The Army Cadet Force Association

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					The
Army
Cadet
Force
Association




Annual Report and Financial
Statements

31 March 2009




Company Limited by Guarantee
Registration Number
293432 (England and Wales)

Charity Registration Number
305962

Office of the Scottish Charity Regulator
SC 039057
Contents




           Reports
           Reference and administrative details
           of the charity, its trustees and advisers    1
           Trustees report                              3
           Independent auditors’ report                26


           Financial Statements
           Statement of financial activities           28
           Balance sheet                               29
           Principal accounting policies               30
           Notes to the financial statements           33


           The following pages do not form
           part of the financial statements:
           Income and expenditure statement
           - Outreach                                  42




               The Army Cadet Force Association
Reference and administrative details of the charity, its trustees and advisers




                President of the Council/Trustee     General Sir Jack Deverell KCB OBE

                             Directors/Trustees      Major General A P Grant Peterkin CB OBE
                                       Chairman      (resigned 15 May 2008)
                                                     Major General M D Wood CBE (appointed
                                                     15 May 2008)

                  Vice-Chairman/Finance Chairman     Brigadier A F Gordon CBE

                               Honorary Treasurer    Colonel J Ferguson TD (resigned 31 March
                                                     2008)
                                                     Mr P J W Henderson (appointed 18 Nov 08)

               Members of the Council/Trustees

                        Chairman Northern Ireland    Colonel D M McCleery OBE
                               Chairman Scotland     Colonel J L Kelly MBE
                                 Chairman Wales      Brigadier W E Strong (resigned 22 May 08)
                                                     Colonel D L Davies TD (appointed 22 May
                                                     08)
                                                     Lieutenant Colonel P Lynch
                                                     Mr C K Peacocke (resigned 01 April 2009)
                                                     The Reverend Dr David Coulter QHC
                                                     (resigned 18 Jul 08)
                                                     The Reverend J Woodhouse QHC
                                                     (appointed 18 Jul 08)
                                                     Colonel A Blowers OBE
                                                     Colonel J Wilson OBE DL (appointed 18
                                                     Nov 08)
                                                     Colonel D King OBE
                                                     Mr R Duncan
                                                     Colonel E A Jolley TD DL (resigned 01 April
                                                     2009)
                                                     Colonel J D Davies DL (appointed 01 April
                                                     2009)
                                                     Colonel P Christian
                                                     Colonel M E Bennett OBE




                                                    The Army Cadet Force Association        1
Reference and administrative details of the charity, its trustees and advisers




                              Co-opted members         Colonel MNS Urquhart OBE (appointed 5
                                                       Sep 2008)
                                                       Colonel JRM Hackett CBE (appointed 2
                                                       February 2009)
                                                       Commander E Main RN

                                         Secretary     Brigadier M J Wharmby OBE


                              Company Secretary        Lieutenant Colonel R N B Quicke

            Principal address and registered office    Holderness House
                                                       51-61 Clifton Street
                                                       London
                                                       EC2A 4DW

                   Company registration number         293432 (England and Wales)


                      Charity registration number      305962

          Office of the Scottish Charity Regulator     SC039057


                                          Auditors     Buzzacott LLP
                                                       12 New Fetter Lane
                                                       London
                                                       EC4A 1AG

                                          Bankers      Lloyds TSB Bank plc
                                                       Butler Place
                                                       London SW1H 0PR

                             Investment managers       Rensburg Sheppards
                                                       2 Gresham Street
                                                       London
                                                       EC2V 7QN




                                                      The Army Cadet Force Association    2
Trustees’ report Year to 31 March 2009



             The Council, who are the trustees for the purposes of charity law and directors for the
             purposes of company law, present its statutory report together with the financial statements of
             The Army Cadet Force Association for the year ended 31 March 2009.

             The report has been prepared in accordance with Part VI of the Charities Act 1993 and also
             constitutes a directors report for the purposes of company law.

             The financial statements have been prepared in accordance with the accounting policies set
             out on pages 30 to 32 of the attached financial statements and comply with the charitable
             company’s memorandum and articles of association, applicable laws and the requirements of
             Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP
             2005).

             Governance, structure and management

             Governance

             Constitution
             The Army Cadet Force Association (ACFA) is a registered charity and a company limited by
             guarantee, not having a share capital. It is governed by its Memorandum and Articles of
             Association which were amended on 17th November 2007 to take account of changes to
             Charity Law in Scotland.

             Role
             The Army Cadet Force Association (ACFA) is dedicated to promoting the ideals and
             activities of the Army Cadet Force (ACF). In providing educational, adventurous,
             competitive and social activities, the Association’s key priorities are:

                                         Assisting in cadets’ citizenship development;
                               Promoting cadets’ powers of leadership and qualities of character;
                                Reinforcing the ACF’s potential to ‘Inspire to Achieve’; and
                                    Fostering the welfare and recreational life of the ACF.

             Important ACF programmes such as Adventurous Training and Sports are managed by the
             Association and are designed to improve the overall health and fitness of cadets, while
             activities such as First Aid Training, Music and Competitive Target Shooting help cultivate
             new skills and talents. By co-ordinating valuable initiatives including links to a BTEC
             Vocational Qualification programme and the Duke of Edinburgh’s Award, the Association
             ensures that cadets from all walks of life are able to achieve recognition for their efforts.
             Through the ACF’s Youth and Community project known as Outreach, the Association
             enables participating ACFs to add considerable value to their own communities through a
             programme of achievement based around typical cadet activities, which are delivered by
             cadet force adult volunteers to children aged 12 to 14 considered by schools, police and other
             local bodies to be at risk.




                                                               The Army Cadet Force Association         3
Trustees’ report Year to 31 March 2009



             Governance, structure and management (continued)
             In preparing this report the trustees have had regard to the Charity Commission’s guidance
             to charities on demonstrating that their aims are pursued for public benefit. The Council
             believes that this report provides sufficient information regarding the charity’s aims and
             beneficiaries to fulfil the expectations of that guidance.

             Functions
             The functions exercised by the Association, with the approval of the Ministry of Defence
             (MoD) and the other Authorities concerned, are to:

             §   Act as advisers to the MoD and other Authorities on ACF matters in general;
             §   Assist in the development of training suitable for cadets;
             §   Foster the welfare and recreational life of the ACF;
             §   Represent the ACF in wider youth service affairs, and on the National Council for
                 Voluntary Youth Services (NCVYS), the Central Committee for Physical Recreation
                 (CCPR) and other such bodies;
             §   Provide guidance on the spiritual aspects of ACF training;
             §   Frame the policy on citizenship training to be carried out by the ACF;
             §   Organise and administer national sport for the ACF through the Sports Board;
             §   Be an Operating Authority for the Duke of Edinburgh’s Award Scheme in the ACF;
             §   Co-ordinate First Aid training and serve as a St John Ambulance Special Centre to
                 enable First Aid Training to be carried out in accordance with the Army Proficiency
                 Certificate training syllabus;
             §   Provide the management and musical expertise to develop music for young people at
                 County and National level;
             §   Facilitate, through the Shooting Committee, the sport of target rifle shooting leading to
                 participation in International events;
             §   Foster association with Cadet Forces of the Commonwealth countries;
             §   Devise and execute a national strategy for the promotion of the ACF, linking to
                 regional promotional strategies managed by the RFCAs;
             §   Publish the ACF’s journal, the ACF’s Annual Report and other non-official publications
                 as may be of benefit to the ACF;
             §   Provide “regimental” services to the ACF in the manner of all corps and regimental
                 associations;
             §   Operate a Personal Accident, Travel and Legal Help Insurance Scheme covering the
                 needs of the both adults and cadets of the ACF outside the MoD liability.




                                                            The Army Cadet Force Association          4
Trustees’ report Year to 31 March 2009




             Governance, structure and management (continued)
             The names of the trustees who served during the year are set out as part of the reference and
             administrative details on page 1 of this annual report and financial statements and brief
             biographical details of the senior trustees are given below.

              Office                                                  Background
              President of the        General Sir Jack Deverell KCB   CinC Allied Forces Northern Europe
              Council                 OBE                             2001-2004

              Chairman                Major General D M Wood CBE      Director General Logistic Support
                                                                      Command 2006-2008
              Vice Chairman/Finance   Brigadier A F Gordon CBE        Retired Oxford College Bursar
              Chairman

              Honorary Treasurer      Mr P J W Henderson              Director Newton Investment
                                                                      Management Ltd

             These trustees are involved in the selection of senior members of the Secretariat and of new
             trustees. Once selected, new trustees are sent an induction pack and attend training days if
             available. In 2008/9 this included seminars on tax, trustee governance, investment
             responsibilities and charitable regulation changes. Trustees are not remunerated but are
             reimbursed for travel expenses for attending trustee meetings and visiting ACF Annual
             Camps.


             Trustees’ responsibilities
             The charity’s trustees are responsible for preparing the Annual Report and financial
             statements in accordance with applicable law and 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 charity at the year end and of its
             incoming resources and resources expended during that year. In preparing financial
             statements giving a true and fair view, the trustees are required to:

             ¨ select suitable accounting policies and then apply them consistently;
             ¨ make judgements and estimates that are reasonable and prudent;
             ¨ state whether applicable accounting standards and statements of recommended practice
                 have been followed, subject to any departures disclosed and explained in the financial
                 statements;
             ¨ prepare the financial statements on the going concern basis unless it is inappropriate to
                 presume that the charity will continue in operation.




                                                               The Army Cadet Force Association            5
Trustees’ report Year to 31 March 2009



             Governance, structure and management (continued)

             Trustees’ responsibilities (continued)
             The trustees are responsible for keeping accounting records which disclose with reasonable
             accuracy the financial position of the charity and which enable them to ensure that the
             financial statements comply with Companies Act 1985. They are also responsible for
             safeguarding the assets of the charity and hence for taking reasonable steps for the prevention
             and detection of fraud and other irregularities.

             Each of the trustees confirms that:

             ¨ so far as the trustee is aware, there is no relevant audit information of which the charity’s
               auditors are unaware; and

             ¨ the trustee has taken all the steps that he ought to have taken as a trustee in order to make
               himself aware of any relevant audit information and to establish that the charity’s auditors
               are aware of that information.

             This information is given and should be interpreted in accordance with the provisions of
             S234ZA of the Companies Act 1985.


             Structure and management reporting
             The Charity has a small full time salaried Secretariat that manages its activities on a daily basis.
             The General Secretary Brigadier Mike Wharmby heads this Secretariat. The Secretariat
             carries out the day-to-day management of all the ACFA activities to a programme and
             activity level agreed in advance with the trustees and the main financial stakeholder – HQ
             Land Command. The senior trustees (President, Chairman, Vice Chairman and Hon
             Treasurer) are consulted by the General Secretary on a regular basis and on all matters that
             are considered by him to be novel and contentious. These consultations are largely
             conducted by telephone and e-mail but several meetings occur that are in addition to the
             formal meetings described in the next paragraph.

