Company r¢glstrntion number SC241125 IScotland} Charity regi5trntion number SC033882 ISc¢tlandl THE K.O.S.B. ASSOCIATION FUNDS ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
THE K.O.S.B. ASSOCIATION FUNDS LEGAL AND ADMINISTRATIVE INFORMATION Dlrnctors And Trusto9$ Colonel A J Loudon MBE CStJ Lteulenanl Colonel C G O Hogg OBE DL Lieutenant Colonel R S Combe MBE MajorA G Horsburgh Captain AJ D Herberts MrARWard Major R T AAngus Brigadier J M Castle OBE Captsin M Shankland (Appointed l November 2025) IAppointed 1 November 20251 IAppoinled l November 20251 (Appointed f November 2025) Charlty numbgr {ScoUandl SC033882 Company number SC241125 Re9i$tsr•d offic• 8 Sl Ann's Place Haddington East Lothian EH414BS Indepondent examlner Colin Frame CA 17 Walkergate 8erwi¢k-upon-Tweed Northumberland TD15 1DJ Bankers Barclays Bank P.L.C. Invostment advlsors RBC Brewin Dolphin 6th Floor Atria One 144 Mofrison Street Edinburgh EH3 8EX
THE K.O.S.B. ASSOCIATION FUNDS CONTENTS Page Directois And Trustees report Independent examinerfs report statement of financial activities Balance sheet Nofrs to the financial slalement5 9-22
THE K.O.S.B. ASSOCIATION FUNDS DIRECTORS AND TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2025 The directors and trustees present their annual pOrt and financial statements for the year ended 31 Dember 2025. The financial statements have been prepared in accordance wlh the 8ccounb.ng policies set out in note 1 to the financial statements and comply with the charitable company's governing documenl, the Companies Act 2006 the Charities and Tfuslee Investment (Scotland) A¢1 2005. the Charities A¢¢ounts Iscotlandl Regulation5 2006, FRS 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charilie$'. Statement of Recommended Pracbce applicable lo charities prepallng their accounts in accordance wth the Financial Reporbng Standard applicable in the UK and Republic of Ireland IFRS 1021" Objgctlvos and actlvlUg$ The eharrtable company's objects are :_ to relieve suffering. hardship and distress and promote the relief of need among men or women who have al any lime served with the King's Own Scottish Borderers, and theii families and dependants, by making grants of money. loans or guarantees. - lo act as adminislralors of the"King's Own Scottish Borderer$ War Memorial and War Relief Fund$'. to make contributy'ons to or othewse support charrtable or benevolent bodies and to make donalrjns for arry public purpose conne¢led with the activities of the charitable company or with the furtherance of its objects. Publ1¢ bgnefit In nSIdering the operation, achievements and performance and finances of the charitsble company, the diredors and trustees are satisfied that public benefit h83 been provided in accordance with the Charities aryl Truste$ Investment Iscodandl Act 2005 and guidance provided by the Office of the Scotbsh Charty Regulator. Achievements and perfomian¢e During the year the fund has ¢ontinued lo support former members of the King's Own Scottish 8orderers and their families ond dependanls in a¢cordarsce with the aims and objectives sel out above. 11 is anticipated that these acbvtti'es will continue for the foreseeable ftrture. There continues lo be a heatthy position in the General Fund, which allows the charitable company lo ntinUe to meet the current calls on the funds, Donations were received during the year, each gratefully a¢knowtedged. The bid by the Living Barracks Partners. of which the KOSB Association is a member, lo the National Lottery Heritage Fund for funding of the refijrbishmenl of the East Block was successfLtI and, when added lo Ihe previous grant trom the Community Development Fund, the lotsl so far raised o¥ projected is very close lo the total sum required for the work. The start of renovation and repair work has been delayed Slightly, bul this 1$ due to commence on sile in early 2026, wth a completion of capil81 works likely in late Summer 2027. Applications from KOSB veteran$ and their families for Welfare assistance and Benevolence grants continue to be processed and almonised by RHQ SCOTS. Financial asslslance remains funded by the KOS8 Associalion. In particular, the fund has assisted and will continue lo assist our veterans as the effects of the cost of living crisis continue to impact on rnany members, finances and wellbein9. The salary of the Assoeiallon Officer (Museum) continue5 to be funded by the Army Museums ogilby Trust.
