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2025-03-31-accounts

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

Report and financial statements For the year ended 31 March 2025

The Army Cadet Charitable Trust ACCT UK

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For the Year Ended 31 March 2025

Contents

Reference and administrative information 2
Trustees’ annual report 4
Independent auditor’s report 17
Statement of financial activities (incorporating an income and expenditure account) 21
Balance sheet 22
Statement of cash flows 23
Notes to the financial statements 24

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For the Year Ended 31 March 2025

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

E Shirley Montgomery (resigned 2 Oct 2024)

B C F Joyce Quin

C Oliver Rice-Adams

A B D Justin Tarka

A D Christopher Tearney

E Simon Harrison (appointed 2 May 2025)

A Charlotte Shyllon (appointed 4 Jun 2025)

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

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 2025

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 Faye Meakin Director of Development
Bankers Lloyds Bank plc
Butler Place
London SW1H 0PR London SW1H 0PR
Investment Waverton Investment Management
managers 16 Babmaes Street
London SW1Y 6AH 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 2025

Trustees’ Annual Report

The trustees present their report and the audited financial statements for the year ended 31 March 2025.

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 c.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 ACF 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.

ACCT UK supports and promotes the positive actions of cadets and adult volunteers by recognising and rewarding their contribution to wider society. The charity runs two award programmes, the ACCT UK

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For the Year Ended 31 March 2025

Excellence Awards recognising the outstanding cadets and adult volunteers of the ACF in fields of sport, first aid, music, Duke of Edinburgh’s Award and Community Service. As well as the ACCT UK Praiseworthy Action Award, for those cadets and adult volunteers who render help and assistance to the general community from minor incidents to life-saving situations and other real-life emergencies. In the calendar year 2024 ACCT UK provided recognition to 97 cadets and 40 adult volunteers who stepped forward demonstrating excellence, selflessness and dedication particularly in supporting people, community service, and rendering first aid. ACCT UK also nominated and successfully obtained national awards for 19 cadets and 25 adult volunteers. These were non-state awards by bodies including the Royal Humane Society, the British Citizen Award and the League of Mercy.

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

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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:

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 £121,608 (2024 - £125,380). In support of ACF Counties, Regions and Training Centres we paid grants of £94,537 (2024 - £17,425).

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.

Here are some examples of how ACCT UK grants have supported cadets and volunteers this year:

For the Year Ended 31 March 2025

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:

In this financial year, ACCT UK was able to offer further grant support to Counties for their Duke of Edinburgh (DofE) Award activities. The ACCT UK DofE Resilience Fund was funded in part by a DCMS grant for English Counties and a DofE Award grant for Northern Irish Counties awarded to ACCT UK, with ACCT UK then also providing additional funding for Wales and Scotland. In total we were able to fund expedition equipment valued at over £60,000 for 51 ACF Counties; 38 adult volunteers were fully funded to obtain one or more DofE qualifications; and 623 cadets were provided with fully funded places on the award scheme.

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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For the Year Ended 31 March 2025

Financial review

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

Income for the year included donations and legacies of £5,794,076 (2024 – £5,761,612), income for supporting cadets and volunteers of £363 (2024- £529), other trading activities of £70,895 (2024 – £77,821) and investment income and interest of £97,218 (2024 - £100,767). Total gross income amounted to £5,962,552 (2024 - £5,940,729).

Expenditure for the year comprised costs of raising funds of £8,204 (2024 – £6,394). Costs of activities in support of ACF Counties comprised £3,146,839 (2024 – £2,463,602) and costs of supporting cadets and

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Trust UK For the Year Ended 31 March 2025 volunteers comprised £2,634,252 (2024 – £2,541,932). Total expenditure amounted to £5,789,295 (2024 – £5,011,928).

Net income for the year before investment (losses)/gains amounted to £173,257 (2024 – net income of £928,801). This was owing to extra fundraised income which will be planned for spending in future years. The charity anticipates a continued increase in activity over 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.

The trustees have set aside funds to be invested and treated as an investment. There are two aims: (1) to maintain the real-term value of the portfolio and (2) to generate income for the grants programmes. During the year net gains on the fair value of investments amounted to £204,605 (2024 – net gains of £477,802). 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 2025 has been calculated as 7.44% (March 2024 - 7.04%). As at 31 March 2025 the portfolio’s five-year average shows a return of 8.10% (2024: 6.82%). The trustees remain satisfied with the investment performance.