             There are a number of full and formal trustee (Council) meetings. The ACFA Council
             meets three times a year; after the production of the annual financial statements in July,
             before the Association’s AGM in November, and towards the end of the Financial Year in
             March. The Council receives in advance:

             ¨    A report from the Finance Committee of the ACFA (see next paragraph) that shows
                  expenditure to date in the current financial year and performance of the Investment
                  Portfolio, and for the July meeting this report incorporates the audited financial
                  statements of the Association. The audited financial statements are agreed and signed off
                  at this meeting.

             ¨    At the summer Council meeting only a report from the General Secretary of the
                  ACFA’s recent, current and near future activities.




                                                              The Army Cadet Force Association               6
Trustees’ report Year to 31 March 2009



             Governance, structure and management (continued)
             The Council has a smaller committee; the Finance Committee to which it delegates the
             overall financial management of the Association, including the annual budget, the raising,
             investment and direction of funds and the remuneration of the salaried members of the
             ACFA Staff. The committee is headed by the Vice Chairman and consists of the Hon
             Treasurer and at least two other trustees with financial or investment experience. It meets
             three times a year in advance of the main Council meeting so as to provide timely
             management information to the trustees.

             The Charity has three regional branches based in Scotland, Northern Ireland and Wales.
             These branches have committees made up of volunteers from the ACF but have no full time
             staff. Each branch runs a separate financial account for the support of local activities. These
             financial statements are included in the main ACFA financial statements for audit purposes.
             The Chairmen of these branches are committee members of the main ACFA Council and
             provide the regional input and advice for the National Council. In the case of Scotland the
             Charity is also regulated by the Office of the Scottish Regulator (OSCR) and is regarded by
             it as a ‘Cross-Border Charity’ with a separate Scottish Charity number (SC 039057)


             Risk management
             The Council has a formal risk management process to assess business risks and it is
             implementing the risk management strategies. This involves identifying the types of risks the
             charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and
             identifying means of mitigating the risks. The charity’s internal controls have also been
             reassessed to ensure that they are in line with the guidelines set down and recommended by
             the Charity Commission.

             The risks are formally reviewed at each of the three Council meetings that are held in the
             course of a year, and the trustees are satisfied that the processes are being implemented and
             that the internal controls are adequate and effective.


             Objectives, activities and relevant policies

             Activities and specific objectives
             The Charity’s purpose is to provide members of the Army Cadet Force across the whole of
             UK with activities that will educate, develop and broaden the interests of its 44,500 12-18 yr
             old members. These young people come from all walks of life and with the Charity’s help
             find a purpose to their lives that in some cases, for one reason or another, school and family
             may not have delivered. It also provides support and encouragement to the Adult Volunteers,
             without whom the Army Cadet Force could not exist; these adult volunteers are members of
             the charity.




                                                            The Army Cadet Force Association            7
Trustees’ report Year to 31 March 2009




             Objectives, activities and relevant policies (continued)
             In delivering these objectives, the Charity strives wherever possible to link these activities to
             externally recognised academic or vocational qualifications such as the Duke of Edinburgh’s
             Award, various BTECs and the awards of the Order of St John. In so doing the cadets, and
             indeed adult volunteers, are helped to develop and achieve careers that otherwise might have
             been difficult to attain. In more detail the Charity delivers:

             Activities

             National Sports
             A series of national competitions in swimming, rugby, football, hockey, tug-of-war, cross-
             country, clay target shooting and athletics are organised in different parts of the UK in order
             to give many thousands of cadets the opportunity to travel to other parts of the UK to
             compete in sports at a national level. For most of the cadets taking part it will be their only
             opportunity to take part in a physical challenge at this level.

                  Achievement
                  Athletics at Grantham in June; eight teams participated– London was first, the North
                  East second. NI and England NW did not take part –this is the norm – in fact if all ten
                  regions competed this event might have to be held over two days; few if any stadiums in
                  the whole of the country have more than eight lanes. Accommodation was at
                  Beckingham Camp which worked well. Prizes were presented by two local Mayors and
                  the MP for Grantham, Quentin Davies,

                  Hockey/Tug of War in York in July; The Girls’ Hockey and the mixed Tug-of-War
                  were played out in torrential rain on Saturday 5th July at Imphal Barracks, York. In a
                  closely fought hockey contest that ran to extra time and then penalty flicks, North West
                  finally beat Northern Ireland 4-3. Prizes were presented by the Chairman RFCA
                  Humberside & S Yorkshire.

                  Clay Target Competition held at Larkhill in August, 27 teams entered but only 15 (1
                  CCF, 11 ACF & 3 ATC) arrived on the day, due to clashes with annual camp
                  commitments. Commandants Sussex and Hants & IoW ACF presented the prizes.

                  Swimming at RMA Sandhurst in October – all regions except NI competed.
                  Accommodation was at Sandhurst and at Longmoor. Prizes were presented by the
                  Chairman of the Army Sports Control Board and the Chairman ACFA.

                  Girls’ Football at Nottingham in November. The inaugural event was attended by 7
                  regions. Played in clear, cold conditions on wonderful all weather pitches, prizes were
                  presented by the Chairman ACFA. We are still investigating bringing boys and girls’
                  football together in one venue, possibly Loughborough in 2010, but the need for so
                  many pitches and so much accommodation may defeat us.

                  Football & Cross Country in Warcop in March were run successfully in glorious spring
                  sunshine; prizes were presented by the Chairman ACFA.




                                                            The Army Cadet Force Association              8
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)
                 Rugby in Wales in early April 2009. Better weather this year made a great competition
                 won at both levels by the Welsh contingent. Prizes were presented by the Mayor of
                 Brecon, the Chairman of the Army Sports Control Board and the Commander of
                 160(Wales) Brigade, whose formation hosted the entire tournament.

             Adventurous Training
             The Charity administers the Cadet Centre for Adventurous Training (CCAT), which
             operates from camps in England, Wales & Scotland, staffed by three full time advisers. The
             latter organise and run Adventurous Training Courses for cadets and adults. These courses
             offer nationally recognised qualifications and aim in the long term to provide Cadet Forces
             with sufficient of their own instructors so that they do not have to buy in expertise from
             expensive civilian firms. CCAT is now a recognised Course Provider for mountain and rock
             climbing qualifications. In addition to these courses the advisers help ACF Counties to
             organise international expeditions and less frequently run their own national expeditions
             drawing upon ACF cadets across the whole of the UK. Currently plans are under
             development for the main operation to move to Capel Curig in 2010.

                 Achievement
                 Courses. 1683 Cadets and Adults attended courses comprising a mixture of Proficiency
                 and National Governing Body (NGB) Training and Assessment courses at the three
                 CCAT camps.

                 Expeditions. Planning for the Cadet150 Tri-service Expedition to Lesotho is moving
                 ahead with CCAT offering support to the training of adult leaders. Two further
                 expeditions taking place in 2010 are being assisted by CCAT.

                 Ski Courses in Bavaria. These included the ASL, which allows adults to introduce
                 parties of young people to skiing on-piste in a resort area, the Tour Leader Training the
                 Joint Service Ski Instructor (Alpine) awards – new courses for 2010. Skiing in Bavaria
                 will be extended in the next winter season.

             Duke of Edinburgh’s Award
             The Charity provides the Operating Authority for ACF and some CCF cadets to obtain
             Duke of Edinburgh (DofE) awards based on their normal cadet activities; ACFA manages the
             development of the Award for Army Cadets, monitors higher level expeditions, and
             authorises Awards to successful participants. The ACF is the second largest UK youth
             movement providing DofE qualifications.




                                                          The Army Cadet Force Association            9
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                  Achievement
                  Over 2,300 army cadets and young instructors gained a DofE award in 2007/8, which is
                  the latest year for which we have statistics. In 2008/9, the ACFA DofE Advisory Panel
                  ran a total of 32 training courses at 19 locations throughout the UK. 313 ACF/CCF
                  leaders and senior cadets gained the Introduction to DofE Certificate, with 59 going on
                  to complete the Foundation Certificate in DofE Leadership, while after more advanced
                  training, 18 leaders went on to gain the Certificate in DofE Leadership and one
                  achieved the Advanced Certificate.

                  Training in expedition leadership and assessment skills and techniques through six
                  courses resulted in 30 Expedition Supervisor Training certificates, and 45 leaders
                  undergoing training in the Expedition Assessor Accreditation Scheme. We have
                  purchased 50 licences for the DofE’s excellent “EX2” computer based expedition
                  training package, and these have been made available to those Counties which have sent
                  students on our expedition training courses.

                  The past year has seen much increased cooperation between the DofE in the ACF and
                  CVQO, largely because success in DofE can lead to cadets having their BTEC awards
                  enhanced to Merit and Distinction levels. This promises to be a mutually advantageous
                  relationship, and has encouraged the two bodies to explore the possibility of
                  accreditation of learning on the Modular Training Framework courses being taken on
                  by CVQO using Institute of Leadership and Management (ILM) qualifications.

             First Aid
             The Charity supports all first aid training in the ACF and provides all formal certification.
             To achieve this, the Charity has a formal link with St John Ambulance that allows ACF
             adults to obtain St John Instructor qualifications, and in their turn deliver nationally
             recognised first aid qualifications for cadets and adults alike. ACFA supported first aid should
             reach all ACF cadets every year, and many adult staff. Given turnaround rates and established
             numbers, this means reaching in excess of 40,000 cadets and staff annually (and similar
             numbers for the CCF). Formal qualifications include Heartstart and 1 Star first aid at around
             17,000, the Young Lifesaver Plus qualification at 2 Star (approx 5,100) and around 1,500 4
             Star/adult qualifications.




                                                          The Army Cadet Force Association              10
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                 Achievement
                 CTC Courses ACFA organises all first aid related courses delivered at the Cadet
                 Training Centre. 59 Courses in 2008/09 delivered training to over 700 participants.

                 County/Bn Training ACFA manages ACF entry level first aid training through its
                 collaboration with the British Heart Foundation in delivering emergency life support
                 element of 1 Star. ACFA fully supports and certificates all ACF 2 Star and 4 Star first
                 aid training. ACFA also fully supports first aid training for all sections of the CCF.
                 ACFA supports and certificates first aid training for the ATC and SCC, and liaises with
                 other uniformed youth organisations to deliver comparable and interchangeable
                 programmes. Total formal qualifications provided by ACFA (these numbers include the
                 ATC and CCF) were approximately 6,500 Youth first aid certificates and 1,500 Adult
                 first aid certificates.