THE K.O.S.B. ASSOCIATION FUNDS DIRECTORS AND TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 In light of the loss of MOD funding In 2030. and the ongoing Llving Barracks Project that is planned to see the Association collection housed in a new museum from 2027, the directors and trustees have been giving careful consideration to the futu purpose of the Association, 11$ lunding and its staffing. We intend lo fom)ally rewew our Articles of Association, to ensure that they are up to date and relevant. A second key plank of this work, a KOSB Benevolence and Heritsge Appe81, will be launched in 2026, with the aim of raising £500.000 over three years to provide funding for Association and Museum activittes out to 2050, as well as meet the Association's committed share of the costs of the redevelopment of The Barracks. Typlcally. income lax is reclaimed wherever possible on donations under the Gift Aid Scheme. The lunds raise¢J will look lo safeguard the colle¢lion and our heritsge more generally, continue lo assist our veterans, support our events and provide a spiritual home for our Associalioft members. l once again Msh lo thank my fellow directors and trustees, the Regimental Secretary. Branch Secretaries, other Association office bearer$ antj. equally importantly, the staff team, foT their unstinting contribLttion during the year. The willingness of many of them tts continue lo commit themselves on a voluntary basis is much appreciated by mysell and the wider Reglmentsl family. e$pecialty given the many other calls on their time. Financial revlew The accounts fr¢)m page 6 onwards set out the full financlal positton for the year ended 31 December 2025. Income Total income for the year was £88,77212024'. £175.372) a de¢aSe of £86.600. Expenditure Totsl expenditure for the year was £100,65212024.. £161.8351 a decrease of £61.183. The total nel ¢osl of benevolence was £7,00012024.. £12,000). Financial assistance was given in 21 cases {2024." 331 of hardship. with all cases processed by RHQ SCOTS. who also dealt dire¢lly with the Army Benevolent Fund. Donations to olhef organisations and chariti'es amounted lo £411 12024.. £Nill. The cost of publishing and distributing the BoTderers' Chronicle, £4,418 {2024.. £5.785) was covered by income received. The total revenue deficst across all funds for the year before investment movements was £1q.880 12024.. £13,537 surplus). Balance sheet The total net assets of the Association General Funds as at 31 December 2025 were £568.81612024'. £552,067). The lolal market va14Je of the investments at 31 December 2025 was £527,909 P024= £472.719). Grant maklng policy Grants are made in accordance with the charitable MpanY'S objects, as sel out on page 1, to relieve suffering, hardship and distress among men or women who have served at any lime with the Regiment of The King's Own S¢otti$h Border$ and their families and dependants. Each application is considered on its merits.
THE K.O.S.B. ASSOCIATION FUNDS DIRECTORS AND TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2025 Resep40s and investment policy The director3 and trustees have revie the reserves of the charitable company In latiOn lo current and future requirements and consider that the reserves are adequate to allow the charitable company lo continue to rry out its objec15. and to meet its long lemi mmItments. The goveming documents allow the directors and trustees to invest fvnd5 in any Investment they think fit. at thglr absolute dtSCTelion. Investments are professionally managed by RBC Brewin Dolphin, acting on a discretionary basis. The investment objects'ves are to achieve a balance of income and capital growth with an emphasls on Income, assuming a medium risk profile. hlalor rl$ks The d1ctOrS and trustees have ¢ondLt¢led a review of the major risks to which the charitsble comFony is exposed inclLEding the long term effect of the formation of the Royal Regiment of S¢otiand, and have established systems lo mitigate the risks identified by puth.ng the funds into theif present corporate structure. The posib'on in relats.on to administration is kept under review. structurei govemanco and managom•nt The K.O.S.8. Association Funds were incorporated on 13 December 2002, as a charitsble company limf(ed by guarantee. It is govemed by its Memorandum and Articles ofAsso¢i8tion. The members of the charitable company are the current dlreclors and trustees. Every mernber has one