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ANNUAL REPORT — 2012 —


Contents 3 Our Mission 4 Introduction 5 2012 Headlines 7 Supporting the Armed Forces Community 15 Public Awareness and Fundraising 19 Trustees’ Report 23 Financial Review 25 Independent Auditor’s Report 30 Financial Statements 45 Council & Officers

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SSAFA's MISSION IS: To provide lifelong support to those who serve in our Armed Forces and their families. SSAFA is constantly evolving to meet the changing needs of anyone who is serving or has ever served in the Royal Navy and Royal Marines, British Army and Royal Air Force. Support for their families is also at the heart of what we do. We remain uniquely placed within the Forces Community to provide help and support wherever and whenever it is needed.

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Introduction Welcome to this review of SSAFA’s work and achievements in 2012. During the year, our professional staff and trained volunteers have helped tens of thousands of people, young and old alike. Their work reflects SSAFA’s lifelong commitment to our servicemen and women and their families. By being there for them from the day they join, anyone who has ever served in our Forces, including the Reserves, can depend on SSAFA for support throughout their lives. The scope and scale of our work is enormous and we have continued to develop new services to provide practical support where it is most needed. The following sections report our work in 2012: — Supporting the Armed Forces Community – Volunteer Support – Health & Social Care – Specialist Services – Housing — Public Awareness and Fundraising

CASES AND VISITS BY SERVICE

5,490 25,064 8,198 Navy

Army

RAF

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2012 Headlines — Our network of 6,239 branch volunteers supported 40,645 members of the Armed Forces and Veterans Community, young and old alike. — Our community volunteers assisted with 1,191 referrals and made 2,088 visits to servicemen and women and their families on bases around the world. — We were successfully awarded the contract for healthcare service provision in British Forces Germany until drawdown. — 579 different people stayed at one of our two SSAFA Norton Homes during the year. — 42 volunteer mentors were placed with wounded, injured or sick servicemen and women making the transition out of the Army. — 435 family members now belong to our Support Groups for Bereaved Families and Families of the Wounded. — The Military Wives Choirs Foundation was formed as a subsidiary charity of SSAFA and has grown rapidly to include more than 60 established choirs.

40,645

£16.7m

veterans and their families were directly supported

was almonised for veterans and their families

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Support for the families of our Armed Forces is at the heart of what we do.


SUPPORTING THE ARMED FORCES COMMUNITY Objectives: — To be the organisation of first choice in delivering innovative, quality-assured professional and charitable services that meet the needs of our Armed Forces and Veterans' Community. — To provide excellent and trusted services to clients in the Armed Forces and Veterans Community in order to meet their welfare needs. — To maximise the effectiveness of our support by optimising the contribution of our well trained and highly committed volunteers. — To respond swiftly and appropriately to the emerging and unmet welfare needs of the Armed Forces and Veterans Community.

92

72

7,503

SSAFA Branches

SSAFA Service Committees

volunteers

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Volunteer Support Supporting the forces family through our volunteers SSAFA’s volunteer network, working both inside and outside the wire, continues to provide complex, person-centred welfare support to our beneficiaries wherever they are. Service committees and community volunteers continue to make a significant contribution to the Forces communities in which they operate. Although the network of volunteers fluctuates in number because of the stresses and strains of postings, it has been in increasing demand from military welfare agencies. With a further five new committees established in 2012, there are now 72 committees raising funds which are disbursed within their local communities and 1,264 volunteers located wherever they are asked to support our Armed Forces around the World. They carry out their principal role of supporting serviceman and women and their families through local fundraising and making quick and timely grants to urgent requests for assistance. During 2012, a total of £237,796 was awarded in grants to families and individuals requiring support and to projects that assist the local serving community.