                 National and Inter Service First Aid Competitions ACFA organises the national cadet
                 first aid competitions in October at RMAS with mutually exclusive concurrent events
                 for ACF and CCF. In 2008 ACFA hosted at the same time the first Inter Services
                 young adult event for the 17-24 age group. The winning and runner up ACF and CCF
                 cadet teams competed for the Inter Services First Aid Championship at Scarborough in
                 November 2008. This event is managed by ACFA in conjunction with the St John
                 Ambulance Young Grand Prior competition, for winners of national competitions.
                 Cadets from Cambridgeshire ACF won the Young Adult Grand Prior trophy.

                 Recognition 2008 built even further on the success of 2007 with the quite remarkable
                 and historic presentation of 6 Life Saving Medals (only 3 were awarded in the previous
                 148 years!). 7 ACF cadets were among the 13 young people from all walks of life
                 selected to receive Young First Aider of the Year awards from broadcaster Martin Bell at
                 a ceremony in May.

                 Cadet 150. Cadet 150 coincides with the 50th anniversary of ACFAs support for first aid
                 training, with the founding of its St John Ambulance Special Centre in 1960.
                 Arrangements are well in hand for a ‘Festival of First Aid’ at RMAS over 2 days in
                 October 2010, incorporating the national competitions of all the cadet forces as well as
                 the Inter Services event on day 2.




                                                         The Army Cadet Force Association           11
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

             Competitive Target Shooting
             The Charity, through the ACFA Shooting Committee, supports army cadet national Small
             Bore, Target Rifle and Skill at Arms competitions and in so doing stimulates the desire for
             excellence in the large number of young people that this involves. In addition the Charity
             provides a large proportion of the cadet and youth teams that compete internationally on
             behalf of the UK. In this, the ACFA works very closely with the Council for Cadet Rifle
             Shooting (CCRS), a separate charitable body that for administrative convenience is partially
             funded by the MoD through our charity (see below).

                 Achievement
                 Cadet shooting, including competitions, continues to contribute a great deal towards
                 recruitment and retention and provides many opportunities to Inspire to Achieve at all
                 levels. ACFA has provided advice and guidance to HQ Land regarding cadet shooting
                 policy matters. This has included, through the Cadet Training Centre Frimley Park, a
                 review of the APC (ACF) Syllabus for Shooting and Skill at Arms (this is ongoing and
                 also involves a review of the Training Manual and the Instructors Handbook) and
                 amendments to JSP 535 Cadet Training Safety Precautions. ACFA has also provided
                 assistance and guidance to counties for target rifle coaching training and for competition
                 shooting in all disciplines. This has been another busy and successful year for ACF
                 shooting.

                 International Shooting. ACF adults and cadets have been involved in all cadet and youth
                 international teams shooting abroad in 2008 including the GB U19 Team to South
                 Africa in April, the British Cadet Rifle Team to Canada in Jul/Aug and the UK Cadet
                 Team to Channel Islands in Aug. In addition, 14 ACF Cadets attended the Canadian
                 Cadet Leader Instructor Marksman Course in Jul/Aug.

                 Key Aims & Objectives 2009-2010. The review of the APC Syllabus and Training
                 Manual will be continued and finalised and we will also be involved with HQ LAND in
                 a review of their Cadet Shooting Policy. We shall continue to encourage and support
                 more cadets and counties to take part in competitions and we shall deliver the annual
                 Shooting Officers Conference and the coaching courses.

             Council for Cadet Rifle Shooting (CCRS)
             The ACFA administers the grant from HQ Land Command that funds the salaries of the
             three members of staff of The Council For Cadet Rifle Shooting; these staff run CCRS and
             The Territorial Army Rifle Association, two independent charities that administer and run
             shooting competitions, training and teams to international level for the Cadets of all three
             services and the Territorial Army.




                                                         The Army Cadet Force Association             12
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                 Achievement
                 Council for Cadet Rifle Shooting. The administration and running of shooting
                 competitions, training and teams to international level for the Cadets of all three services
                 and the Territorial Army has been successfully achieved over the last year and results are
                 comprehensively covered in other publications.

             Public Relations (PR) Unit
             The Charity enables the activities of a volunteer PR Training Unit which is responsible for
             coordinating a national approach to ACF PR and for training ACF County PR Officers UK
             wide.

                 Achievement
                 PR Unit Six PR Courses were held around UK for a total of 145 students. Numbers
                 of students are beginning to decline slowly, as most County PROs are already trained by
                 the Unit. However, we have now introduced two new skills development courses for
                 experienced PROs, Newsletter Production, and Event Management, both of which are
                 proving popular.

             Signals Training
             The Charity is responsible for a small cadre of volunteer Signals’ Instructors which trains
             adults and cadets in electronic communications to support the APC syllabus.

                 Achievement
                 Courses: Regional courses have been run by several Counties. A total of 131 cadets and
                 39 adults have attended the national Blandford courses this year.

                 Competitions: As well as the three competitions organised for the National Radio Net,
                 we have also seen the second annual national cadet signals’ competition at the Royal
                 School of Signals (Exercise Rolling Thunder). The 24 teams represented ACFs from all
                 corners of the United Kingdom, as well as CCFs and one ATC team. The overall
                 winners were Dorset ACF, with Duke of Yorks’ CCF second and Somerset ACF third.

                 New equipment: The donated Harris radio equipment has continued to be trialled,
                 with demonstrations delivered across the UK. The equipment is now available for
                 trained adults to sign out for short term loan. The first issues of Wotan, a long distance
                 HF radio with a low VHF capability as well, have been made to members of the
                 National Training Team, and a train-the-trainer weekend has been organised at
                 Blandford for October 2009. Project Leader, the programme for the replacement of the
                 ageing Clansman radio systems, has been offered for tender and the bids are currently
                 being evaluated.




                                                          The Army Cadet Force Association              13
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                 Achievement
                 Other developments: The writing of the BTEC qualification in communications
                 continues with input from the ACF as well as the ATC and SCC. Where capacity
                 allows ATC cadets and adults have been welcomed on the courses run at RSS Blandford
                 and we have extended the invitation to the SCC also.

                 Plans for 2009-10: We intend to extend the demonstrations of the Harris equipment to
                 Northern Ireland, Scotland and the North-East of England in addition to those areas
                 already mentioned. We look forward to seeing Exercise Rolling Thunder continue to
                 expand and attract more new entrants, with new stands being developed to ensure the
                 competition remains fresh. The Wotan equipment will begin to be issued to units after
                 training sessions beginning this October.

             Cadet Music Bands
             The Charity organises and supports music training for large numbers of cadets and some
             adults. The qualifications that are obtained are recognised nationally and link to the
             Vocational Qualifications also obtained through the charity.

                 Achievements
                 In October last year Cadets from 4 counties performed at The Malta Tattoo. Also
                 during the same month the first Adult Bandmasters ACF Course was held at the
                 Nescliffe Training Camp. 8 candidates attended resulting in 7 members of staff
                 qualifying, with 1 deferred for further training. Not only does this improve the quality
                 of training the Cadets receive, but also recognises the depth of talent available amongst
                 our adult staff. Once again, this year, every Band and Corps of Drums around the
                 country was employed in support of The Remembrance Sunday services and parades.

                 The year began with yet another sell out concert at Brecon Theatre with over 100
                 Cadets taking part. Cadet Force Music has continued to increase its numbers with more
                 and more Counties becoming involved in Music. The most recent addition has been
                 the 1st Battalion N Ireland ACF. The attendance at Altcar this year was the highest yet
                 with well over 500 Cadets and Staff taking part. When you add the numbers from the
                 Nescliffe Training Camp, who were preparing for this year’s Malta Tattoo, and The
                 Rifles sponsored Cadet Corps of Drums training at Winchester next month, almost 800
                 Cadets will have taken part in some kind of musical activity this year. Running
                 concurrently at Altcar was the second Adult Bandmasters’ ACF Course with all 5
                 candidates being successful. We are also pleased to announce that the first Adult
                 Commissioning Board (Music) has also taken place with 4 candidates being
                 commissioned into the ACF.




                                                         The Army Cadet Force Association            14
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                 Achievements
                 Preparations are now well under way to identify the two bands that will perform in the
                 grounds of Buckingham Palace next year and also those Cadets who will march up The
                 Mall with the Corps of Drums. 80 Cadets have now signed up for the B Tec Diploma
                 in Performing Arts scheme. The training year will conclude with the next Advanced
                 Musicians Course at Longmoor Training Camp during the October half term.

             Cadet Music Pipes and Drums
             Piping and Highland Drumming, based in Edinburgh, saw a marked increase in attendance at
             all organised events and further applications to Cadets Branch for the authorisation of Pipes
             and Drums Detachments and not just in Scotland. More ACFs have recognised the necessity
             for regular training, introducing changes of venue and increasing the regularity of
             programmed music development being offered to the cadet.

                 Achievement
                 Training & Development. Six of the 8 Battalions in Scotland have now been granted
                 authorisation to maintain an established Pipes and Drums Detachment as does Greater
                 Manchester ACF. It is very evident that an increased level of proficiency is being
                 achieved at all levels where the opportunity for full application of the syllabus is being
                 provided by the unit.

                 Collective activities. Although no organised training activities are carried out during the
                 summer months cadet involvement was to the fore supporting the 51 (Scottish) Brigade
                 Commander’s Army in Society exercise ‘The Piper’s Trail’ during June and July,
                 gaining much valuable experience in so doing. As a result of this cadets were involved
                 in the Edinburgh Fringe Festival and the Edinburgh Military Tattoo.

                 ACFA Training Weekends. A total of 5 training weekends were held over the winter
                 months. Encouragingly there was an increase in attendance with an average of 70 x
                 cadets and 20 x Adult volunteers attending each event.

                 Proficiency Courses. The 2, 3 & 4 Star Proficiency courses were held in October
                 involving 39 cadets and 11 Adult volunteers. The required standard is extremely high
                 however 8 cadets achieved 2 Star, 4 achieved 3 Star and we saw our first 2 cadets attain
                 their 4 Star Piper and Drummer proficiencies. Many of the cadets are still working
                 through the lower Star levels although they do have the ability to achieve the higher
                 levels.

                 Cadet Forces Competition. The annual Cadet Forces Piping and Drumming
                 competitions took place on Saturday 18th October. No fewer than 68 cadets competed,
                 66 of those being from the Army Cadet Force and 2 from the Air Training Corps.
                 There were 12 different competitive categories, including Drum Major and Highland
                 Dancing. Judging was carried out by recognised civilian adjudicators and senior regular
                 army Drum Majors who were all very impressed with the overall standard of playing,
                 conduct and discipline of the cadets. Prizes were spread throughout the ACF.