vote, at general meetings of the charitable Gompany which may be 9iven either personally or by proxy. The business of the charitable company is managed by the directors and trustees, who may exercise all the powers of the charitable company. The maxlmum number of directors and trustees 55 fifteen, and the minimum number 15 four. The directors and tru51ee5 may appoint al any lime a director and trustee lo fill a va¢an¢y or as an additional director and trustee. One third of dIreorS and trustees are due lo retire from office at the annual general meeting. but are eligible for re- ele¢llon. Al the AGM Colonel A J Loudon M8E CSIJ and Captsin A J D Herberts wll retire, wlh both eligible for re-election. Having been appointed since the last AGM, Mr A R Ward, Major R T A Angus, Brigadier J M Castle OBE and Captain M Shankland aLFlomalically retire. with all eligible for re-election. New directors and trustee$ are given a copy of the Memorandum and Arti¢le$ of Association, the latest report and accounts. and all the chariiable company's documents on govemance. Subje¢l to their experien¢e and expertise, they are also given pamphlets issued by the Office of the Scottish Charity Regulator explaining the duties of Trustees of Charltles and gffered training in any area of their duties which they think they would like strengthening. Dlre¢tors and trusteè$ The ¢j1ClOr$ and Irltslees who served during the year a¥9 a$ slated below.. Colonel A J Loudon MBE CSU Lieutenant Colonel C G O Hogg OBE DL Lieutenant Colonel R S Combe MBE MajorA G Horsbur9h Captain AJ D Herberts MrARWard Major R T AAngus Brigadier J M Castle OBE Captsin M Shankland (Appointed 1 November 20251 (Appointed 1 November 20251 (Appointed 1 November 20251 (Appointed 1 November 20251
THE K.O.S.B. ASSOCIATION FUNDS DIRECTORS AND TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 As a company limited by guarantee. the ehafitable company does not have a share capital. The liabllity of each member is limtted to £1. Stsloment of dlrectors and trustoes r•spon$ibilil•s The directors and Iruslees. who are also the directors of The K.O.S.B. Association Funds for the purpose ol company law, are responsible for preparing the Directors and Trustee5 Report and the accounts in aco)rdan¢e applicable law and United Kingdom Accounting Stsndards IUnf(ed Kin9dom Generally Accepted Accounting Praclicel. Company law requires the directors and trustees lo prepare accounts for each financial year which gNe a true and fair view of the slate of affairs of the charitable company and of the incoming resotjrces and application of resources. including the income and expenditure, ol the charitable company for that year. In preparing these accounts. the directors and trustees are required to.. select suitable accounting polirAe$ and then appty them ¢Csn$istenlly-, observe the methods and principles in the Charib'es SORP., make judgements and ¢slimates that are reasonable and prudent", stsle whether applicabte UK Accounting Standards have been followed. subjed to any material departures disclosed and explained in the accounts,. and prepare the accosjnls on the goÉng wncern basis unless il is inappropriate to presume that the tharilable ¢ompany will continue in operation. The dileclors and Iruslees are Tesponsible for keeping adequate aCCOLsnling records that disclose with reasonable accuracy at any lime the financial position of the ¢harilable ¢ompany and enable them lo ensure that the accounts comply with the Companies Act 2006, the Charities and Trustee Investment IScotland} Act 2005 and the Char*ties Accounts Iscotjandl Regulations 2006. They are also responsible for safeguarding the assets of the charitable company and hence fof taking Teasonable steps for the prevention and detection of fraud and other irregularrties. Exemptions This report is prepared in accordance wth the special provisions relating to $mall companies wthin Part 15 of the Companies Act 2006. The directo and trustees report was approved by the Board of Directors and Truslees. Colon J Loudon MBE CStJ Dirnctor and Trustse 8 June 2026