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 £4,556,355 (2024 - £2,450,186). There are significant funds being held for future charitable activity and, as such, ACCT UK is working to a deficit budget in 2025-26.

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.

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

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

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Trust UK For the Year Ended 31 March 2025 charity. They are therefore excluded from the reserves calculation. Funds invested for this purpose generated an income of £97,218 (2024: £93,386).

The minimum reserves allowed under this policy is £1,671,154 (2024: £1,330,010). Free reserves were £1,157,025 (2024: £1,173,978). 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 £4.6m in short-term investments (with a three-day access period), meaning the charity has sufficient liquidity to manage cashflow effectively.

The current reserves position is c.£514k 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 69% 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 identified two potential audiences from which to raise funds:

In 2024-25 the charity remained focussed on the internal audience with the second year of the ACCT UK ‘Cadet Challenge’, which runs on the calendar year, and encourages the ACF community to raise funds for the charity. There was a growth in numbers participating, with cadets and volunteers from 32 ACF Counties taking part (21 in 2023) and an overall increase in the amount of funds raised.

Externally we worked with companies looking to support the cadet forces as part of their membership of the Defence Employer Recognition Scheme. Whilst support has been received from several companies, these initial donations have been small in scale and reflect the importance of time in building these relationships over several years.

We were grateful to be the main recipient of the fundraising efforts of Army Cadet Ambassador Jordan Wylie MBE, who embarked on an eco-triathlon from Pisa to Blackpool. In 2025-26 we look forward to

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supporting his next challenge done in support of ACCT UK, an expedition to climb a previous uncharted mountain in Antarctica.

We will 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 2024, the trustees reviewed their 5-Year Vision 2022-2027 and decided to replace it with a refreshed vision to cover the years 2025-2030. The changes were largely evolutionary reflecting that the Charity itself is still evolving following its rename and rebrand in 2021/2022 and that action towards achieving the elements of the 5-Year Vision are broadly work in progress.

ACCT UK 5-Year Vision 2025-2030

Character, leadership, and good citizenship

Our vision is a future where the ACF is empowered to develop character, leadership, and good citizenship in young people across the UK. ACCT UK aims to be recognised as the principal charitable partner of ACF, known for our commitment and contribution. By supporting the ACF, ACCT UK nurtures engaged, responsible, and civic-minded individuals who positively contribute to their communities and society.

We will do this through the following lines of activity:

2 Building a National Profile Develop and present a clearer identity for ACCT UK as a charity and its charitable work. Build and leverage relationships to raise ACCT UK's national profile with potential supporters.

3 Working with the Army Continue the constructive working relationship that ACCT UK enjoys with the Army in support of the ACF.

4 Supporting our Beneficiaries

Increase and sustain our charitable output in support of our beneficiaries – cadets and adult volunteers alike – but with continued emphasis on adult volunteers, as without them there would be no ACF.

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5 Advocating for Service

Continue to actively publicly advocate the benefits of Service as a means of nurturing engaged responsible and civic-minded individuals… and in so doing, celebrate the achievements of cadets and adult volunteers.

6 Evolving

7 Celebrating Our Centenary

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 (Deputy Chief Executive) Faye Meakin (Director of Development) and an additional 79 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:

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The ACCT UK Board has seven sub committees. They are the:

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 goes into ensuring that prospective members are diverse, not only in the commonly accepted sense of gender, ethnicity etc but also collectively, as it is important that the general trustees in particular bring diversity in two respects: geographically, the Board must always have representation from the devolved nations and, ideally, have representation from those parts of England well away from London and the South East; in terms of rank and experience in the ACF, the ideal is to have a fair balance of senior and junior volunteers from the ACF who each bring different experience to the board.