                                                         The Army Cadet Force Association              15
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                  Achievement
                  Attendance. With the inclusion of the Piping and Drumming Concentration in April
                  and the ACFA Scotland Beating of Retreat in May ACF Piping and Drumming events
                  have attracted participation of 750-800 cadets and a further 350 Adult volunteers.

                  Future Intentions. The ACFA Pipes and Drums intentions for the next reporting
                  period are to; establish further the links between the ACF Bn/County and ACFA
                  Music, increase the education of the Adult Instructors to ACF Music, further encourage
                  the establishment and structure of Pipes and Drums Detachments in all Bns in Scotland,
                  to develop the training and opportunity available to both Cadets and Adults alike
                  throughout the UK and the continuation of interest and uptake in BTEC Music.
                  Cadet150 is to the fore and preparations are firmly in place to ensure that ACF Piping
                  and Drumming will be at the required standard to fulfil all Piping activities that are
                  planned for 2010.

             Association with Cadet Forces from Commonwealth Countries
             The role of the ACFA is to foster the links between cadet forces of Commonwealth
             countries and ACF Counties. Most counties now have links to overseas cadet forces and
             many organise exchange visits at no cost to the MoD. The ACFA provides some grants for
             these visits and on particular exchanges provides an escort officer for part or all of the inward
             part of the exchange. As a result of ACFA support, Hereford & Worcestershire ACF is
             sending a boys’ football team to India to take part in an Indian Cadet event, the first time a
             team from UK has taken part since Independence in 1947.

             Marketing and Communications
             The most significant developments for the ACFA’s marketing and communications team
             during 2008/09 related to structure and personnel. At the start of the year the team
             comprised two part-time Marketing Managers, both working remotely from home. In mid-
             July a long-term ambition to bring greater co-ordination to the ACF’s entire promotional
             effort across the UK finally came to fruition with the appointment of a full-time Head of
             Marketing and Communications based at the charity’s London office in Holderness House
             followed later with a full-time Marketing Assistant also working at Holderness House.

                  Achievement
                  Annual Review. A major innovation during 2008/09 was the introduction of a high
                  quality annual review for the ACF. Using the events and achievements of the year to
                  provide a general introduction to the ACF, it is designed very much for an external
                  audience and has been widely distributed at a national level to schools, youth and
                  children’s departments in local councils, the media, Area and Divisional Commanders in
                  the Police Force and members of the UK Parliament, Scottish Parliament, Welsh
                  Assembly and Northern Ireland Assembly. The RFCAs and ACF county HQs also
                  received a supply for distribution to supporters and stakeholders at regional level in their
                  localities.




                                                           The Army Cadet Force Association              16
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                 Achievement
                 Army Cadet. The Army Cadet magazine (formerly known as the Cadet Journal)
                 continues to be provided to all ACF adults free of charge, three times a year. Designed
                 to improve retention by fostering an esprit de corps across the ACF, highlighting
                 achievements and sharing news, ideas and best practice, this high quality, glossy product
                 is extremely popular. A recent readership survey demonstrated the magazine’s success in
                 meeting its objectives. The magazine also has an external readership comprising opinion
                 formers and stakeholders across the UK which is constantly updated and reviewed.

                 Electronic Newsletter. Summer 2008 saw the introduction of a new electronic VIP
                 newsletter, sent free of charge three times a year to anyone who has subscribed on the
                 national website, www.armycadets.com. The first issue went to 20,523 recipients but by
                 the third issue that number had grown to 25,829, representing an increase of 25%. The
                 VIP newsletter represents extremely good value for money and the website sign-up
                 form has been enhanced to request more information about subscribers in order that it
                 can be developed into an even more valuable communications tool.

                 The Website. The national recruiting website continues to be very popular, attracting
                 337,479 visits during the period 1 April 2008 to 31 March 2009. Two online marketing
                 campaigns (known as Pay Per Click and Search Engine Optimisation) were introduced
                 to increase traffic to the site from potential adult volunteers. These campaigns have the
                 facility to be finely targeted and have been tweaked to focus on themes such as fitness
                 and New Year resolutions, or audiences such as women and potential officer candidates
                 at different points in the year. Geo-targeting will commence in summer 2009 focusing
                 on the areas of the UK experiencing the greatest shortfall in adult volunteers.

                 Branding and regional support. In order to improve brand consistency across the ACF,
                 the ACFA has introduced corporately-branded websites which are available entirely free
                 of charge to ACF counties and above. 34 ACF counties, four ACFA Heads of Activity
                 and Cadet Training Centre Frimley Park have all taken up this opportunity in its first
                 year. Funding was also provided to update the liveries of around 60 vehicles held by
                 ACF counties and the brand manual was updated and reissued on DVD.

                 Fulfilment Packs. A total of 26,828 potential cadets and 5,844 potential adult volunteers
                 requested information on how to join the ACF via either the national recruiting website
                 (www.armycadets.com) or the national phone line (0845 600 7799). This represents an
                 annual increase of 59% in cadet enquiries and 47% in adult enquiries. 96.5% of adult
                 enquiries and 85% of cadet enquiries now come via the website, demonstrating its vital
                 importance as a recruitment tool.




                                                         The Army Cadet Force Association            17
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

                 Objectives for 2009/10
                 ¨ The greatest opportunity during 2009/10 will be the start of the Cadet150 campaign
                   in spring 2010. ACFA is already directly involved in planning, through membership
                   of the project steering group and the marketing and communications working group.
                   The focus for 2009 will be on an internal communications programme and the
                   development of pan-cadet marketing materials such as the Cadet150 website. The
                   focus will switch to external communications in early 2010 with a nationwide media
                   launch in February.

                 ¨ Market research undertaken in spring 2008 suggests that some of the ACF’s existing
                   marketing materials, many of which were developed in 2004/05, should be updated
                   and refreshed to enable the Army Cadets to take full advantage of the raised profile
                   that 2010 will bring. Budget is being sought to undertake this activity.

                 ¨ An electronic supplement to the Army Cadet magazine will be introduced to
                   provide more frequent news and information updates to ACF adults in a cost-
                   effective manner.

                 ¨ The information gathered through the online subscription form will be used to
                   segment the existing VIP newsletter mailing list according to age enabling different
                   newsletters to be published for different audiences.

                 ¨ Both the national and county websites will be further developed to improve the
                   visitor experience. The interactive map, contact form and activities sections on the
                   national site are top priorities. The aim is to increase website visitors by 10% over the
                   year.

                 ¨ Counties who have not yet taken up the free corporately-branded websites will be
                   approached individually and encouraged to take advantage of the offer. The target is
                   100% take-up by the end of 2010.

                 ¨ An ACFA website will go live in summer 2009, designed to improve understanding
                   of the charity’s role and provide other information on the ACFA and its programme
                   which is not currently available on the internet.

             Future activities
             Most activities are expected to maintain or develop their current levels as funding permits. A
             large number of cadets will go to Normandy in June 2009 for the 65th anniversary of D-Day
             and will be involved in all the Veteran events as it will be the last organised trip for the
             Veterans’ Association. Planning for Cadet150 promotional activities in 2010 is developing to
             include a major cadet parade on the Mall and at Buckingham Palace in summer 2010, a DofE
             residential project at Dartmouth, joint sporting and first aid competitions, and a large musical
             event in Glasgow.




                                                          The Army Cadet Force Association              18
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

             Outreach

             Outreach Youth & Community Project. The Charity organises and funds (through private
             fundraising effort) a number of projects throughout the UK that help young people whose
             circumstances make them vulnerable to crime, or social/educational exclusion. These
             children have been identified by partner agencies (usually schools, local police forces, youth
             offending teams and community groups) but must enter the programme voluntarily. The
             projects use adult and cadet members of the ACF to run adventure experiences designed to
             give the young people a taste of what can be achieved by them with more self confidence
             and strong example. The projects continue to achieve an 80 to 90% success rate (measured
             by the partner agencies) in increasing school attendance, improving antisocial behaviour and
             reducing youth offending. There is a growing bank of evidence that supports increased
             awareness of the ACF and improved perception of the ACF (and the Army) amongst
             teachers and social workers as a result of participation in Outreach.

                 Achievements
                 During 2008/09 27 projects were delivered by 20 ACF counties in England, Wales &
                 Scotland. 645 young people completed projects and 25% of participants joined the ACF.
                 Participant improvement results look set to repeat the high level of previous years,
                 which are significantly better than similar type projects deliver.

                 Two key aims for 2008/09 of achieving 25 participating counties and offering 800
                 participant places were not achieved due to project partners pulling out at the last
                 minute (due to staffing issues) in four instances. ACF units unable to fulfil promised
                 participation due to pressure from other commitments caused cancellation in three other
                 instances. However, three new counties joined the project and other key objectives of
                 decreasing average cost per participant, achieving project consistency in terms of
                 activities offered and delivery quality, increasing fundraising activity and securing 3 long
                 term sponsors were all achieved. Attendance at the Outreach Annual Conference was
                 excellent with every available place filled with significant interest from new or returning
                 counties. The Outreach Awards’ Luncheon was a great success and attracted the largest
                 attendance so far. This year also saw the Scottish Government supporting the project
                 financially for the first time and Commander Regional Forces and a number of Brigade
                 Commanders have taken an active and encouraging interest in OUTREACH.

                 Key aims for 2009/10 are:
                 ¨ Increase county participation to at least 24.
                 ¨ Increase participant numbers to 800.
                 ¨ Continue to improve project quality.
                 ¨ Trial Open College Network (OCN) accreditation for participants and senior cadets.
                 ¨ Ensure the Outreach Fund pays for all costs including PTDs.




                                                          The Army Cadet Force Association              19
Trustees’ report Year to 31 March 2009



             Objectives, activities and relevant policies (continued)

             Insurance

             Collective Personal Accident Insurance Scheme. The ACFA offers adults and cadets of the
             ACF a personal accident insurance scheme. This is in addition to the MOD Indemnity that
             operates if the department or its agents are found to have been negligent when MOD
             property or facilities are used. The collective policy is negotiated annually through an
             insurance broker (RK Harrison) and the insurer is CNA. All ACF Counties/Battalions have
             joined the scheme and it has been widened to include cover for Outreach participants at no
             extra cost. In addition there is a Collective Travel Insurance scheme that provides cover for
             Cadet Expeditions, D of E activities and visits. ACFA collects the premiums and forwards
             them to the broker. No charge is made for this service as this is regarded by the trustees as a
             core part of the Charity Objects and meets the Association’s obligations under the duty of
             care.

             However the Insurer has recognised the value of the work that we do on their behalf to
             administer the scheme and has provided us with a rebate to offset some of our costs. Some
             of this rebate has been utilised to pay the premium of the Legal Help Insurance described in
             the subsequent paragraph.