THE K.O.S.B. ASSOCIATION FUNDS INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS AND TRUSTEES OF THE K.O.S.B. ASSOCIATION FUNDS I report on the financial statements of Ihe charitable company for the yeaT ered 31 De¢ember 2025, which are sel out on page5 6 to 22. Re$p•¢tlvg responsibilities of directors and trustees and examlner The ¢harity Iruslees (who afe also the directors of The K.O.S.B. Association Fund5 for the purpose5 of company lawl are responsible for the preparation of the finanaal Ststemenls in accordance wth the terms of the Charities and Tnjstee Investment IS¢otlandJ Act 2005 and the Charities Accounts {Scolland) RegLflalions 2006.The charitable company directors and trustees consider that the aud¢t requirement of Regulation 10{11{al-{c} of the Charities Accounts (Scotland} Regulab"ons 2006 does not apply. 11 is my responsibility to examine the ffinancial statements as required under section 441111¢> of the Charities and Trusteè Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention, Bas1$ of independent •xamlnef$ stat•ment My exarnination was ¢arried out in accordance with the Regulation 11 of trte Charfties Accounts Iscouandl Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those rewrds. It also includes consideration of any unusual items or disclosures in the accounts, 8nd seek$ explanations from the directors and trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and nSeqUentlY I do not express an audit opinion on the view given by the a¢¢ounls. Indepéndont ¢xamlner's statsmènt In the course of my eKaminal¢on, no matter has Come to my attention 1. which gives me reasonable cause lo believe that in any material respect the requirements.. to keep accounting records in accordance wth Section 4411llal of the Charities and Trustee Investrnenl (Scollandl Act 2005 and Regulation 4 of the Charities Accounts (Scollandl Regulations 2006, and to prepare financial slalemenls which accord wth the accountsng records and comply with Regulation 8 01 the Charities Accounts {Scollandl Regulations 2006 have not been met. or 2. to which. in my opinion, attention should be drawn in order lo enable a proper understanding of the financbal Statements to be reached. Colln Fr8m• CA 17 Walkergate Bewck-upon-Tweed Northumberfand TD151DJ 8 June 2026
THE K.O.S.B. ASSOCIATION FUNDS STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOMEAND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2025 Current financial year Unrestricted Unrnstricted funds funds general designatad 2025 2025 Restricted funds Total Totsl 2025 2025 2024 Notos Income from: Donations and legacies Other trading activities Investments 13,850 1,389 11,850 4,561 56,158 74.569 1.389 12.814 148,943 15,211 11,218 964 Totsl income 27.089 5.525 $6,158 88.772 175,372 Expenditur• on: Raising funds Charotable activities 3.487 37,024 453 836 3,940 96,712 4,125 157,710 58,852 Total exp9ndlre 40.511 1.289 58,652 100.652 161,835 Net gains on investmenls 12 26.501 2.128 28.629 34,987 Not Incomellexpgndltyrel and movement in funds 13,079 6.364 {2,6941 16,749 48.524 Reconciliation ol funds: Fund balances al 1 January 2025 461,584 87,789 2,694 552,067 503,543 Fund balan¢9¥ at 31 December 2025 474,663 94,153 568,816 552,067 The statement of financial activrties includes all gains and losses recognised in the year. All Income and expenditure derive from continuing activities. The statement of financial activrties also MpIreS with the requirements for an income and expenditure account under the Companies Act 2006.
THE K.O.S.B. ASSOCIATION FUNDS STATEMENT OF FINANCIALACTIVITIES (CONTINUED) (INCLUDING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2025 Prlor fln3n¢lal ygar Unrèstricted Unrestrlctsd funds funds generdl dg$1gnated 2024 2024 Rostrlctsd funds Total 2024 2024 Notas Income from: Donats'ons and legacAe5 Other trading actlwts Ir¢vestments 20,005 1,436 11.218 53.572 13.775 75.366 148,943 15,211 11,218 Total In¢omg 32,659 67,347 75,366 175.372 Expenditure on: Raising funds Charitable activities 4,12S 72,915 4,125 157.710 4,599 80,196 Total expendlture 77,040 4.599 80,196 161,835 Net gainslllosses) on Investments 12 36.484 {1,497) 34,987 Ngt Incomellexpendlture} and mov¢m•nt In funds 17,897) 61,251 (4,830) 48,524 Re¢on¢lliatlon of funds: Fund balances al 1 January 2024 469,481 26.538 7.524 503,543 Fund balances at 31 D•¢embgr 2024 461.584 87,789 2,694 552,067
