Army Rugby Union Trust
Annual Report and Financial Statements
For the year ended 31 August 2023
Army Rugby Union Trust
Legal and administrative information
Trustees
Maj Gen JMJ Bennett CBE
Chairman (Resigned 31/05/23)
Brig JP Cook OBE
Chairman (New role 01/06/23)
Maj M Wilding
Director of Community Rugby
Mr D McDermid
Director of Finance (Non-Trustee)
Mr A Leach
Non-Executive Director of Marketing (Resigned 31/05/23)
Mr J Eyre
Operations Manager ( Non-Trustee)
Ms A Teasdale
Non-Executive Director of Community Rugby
Mr B W E Facer
Non-Executive Director of Commerce (Resigned 10/02/23)
Andrew Geary
Director of Representative Rugby (Appointed 01/09/2022)
Giles Malec
Director of Marketing (Appointed 01/09/2022)
Mr Wayne Burnard MBE
Director of Rugby Development (Resigned 10/02/2023)
Maj G E Stonebridge-Smith MBE
Director of Rugby Development (Appointed 01/06/2023)
Charity number
1149105
Company number
08167993
Registered office
Mackenzie Building
Fox Lines
Queens Avenue
Aldershot
Hampshire
GU11 2LB
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
Army Rugby Union Trust
Contents
Page
Trustees' report
1 - 4
Independent auditor's report
5 - 8
Statement of financial activities
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
Army Rugby Union Trust
Trustees' report (including directors' report and strategic report)
For the year ended 31 August 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 31 August 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's governing document, the Companies Act 2006 and "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)" (effective 1 January 2019).

Objectives and activities

The aim of the ARU is to promote and foster the game of Rugby Union in the Army and its civilian and military communities in accordance with the Laws of the Game promulgated by World Rugby rules, regulations and byelaws issued by the Rugby Football Union (RFU).

 

Nothing in this constitution shall authorise an application of the property of the Charity for the purposes which are not charitable in accordance with section 7 of the Charities and Trustee Investment (Scotland) Act 2005 and section 2 of the Charities Act (Northern Ireland) 2008.

 

To meet the aim the ARU shall pursue the following objectives:

 

 

 

 

 

 

 

 

Army Rugby Union Trust
Trustees' report (including directors' report and strategic report) (continued)
For the year ended 31 August 2023
- 2 -

 

 

 

 

Conclusion

The Army Rugby Union (ARU) trustees has considered the three year post Covid -19 financial recovery plan and the declining revenue from the Army v Navy ticket sales and considers the company will be able to meet its liabilities as they fall due over the coming 12 month, and hence these financial statements are prepared on a going concern basis.

 

The ARU trustees acknowledge that their accounts are in a healthy state of affairs however they will monitor the impact of declining revenue from ticket sales and or sponsorship on the activities of the ARU Charitable Trust.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.

Achievements and performance
Financial review

The Trust witnessed an excess of income over expenditure for the year ended 31 August 2023 of £139,890.

 

The Trust has wide powers of investment. The Director of Finance is restricted in the structure of the investment portfolio by policy decisions made from time to time by the Trustees at the quarterly meetings. The overall investment policy is one of long-term capital growth to maintain the purchasing power of the Trust. The Management Board continue to endorse a revised Reserves Strategy to grow the Trust’s Reserves to cover one year’s annual net operating costs.  The policy complies with SORP.

 

The ARU is controlled and directed by the Management Board which should meet at least four times a year to monitor in year performance, to decide policy. The Management Board endorses the annual allocation of funds prepared by the Director of Finance following internal budget screenings to representative teams, community competitions and other charitable bodies as decided appropriate by the Board.

 

The ARU Trust employs two pensionable permanent staff – the Director of Finance, and the Communications Officer. The full-time Chief Operating Officer and Assistant Operations Officer are employed by the Army Sports Control Board, but they work directly for the ARU Management Board.

 

Risks are considered by the Management Board and the key risks remain the continuing success of the annual Army v Navy game and a loss of sponsorship. The reserve policy is designed to ensure that sufficient reserves are retained to cover at least one year of operating costs.