Within the Veterans community, the delivery of casework remains the prime purpose of our Branch network of 6,239 volunteers, of which we have 4,229 trained caseworkers. During the year, our trained volunteers conducted 40,645 cases and visits across the UK, Ireland, France, Germany and Cyprus, enabling us to deliver practical, financial and emotional support. The range of cases remains very broad. Our eligible clients are faced with the tough reality of the current economic climate. Frequently, requests for assistance are centred around help with the home, homelessness, accommodation and debt, often compounded by mental health issues. Whilst we have seen a gentle decline in the number of cases in line with the falling number of elderly beneficiaries, the complexity of need has increased year on year. This downward trend is reflected across the sector, as is the rise in complexity (and the expense) of the clients' needs. As such, cases take longer to complete, often requiring repeat visits and on-going liaison with third parties to ensure a bespoke, comprehensive care package. This requires a highly skilled, wellrecruited volunteer network that receives two and a half days of core training, followed by annual study days and refresher training.

In 2012, our community volunteers assisted 1,191 referrals, many of which are becoming increasingly complex in their nature. Our Community Volunteers provide vital practical, befriending and emotional support to families and personnel for whom the routine pressures of Service life are often exacerbated by frequent deployments. In 2012, our community volunteers assisted 1,191 referrals, many of which are becoming increasingly complex in their nature, and made 2,088 visits.

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Our local Branch helped to provide curtains and kitchen equipment for Alan.


Of our cases in 2012, 17,873 received financial assistance. A total of £12,772,419 was paid out in individual grants from benevolent funds. An estimated further £3,896,564 was obtained for our clients and was paid directly to them, either in the form of a regular payment, or to suppliers of a range of goods and services, including electrically powered vehicles, white goods and other household items. As such, a total of £16.7 million of assistance was delivered to clients as a result of SSAFA’s volunteer caseworkers. We continue to work hard in partnership with other support organisations to meet the needs of the Armed Forces and veterans community at a local level. ‘Glasgow’s Helping Heroes’ initiative, for example, is funded by Glasgow City Council in partnership with SSAFA, and has three full time SSAFA employees on its staff. The project, which helps veterans and their families to settle back into the local community, had 302 new referrals during the year, of which the majority were referred by SSAFA’s Glasgow Branch. The good work was recognised in two awards in 2012.

Mentoring SSAFA’s mentoring pilot (launched in September 2011) continued throughout 2012. By the end of the year, all our pilot volunteer mentors had all been trained and 42 were paired with a wounded, injured or sick (WIS) serviceman or woman transitioning out of the Army. The long term aim is to be able to offer this one-to-one support to servicemen and women in all three Services. Policies and procedures have been refined in line with lessons learned and following a favourable, interim evaluation report received from our external evaluators (Charities Evaluation Service), we have determined to increase the scale of the service to a further 200 WIS personnel during 2013.

Victim Support Our Victim Support schemes in Western Europe and Cyprus handled 84 and 285 referrals respectively, providing a most valuable service that otherwise would not be available to members of the Armed Forces and their families in these locations. In October 2012 we launched our 'Supporting Witnesses in Court' service based at the Military Courts Centre in Sennelager, Germany. Trained volunteers provide information, emotional support and practical help to both prosecution and defence witnesses during what can be a stressful time.

The successful delivery of welfare support relies on our ability to recruit and train high quality volunteers.

Supporting Volunteers The successful delivery of welfare support relies on our ability to recruit and train high quality volunteers. In 2012 SSAFA recruited 852 volunteers across the entire volunteering spectrum. A total of 954 volunteers left SSAFA, which resulted in a net loss of 102 volunteers. By the end of 2012 we had a total of 7,503 volunteers, 4,229 of which are trained caseworkers, 1,264 service committee and community volunteers, 44 mentors and 66 victim support volunteers. In 2012, the Trustees’ review of governance resulted in a new approach to supporting our volunteers. The structural distinction was made between health & social care and volunteer support, as opposed to in-Service and ex-Service. The two departments were established in April and the Volunteer Support Department now supports all SSAFA volunteers. Our training team was very busy, running 101 courses for all our volunteers and training more than 1,600 people. 505 of those attended one of our flagship caseworker courses and 146 attended our community volunteer course. The content of our volunteer management training for Branch and Divisional secretaries and community volunteer co-ordinators was updated to reflect the increasing complexity of client cases and volunteer support needs.