THE K.O.S.B. ASSOCIATION FUNDS BALANCE SHEET ASAT31 DECEMBER 2025 2025 2024 Notes Flxed assets Investments 14 527.909 472,719 Current assats Stock5 Debtors Cash al bank and in hand 15 16 329 7.175 51,616 393 47,428 43,853 59,120 91.674 Cr¢dltors: amounts falling du¢ within one year 17 118,2131 {12,3261 Net currgnt assets 40,907 79,348 Not a$$et$ 568.816 552,067 Thg fund$ of the charitsbl• company Reslricled income funds Unrestricted funds . general Unresliicted funds . designalgd 18 2.694 461.584 67,789 474.663 94,153 19 568,816 552,067 The ehafilable company is entitled to the exemption from the audit requirement contained in se¢tron 477 of the Companies Act 2006. for the year ended 31 December 2025. No member of the charitable company has ¢Jeposiled a notice, pursuant to section 476, requiring an audit of these accounts. The directors acknowledge their re5ponsibililies for ensuring that the charitable company keeps accountlng records whlch comply with section 386 of the Act and section 44 01 the Charitie5 and Trustee Investment IS¢otlan¢Jl Act 2005 and for preparing accounts which give a true and fair view ol the slate of affairs of the charitsble ¢ompany 85 al the end of the financial year and of ils incoming resources and appliCatn of resources. including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which othetwise comply with the requirements of the Companies Act 2006 relating to accounts. so far as applicable to the charitable ¢ompany. The Mefflbe have not required the company to obtain an aLtdtt of its financial slalements for the year In question in accordance with Section 476. These accounts have been prepared ir* accordance the provisions applicable lo charitable company subject lo the small companies, regime. The financial stslements were approved by the dSreclors and trustees on 8 June 2026 Colonel J Loudon MBE CSIJ Dlrector and Trustee Company registration number SC241125 Iscotlandl
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Accountlng policio$ Charity inforniatlon The K.O.S.B. Association Funds is a private company limited by guarantee incorporated in Scotland. The registered office is 8 StAnn's Place, Haddinglon, East Lolhian. EH414BS. 1.1 Basis of prÈpar8tlon The financTral statements have been prepared in a¢¢ordan¢e wth the charitable company's govemng document, the Companies Act 2006 the Charitles and Twstee Investment (Scollandl Act 2005, the Charibes AcctsLtnls (Scolland) Regulations 2006. FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Irfjland" and the Charitie5 SORP "Accounting and Reporting by Charities.. Ststemenl ol Recommended Practi¢e applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" The charitable company L% a Public Benefit Entity a$ defined by FRS 102. The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a stslemenl of cash flows. The a¢counts are prepared in sleding, which is the functional currency of the charitable company. Monetary amounts in these financial stslemenls are rounded to the nèarest £. The ac¢ounls have been prepared under the hislori¢al Cost wnvenb'on, modified lo indude the reVu811On of fixed asset investments to market value. The principal a¢¢ountsng policies adopted are Set out below. 1.2 Going concern At the tirne of approving the financial statemen15, the directors and tru$lees have a reasonable expectslion that the charitable company has adequate resoLtrees to Continue in operational existence for the foreseeable future. Thu5 th directors and trustees continue lo adopt the going ncern basis of accounting in preparing the financial slatemenls. 1.3 Charftablo funds Unrestricted fvnds are available for use at the diretion of the directors and trustees in furttterance of their Charitable objectives unles5 the fiJnd8 have been designated for other purposes. The general fund is an unreslricled fvnd which is available for use at the discretions of the directors and trustees in fvrtherance of the obj'ectives of the charilabte company. Designated ftAnds are unrestricted funds that have been set aside by the diiectors and Iruslees for partt'cular purposes. Reslricled funds are subject to specthc conditions by donors as lo how they may be used. The purposes and uses of the re$trtcted funds are sel out in the notes to the financial ststemenls. IA Income In¢ome is recognised when the charitable company is legally entitled to it after any performance conditions have been met. the amounts Can be measLtred reliably, and il is probable Ihal income will be received. Cash donations are recognised on receipt. other donations are recognised once the charitable company has been notified of the donation, tjnless performance condrtions require deferral of the amount. Income tax recoverable in relation to donations received under Gift AKI or deeds of venant is recognised at the time ol the donation.