 

Army Rugby Union Trust
Trustees' report (including directors' report and strategic report) (continued)
For the year ended 31 August 2023
- 3 -
Plans for future periods

The management board remain focused on promoting and governing Rugby Union in the Army through the maintenance of stable structures for the game that enable its successful development at all levels. This is to be achieved by increased levels of funding to the community area of the Trust. The management board endorsed policy of a balanced budget remains extant.  

Structure, governance and management

The ARU is a regulatory body, which on behalf of the President, directs, controls, administers and promotes the sport of Rugby Football Union within the British Army. These powers are laid down in the constitution of the ARU which are incorporated in Games and Sports of the Army. The objects of the ARU are reviewed by the Management Board and specific targets and objectives are laid down in the Management Plan, which is also compatible with the Rugby Football Union Management Plan as the governing body for the sport.

 

The aim of the ARU is to promote and foster the game of Rugby Union in the Army and its local communities in accordance with the Laws of the Game promulgated by World Rugby and the rules, regulations and byelaws issued by the Rugby Football Union (RFU).

 

The ARU Management Board is responsible for managing the affairs of the Trust, determine policy and has full power over the use, disposition, and investment of ARU Funds. It meets at least four times per year and each Director, as listed below, takes the lead on their respective area. The Management Board consist of the following appointments:

 

Chairman

Vice Chairman/RFU Council Member

Director of Representative Rugby

Director of Marketing

Director of Community Rugby

Director of Rugby Development

Non-Executive Director of Finance

Non-Executive Director of Marketing

Non-Executive Director of Operations

Non-Executive Director of Community Rugby

 

In addition to the ARU Management Board, the ARU Council acts as a forum at which all elements of the game in the Army are represented. Affiliated clubs within the ARU are entitled to vote at the AGM. The by-laws of the ARU can only be added to, amended, or rescinded with the consent of at least two thirds of members present at a General Meeting.

 

New appointees’ induction training is personalised to meet the requirements of the appointee; with the advent of amendments to the Trustees & Charities Acts, many serving personnel will have already received training/attended courses relating to the Duties of Trustees as part of their professional development or have attended Trustee Training relating to other Charitable activities.

 

The majority of the ARU officials are serving British Army personnel, with the exception of the ARU secretariat. which is staffed by 4 permanent staff; the ARU Chief Operations Officer and Assistant Operations Officer funded by the Army Sports Control Board, and the Director of Finance and Communications Officer funded by the charity. The majority of posts within the ARU are advertised on the ARU website inviting volunteers to be considered for selection; all Management Board appointments are re-appointed at the AGM.

 

 

 

Army Rugby Union Trust
Trustees' report (including directors' report and strategic report) (continued)
For the year ended 31 August 2023
- 4 -
Statement of trustees' responsibilities

The trustees (who are also directors of Army Rugby Union Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic 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:

 

 

 

 

  • select suitable accounting policies and then apply them consistently;

  • observe the methods and principles in the Charities SORP 2015 (FRS 102);

  • make judgements and estimates that are reasonable and prudent;

  • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

 

The trustees are responsible for keeping adequate 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.

 

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.

 

Public benefit statement

The activities undertaken by the charity further the charity’s purposes for the public benefit. The trustees have had due regard to the Charity Commission’s guidance on public benefit.

Disclosure of information to the auditors

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

 

- there is no relevant audit information of which the company’s auditors are unaware; and

 

- we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

The trustees' report, including the strategic report, was approved by the Board of Trustees.

Brig JP Cook OBE
Chairman
26 September 2024
Army Rugby Union Trust
Independent auditor's report
To the Trustees of Army Rugby Union Trust
- 5 -

Opinion

We have audited the financial statements of Army Rugby Union Trust (the ‘trust’) for the year ended 31 August 2023 which comprise the statement of financial activities, the statement of financial position, the 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 Financial Reporting Standard 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:

-

give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

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 trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the trust’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 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 we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Army Rugby Union Trust
Independent auditor's report (continued)
To the Trustees of Army Rugby Union Trust
- 6 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the trust for the purpose 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 trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