Whether recruiting individuals with specialist knowledge, skills and experience 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 2025 AGM

The trustees are well aware of the Charity Commission’s best practice guidance “Finding and appointing new trustees (CC30)”, understanding and believing why it is essential that boards of trustees are refreshed. ACCT UK’s trustees are therefore 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 2025, for a second year in succession no new trustees were appointed, although two new trustees have since been co-opted. This was the result of careful deliberation by the Nominations & Governance Committee, its recommendations being ratified by the full board and voted in by members at the AGM in March 2025. There were two distinct reasons for coming to this conclusion:

1 which is a joint sub-committee of the Combined Cadet Force Association (CCFA) and ACCT UK

2 which is a joint sub-committee of the Combined Cadet Force Association (CCFA) and ACCT UK

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For the Year Ended 31 March 2025

Of the five trustees coming to the end of their three-year terms, four were completing their first term (David Chipp, Joyce Quin, Oli Rice-Adams and Justin Tarka). All had proved to be active and committed trustees, bringing to the Board additional Knowledge, Skills & Experience and connections from their day jobs, had developed into experienced trustees still with much to offer, and all expressed keen willingness to stand for election for a further term as trustees.

The fifth trustee whose tenure was coming to an end was Chris Tearney, who had been a trustee for 10 years and who was completing his third term as a trustee. The Nominations & Governance Committee concluded that there were exceptionally strong reasons to ask Chris Tearney to stand for a fourth term. He was one of the most actively engaged trustees. This was because he was effectively retired and therefore was ‘time rich’, unlike many of the trustees, responding quickly to any calls to join committees short of numbers and willingly taking on additional project work. Furthermore, the combination of his deep experience of the ACF plus his memory of the Charity and its Board before the rebrand brought a value of its own in terms of continuity of knowledge, Chris not holding back from robustly challenging emerging ideas when right and appropriate. For all these reasons, the Board members collectively felt they had had much to lose by asking Chris to retire at the 2025 AGM. The members agreed and unanimously re-elected him at the 2025 AGM.

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 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:

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For the Year Ended 31 March 2025

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 2025 was 186 (2024: 165). 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 7 August 2025 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 2025 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, we do

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Army Cadet Charitable Trust UK | Independent auditor’s report

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:

19

Army Cadet Charitable Trust UK | Independent auditor’s report

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.

Jonathan Coyle (Senior statutory auditor) Date: 15 September 2025 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

20

The Army Cadet Charitable Trust UK

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

For the year ended 31 March 2025

For theyear ended 31 March 2025
Note
Income from:
2
3
4
5
6
6
6
14
8
Reconciliation of funds:
Net income for the year
Total funds carried forward
Transfers between funds
Net movement in funds
Total funds brought forward
Net income/(expenditure) before net gains on
investments
Supporting cadets and volunteers
Net gains on investments
Investments
Total income
Expenditure on:
Raising funds
Total expenditure
Charitable activities
Supporting ACF Counties, Regions and
Centres
Other trading activities
Donations and legacies
Charitable activities
Supporting cadets and volunteers		 Unrestricted
£
864,939
363
70,895
97,218		 Restricted
£
4,929,137
-
-
-		 2025
Total
£
5,794,076
363
70,895
97,218		 Unrestricted
£
734,722
529
77,821
100,767		 Restricted
£
5,026,890
-
-
-		 2024
Total
£
5,761,612
529
77,821
100,767
1,033,415 4,929,137 5,962,552 913,839 5,026,890 5,940,729
8,204
312,121
782,325		 -
2,834,718
1,851,927		 8,204
3,146,839
2,634,252		 6,394
134,282
806,000		 -
2,329,320
1,735,932		 6,394
2,463,602
2,541,932
1,102,650 4,686,645 5,789,295 946,676 4,065,252 5,011,928
(69,235)
173,748		 242,492
30,857		 173,257
204,605		 (32,837)
477,802		 961,638
-		 928,801
477,802
104,513
(28,288)		 273,349
28,288		 377,862
-		 444,965
60,919		 961,638
(60,919)		 1,406,603
-
76,225
5,009,789		 301,637
1,334,747		 377,862
6,344,536		 505,884
4,503,905		 900,719
434,028		 1,406,603
4,937,933
5,086,014 1,636,384 6,722,398 5,009,789 1,334,747 6,344,536

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 19 to the financial statements.