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Accountlng policSè$ (Continued) Membership subscription$ are recognised in the year in ththich they are received. Legacie$ are recognised at the earlier of the date that the notification of distribution is received or that the legacy is received. Investment income comprises dividends receivable during the year on listed invfjsknenls hdd wlthin the investment portfolio as well as interest receNable. Tumover is measured at the fair value of the conshleralion received or receivable and Tepresents amounts receivable for goods and services provide(6 in the nomial course of business and inclusNe of VAT and olher sales related taxes. 1.5 Expenditure All expenditure is accounted for on an accruals basis. Costs are allocated to approprlale headings. based on the a¢tiwties lo which they are attributable. Costs of generating funds are the wsts of Christmas cards and Regimental items sold in the year. Management and administration costs are those incurred in connection with the adminislralion of the charitable company and compliance wtrth con$litutional and statutory requirements. 1.6 Flxed asset Invostmonts Fixed asset investments are initially measured al transaction price ex¢lLTding transaction costs. and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel{expendilurel for the year. Transaetion costs are expensed as incurre<l. 1.7 stocks Stocks are stated at the lower of cost and èslimaled selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the slo¢k$ lo their present location and condition. Items held for distribution at no or nominal consideration are measure¢J the lower of replacement cost and cost. Nel realisable value is the estimated selling price less all estimated cost$ of Completion and costs lo be incurred In marketing. selling and distribution. 1.8 C*$h and cash oquivalgnts Cash and cash equivalents inclsjde Cash in hand, deposits held at call swlh banks, other Short-term liquid investments original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowngs in current liabilities. 1.9 Flnan¢lal Instruments The charitable company has elected lo apply the provisions of Section 11 'Basic Financial Instruments. and Section 12 '0ther Financlal Instruments Issues. ol FRS 102 10 811 of rts financial instruments. Financial inslrumonls are recognised in the charitable company's balance sheet when the chantable company becomes party lo the ¢ontra¢lual provisions of the instrumenL Financial assets and liabilities are offset. with the net amounts psented the financial statements, when there is a legally enfof¢eable ri9hl lo sel off the recognised amounts and there is an intention to settle on a nel basis or to realise the asset and settle the liability simultaneously. 10-
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting pollcle8 (Contlnuedl 8a$i¢ flnancialassets Basic financial assets. whi¢h include debt0 and cash and bank balances, are initrally measured at transaction price including transaction costs and are subsequently carried al amortised cost using the effective interest method unles5 the arrangemenl conslilutes a finanang Iransaclion, where the Iransaction is measured at the present value of the fvlure receipts discounled al a market rale of interest. Financial assets classlfied as receivable wrthin one year are not amortised. Basic financial liabllltl•s Basic financial liabilities. including creditors and bank loans are initially recognised al transaction price unless the arrangement ¢onslilutes a financing Iransaclion. where the debt instrument 15 measured al the present value of the ft&lU payments discounted al a market rate of interest. FinancAal liabilities clagslfied as payable within one year are not amortised. Debt instruments are subsequenuy cariied al amorbsed cost, using the effective interest rale method. Trade creditors are obligalj'ons to pay for goods or services that have been acquired in the Ordin course of operations from suppliers. Amounts payable are classlfied as current liabilities if payment is due within one year or less. If not, they are presented as non-currenl liabilities. Trade creditors are recognised ini(ially al tfansaction prlce and subsequenuy measured al amortised cost using the effective interest method. DerKognition of finan¢lal Ilabllftle$ Financial liabilities are dereGognised then the Charitsble company's contractual obligations expire or are di$char9ed or can¢elled. 1.10 Employ88 banefits The cost of any unused holiday entitlement is rttognised in the period in which the employee's seNices are received. Temiination benefits are recognised immediately as an expense when the GhaTilable company is demonstrably committed lo terminate the employmer¢t of an employee or to provide temiination benefits. 