488
108,628
33,990
1,577,577

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 (2023: 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, the Deputy Chief Executive and the Director of Development. The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £133,125 (2023: £96,401).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2023: £nil). No charity trustee received payment for professional or other services supplied to the charity (2023: £nil). Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £1,923 (2023: £3,234 ) incurred by 4 (2023: 8) individuals relating to attendance at meetings of the trustees.

10 Staff numbers

The full time equivalent staff carrying out work for the ACCT UK during the year was 67 (2023: 50).

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 73 (2023: 50).

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 (2023: nil) related party transactions of this type relating to nil (2023: nil) trustees totalling £nil (2023: £nil) 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.

32

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

13 Tangible fixed assets

Net book value
Disposals in year
Additions in year
Depreciation
Cost
At the start of the year
At the end of the year
At the start of the year
Charge for the year
At the end of the year
At the start of the year
Eliminated on disposal
At the end of the year		 Leasehold
Improvements
£
-
131,714
-
131,714
-
5,393
-
5,393
126,321
-		 Fixtures and
fittings
£
53,715
-
-
53,715
48,367
4,421
-
52,788
927
5,348		 Computer
and Camera
Equipment
£
83,998
105,138
-
189,136
52,297
35,476
-
87,773
101,363
31,701		 Total
£
137,713
236,852
-
374,565
100,664
45,290
-
145,954
228,611
37,049

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

14a Listed investments

Cash
Cash held by investment broker pending reinvestment
Fair value at the start of the year
Additions at cost
Net gain/(loss) on change in fair value
Investments comprise the following:
Disposal proceeds
UK Common investment funds
Fair value at the end of the year		 2024
£
3,171,050
-
-
398,925
3,569,975
372
3,570,347
2024
£
3,569,975
372
3,570,347		 2023
£
3,340,324
-
-
(169,274)
3,171,050
972
3,172,022
2023
£
3,171,050
972
3,172,022

33

The Army Cadet Charitable Trust UK

Notes to the financial statements

Notes to the financial statements
For the year ended 31 March 2024
14b
Short term investments
Fair Value at the start of the year
Additions at cost
Disposal Proceeds
Net gain/(loss) on change in fair value
Cash Held by Investment Broker pending reinvestment
Fair Value at end of the year
Investments comprise the following
UK Common investment funds
Cash
Fair Value at the end of the year
15
16
Other debtors
Prepayments
Stock
Debtors
Trade debtors
Merchandise
Accrued income		 2024
£
-
3,788,490
(1,422,054)
78,877
2,445,313
4,873
2,450,186
2024
£
2,445,313
4,873
2,450,186
2024
£
17,546
17,546
2024
£
-
3,306
69,011
-
72,317		 2023
£
-
-
-
-
-
-
-
2023
£
-
-
-
2023
£
11,334
11,334
2023
£
900
-
87,470
18,555
106,925

34

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

17 Creditors: amounts falling due within one year

Accruals
Taxation and social security
Pension contributions
Other creditors
Deferred income (note 18)
Trade creditors		 2024
£
307,002
62,160
23,766
254
84,584
150,760
628,526		 2023
£
127,026
56,823
17,055
-
14,154
138,471
353,529

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		 2024
£
138,471
(138,471)
150,760
150,760		 2023
£
97,664
(97,664)
138,471
138,471

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

Tangible fixed assets
Net assets at 31 March 2024
Fixed asset investments
Net current assets		 General
unrestricted
£
228,611
220,667
953,311
1,402,589		 Designated
£
-
3,349,680
257,520
3,607,200		 Restricted
£
-
-
1,334,747
1,334,747		 Total
funds
£
228,611
3,570,347
2,545,579
6,344,536

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

Tangible fixed assets
Fixed asset investments
Net assets at 31 March 2023
Net current assets		 General
unrestricted
£
37,049
196,015
1,074,689
1,307,753		 Designated
£
-
2,976,007
220,145
3,196,152		 Restricted
£
-
-
434,028
434,028		 Total
funds
£
37,049
3,172,022
1,728,862
4,937,933

35

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

20a Movements in funds (current year)

Restricted funds:
Total restricted funds
Total designated funds
General funds
Unrestricted funds:
Designated funds:
- Northern Irish fund
Cadet Music fund
Army Cadet Marketing fund
South East Essex fund
Total funds
Cadet Sport fund
- Wiltshire fund
Army Cadet Activity fund
Cadet Digital Services fund
- Income generation fund
National Commemorative Events fund
Adventure Training fund
- Welsh fund
Total unrestricted funds
Duke of Edinburgh Award fund
Matthew Bacon Bursary fund
London fund
- Scottish fund
Sailing fund
Leeds fund
Grenadier fund		 At 1 April
2023
£
212,065
-
43,803
20,057
88,269
5,230
500
825
1,905
3,170
1,104
21,419
15,181
20,500
434,028
2,976,007
24,053
140,508
55,584
-
3,196,152
1,307,753
4,503,905
4,937,933		 Income &
gains
£
1,080,762
1,866,491
1,868,010
38,472
13,650
63,525
-
275
2,900
-
-
-
92,805
-
5,026,890
-
4,870
4,358
22,772
5,000
37,000
1,354,641
1,391,641
6,418,531		 Expenditure
& losses
£
(955,066)
(1,645,608)
(1,374,254)
(1,000)
(21,200)
(12,569)
(450)
(825)
(4,555)
(1,817)
(1,104)
(5,040)
(41,764)
-
(4,065,252)
(600)
(93)
(12,970)
(11,214)
-
(24,877)
(921,799)
(946,676)
(5,011,928)		 Transfers
£
-
-
-
-
(60,669)
-
-
-
(250)
-
-
-
-
-
(60,919)
374,273
2,284
15,916
6,452
-
398,925
(338,006)
60,919
-		 At 31 March
2024
£
337,761
220,883
537,559
57,529
20,050
56,186
50
275
-
1,353
-
16,379
66,222
20,500
1,334,747
3,349,680
31,114
147,812
73,594
5,000
3,607,200
1,402,589
5,009,789
6,344,536