             Legal Help Insurance. In response to the tragic death of a cadet whilst training in Scotland in
             2007, and the subsequent investigations by the Marine Accident Investigation Branch and
             other statutory investigative bodies, for the second year running the ACFA has purchased an
             insurance policy that puts in place a Legal Helpline to assist all our Adult Volunteers who
             might face criminal prosecution in relation to their authorised ACF activities. In the event
             that any criminal prosecution of an Adult Volunteer (in relation to ACF matters) goes to
             court, the Legal Help advisers will, if appropriate, recommend a guilty plea or will fund a
             defence until the conclusion of the proceedings.


             Development
             The Army Cadet Force Association’s objects look set to endure for a further 5 years but the
             Charity continues to pay close attention to the relevance, benefit and accessibility of its
             programme of cadet activities and will continuously review the support we provide to our
             adult volunteer members. We intend also to update our activity and financial management
             arrangements in order to deliver demonstrable value for money for those who fund our
             programme.




                                                          The Army Cadet Force Association             20
Trustees’ report Year to 31 March 2009


             Development (continued)
             The trustees watch all of the initiatives which are being introduced across the youth sector
             for and by the governing bodies of our various activities and the Association's Secretariat is
             closely engaged with the development of the Government's initiative to increase the
             opportunity for teenaged children in state sector education to participate in cadet activities.
             We pay close attention to the priorities and pressures within the MoD which have a bearing
             on the ACF, most particularly on the funds which can be made available to the Charity to
             support its cadet training programme year on year; in 2009/10 the MoD has again accorded
             sufficiently high priority to funding the Army’s cadets to avoid significant impact on the
             Charity's support to cadet training. We are also committed to assisting the MoD in both
             understanding and publicly demonstrating the high value of the cadet forces to participating
             children, the Armed Forces and to the nation generally.

             During the coming 2 years we will be exploiting the major promotional programme of
             events which are being organised to mark the 150th anniversary of the cadet movement in
             2010. We will use this to increase public awareness of the Army's cadets and to garner ever
             more support from all tiers of government and from all sectors of business and society. With
             others, we hope to use the publicity of the 150th commemoration (branded as Cadet150) to
             improve significantly the recruitment and retention of the ACF's adult volunteers. As ever,
             we will be looking closely at the effectiveness and the timeliness with which the Secretariat
             and our employed staff communicate with one another, with our trustees, with ACFA’s
             members and with all of the ACF’s wide range of stakeholders.


             Investment policy
             ACFA Statement of Investment Principles

             The charity has a portfolio of investments with a market value as at 31 March 2009 of
             £1,265,686 as well as a separate Outreach Portfolio valued at £270,538. The trustees of the
             ACFA pursue a policy of capital growth over the longer term, thereby allowing them to
             meet their future objectives in accordance with the purposes of the ACFA.

             The trustees, in delegating their investment management, require the managers to pay
             attention to the standard investment criteria, namely the suitability of the class of investment
             and the need for diversification insofar as it is appropriate to the circumstances of the ACFA.
             Any restrictions on the type of investments or markets in which the manager may invest on
             the charity’s behalf will be set out in writing.

             The trustees’ overriding wish is that the portfolio be managed to achieve a return better than
             that of a composite benchmark, made up of a number of indices, in line with the objectives
             of long-term capital growth. During the period of the report the ACFA had no specific
             income requirements apart from the need to set up a fund to support the Cadet150
             celebrations. The trustees are mindful of the significant contribution that income has made
             to the long-term total return of equities. Therefore they would advocate a ‘Total Return’
             approach, allowing the fund manager to move freely between higher-income-generating and
             growth areas of stock markets, as the fund manager sees fit. However now that the reserves’
             requirement has been reduced by the departure of the CVQ Organisation, income is
             earmarked for development activities including the 150th Anniversary and held separately
             from the main Portfolio.

                                                          The Army Cadet Force Association              21
Trustees’ report Year to 31 March 2009


             Investment policy (continued)
             This has been happening for the past two years and the fund to support national Cadet150
             activities in 2010 now stands at £72,153. ACFA Scotland holds 8.9% of the portfolio and
             the 2010 fund, and may draw upon this for exclusively Scottish events. The rest of the
             portfolio may also be used to support Scottish activities if the trustees deem that the event is
             sufficiently important when compared to other activities elsewhere in the UK.

             Benchmarks and objectives, once agreed, will be subject to regular review. In particular, any
             performance target will be set on a minimum rolling three-year basis and reviewed at a
             regular meeting of the Finance Committee. The objectives below were updated in line with
             market conditions at the Finance Committee meeting in February 2009.
             Asset Class          Weighting        Index                            Ranges
             Fixed Interest       15%              FT Government All Stocks         10-20%
             UK Equities          55%              FT All Share                     50-70%
             Overseas Equities    20%              FTSE World Ex UK                 15-25%
             Property             10%              IPD (Investment Property         0-15%
                                                   Database)
             Cash                                  LIBOR                            0-10%

             The trustees in the shape of the Finance Committee meet with the investment managers
             every four months to review the performance of the portfolio and the investment strategy.

             The Investment Managers (Rensburg Sheppards) have now been in full control of the
             portfolio since September 2005. In the first full year the trustees were satisfied that with
             these Investment Managers their investment policy was being achieved satisfactorily.
             However this last two financial years, admittedly in a global economic slowdown, the
             performance of the portfolio was disappointing. Rensburg Sheppards own comment on
             their performance is as follows:

              “During the past year fears of a slowdown of world economic growth gave way to a global
             financial crisis, leaving credit markets paralysed and tipping the western world into a deep
             recession. Most asset classes suffered significant falls during the year, exacerbated by the
             failure of Lehman Brothers in October which led to partial nationalisation of many high
             street banks. Against this backdrop the portfolio produced a total return of -19.3%, although
             this performance held up better than the benchmark return of -21.0%. The outperformance
             was derived through active asset allocation, by which a higher weighting in bonds and cash
             was held and a lower weighting in equities. A preference for overseas equities over UK
             equities was also helpful as a rapid fall in sterling helped limit, to a degree, falls in overseas
             assets for the sterling investor. At an asset class level performance was broadly in line with
             market movements; UK equities returned -29.4% against -29.3% for the FT All Share and
             overseas equities returned -18.1% against -19.1% for the FTSE World ex-UK index. Under
             such extreme market conditions gilt prices rose sharply and the corporate bonds held fared
             less well, although this has started to reverse in recent months. The weighting in property
             remains very low at 4% as credit conditions remain difficult. The early months of 2009 have
             witnessed further volatility but the scale of the recent fiscal stimuli of central banks and
             governments around the world has given Rensburg Sheppards some confidence that the
             necessary foundations to build a recovery are being put in place.”


                                                            The Army Cadet Force Association              22
Trustees’ report Year to 31 March 2009


             Investment policy (continued)

             The Future
             Since March 2007 the trustees directed that once the reserves matched the Reserves Policy
             set by the Council (12 months’ operating costs) the income from the portfolio (up to £100k
             over 3 years) would be used to further the aims of the Army Cadet Force in the run-up to
             the 150th Anniversary in 2010, and then subsequently if the initiatives prove successful.
             Further information on the Reserves Policy is shown in subsequent paragraphs.


             Financial report for the year
             All charitable activity levels have been maintained or improved. The grant from the MoD
             was utilised to best effect and through further efficiencies in the delivery of some activities
             the overall MoD provided budget came in at £90k (£40k cash and £50k Paid Training
             Days [PTDs]) less than the original allocation of £1.899m (or within 4.5% of budget). Most
             of the PTD underspend occurred because County ACFs continue to claim PTDs for their
             Adult Volunteers through their own budgets rather than pass the costs to us. The cash
             underspend occurred because posts were vacant.

             This year our investment portfolio has suffered in line with markets generally and has seen a
             loss of over 19%. Income from the fund has been held separately pending expenditure on
             Cadet150. This fund was valued at £72,153 at year end.

             The Outreach project has maintained levels of activity as well as increasing its restricted
             reserves through increased fundraising and contributions from partner agencies. However it
             is recognised by the trustees that activity levels must be raised if expenditure is to match or
             exceed donor income. PTDs must also be charged to the Outreach fund and not found from
             surpluses in other activities if the true Outreach costs are to be identified and recorded. The
             trustees do not want the Outreach reserves to grow any larger.

             In a ‘soft’ insurance market we have been able to keep premiums at the same level for the
             past three years whilst increasing the pay-out value at a level that has exceeded inflation. The
             insurers have returned part of the premiums back to ACFA in the form of a rebate to
             contribute towards the administrative costs of the scheme. However instead of spending it
             on administration we have used this return partly to fund a Legal Help Line for Cadet Force
             Adult Instructors in 2008/9. This will be continued in 2009/10 paid for by the Charity as
             part of its membership services to the adults in the ACF.


             Results for the year
             A summary of the year’s results can be found on page 28 of this report and financial
             statements.

             During 2008/09 total incoming resources amounted to £2,579,493 (2008: £2,286,016).
             The MoD grant, which included Paid Training Days, was £1.899m (2008: £1.638m).
             Resources expended totalled £2,068,483 (2008: £1,866,134).




                                                          The Army Cadet Force Association              23
Trustees’ report Year to 31 March 2009



             Financial report for the year (continued)

             Results for the year (continued)
             Net income for the year, therefore, was £511,010. Of this £122,370 was designated (or
             carried forward) as monies earmarked for particular projects (see note 16), whilst £160,545
             was restricted for use with Project Outreach. The remaining monies (£228,095) have
             resulted from the efficiencies in activities and gapping posts already fully funded. This surplus
             will go far to cancel out the loss sustained on the portfolio which was £318,407. The net
             movement in funds for the year, taking into consideration all the above figures, was a surplus
             of £192,603.


             Reserves policy and financial position

             Reserves policy
             As explained above the charity carries out a diverse range of activities, some of which
             comprise short term and externally funded projects whilst others comprise long term projects
             requiring significant ongoing financial commitment and investment (Outreach). The trustees
             have examined the requirement for free reserves i.e. those unrestricted funds not invested in
             tangible fixed assets, designated for specific purposes or otherwise committed. The trustees
             consider that, given the nature of the charity’s work, and mainly the risk associated with any
             long term government funding, the level of free reserves should be approximately equivalent
             to 12 months’ annual expenditure on unrestricted funds (currently £2.0m) at any one time.
             The trustees are of the opinion that this provides sufficient flexibility to cover temporary
             shortfalls in incoming resources due to timing differences in income flows, adequate working
             capital to cover core costs, and will allow the charity to cope and respond in the short term
             to unforeseen emergencies (such as the withdrawal of MoD funding) whilst specific action
             plans are implemented.