Army Rugby Union Trust
Independent auditor's report (continued)
To the Trustees of Army Rugby Union Trust
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Army Rugby Union Trust
Independent auditor's report (continued)
To the Trustees of Army Rugby Union Trust
- 8 -

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gary Neil Chadwick FCCA (Senior Statutory Auditor)
for and on behalf of DJH Audit Limited
7 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
Army Rugby Union Trust
Statement of financial activities
including income and expenditure account
For the year ended 31 August 2023
- 9 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income and endowments from:

Donations and sponsorship

3
272,882
-
272,882
224,856
-
224,856
Charitable activities
4
820,639
-
820,639
878,838
-
878,838
Other trading activities
5
3,651
-
3,651
28,558
-
28,558
Investments
6
18,575
-
18,575
2,768
-
2,768
Other income
7
19,493
-
19,493
-
-
-
Total income
1,135,240
-
1,135,240
1,135,020
-
1,135,020
Expenditure on:
Raising funds
8
99,537
-
99,537
100,570
-
100,570
Charitable activities
9
887,691
6,662
894,353
674,690
2,776
677,466
Total expenditure
987,228
6,662
993,890
775,260
2,776
778,036
Net gains/(losses) on investments
15
(1,460)
-
(1,460)
(3,693)
-
(3,693)
Net movement in funds
146,552
(6,662)
139,890
356,067
(2,776)
353,291
Fund balances at 1 September 2022
1,713,881
142,166
1,856,047
1,357,814
144,942
1,502,756
Fund balances at 31 August 2023
1,860,433
135,504
1,995,937
1,713,881
142,166
1,856,047

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Army Rugby Union Trust
Statement of financial position
As at 31 August 2023
31 August 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
16
295,535
310,733
Investments
17
363,990
358,773
659,525
669,506
Current assets
Stocks
19
110
1,077
Debtors
20
3,488
24,106
Cash at bank and in hand
1,385,674
1,192,000
1,389,272
1,217,183
Creditors: amounts falling due within one year
21
(52,860)
(30,642)
Net current assets
1,336,412
1,186,541
Total assets less current liabilities
1,995,937
1,856,047
Income funds
Restricted funds
23
135,504
142,166
Unrestricted funds
Designated funds
24
1,150,000
950,000
General unrestricted funds
710,433
763,881
1,860,433
1,713,881
1,995,937
1,856,047

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 26 September 2024
Brig JP Cook OBE
Chairman
Company registration number 08167993
Army Rugby Union Trust
Statement of cash flows
For the year ended 31 August 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
181,778
336,486
Investing activities
Purchase of tangible fixed assets
-
(81)
Investment income received
11,896
2,768
Net cash generated from investing activities
11,896
2,687
Net cash used in financing activities
-
-
Net increase in cash and cash equivalents
193,674
339,173
Cash and cash equivalents at beginning of year
1,192,000
852,827
Cash and cash equivalents at end of year
1,385,674
1,192,000
Army Rugby Union Trust
Notes to the  financial statements
For the year ended 31 August 2023
- 12 -
1
Accounting policies
Charity information

Army Rugby Union Trust is a company, limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are described in the Trustee's Report.

1.1
Accounting convention

The financial statements have been prepared in accordance with the trust's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

 

 

1.4
Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 13 -

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

 

Where practicable, gifts in kind donated for distribution to the benefidaries of the charity are included in stock and donations in the financial statements upon receipt. If it Is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed, and an equivalent amount recognised as charitable expenditure.

 

Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and 'Income from other trading activities'. Upon sale, the value of the stock is charged against 'Income from other trading activities' and the proceeds are recognised as 'Income from other trading activities'. Where it is impracticable to fair value the items due to the volume of low value items they are not recognised In the financial statements until they are sold. This income is recognised within 'Income from other trading activities'.

 

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

Income from charitable activities represents income generated from the "Army vs Navy" match.

Investment income is earned through holding assets for investment purposes. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established.

1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
25 years straight line
Fixtures and fittings
25% straight line
Computers
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

The Trustees have reconsidered the useful life of leasehold land and buildings from 60 years to 25 years.

1.7
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8
Impairment of fixed assets

At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9
Stocks

Stocks are stated at the lower of cost and estimated 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 stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
- 15 -
1.11
Financial instruments

The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.