21

The Army Cadet Charitable Trust UK

Company no. 00293432

Balance sheet

As at 31 March 2025

As at 31 March 2025
Note
Fixed assets:
13
14a
Current assets:
14b
Debtors
15
Liabilities:
16
19
Total unrestricted funds
Restricted income funds
Unrestricted income funds:
Designated funds
Stock
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investments
Cash at bank and in hand
Tangible assets
Short term investments
General funds
Total charity funds		 £
4,556,355
15,680
165,256
521,555		 2025
£
247,171
3,612,711		 £
2,450,186
17,548
72,317
634,053		 2024
£
228,611
3,570,347
3,859,882
2,862,516		 3,798,958
2,545,578
5,258,846
(2,396,330)		 3,174,104
(628,526)
3,681,818
1,404,196		 3,607,200
1,402,589
6,722,398 6,344,536
1,636,384
5,086,014		 1,334,747
5,009,789
6,722,398 6,344,536

Approved by the trustees on 7 August 2025 and signed on their behalf by

Jemma Ralph Vice Chair

Sarah Dickson Treasurer

22

The Army Cadet Charitable Trust UK

Statement of cash flows

For the year ended 31 March 2025

For the year ended 31 March 2025 For the year ended 31 March 2025 For the year ended 31 March 2025
Note
£
£
Cash flows from operating activities
Net income for the reporting period
377,862
(as per the statement of financial activities)
Depreciation charges
94,309
(Gains) on investments
(204,605)
Dividends and interest from investments
(97,218)
(Increase)/decrease in debtors
(92,939)
Increase in creditors
1,767,804
Decrease/(increase) in stock
1,868
Net cash provide by operating activities
1,847,081
97,218
(112,869)
3,800,385
(4,392,333)
(607,599)
1,239,482
Cash and cash equivalents at the beginning of the year
639,298
1,878,780
Analysis of cash and cash equivalents
At 1 April 2024
Cash flows
£
£
Cash at bank and in hand
634,053
(112,498)
Cash held by investment managers
5,245
1,351,980
Total cash and cash equivalents
639,298
1,239,482
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net cash used in investing activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
2025		 £
£
1,406,603
45,290
(477,802)
(100,767)
34,608
274,997
(6,214)
1,176,715
100,767
(236,852)
1,422,054
(3,788,490)
(2,502,521)
(1,325,806)
1,965,104
639,298
Other non-
cash changes
At 31 March
2025
£
£
-
521,555
-
1,357,225
-
1,878,780
2024
97,218
(112,869)
3,800,385
(4,392,333)		 100,767
(236,852)
1,422,054
(3,788,490)
At 1 April 2024
£
634,053
5,245		 Other non-
cash changes
£
-
-
1,239,482
639,298		 (1,325,806)
1,965,104
1,878,780 639,298
Cash flows
£
(112,498)
1,351,980		 At 31 March
2025
£
521,555
1,357,225
639,298 1,239,482 - 1,878,780

23

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

1 Accounting policies

a) Statutory information

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

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

b) Basis of preparation

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

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

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

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.

24

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

f) Donations of gifts, services and facilities

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.

h) Fund accounting

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

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

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

i) Expenditure and irrecoverable VAT

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

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

j) Grants payable

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

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

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 divided on a proportional basis.

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

l) Operating leases

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

25

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

1 Accounting policies (continued)

m) Tangible fixed assets

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

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

 Leasehold improvements 4 years  Fixtures and fittings 4 years  Computer and Camera equipment 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. 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.

o) Debtors

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

q) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

r) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

s) 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.

26

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

Income from donations
Ministry of Defence grants
Other Grants
Donated services		 Unrestricted
£
836,939
-
28,000		 £
4,803,137
126,000
-
Restricted		 2025
Total
£
5,640,076
126,000
28,000		 Unrestricted
£
706,722
-
28,000		 2024
Total
£
£
4,792,890
5,499,612
234,000
234,000
-
28,000
5,026,890
5,761,612
Restricted
864,939 4,929,137 5,794,076 734,722

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 £126,000 (2024: £234,000) this year to support the Cadet Digital Services project.

The Charles Brotherton Trust (Leeds fund) continue their long-standing support £Nil (2024: £275) enabling Adventure Training for young people in Leeds.