1.11 Rgtirem•nt nefits Payments to defined contribution retirement benefit schemes are charged as an exnsE as they fall due. Critical accountlng tiMate$ and judgements In the application of the ch8rtiable company's accounting policies, the dlrectors and trustees are required to make judgements. estimates and assumptior¢s about the Carying amount of assets and liabilitses that are not readily apparent from other sources. The estimates and asSOGiated assumptions are based on historical experience and othe¥ factors that are considered lo be leVant. A¢lual results may differ from these estimates. The eslimales and underfying assumptions are reviewed on an ong¢yng basis. Revisions lo accounting eslimales are recogniged the poriod in which the estimate is rewsed wh&re the revision affects only that period, or in the period of the revison and future periods where the revision affe¢ls both cuirent and future periods. 11
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THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCtAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Incomo from othgr trading activitie$ Unro8trl¢ted Unrestricted funds funds general dgslgnatgd 2025 2025 Total Unre$trictsd Unrestricted funds funds noral dg$lgnatgd 2024 2024 Total 2025 2024 Sale ofK.O.S.B. Regimental items Sale ofbook-'AayS a Borde1, Sale of Christmas cards 1.389 1.389 1,373 13,775 15,148 50 13 50 13 Other trading a¢livities 1,389 1.389 1,436 13,775 15.211 Income from Investménts Unrestrlcted Unro$lrl¢tod funds funds general dtrsignated 2025 2025 Totsl Unro$trlctsd Unrastrictgd funds funds general d•slgnat•d 2024 2024 Totsl 2025 2024 Ineome from listed investments Interest re¢eivablÈ 11.732 118 933 31 12.665 149 11,081 137 11,081 137 11,850 12.814 11,218 11,218 Expendlturè on ral$lng fund$ Unre$trl¢t*d Unrestricted fvn(ts fund$ g•neral designated 2025 2025 Total Unrg$trlcted Unrestricted funds fund5 general dèsignatsd 2024 2024 Total 2025 2024 Tradlng Costs K.O.S.B. Regimentsl iterns and Christmas cards 64 64 550 550 Investmènt manag•m•nt 3.423 453 3,876 3.575 3.575 Totsl Costs 3.487 453 3,940 4,125 4,125 13-
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Exp8nditure on charitable activlties Dlr•ct Overhead charltsble expenses expendlture 2025 Managgment and administrallon 2025 Total 2025 2025 Dirèct costs Stsff c03ts Borderets Chronicle Remembrance wreaths and flower$ Minden Day expenses Kelso races Insurances Repairs and maintenance P¢inting, stationery and office expenses AGM expenses and lunches Cruikshank Dinner Travel expenses Bank charges Other charitable expenditUTe 29.296 4,418 1.193 5.731 1,700 29,062 58,358 4,418 1,193 5,731 1,700 2,764 735 3,159 798 1.707 1,112 21 1.633 2,764 735 3.159 798 1.707 1,112 21 1,633 43,971 3,499 35,859 83.329 Grant fvnding of adivities (see note 81 7,411 7,411 Share of support and govemance costs Is•¢ nots 9) Govemance 5,972 5.972 51,382 3.499 41,831 96.712 Analysls by fund Unrestricted lunds- general un$triCted fvnds . designated Reslricled funds 19,617 836 30,929 3,499 13,908 37.024 836 58.852 27,923 51,382 3,499 41.831 96,712 14-
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Expenditur¢ on charitable lctivitieg IConllnued} Previous year: Dlreet Ov¢rhead Management charitable expensos and èxponditure administration 2024 2024 Total 2024 2024 Dlro¢t costs Stsff cos15 Borderers Chronicle Remembrance wreaths and flowers Minden Day expenses Insurances Repair5 and malntenance Pllnting, slalionery and office expenses AGM expenses and lunche5 Cruikshank Dinner Travel expenses Farewell expenses Nl Memorial stone Other charitable eXperlture 32.930 5,785 1.027 4,589 58,974 91,904 5,785 1.027 4,589 3.138 1,487 4,320 356 1,473 197 243 3,572 21,598 3,138 1.487 4.320 356 1,473 197 243 3.572 21.598 69,501 4,625 65,563 139,689 Grant funding of activities (see note 8) 12,000 12,000 Sharo of support and governance co$ts {$00 note 91 Govemarsce 6,021 6.021 81,501 4.625 71.584 157,710 Analysis by fund Unrestricted funds- goneral Unrestricted funds - designated Restricted funds 24,074 4,599 52,828 4.625 44.216 72.915 4,599 80.196 27,368 81,501 4,625 71.584 157,710 Grants payable Dlreet Direct charltsblg charitable expendlture oxpgndlture 202S 2024 Grants to institutions: Other 411 Grants to indivhluals 7,000 12.000 15-