             Financial position
             The balance sheet shows total funds of £2,330,165. The charity’s free reserves of
             £1,535,105 at 31 March 2009 are now nearing the level directed by the trustees (12 months
             expenditure or £2m) and as a result for the last two years the trustees have directed that the
             income from the portfolio should be separated out to form the 2010 fund.

             Also included in total funds is an amount of £629,445 which is restricted. These monies
             have either been raised for the Outreach Project or for the Cadet 150th Anniversary Fund and
             their use is restricted to that. Full details of these restricted funds can be found in note 18 to
             the financial statements together with an analysis of movements in the year.

             ACFA provides employees with a pension through a separate charity called the Pensions
             Trust. Government Rule changes mean that all members of a particular pension scheme are
             now collectively responsible for making up the shortfall for firms (or charities) in the same
             schemes that have subsequently failed. This is called an employer’s contingent liability and
             whilst we in the ACFA have not actually been asked to provide the money, if we left the
             Pension scheme this would crystallise the debt which on 30 September 2008, the last time
             the actuary calculated the amount, stood at £392,088. ACFA does not intend to carry out
             any action that might crystallise this debt, and the Pensions Trust has indicated that the
             likelihood of the Trust winding up the fund is infinitesimally small.

                                                           The Army Cadet Force Association               24
Trustees’ report Year to 31 March 2009



             The charity’s assets
             Acquisitions and disposals of fixed assets during the year are recorded in the notes to the
             financial statements.


             Employees
             The charity is an equal opportunities employer and will apply objective criteria to assess
             merit. It aims to ensure that no job applicant or employee receives less favourable treatment
             on the grounds of age, race, colour, nationality, religion, ethnic or national origin, gender,
             marital status, sexual orientation or disability.
             Selection criteria and procedures are reviewed regularly to ensure that individuals are
             selected, promoted and treated on the basis of their relevant merits and abilities. All
             employees are given equal opportunity and, where appropriate and possible, special training
             to enable them to progress both within and outside the organisation. Formal half yearly and
             yearly performance reviews are carried out. We have been awarded the ‘Employer of
             Excellence’ accreditation from Peninsula Business Services.
             During the year the process of advertising, recruiting and interviewing potential employees
             was completely revised in line with the latest employment law and the Employee Handbook
             was updated again. Employees have access to a portable, contributory pension and a free
             healthcare scheme if they wish.


             Volunteers
             The trustees are very grateful to the many volunteers who have given their time to the
             charity over the past year and who have provided invaluable assistance with Fundraising,
             Outreach Projects and particularly the activities that develop and enthuse the 44,500 cadets
             of the ACF.



             Approved by the trustees and signed on their behalf by:



             M D Wood

             Chairman




             Approved by the trustees on: 15 July 2009




                                                          The Army Cadet Force Association            25
Independent auditors’ report 31 March 2009




            Report of the independent auditors to the trustees and members of the Army Cadet
            Force Association
            We have audited the financial statements on pages 28 to 41 which have been prepared under
            the historical cost convention [as modified by the revaluation of certain tangible fixed assets
            and investments] and the accounting policies set out on pages 30 to 32.

            This report is made solely to the charitable company’s members, as a body, in accordance
            with Section 235 of the Companies Act 1985 and to the charity’s trustees as a body, in
            accordance with Section 44(1)(c) of the Charities and trustee Investment (Scotland) Act 2005
            and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. 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 auditors’ 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.


            Respective responsibilities of trustees and independent auditors
            As described on pages 5 and 6 the trustees, who are also the directors of the Army Cadet
            Force Association for the purposes of company law are responsible for the preparation of the
            trustees’ Annual Report and the financial statements in accordance with applicable law and
            United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
            Practice).

            We have been appointed under section 44(1)(c) of the Charities and Trustee Investment
            (Scotland) Act 2005 and under the Companies Act 1985 and report to you in accordance
            with those Acts.

            Our responsibility is to audit the financial statements in accordance with relevant legal and
            regulatory requirements and International Standards on Auditing (UK and Ireland).

            We report to you our opinion as to whether the financial statements give a true and fair view
            and are properly prepared in accordance with the Companies Act 1985, the Charities and
            Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts
            (Scotland) Regulations 2006 and whether the information given in the trustees’ Annual
            Report is consistent with those financial statements.

            We also report to you if, in our opinion, the charitable company has not kept proper
            accounting records, if the charity’s financial statements are not in agreement with these
            accounting records, if we have not received all the information and explanations we require
            for our audit, or if information specified by law regarding trustees’ remuneration and
            transactions with the charitable company is not disclosed.

            We read the trustees’ Annual Report and consider the implications for our report if we
            become aware of any apparent misstatements within it.




                                                         The Army Cadet Force Association             26
Independent auditors’ report 31 March 2009



            Basis of opinion
            We conducted our audit in accordance with International Standards on Auditing (UK and
            Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test
            basis, of evidence relevant to the amounts and disclosures in the financial statements. It also
            includes an assessment of the significant estimates and judgements made by the trustees in the
            preparation of the financial statements, and of whether the accounting policies are
            appropriate to the charitable company’s circumstances, consistently applied and adequately
            disclosed.

            We planned and performed our audit so as to obtain all information and explanations which
            we considered necessary in order to provide us with sufficient evidence to give reasonable
            assurance as to whether the financial statements are free from material misstatement, whether
            caused by fraud or other irregularity or error. In forming our opinion we also evaluated the
            overall adequacy of the presentation of information in the financial statements.


            Opinion
            In our opinion:

            ¨ the financial statements give a true and fair view, in accordance with United Kingdom
                Generally Accepted Accounting Practice, of the charitable company’s state of affairs as at
                31 March 2009 and of its incoming resources and application of resources, including its
                income and expenditure, in the year then ended;

            ¨ the financial statements have been properly prepared in accordance with the Companies
                Act 1985; the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of
                the Charities Accounts (Scotland) Regulations 2006; and

            ¨ the information given in the trustees’ report is consistent with the financial statements.




            Buzzacott LLP
            Eligible to act as an auditor in terms of section 25 of the Companies Act 1989
            Chartered Accountants and Registered Auditors
            12 New Fetter Lane
            London
            EC4A 1AG                                                                          21 July 2009




                                                         The Army Cadet Force Association             27
Statement of financial activities Year to 31 March 2009


                                                                      Unrestricted funds
                                                                      General Designated        Restricted
                                                                       funds         funds          funds        Total        Total
                                                           Notes                                                 2009         2008
                                                                             £              £           £            £           £

         Income and expenditure
         Incoming resources
         Generated funds
         . Donations receivable                                 1      3,470             —       215,645      219,115      251,495
         . Investment income                                    2     51,203          1,555       14,071       66,829       72,647
         Charitable activities
         . Grants and contributions receivable                  3 1,820,697         105,000      211,348     2,137,045    1,781,790
         . Affiliation fees                                          77,425              —            —         77,425       74,361
         . Members’ subscriptions                                     7,329              —            —          7,329        8,998
         . Development - Training and support
             services income                                    4     63,390          8,360            —       71,750        96,725
                                                                    2,023,514       114,915      441,064     2,579,493    2,286,016

         Resources expended
         Cost of generating funds
         . Investment managers fees                                     9,323               —       2,680      12,003       11,344
         Charitable activities                                  5
         . Vocational qualifications                                 26,048              —            —         26,048       28,520
         . Activities, events and projects                        1,174,040          19,898           —      1,193,938    1,027,762
         . Outreach                                                      —               —       245,354       245,354      244,851
         . Development                                              499,433              —        32,485       531,918      491,150
         Governance costs                                       7    59,222              —            —         59,222       62,507
         Total resources expended                                 1,768,066          19,898      280,519     2,068,483    1,866,134

         Net incoming resources before transfers                8    255,448         95,017      160,545      511,010      419,882
         Gross transfers                                             (27,353)        27,353           —            —            —
         Net incoming resources for the year                         228,095        122,370      160,545      511,010      419,882

         Statement of total recognised
         gains and losses
         Net loss on investment                               12     (255,075)              —     (63,332)   (318,407)     (153,632)

         Net movement in funds                                        (26,980)      122,370       97,213      192,603      266,250

         Fund balances at 1 April 2008                              1,562,085        43,245      532,232     2,137,562    1,871,312


         Fund balances at 31 March 2009                             1,535,105       165,615      629,445     2,330,165    2,137,562

         All of the charity’s activities during the above two financial periods derived from continuing operations.
         All recognised gains and losses are included in the above statement of financial activities.
         The notes on pages 33 to 41 form part of these financial statements


         Historical cost net movement in funds

                                                                                                                 2009         2008
                                                                                                                    £            £
         Net movement in funds                                                                                192,603      266,250
         Unrealised losses on investments                                                                     248,020      112,010
         Difference between historic cost realised (losses) gains and the actual realised
         (losses) gains calculated on the revalued amounts                                                     (33,683)    243,435
                                                                                                              406,940      621,695




                                                                           The Army Cadet Force Association                      28
Balance sheet 31 March 2009



                                             Notes       2009          2009       2008         2008
                                                            £             £          £            £

            Fixed assets
            Tangible assets                    11                    10,959                    8,628
            Investments                        12                 1,536,223                1,578,485
                                                                  1,547,182                1,587,113
            Current assets
            Debtors                            13       29,923                  27,845
            Cash at bank and in hand                   768,992                 562,502
                                                       798,915                 590,347
            Creditors: amounts falling due
            within one year                    14      (15,932)                 (39,898)
            Net current assets                                     782,983                  550,449

            Total net assets                                      2,330,165                2,137,562

            Represented by:
            Funds
            Unrestricted funds
            . Designated funds                 16      165,615                   43,245
            . General fund                     17    1,535,105                1,562,085
                                                                  1,700,720                1,605,330
            Restricted funds                   18                   629,445                  532,232
                                                                  2,330,165                2,137,562




            Approved by the Council
            and signed on their behalf by:



            A F Gordon                               P J W Henderson

            Vice Chairman                            Honorary Treasurer



            Approved on:15 July 2009




                                                        The Army Cadet Force Association          29
Principal accounting policies 31 March 2009




             Basis of accounting
             The financial statements have been prepared under the historical cost convention, as
             modified by the revaluation of fixed asset investments, and in accordance with the
             requirements of the Companies Act 1985 and Charities Accounts (Scotland) Regulations
             2006. Applicable accounting standards and the Statement of Recommended Practice
             “Accounting and Reporting by Charities” (SORP 2005) have been followed in these
             financial statements.

             The statement of financial activities and balance sheet represent the financial statements of
             the charity and its national branches - the Army Cadet Force Association (Northern
             Ireland), Army Cadet Force Association Scotland, and Army Cadet Force Association
             Wales.