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

Income from charitable activities
2025 2024
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Supporting cadets and volunteers
Subscriptions 363 - 363 529 - 529

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

Income from other trading activities
Events and awards
Merchandise sales
ACCT branches
Total		 Unrestricted
£
36,606
2,510
31,779		 £
-
-
-
Restricted		 2025
Total
£
36,606
2,510
31,779		 Unrestricted
£
15,000
11,303
51,518		 2024
Total
£
£
-
15,000
-
11,303
-
51,518
-
77,821
Restricted
70,895 - 70,895 77,821
Income from investments
Dividends and interest on Investments
Bank interest		 Unrestricted
£
97,218
-		 £
-
-
Restricted		 2025
Total
£
97,218
-		 Unrestricted
£
93,386
7,381		 £
-
-
Restricted		 2024
Total
£
93,386
7,381
97,218 - 97,218 100,767 - 100,767

27

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

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
Professional Fees
Trustee expenses
Investment manager fees
Office expenses
Travel
Depreciation
Support costs
Governance costs
Total expenditure 2025
Total expenditure 2024		 Raising
funds
£
-
-
-
-
-
-
-
-
-
8,204
-
-
-
8,204
-
-
8,204
6,394		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
20,640
47,464
2,490
-
-
-
-
70,594
-
(70,594)
-
-		 Support
costs
£
38,368
-
-
-
-
-
-
11,490
-
-
122,299
18,152
94,311
284,620
(284,620)
-
-
-		 2025
Total
£
2,215,787
216,145
948,721
1,233,911
-
849,681
20,640
58,954
2,490
8,204
122,299
18,152
94,311
5,789,295
-
-
5,789,295		 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
Supporting
ACF
Counties
£
497,210
94,537
390,387
1,233,911
-
849,681
-
-
-
-
-
-
-
3,065,726
64,992
16,121
3,146,839
2,463,602		 Supporting
cadets and
volunteers
£
1,680,209
121,608
558,334
-
-
-
-
-
-
-
-
-
-
2,360,151
219,628
54,473
2,634,252
2,541,932
5,011,928
-
-
5,011,928

28

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

6b Analysis of expenditure (prior year)

Staff costs (Note 9)
Grant making (Note 7)
Direct activity costs
Cadet Digital Services
Insurance
Marketing and advertising
Audit fees
Trustee expenses
Investment manager fees
Office expenses
Travel
Depreciation
Support costs
Governance costs
Total expenditure 2024		 Raising
funds
£
-
-
-
-
-
-
-
-
6,394
-
-
-
6,394
-
-
6,394		 Charitable activities 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
Supporting
ACF
Counties
£
400,653
17,425
136,611
1,092,345
-
756,666
-
-
-
-
-
-
2,403,700
55,242
4,660
2,463,602		 Supporting
cadets and
volunteers
£
1,400,812
125,379
806,303
-
-
-
-
-
-
-
-
-
2,332,494
193,145
16,293
2,541,932
5,011,928
-
-
5,011,928

29

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

7 Grant making

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

A list of the ACF Counties and Regions that have received grants in the year from the ACCT UK is at note 22.

A list of the ACF Counties and Regions that have received grants in the year from the A CCT UK is at no te 22.
Supporting ACF Counties, Regions and Training Centres
Supporting Individual Cadets and Volunteers
Grants in Scotland
Duke of Edinburgh Award
Welsh Fund
Music Fund
Scottish Fund
Northumbria ACF fund
Wiltshire ACF fund
Grenadier Fund
Sport Fund
Grants in Northern Ireland
Cadet Music Fund
At the end of the year
Duke of Edinburgh's Award
At the end of the year
General Grants
Wiltshire ACF fund
London
Adventurous Training Fund
Matthew Bacon Bursary
Sports
General Grants
National Commemorative Events fund
Grants in Wales
Qualifications Fund		 2025
No of awards
7
51
3
3
4
1
1
1
1		 2024
No of
awards
5
-
-
-
-
-
-
-
-		 2025
£
13,657
50,357
5,676
14,805
4,000
1,250
806
382
3,604		 2024
£
17,425
-
-
-
-
-
-
-
-
72 5 94,537 17,425
24
-
-
-
22
12
2
-
4
-
1
1
1		 26
4
8
1
18
-
-
13
6
2
-
-
-		 84,663
1,882
-
-
9,988
7,797
3,320
-
9,838
-
1,120
1,000
2,000		 60,700
1,817
21,200
1,000
12,569
-
-
10,981
15,113
2,000
-
-
-
67 78 121,608 125,380