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

36

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

20b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Vocational Qualifications fund
National Commemorative Events fund
Army Cadet Marketing fund
Adventure Training fund
Total unrestricted funds
Designated funds:
- Income generation fund
Cadet Sport fund
Chris Wood Memorial fund
Unrestricted funds:
Restricted funds:
London fund
Cadet Digital Services fund
South East Essex fund
Sailing fund
Matthew Bacon Bursary fund
- Northern Irish fund
- Scottish fund
India Trip fund
Duke of Edinburgh Award fund
Grenadier fund
Total funds
Leeds fund
Cadet Music fund
- Welsh fund		 At 1 April
2022
£
390,039
-
13,626
96,451
355
359
500
550
2,035
2,664
1,104
26,900
494
-
21,947
-
557,024
3,135,367
19,193
136,620
54,230
3,345,410
1,398,067
4,743,477
5,300,501		 Income &
gains
£
860,000
914,401
6,781
-
-
10,981
-
275
1,200
-
-
-
-
72,814
-
152,650
2,019,102
-
1,482
12,520
1,650
15,652
2,378,898
2,394,550
4,413,652		 Expenditure
& losses
£
(1,037,974)
(870,598)
(350)
(8,182)
(1,140)
(6,110)
-
-
(1,330)
(1,431)
-
(5,481)
(494)
(57,633)
(1,447)
(152,650)
(2,144,820)
(600)
(502)
(17,462)
(1,325)
(19,889)
(2,611,511)
(2,631,400)
(4,776,220)		 Transfers
£
-
-
-
785
-
-
-
1,937
-
-
-
-
-
2,722
(158,760)
3,880
8,830
1,029
(145,021)
142,299
(2,722)
-		 At 31 March
2023
£
212,065
43,803
20,057
88,269
-
5,230
500
825
1,905
3,170
1,104
21,419
-
15,181
20,500
-
434,028
2,976,007
24,053
140,508
55,584
3,196,152
1,307,753
4,503,905
4,937,933

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.

Army Cadet Activity fund - This fund is used to run cadet activities and ensure the well being of both cadets and 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 Sport fund - These funds exist to support Army Cadet sport across the UK. These funds were provided by members of the counties who voted at an AGM held on 23rd March, 2024 to derestrict £60,669 of the funds as they were not going to be utilised in the future. Consequently we have transferred out this amount from the Cadet Sports Fund into the General Fund.

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.

37

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

20 Purposes of restricted funds (continued)

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. £250 of this fund was transferred to the General Fund to support the purchase of drums for cadets in London.

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 Surrey 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.

Adventure Training fund - This fund exists to support Adventurous Training in the Army Cadets. It helps to fund the Cadet Centre for Adventurous Training, which delivers qualification to cadets and volunteers, and also supports expeditions in the UK and overseas. 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.

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. The fund is now expended and closed.

India Trip fund - The fund was raised for the cadet to attend the National Youth India Exchange programme 2022 but due to covid restrictions, the trip was cancelled. All refunds have now been made and the fund is now expended and closed.

Vocational Qualifications fund - This fund is to support 430 ACF Cadets from the community of Devolved Nations to gain a BTEC Level 2 . The fund is now expended and closed.

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.

Wiltshire fund - Wiltshire ACF used to have its own charity but it was shut down some years ago. A sum of £5,000 was left to the Wiltshire ACF League and the solictors managing probate identified ACCT UK as a suitable alternative charity to receive the legacy. The funds therefore came in to the charity as unrestricted funding. However the trustees felt they had a moral duty to try and spend the funds in support of cadets in Wiltshire. Therefore, they decided that for three years this legacy will designated to support cadets in Wiltshire, after which the remaining gift will be released into the general fund.

38

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2024

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

Less than one year
One to five years		 2024
2023
£
£
4,987
4,987
-
4,987
4,987
9,974
Equipment

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.

2nd Bn Highlanders ACF 2nd (Northern Ireland) Bn ACF Bedfordshire & Hertfordshire ACF Berkshire ACF Black Watch ACF Bristol ACF Cadet Training Centre Frimley Park Cambridgeshire ACF City of London & North East Sector ACF Cornwall ACF Derbyshire ACF Dorset ACF Durham ACF Dyfed & Glamorgan ACF Essex ACF Glasgow & Lanarkshire ACF Greater London & South East Sector ACF Greater London & South West Sector ACF Greater Manchester ACF Gwent & Powys ACF

Hampshire & Isle of Wight ACF Humberside & South Yorkshire ACF Kent ACF Leicestershire, Northamptonshire & Rutland ACF Lincolnshire ACF Lothian & Borders Bn ACF Middlesex & North West London ACF Norfolk ACF Northumbria ACF Nottinghamshire ACF Octavia Hill - National ACF Museum Oxfordshire ACF Shropshire ACF Suffolk ACF Surrey ACF Sussex ACF Warwickshire & West Midlands South Sector ACF Wiltshire ACF Yorkshire (North & West) ACF

39