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Grants payable (Continued) Benevolence grants paid lo Indivsdua15 Grants are made in a¢cordance wth the charitable Gompany's objects, as sel out on page 1. to relieve suffering, hardship and distress among men or women who have served at any time with the King's Own Scottish Borderer$ an¢J their families and dependants. Each application is considered on ils merits. During the year 21 grants totalling £5.353 were made lo individuals12024.' 33 grants lolalling £8,900) lo which the Association Funds contributed £7.000 {2024.' £12,000). the balance being almonised with other Amw Welfare charities where appropriate. Al grants are processed by RHQ SCOTS vtho are responsible for all K.O.S.B. Welfare a$sislance and Benevolence applications. Grant donatlons to Instltutlons and branches This includes a small donation made directly to SSAFA, the Amied Forces charity. No payrnenls this year {2024.. £Nill were paid to K.O.S.B. Association Branch Secretsrie$. Support ¢o$ts allocated to actlvltles 2025 2024 Govemanee costs 5,972 6.021 Analysod betWg9n: Management and administralion 5.972 6,021 2025 2024 Governan¢• ¢o$ts ¢omprise: Legal and professional Independent examination fee Aceountancy 1,834 1,000 3.138 1,796 7,000 3,225 5.972 6,021 10 Directors And Trustees None of the directors and trustees {or any pefsons connected with them) received any MUneration {2024.' £Nil} or expenses12024.' £Nill during the year. 11 Employee$ The average monthly number of employees during the year was.. 2025 Number 2024 Number 16-
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 11 Employees (connu9d) Employment costs 2025 2024 Wages and salaries 58,358 91.904 There were employees whose annual muneratIOn was more than £60,000. 12 Galns and losses on Invgslmonts unrestricted UnrestrScted funds funds ggnoral designated 202S 2025 Total Unrestricted Unre$trl¢t8d funds fund$ g8n¢ral deslgnated 2024 2024 Total 2025 2024 Galnslllossesl arising on.. Revaluation of investmen15 Sale of investments 12,159 f4,342 1.880 248 14.039 14,590 35,331 1.153 (1,497) 33.834 1,153 26,501 2.128 28.629 36.484 {1,497) 34,967 13 Taxatlon The charity is exempt from tsxalion on ils aclivitles because all ils income ig applied for charitable purposes. 14 Flxgd asset Invostmonts Listed investments Cost or valuation Al 1 January 2025 Addition5 Valuation changes Disposal$ 472.719 1 $6,515 28,629 {129.9541 At 31 December 2025 527,909 Carylng amount At 31 December 2025 527,909 At 31 December 2024 472,719 1T-
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 15 Stocks 2025 2024 Finished goods and goods for resale 329 393 16 Debtors 2025 2024 Amounts falling due wlthln ong ygar: Other debtors 7.175 47.428 17 Creditors: amounts falling due within one year 2025 2024 OlheT laxalion and social Security Trade ¢redilors Other creditors AccNals and defeed income 495 13,283 115 4,320 490 7,999 501 3,336 18,213 12,326 18-
THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 18 Restri¢tsd funds The income fvnds of the charftable company include restricted funds comprising the following unexpended balance$ of donatsons and grants held on trust foi spe¢ifi¢ purposes.. Al 1 January 2025 Incomlng re$our¢os Resources •xpendgd At31 December 2025 AssocAats"on Officer (Museum) Fund Berwick Partners Fund 2.694 25,088 31,070 {27,782} {31,0701 2,694 56,158 {58,852} Prèvlous year: At 1 January 2024 Incoming resources Resources expended At31 Docemb•r 2024 Association Officer {Mu$euml Fund Benmck Partners Fund 5,334 2.190 24,728 50,638 {27.3681 {52.828} 2.694 7,524 75,366 180.196) 2.694 The Association Officer (Museum) Fund consists of restiicted grants received from the Army Museums Ogilby Trust that have been set aside by the directors and trustees in order lo assist with the employment of an Association Officer (Museum) as well as a proportion of lime provided by the A$sociation Executive Officer. lo help maintsin the K.O.S.B. Regimental Collection. The Berwick Partners Fund ¢onsists of restricted grants received from English Heritage that have been sel aside by the directors and trustees in order lo assist with the vision of tuming Bewck Barracks into a thriving ¢LtItLtral hub and visitor destination within Berwck. By renovating and bringing back into use the buildings on the site. il is hopeé that this will boost the town's economy and profile while ensuring the survival of this historic tandmark. 19-
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THE K.O.S.B. ASSOCIATION FUNDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 21 Anatysis of not as$gts between fvnds Unrestrictsd Unrestrl¢ted funds fund$ general designated 2025 2025 Restricted funds Tolal 2025 2025 Fund balances al 31 December 2025 are represented by: Investments 442,312 Current assetsllliabilitiesl 32.351 85,597 8,556 527,909 40,907 474.663 94.153 568.816 Unrestricted Unrg$trf¢tsd fund5 funds general designatsd 2024 2024 Restrlcted funds Totsl 2024 2024 Fund balances at 31 December 2024 are reprnsgntod by: Investments 452.280 Current asselsl{liabllilie8) 9.304 20,439 67,350 472,719 79,348 2.694 461.584 87,789 2.694 552.067 22 Related party transa¢tlon$ There were no disclosabk related party transaction$ during the year12024.' None). 23 Company Ilmftgd by guarantsè Every ordinary member of the charitable Mmpany undertakes to contribute lo the assets of the charitable company in the event of it being wound up while he is a member or wthin one year after he ceases to be a member. for such an amount as may be required not exceeding £1.