8 Net income / (expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2025 2024
£ £
Depreciation 94,309 45,290
Operating lease rentals paid:
Equipment 4,987 4,987
Auditor's remuneration (excluding VAT):
Audit - current year 14,200 13,500

30

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Redundancy and termination costs
Employer’s contribution to defined contribution pension schemes
Recruitment and other payroll costs
Social security costs
Salaries and wages		 2025
£
1,820,311
26,323
175,859
154,926
38,368		 2024
£
1,520,639
-
153,139
127,687
61,023
2,215,787 1,862,488

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 (2024: 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 £160,883 (2024: £133,125).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2024: £nil). No charity trustee received payment for professional or other services supplied to the charity (2024: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £2,490 (2024: £1,923) incurred by 5 (2024: 4) 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 77 (2024: 67).

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 82 (2024: 73).

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 (2024: nil) related party transactions of this type relating to nil (2024: nil) trustees totalling £nil (2024: £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.

31

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

13 Tangible fixed assets

Tangible fixed assets
At the end of the year
At the start of the year
Eliminated on disposal
At the end of the year
At the start of the year
Charge for the year
Depreciation
At the end of the year
Additions in year
Cost
At the start of the year
Net book value
Disposals in year		 Leasehold
Improvements
£
131,714
31,119
-		 Fixtures and
fittings
£
53,715
8,499
-		 Computer
and Camera
Equipment
£
189,136
73,251
-		 Total
£
374,565
112,869
-
162,833 62,214 262,387 487,434
5,393
37,117
-		 52,788
1,683
-		 87,773
55,509
-		 145,954
94,309
-
42,510 54,471 143,282 240,263
120,323 7,743 119,105 247,171
126,321 927 101,363 228,611

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

Listed investments
Fair value at the start of the year
Net gain/(loss) on change in fair value
Investments comprise the following:
Cash
UK Common investment funds
Fair value at the end of the year
Cash held by investment broker pending reinvestment		 2025
£
3,569,975
36,577		 2024
£
3,171,050
398,925
3,606,552
6,159		 3,569,975
372
3,612,711 3,570,347
2025
£
3,606,552
6,159		 2024
£
3,569,975
372
3,612,711 3,570,347

32

The Army Cadet Charitable Trust UK

Notes to the financial statements

Notes to the financial statements
For the year ended 31 March 2025
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
Other debtors
Debtors
Trade debtors
Prepayments		 2025
£
2,445,313
4,392,333
(3,800,385)
168,028		 2024
£
-
3,788,490
(1,422,054)
78,877
3,205,289
1,351,066		 2,445,313
4,873
4,556,355 2,450,186
2025
£
3,205,289
1,351,066		 2024
£
2,445,313
4,873
4,556,355 2,450,186
2025
£
2,547
1,115
161,594		 2024
£
-
3,306
69,011
165,256 72,317

33

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

Creditors: amounts falling due within one year
Deferred income (note 18)
Accruals
Taxation and social security
Pension contributions
Other creditors
Trade creditors		 2025
£
253,534
66,978
34,279
553
75,461
1,965,525		 2024
£
307,002
62,160
23,766
254
84,584
150,760
2,396,330 628,526

17 Deferred income

Deferred income comprises of MOD income received in advance for next year and Insurance income deferred at year end

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		 2025
£
150,760
(150,760)
1,965,525		 2024
£
138,471
(138,471)
150,760
1,965,525 150,760

18a Analysis of net assets between funds (current year)

Analysis of net assets between funds (current year)
Fixed asset investments
Tangible fixed assets
Net assets at 31 March 2025
Net current assets		 General
unrestricted
£
247,171
173,364
983,661		 Designated
£
-
3,439,347
242,471		 Restricted
£
-
-
1,636,384		 Total
funds
£
247,171
3,612,711
2,862,516
1,404,196 3,681,818 1,636,384 6,722,398

18b Analysis of net assets between funds (prior year)