1.12
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 16 -
2
Critical accounting estimates and judgements

In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3

Donations and sponsorship

Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Donations and gifts
272,882
224,856
Donations and gifts
MITIE
60,000
32,000
Rugby Football Union
22,382
18,133
Activision
17,500
17,500
DXC
22,500
22,500
SAAB Defence
20,000
6,000
Gifted assets
-
15,000
LEIDOS
-
15,000
Galvion
15,000
6,000
Veolia
15,000
15,000
KBR (UK) Ltd
15,000
15,000
Other
85,500
62,723
272,882
224,856
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 17 -
4
Charitable activities

 

 

2023
2022
£
£

Sporting events

815,589
873,769

Prize money

-
1,200

Affiliation fees

4,150
3,800

Other income

900
69
820,639
878,838
5
Other trading activities
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Shop income

3,651
28,558
6
Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Income from listed investments
2,366
2,212
Income from unlisted investments
6,678
-
Interest receivable
9,531
556
18,575
2,768
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 18 -
7
Other income
Unrestricted
Total
funds
2023
2022
£
£
Royalties
19,493
-
8
Raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Fundraising and publicity

Hospitality

2,710
42,118
Advertising
96,827
58,452
Fundraising and publicity
99,537
100,570
99,537
100,570
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 19 -
9
Charitable activities

Charitable activities

Charitable activities

2023
2022
£
£
Depreciation and impairment
15,200
6,680

Sporting events

339,423
289,115

Management

-
1,496

Grounds and infrastructure

2,301
7,205

Clothing formal

61,600
2,600

Training equipment

6,800
-

Medical

1,206
11,338

Presentations

4,348
5,185

Accomodation

7,562
3,395

Messing and subsistence

12,374
7,633

Management training

1,326
600

Vehicle leasing

2,687
2,687

Vehicle running costs

1,271
2,347

Travel

772
1,267
456,870
341,548
Grant funding of activities (see note 10)
310,492
214,833
Share of support costs (see note 11)
107,854
109,587
Share of governance costs (see note 11)
19,137
11,498
894,353
677,466
Analysis by fund
Unrestricted funds
887,691
674,690
Restricted funds
6,662
2,776
894,353
677,466
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 20 -
10
Grants payable

Charitable activities

Charitable activities

2023
2022
£
£
Grants to institutions (7 grants):
Academy annual grant
17,828
12,161
Senior XV annual grant
99,259
62,265
Sevens annual grant
34,251
20,229
Veterans annual grant
31,354
17,757
Womens's annual grant
83,102
44,849
ARU Referees society grant
6,808
6,000
Corps annual grant
-
5,544
Community annual grrant
37,890
31,028
Team gift in kind
-
15,000
310,492
214,833
-
11
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Staff costs
87,160
-
87,160
88,721
-
88,721

Postage and stationery

2,492
-
2,492
1,108
-
1,108

Media costs

11,110
-
11,110
10,536
-
10,536

Telephone

837
-
837
3,198
-
3,198

Website

1,407
-
1,407
1,288
-
1,288

Insurance

2,263
-
2,263
907
-
907

Bank charges

35
-
35
35
-
35

Electricity

471
-
471
374
-
374

Computer and software

1,943
-
1,943
2,898
-
2,898

Miscellaneous purchases

136
-
136
522
-
522
Legal and professional
-
19,137
19,137
-
11,498
11,498
107,854
19,137
126,991
109,587
11,498
121,085
Analysed between
Charitable activities
107,854
19,137
126,991
109,587
11,498
121,085
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 21 -
12
Auditor's remuneration
Fees payable to the trust's auditor and associates:
2023
2022
£
£
Audit of the trust's annual accounts
15,000
9,500
Other services to the group
- Audit of the trust's subsidiaries
-
3,500
Total audit fees
15,000
13,000
13
Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but 2 of them were reimbursed a total of £478 travelling expenses (2022- 2 were reimbursed £624).