             In previous years the charity presented group financial statements as well as those of the
             charity above. As the subsidiary was dissolved during the year, group accounts are no
             longer presented.


             Income and expenditure presentation
             The income and expenditure presentation was reviewed and resulted in the reclassification
             of marketing income from “Development” to “Grants and contributions”. This alteration
             has been affected in the prior year figures for consistency and amounts to £405,545.

             In addition a correction of an overstatement of both income and expenditure of £59,206
             in grossing up balances in the accounts for the prior year has been made. This adjustment
             has not affected the balance of funds brought forward.


             Incoming resources
             All incoming resources are included in the statement of financial activities when the charity
             is legally entitled to the income and the amount can be quantified with reasonable accuracy.

             In order for the charity to achieve its objectives it is reliant on the services of volunteers.
             The charity agrees a budget with the MoD for Paid Training Days on an annual basis. The
             actual days provided by volunteers are managed by the charity, but payment is made
             directly to the individual by the MoD. Although the income and expenditure does not
             flow through the charity, in order to reflect the scale of the charity’s activities fully the cost
             and related grant from the MoD has been brought into these financial statements.

             No amounts are included in the financial statements for unpaid services donated by
             volunteers.




                                                            The Army Cadet Force Association               30
Principal accounting policies 31 March 2009



             Incoming resources (continued)

             Investment income and gains
             Listed investment income, including any tax recoverable thereon, is included in the
             financial statements in the year in which it is receivable. Bank deposit interest is included as
             income when receivable. Investment gains are incorporated in the financial statements as
             they occur.


             Resources expended and the basis of apportioning costs
             Expenditure is included in the statement of financial activities when incurred and includes
             attributable VAT which cannot be recovered.

             Resources expended comprise the following:

             a. The costs of generating funds include the costs of investment management and the
                costs of trading activities.

             b. The costs of charitable activities comprise expenditure on the charity’s primary
                charitable purposes as described in the trustees’ report. The costs for each activity
                include direct costs and support costs, which are apportioned on the level of activity in
                each area.

             c. Support costs represent indirect charitable expenditure. In order to carry out the
                primary purposes of the charity it is necessary to provide support in the form of
                financial procedures, provision of office services and equipment and a suitable working
                environment.

             d. Governance costs comprise the costs directly attributable to the governance of the
                charity, including audit costs and the necessary legal procedures for compliance with
                statutory requirements.

             Where costs cannot be directly attributed to particular headings they have been allocated on
             a basis consistent with use of the resources. Salary costs are apportioned on the basis of
             estimated time spent.


             Tangible fixed assets and depreciation
             All assets costing more than £500 and with an expected useful life exceeding one year are
             capitalised.

             Provision for depreciation has been made in respect of furniture, fixtures, fittings, website
             development costs and computer equipment in accordance with their anticipated useful
             lives and is calculated at 25% per annum on cost.




                                                           The Army Cadet Force Association              31
Principal accounting policies 31 March 2009



             Investments
             Investments, listed and otherwise, are shown at market value and the gain or loss on
             revaluation is included in the Statement of Financial Activities. Investments are continually
             revalued so that at any time throughout the year the investments are stated at their current
             market value.


             Fund accounting
             Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or
             contributions subject to donor imposed conditions.

             Designated funds comprise monies held within unrestricted general funds but set aside for
             specific future purposes or projects.

             General funds represent those monies which are freely available for application towards
             achieving any charitable purpose that falls within the charity’s charitable objects.


             Cash flow
             The financial statements do not include a cash flow statement because the charity, as a small
             reporting entity, is exempt from the requirement to prepare such a statement under
             Financial Reporting Standard 1 “Cash flow statements”.


             Pension contributions
             The association operates a defined contribution scheme. The assets of the scheme are held
             separately from those of the company in an independently administered fund.


             Operating leases
             Rentals applicable to operating leases where substantially all the benefits and risks of
             ownership remain with the lessor are charged on a straight-line basis over the lease term.




                                                           The Army Cadet Force Association             32
Notes to the financial statements 31 March 2009




         1   Donations receivable
                                                                                                               2009          2008
                                                                  Unrestricted        Restricted               Total         Total
                                                                             £                 £                   £            £

             Outreach appeal                                                 —         215,645               215,645       249,861
             Other                                                        3,470             —                  3,470         1,634
                                                                          3,470        215,645               219,115       251,495




         2   Investment income
                                                  Unrestricted     Designated         Restricted               2009          2008
                                                        funds           funds             funds                Total         Total
                                                             £              £                  £                   £            £

             Listed investment income                 27,413              1,555              9,182            38,150       48,340
             Bank and building society
             interest                                 23,790                 —            4,889               28,679       24,307
                                                      51,203              1,555          14,071               66,829       72,647




         3   Grants and contributions receivable
                                                                 Unrestricted                   Restricted         2009        2008
                                                                       funds    Designated          funds          Total       Total
                                                                            £        funds               £             £          £

             Ministry of Defence grants
             . Activity support                                   1,530,139        50,000         35,500       1,615,639   1,390,501
             . Paid Training Days (see below)                       220,806            —          62,495         283,301     247,983
             Contributions from:
             . Combined Cadet Force Association                      20,000            —              —          20,000      20,000
             . Scottish Executive                                        —             —          51,450         51,450          —
             . National Assembly for Wales                               —             —          20,000         20,000      10,000
             . Kent County Council                                       —             —              —              —       10,000
             . 2010 Anniversary                                          —             —          41,903         41,903      37,100
             . Normandy Veterans                                         —         15,000             —          15,000          —
             . Westminster Development                                   —         40,000             —          40,000          —
             Other grants                                            49,752            —              —          49,752      66,206
                                                                  1,820,697       105,000        211,348       2,137,045   1,781,790


             The Ministry of Defence remunerates volunteers who assist with ACF activities to offset
             their expenses incurred getting to and from the cadet activity. The payments are made
             directly to the individuals, but the “Paid Training Days” for the Charity’s activities in
             particular are authorised by the charity. Without this remuneration many ACF activities
             would not take place.




                                                                        The Army Cadet Force Association                         33
Notes to the financial statements 31 March 2009




         4   Development - Training and support services income
                                                              Unrestricted      Designated                  2009          2008
                                                                    funds            funds                     £             £
                                                                         £               £
             First aid training                                      19,802                 —             19,802        23,073
             Adventurous training                                    11,000                 —             11,000        14,741
             Collective insurance policy premiums (net)              19,336                 —             19,336        22,549
             Other income                                            13,252              8,360            21,612        36,362
                                                                     63,390              8,360            71,750        96,725




         5   Charitable activities
                                                               Activities,
                                               Vocational     events and
                                             qualifications      projects     Outreach    Development           2009        2008
                                                         £              £            £             £               £           £


             Adventurous Training                      —        152,418            —              —          152,418     158,436
             Promotional activity                      —                           —          14,592          14,592      14,064
             Band Costs                                —        166,509            —              —          166,509     116,655
             Cadet 150 costs                           —             —             —          32,485          32,485          —
             Duke of Edinburgh award                   —         22,417            —              —           22,417      20,457
             First Aid                                 —         27,373            —              —           27,373      30,372
             Membership                                —            113            —              —              113         181
             Sports and regional grants                —        175,297            —              —          175,297     155,323
             Publicity & Marketing                     —         24,627            —         264,054         288,681     328,845
             Outreach project costs                    —             —        186,767             —          186,767     182,197
             Salaries & Wages                      19,805       468,751        44,481        167,371         700,408     573,290
             Sundries                                  —          8,400            —              —            8,440       8,862
                                                   19,805     1,045,945       231,248        478,502        1,775,500   1,588,682

             Support costs                          6,243       147,993        14,106            53,416      221,758     203,601
                                                   26,048     1,193,938       245,354        531,918        1,997,258   1,792,283


             2008                                  28,520     1,027,762       244,851        491,150        1,792,283


             The above costs include the “Paid Training Days” expenditure (see note 3) attributed to
             each of the following activities:
                                                                                                            2009           2008
                                                                                                               £              £

             Adventurous Training                                                                          42,603        66,237
             Band costs                                                                                    78,372        45,035
             Duke of Edinburgh award                                                                       16,804        14,546
             First aid                                                                                      4,695         5,421
             Sports and regional grants                                                                    55,295        52,803
             Publicity and Marketing                                                                       23,037        26,112
             Outreach projects costs                                                                       62,495        37,829
                                                                                                          283,301       247,983




                                                                     The Army Cadet Force Association                         34
Notes to the financial statements 31 March 2009




         6   Support costs
                                                                                      2009         2008
                                                                                         £            £

             Bank charges                                                               —           164
             Depreciation                                                            5,867        3,799
             Insurance                                                              23,133       11,114
             IT Costs                                                               11,949       11,598
             Legal and professional fees                                             5,043        3,633
             Printing, postage and stationery                                       29,274       34,758
             Recruitment costs                                                          —           600
             Salaries & Wages                                                      125,011      121,961
             Sundries costs                                                         11,216        7,270
             Telephone                                                               2,807        4,213
             Travel                                                                 16,854       14,757
                                                                                   221,758      213,867



             Support costs are allocated across the activities shown in notes 5 and 7 in proportion to the
             estimated time spent on those activities by support staff.


         7   Governance
                                                                                      2009         2008
                                                                                         £            £

             Audit and accountancy                                                  15,554        19,678
             Legal and professional                                                  3,711         3,737
             Salaries and wages                                                     29,749        28,575
             Trustees expenses                                                         812           251
             Support costs                                                           9,396        10,266
                                                                                    59,222        62,507




         8   Net incoming resources for the year
             This is stated after charging:
                                                                                      2009         2008
                                                                                         £            £

             Auditors’ remuneration                                                 15,554        19,678
             Depreciation                                                            5,867         3,800
             Operating lease charges                                                15,612        14,335




                                                          The Army Cadet Force Association             35
Notes to the financial statements 31 March 2009




         9   Staff costs
                                                                                           Charity
                                                                                        2009           2008
                                                                                           £              £

             Wages and salaries                                                      719,791         607,903
             Social security costs                                                    74,976          62,512
             Other pension costs                                                      60,401          53,411
                                                                                     855,168         723,826


             During the year the number of employees earning £60,000 or more (including taxable
             benefits but excluding employer pension contributions) was as follows:
                                                                                         2009          2008

             £60,000 - £69,999                                                             1              1
             £70,000 - £79,999                                                             —              1
             £80,000 - £89,999                                                             1              —
                                                                                           2              2


             The charity contributes towards the provision of money purchase pension benefits for all
             employees at the rate of 10% per annum. The contributions payable were £60,401 (2008 -
             £53,411).
             The average number of employees during the year was 21 (2008: 19).