Analysis of net assets between funds (prior year)
Net current assets
Net assets at 31 March 2024
Tangible fixed assets
Fixed asset investments		 General
unrestricted
£
228,611
220,667
953,311		 Designated
£
-
3,349,680
257,520		 Restricted
£
-
-
1,334,747		 Total
funds
£
228,611
3,570,347
2,545,578
1,402,589 3,607,200 1,334,747 6,344,536

34

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

Movements in funds (current year)
Restricted funds:
Qualifications fund
Total restricted funds
Total designated funds
General funds
Army Cadet Marketing fund
Leeds fund
Grenadier fund
Total unrestricted funds
Matthew Bacon Bursary fund
National Commemorative Events fund
Adventure Training fund
- Welsh fund
- Scottish fund
South East Essex fund
Oxfordshire fund
Northumbria ACF
Essex AT Fund
London Fund
- Wiltshire fund
Cadet Music fund
Army Cadet Activity fund
Cadet Sport fund
Duke of Edinburgh Award fund
Cadet Digital Services fund
- Income generation fund
- Northern Irish fund
Total funds
Wiltshire ACF
Unrestricted funds:
Designated funds:		 At 1 April
2024
£
337,761
220,883
537,559
57,529
20,050
56,186
50
275
1,353
16,379
66,222
20,500
-
-
-
-
-
-		 Income &
gains
£
1,122,743
1,673,496
1,782,708
17,077
-
45,585
-
-
1,620
-
298,631
-
2,500
8,884
1,250
500
5,000
-		 Expenditure
& losses
£
(1,151,829)
(1,330,022)
(1,682,889)
(16,359)
(7,609)
(85,259)
(382)
-
(1,882)
-
(393,141)
(3,320)
(250)
(1,806)
(1,250)
-
(2,000)
(8,647)		 Transfers
£
-
(100,820)
-
-
(332)
-
332
-
-
-
28,288
-
-
-
-
-
-
100,820		 At 31 March
2025
£
308,675
463,537
637,378
58,247
12,109
16,512
-
275
1,091
16,379
-
17,180
2,250
7,078
-
500
3,000
92,173
1,334,747 4,959,994 (4,686,645) 28,288 1,636,384
3,349,680
31,114
147,812
73,594
5,000		 -
5,373
5,943
20,000
-		 (6,160)
(1,332)
(18,244)
(30,231)
(3,120)		 95,827
835
4,075
1,652
-		 3,439,347
35,990
139,586
65,015
1,880
3,607,200 31,316 (59,087) 102,389 3,681,818
1,402,589 1,175,847 (1,043,563) (130,677) 1,404,196
5,009,789 1,207,163 (1,102,650) (28,288) 5,086,014
6,344,536 6,167,157 (5,789,295) - 6,722,398

The narrative to explain the purpose of each fund is given at the foot of the note below. The SLT agreed with the funder to move this Restricted Fund into a separate category called Qualifications Fund (which is also Restricted) in order to track expenditure separately next year

35

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

Movements in funds (prior year)
Restricted funds:
Total restricted funds
Total designated funds
General funds
- Scottish fund
- Wiltshire fund
Total unrestricted funds
Unrestricted funds:
Designated funds:
South East Essex fund
Duke of Edinburgh Award fund
- Income generation fund
National Commemorative Events fund
Adventure Training fund
Army Cadet Marketing fund
London fund
Cadet Digital Services fund
- Northern Irish fund
- Welsh fund
Grenadier fund
Total funds
Cadet Music fund
Cadet Sport fund
Leeds fund
Army Cadet Activity fund
Sailing fund
Matthew Bacon Bursary 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		 Income &
gains
£
1,080,762
1,866,491
1,868,010
38,472
13,650
63,525
-
275
2,900
-
-
-
92,805
-		 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)
-		 Transfers
£
-
-
-
-
(60,669)
-
-
-
(250)
-
-
-
-
-		 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
434,028 5,026,890 (4,065,252) (60,919) 1,334,747
2,976,007
24,053
140,508
55,584
-		 -
4,870
4,358
22,772
5,000		 (600)
(93)
(12,970)
(11,214)
-		 374,273
2,284
15,916
6,452
-		 3,349,680
31,114
147,812
73,594
5,000
3,196,152 37,000 (24,877) 398,925 3,607,200
1,307,753 1,354,641 (921,799) (338,006) 1,402,589
4,503,905 1,391,641 (946,676) 60,919 5,009,789
4,937,933 6,418,531 (5,011,928) - 6,344,536

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.