14
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Administrative
2
2
Employment costs
2023
2022
£
£
Wages and salaries
69,890
70,674
Social security costs
7,516
7,564
Other pension costs
9,754
10,483
87,160
88,721
There were no employees whose annual remuneration was more than £60,000.
15
Net gains/(losses) on investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Revaluation of investments
(1,460)
(3,693)
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 22 -
16
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 September 2022
364,435
59,661
2,491
426,587
At 31 August 2023
364,435
59,661
2,491
426,587
Depreciation and impairment
At 1 September 2022
54,431
59,661
1,760
115,852
Depreciation charged in the year
14,577
-
623
15,200
At 31 August 2023
69,008
59,661
2,383
131,052
Carrying amount
At 31 August 2023
295,427
-
108
295,535
At 31 August 2022
310,002
-
731
310,733

 

17
Fixed asset investments
Listed investments
Unlisted investments
Other investments
Total
£
£
£
Cost or valuation
At 1 September 2022
178,955
179,817
1
358,773
Valuation changes
(1,460)
6,678
-
5,218
Impairment
-
-
(1)
(1)
At 31 August 2023
177,495
186,495
-
363,990
Carrying amount
At 31 August 2023
177,495
186,495
-
363,990
At 31 August 2022
178,955
179,817
1
358,773
2023
2022
Other investments comprise:
Notes
£
£
Investments in subsidiaries
-
1
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
17
Fixed asset investments
(Continued)
- 23 -

Holdings in excess of 5% of fund value

2023
2022
£
£
Investments at fair value comprise:
M&G Charifund (Income)
38,929
41,053
M&G Charifund (Accumulated)
138,565
137,902
UST COIF
186,495
179,817
363,989
358,772

Listed investments included above:

2023
2022
£
£
Listed investments carrying amount
185,035
178,955
18
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
177,495
178,955
19
Stocks
2023
2022
£
£
Finished goods and goods for resale
110
1,077
20
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by subsidiary undertakings
-
21,558
Prepayments and accrued income
3,488
2,548
3,488
24,106
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 24 -
21
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
11,881
18,108
Accruals and deferred income
40,979
12,534
52,860
30,642

Deferred income includes £35,000 in respect of sponsorship income relating to next year.

22
Retirement benefit schemes
Defined contribution schemes

The trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the trust in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £9,754 (2022 - £10,483).

23
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Balance at
1 September 2021
Resources expended
Balance at
1 September 2022
Resources expended
Balance at
31 August 2023
£
£
£
£
£
Property and equipment fund
144,942
(2,776)
142,166
(6,662)
135,504
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 25 -
24
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Balance at
1 September 2021
Transfers
Balance at
1 September 2022
Transfers
Balance at
31 August 2023
£
£
£
£
£
Minimum capital fund
650,000
150,000
800,000
-
800,000
Mens tour fund
100,000
-
100,000
-
100,000
Womens tour fund
50,000
-
-
100,000
100,000
Sevens tour fund
-
-
-
100,000
100,000
Capital fund
-
-
50,000
-
50,000
800,000
150,000
950,000
200,000
1,150,000
25
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Tangible assets
160,031
135,504
295,535
168,567
142,166
310,733
Investments
363,990
-
363,990
358,773
-
358,773
Current assets/(liabilities)
1,336,412
-
1,336,412
1,186,541
-
1,186,541
1,860,433
135,504
1,995,937
1,713,881
142,166
1,856,047
26
Operating lease commitments

At the reporting end date the trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
448
2,687
Between two and five years
-
448
448
3,135
Army Rugby Union Trust
Notes to the  financial statements (continued)
For the year ended 31 August 2023
- 26 -
27
Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

28
Cash generated from operations
2023
2022
£
£
Surplus for the year
139,890
353,291
Adjustments for:
Investment income recognised in statement of financial activities
(18,575)
(2,768)
Fair value gains and losses on investments
1,460
3,693
Depreciation and impairment of tangible fixed assets
15,200
6,680
Movements in working capital:
Decrease in stocks
967
2,792
Decrease/(increase) in debtors
20,618
(20,483)
Increase/(decrease) in creditors
22,218
(6,719)
Cash generated from operations
181,778
336,486
29
Analysis of changes in net funds

The trust had no debt during the year.

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