             Neither the President, nor the chairman nor any other member of the Council received
             any emoluments from the Association. The Council comprised 17 members (2008 - 17).
             Five (2008 – One) trustees were reimbursed £812 (2007: £210) for travel and subsistence
             costs.


         10 Taxation
             The Army Cadet Force Association is a registered charity and therefore is not liable to
             corporation tax on income derived from its charitable activities, as it falls within the various
             exemptions available to registered charities.




                                                           The Army Cadet Force Association               36
Notes to the financial statements 31 March 2009




         11 Tangible fixed assets
                                                                                              Furniture,
                                                                                                fixtures,
                                                                                            fittings and
                                                                                              computer
                                                                                            equipment
                                                                                                       £

            Cost
            At 1 April 2008                                                                      24,315
            Additions                                                                             8,198
            At 31 March 2009                                                                     32,513

            Accumulated depreciation
            At 1 April 2008                                                                      15,687
            Charge for year                                                                       5,867
            At 31 March 2009                                                                     21,554

            Net book values
            At 31 March 2009                                                                     10,959
            At 31 March 2008                                                                      8,628




         12 Fixed asset investments
                                                                                   2009            2008
                                                                                      £               £

            UK listed investments
            Market value at 1 April 2008                                       1,330,937     1,527,867
            Disposals                                                           (409,649)     (595,144)
            Purchases                                                            695,945       551,846
            Losses on disposal compared with values at previous year end         (70,387)       (41,622)
            Unrealised Losses                                                   (248,020)     (112,010)
            Market value at 31 March 2009                                      1,298,826     1,330,937
            Cash held for reinvestment                                           237,397       247,548
            Total Investments                                                  1,536,223     1,578,485

            Cost of listed investments at 31 March 2009                        1,416,321     1,348,208




                                                             The Army Cadet Force Association         37
Notes to the financial statements 31 March 2009




         12 Fixed asset investments (continued)

            Listed investments held at 31 March 2009 comprised the following:
                                                                                2009        2008
                                                                                   £           £

            UK Fixed Interest                                               403,740      138,283
            Overseas fixed interest                                          42,069       40,880
            UK Equities                                                     544,611      739,315
            Overseas Equities                                               273,892      341,829
            Property                                                         34,514       70,630
                                                                          1,298,826    1,330,937


            At 31 March 2009 the following investments were deemed to represent a significant
            proportion of the overall portfolio:
                                                                            Market
                                                                           value of    % of total
                                                                           holding      portfolio
            Holding                                                               £            %

            BlackRock AM UK ML UK Dynamic                                    88,505         6.81
            Roche Holdings Inc 5.5%                                          78,172         6.02
            Schroder UK Growth Ordinary 25p                                  67,947         5.23
            Marlborough Fund Manager UK large Cap Growth B Acc               67,558         5.20
            M & G Securities Ltd Recovery Sterling A Inc NAV                 84,397         6.50




         13 Debtors
                                                                                2009       2008
                                                                                   £          £

            Other debtors                                                   20,579        23,448
            Prepayments and accrued income                                   9,344         4,397
                                                                            29,923        27,845




         14 Creditors: amounts falling due within one year
                                                                                2009       2008
                                                                                   £          £

            Trade creditors                                                      407       4,076
            Other creditors                                                       —       14,038
            Accruals and other amounts received in
            advance                                                         15,525        21,784
                                                                            15,932        39,898




                                                        The Army Cadet Force Association       38
Notes to the financial statements 31 March 2009




         15 Analysis of net assets between funds
                                                        General     Designated     Restricted         Total
                                                         funds           funds         funds          2009
                                                             £               £              £             £

            Fund balances at 31 March 2009
            are represented by:
            Tangible fixed assets                        10,959            —             —           10,959
            Fixed asset investments                   1,265,685            —        270,538       1,536,223
            Net current assets                          287,369       136,707       358,907         782,983
                                                      1,564,013       136,707       629,445       2,330,165




         16 Designated funds
                                                       At 1 April         New                    At 31 March
                                                           2008     designation   Expenditure           2009
                                                               £              £             £              £

            Cadet 150th anniversary fund                 43,245         28,908             —         72,153
            Shooting study                                   —          10,000         (7,743)        2,257
            The Training Support fund                        —          25,000         (5,696)       19,304
            Normandy veterans                                —          15,000             —         15,000
            Westminster staff funding                        —          40,000         (6,459)       33,541
            Westminster G4 Package                           —          15,000             —         15,000
            Bands income                                     —           8,360             —          8,360
                                                         43,245        142,268       (19,898)       165,615


            Cadet 150th Anniversary Fund
                             th
            The Cadet 150 Anniversary Fund represents income set aside for the Cadet 150th
            anniversary in 2010.

            Shooting study
            The Shooting Study has been conducted by Brigadier Smales to examine the future policy
            of target shooting for cadets. HQ Land Forces has passed a sum of £10k to ACFA to
            partially fund this study which is due to report in May 2009.


            The Training Support Fund
            This Fund prevents essential training from being affected by unplanned short term issues
            that cannot be resolved in other areas. It has been used in the past by LF to support Project
            Westminster, Training Safety conferences, youth activities and Adventurous Training.


            Normandy veterans
            6th June 2009 is the 65th anniversary of the D-Day landings and the Normandy Veterans
            have planned that the commemoration this year should be their last organised event. 250
            cadets and adults from the ACF will join the few remaining veterans at the events in
            Normandy to demonstrate that another generation will be taking over the torch of
            remembrance.



                                                         The Army Cadet Force Association                 39
Notes to the financial statements 31 March 2009



         16 Designated funds (continued)

            Westminster staff funding
            ACFA employs two staff to assist with the delivery of Project Westminster, the MoD IT
            database for cadets from the ACF, Sea Cadets and CCF. Funding for these two posts is part
            of the MoD Grant


            Westminster G4 Package
            Land forces expected to contract for a logistics package for the Westminster IT Database
            but had not finalised the process before the year end. This sum is therefore carried forward
            as a designated fund in the expectation of it being needed in the next financial year.


            Bands income
            Several hundred cadets take part each year in Music Concentrations funded by ACFA.
            The number has been growing each year and last Easter over 800 gathered at Altcar. The
            cadets make a small contribution towards the costs. Any surplus is retained to support those
            cadets who might be unable to afford their contributions as well as providing a fund for
            uniforms and instrument repair.


         17 General fund
                                                             At                 Expenditure,          At
                                                         1 April    Incoming    gains, losses   31 March
                                                          2008      resources   and transfer        2009
                                                              £             £               £          £
            General fund                              1,562,085    2,023,514     (2,050,494)    1,535,105




         18 Restricted funds
                                                             At                 Expenditure,          At
                                                         1 April    Incoming    gains, losses   31 March
                                                          2008      resources   and transfer        2009
                                                              £             £               £          £
            ACFA Youth & Community Initiative Fund
            and Outreach Appeal                        495,132      363,661        (311,366)     547,427
                     th
            Cadet 150 Anniversary fund                  37,100       77,403         (32,485)      82,018
                                                       532,232      441,064        (343,851)     629,445


            The ACFA Youth & Community Initiative Fund and Outreach Appeal is made up of
            income received to allow the ACFA to be targeted at vulnerable, socially disadvantaged
            youngsters with the aim of helping them get back on track and become better citizens.
                           th
            The Cadet 150 Anniversary fund consists of grants received for the 2010 anniversary.




                                                        The Army Cadet Force Association               40
Notes to the financial statements 31 March 2009



         19 Financial commitments
            At 31 March 2009 the Association had annual commitments under non-cancellable
            operating leases as follows:
                                                                                          Equipment
                                                                                       2009         2008
            Expiring                                                                       £           £

            In two to five years                                                     11,495        14,335




         20 Pension obligations
            The charity participates in the Pensions Trust’s Growth Plan. The Growth Plan is a multi-
            employer pension Plan which is in most respects a money purchase arrangement but it has
            some guarantees. Contributions paid into the growth plan up to and including September
            2001 were converted to defined amounts of pension payable from Normal Retirement
            Date. It is possible that a buy-out debt might arise if the charity were to cease participation
            in the Plan; the likelihood of this is considered to be a realistic possibility. If it were to
            arise, the amount of this debt would depend on many factors including total Plan liabilities,
            Plan investment performance, the liabilities in respect of current and former employees of
            the employer, financial conditions at the time of the cessation and the insurance buy-out
            market. In May 2009 Pensions Trust estimated that the charity would have been liable for
            approximately £392,088 if the charity had left the scheme in September 2008.

            The charity has 8 active members of the growth plan at the balance sheet date. The
            pension cost charge to the charity reflected in these accounts represents contributions
            payable by the charity to the fund and amounted to £60,401 (2008: £53,411).

            The actuary caveats his valuation as at 30 September 2008 as follows:

            ‘The factors underlying the calculation can be extremely volatile and so can change
            markedly within a relatively short period of time. Given the significant upheaval in
            financial markets, insurers in the buy-out market are continuously reviewing their pricing
            bases for transactions, with different insurers taking different approaches. Any estimate as at
            31 March 2009 could be markedly different from any actual quotations and should be used
            with extreme caution.

            ‘The figure quoted as at 30 September 2008 is likely to have increased by approximately
            51% to March 2009.’




                                                          The Army Cadet Force Association              41
Income and expenditure statement for the year ended 31 March 2009

             Restricted funds – Outreach
             This page does not form part of the statutory accounts.

                                                                                2009         2008
                                                                                   £            £

             Income
             Donations                                                        215,645    249,861
             National Assembly for Wales grant                                 20,000     10,000
             Paid training days                                                62,495     37,829
             Scottish Executive                                                51,450         —
             Other income                                                          —      36,570
             Investment income                                                 14,071     16,459
                                                                              363,661    350,719

             Expenditure
             Paid training days                                                62,495     37,829
             Staff costs                                                       44,481     46,186
             Staff expenses                                                     4,157      7,424
             Other office expenses                                              6,493      4,884
             Fundraising commissions and expenses                              19,077     22,064
             Project costs                                                     72,665     99,784
             Conference and aware costs                                        15,738      4,401
             Professional fee recharges                                         4,068      3,146
             Computer costs                                                        17        848
             Sundry costs                                                         908        500
             Printing, postage and stationery                                     771        284
             Telephone                                                            378      1,033
             Investment managers fee                                            2,680      2,263
             Support costs                                                     14,106     16,468
                                                                              248,034    247,114

             Net income for the year                                          115,627    103,605
             Net investment losses                                            (63,332)    (22,259)
             Net movement in funds                                             52,295      81,346

             Funds as at 1 April 2008                                         495,132    413,786

             Funds as at 31 March 2009                                        547,427    495,132




                                                          The Army Cadet Force Association     42

				
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