36

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

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 affiliated detachments to take part

in cadet activities.

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

London fund - ACCT UK is grateful to the Knights of the Round Table, the Masonic Charitable Foundation, the Actuaries Livery Company and the City of London Solicitors Company for supporting cadets in the London area to take part in cadet activities.

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 'Summit' Adventure Course, which would otherwise be beyond their means. ACCT UK are grateful to Sangfroid Resources, and Red Scientific / Knowledge Technical for their support of the bursary.

South East Essex fund - 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.

Qualifications fund - This fund is to support the development of the cadets and adults of the army cadet force to gain academic qualifications or skilled training.

Northumbria fund - ACCT UK is grateful to the Community Foundation (Tyne and Wear and Northumberland) for supporting cadets in Northumbria

Essex AT fund - ACCT UK are grateful to AMS Specialists Group Ltd. for their support of adventurous training in Essex.

Oxfordshire fund - ACCT UK are grateful to the Lord Lieutenant of Oxfordshire and the Wychwood Masonic Lodge for their support of cadets in Oxford.

Income generation fund - The trustees have set aside these funds specifically for the purpose of generating income to support the grants programme. Income This fund is invested and more details about the performance of the investments can be found in note 14. Interest and dividends on the investments are taken into the charity as cash and used entirely to fund grants. The investments seek to protect the real value of the fund so it continues to provide grant income for many years to come.

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 solicitors 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 be designated to support cadets in Wiltshire, after which the remaining gift will be released into the general fund.

37

The Army Cadet Charitable Trust UK

Notes to the financial statements

For the year ended 31 March 2025

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 2025
2024
£
£
-
4,987
-
4,987
Equipment		 2025
2024
£
£
-
4,987
-
4,987
Equipment
- 4,987

21 Legal status of the charity

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

1ST BATTALION NOTHERN IRELAND ACF

GREATER MANCHESTER ACF GWENT & POWYS ACF HAMPSHIRE & ISLE OF WIGHT ACF HEREFORD&WORCESTER ACF HUMBERSIDE S.YORKS ACF KENT ACF

1ST BATTALION THE HIGHLANDERS ACF

2ND BATTALION NOTHERN IRELAND ACF HAMPSHIRE & ISLE OF WIGHT ACF 2ND BATTALION THE HIGHLANDERS ACF HEREFORD&WORCESTER ACF ARGYLL AND SUTHERLAND HIGHLANDERS BATTALION ACF HUMBERSIDE S.YORKS ACF BEDFORDSHIRE ACF KENT ACF BERKSHIRE ACF LANCASHIRE ACF BLACKWATCH BN ACF LEICESTERSHIRE,NORTHAMPTONSHIRE ACF BUCKINGHAMSHIRE ACF LINCOLNSHIRE ARMY CADET FORCE CAMBRDIGESHIRE ACF LOTHIAN & BORDERS BN ACF CHESIRE ACF MERSEYSIDE ACF CITY OF LONDON & NE SECTOR ACF MIDDLESEX & NORTH WEST LONDON SECTOR ACF CLEVELAND ACF NORTHUMBRIA ACF CLWYD & GWYNEDDD ACF NOTTINGHAMSHIRE ACF CORNWALL ACF OXFORDSHIRE ACF DERBYSHIRE ACF SHROPSHIRE ACF DEVON ARMY CADET FORCE, HEADQUARTERS SOMERSET ACF DORSET ACF STAFFS WM (NS) ACF DURHAM ACF SUFFOLK ACF DYFED & GLAMORGAN ACF SURREY ACF ESSEX ACF SUSSEX ACF GREATER LONDON & SOUTH EAST SECTOR ACF WARWICKSHIRE & WEST MIDLANDS ACF GLASGOW & LANARKSHIRE BN ACF WEST LOWLAND BATTALION GLOUCESTERSHIRE ACF WILTSHIRE ACF GREATER LONDON SOUTH WEST SECTOR ACF YORKSHIRE NORTH &WEST ACF

38