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Health and Social Care

UK Health Services

Overseas Health Services SSAFA Family Health Services has met MoD contractual requirements by continued provision of high quality healthcare across worldwide military commands. Meeting the health needs of members of the Armed Forces and their families remains a core component of our enterprise and integral to SSAFA’s ethos. In September, in partnership with Guys and St Thomas’ (trading as SSAFA GSTT LLP), we were awarded the contract for Health Service provision in British Forces Germany Health Service until drawdown. In Cyprus the contract for community health has been extended to March 2014. Other contractual negotiation is ongoing.

Meeting the health needs of members of the Armed Forces and their families remains a core component of our enterprise and integral to SSAFA’s ethos. Our work is quality assured and evidence based, in response to Government directives and legislation. We remain committed to multiagency and multidisciplinary working partnership with military and civilian personnel, our social work colleagues and, where appropriate, SSAFA volunteers. Our workforce practices within policy and guidelines produced by the MoD Safeguarding and Children’s Boards and have participated in a variety of public health initiatives addressing individual and family physical and mental health needs. In Germany, Nepal and Brunei, our Community Nurse Practitioners continue to support and lead Primary Care Nursing development within the Service community. Our community midwives, working together with host country colleagues and services, ensure high rates of maternal health, and provide infants with an excellent start in life with nutritional support in adherence to the World Health Organisation and NICE guidelines.

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We have continued to build on our expertise, which underpins our competency as an overseas healthcare provider, by developing and sustaining our commercial enterprise within the UK National Health Service. This activity has realised valuable funds to support our charitable overheads and it is planned to seek further opportunity in the commercial marketplace. A new post of Director Specialist Services UK has been established within the Health and Social Care Department, which was implemented in early 2013. During the past year SSAFA CIC Health care practices at Kingsway Health Centre, Luton, Merlyn Vaz Walk-In Centre Leicester, and Southglades Health Centre Nottingham have made sustained progress, with growing patient lists. All targets are being met and, in some areas, exceeded. GP Practice registration by the Care Quality Commission for April 2013 has been sought and successfully awarded. In Doncaster the Emergency Care Service is fully operational and well utilised, relieving pressure on GP and ambulance services. It has been commended by stakeholders and commissioners.

Joy and her parents were helped by one of SSAFA'S midwifes in Cyprus.


Specialist Services

The Personal Support and Social Work Service Our Personal Support and Social Work Service (PS&SWS) has continued to deliver a range of services in Western Europe, Cyprus, Brunei, Gibraltar, the Falkland Islands and with the RAF in the UK. The Service was awarded the Government Standard Customer Service Excellence Award demonstrating a commitment to working effectively with service users, listening to their views and developing a culture of continuous improvement to meet their needs. In addition staff members at RAF Leuchars, RAF Odiham, RAF Leeming and RAF Boulmer received commendations from their local military commanders. Throughout 2012 the PS&SWS RAF has worked closely with patients and staff at the Queen Elizabeth Hospital, Birmingham, as well as the RAF Personnel Recovery Unit enabling service personnel to return to their military role or make the transition to civilian life. Members of British Forces Social Work Service working in Western Europe have been working with the Command and all agencies to ensure safe and effective welfare and social work support for serving personnel and their families as they move towards drawdown and the expected complete withdrawal by 2020. The contract for the Social Work Service has been extended to March 2014 when it is hoped there will be one world-wide contract to encompass all overseas Commands.

Adoption The SSAFA Adoption Service trains and assesses individuals and couples from the military community who would like to be assessed as prospective adopters. In 2012, 17 children were placed with adopters approved by SSAFA.

Serving families make particularly good adopters due to their own life experience which gives them the resilience to cope with the challenges adoption often brings. Serving families make particularly good adopters due to their own life experience which gives them the resilience to cope with the challenges adoption often brings. In line with government initiatives and targets, the service is hoping to increase the numbers of approved adopters in 2013. The adoption service also provides other adoption services such as birth record counselling for adults who were adopted as a child and post placement support to those experiencing difficulties.

The Falkland Island post of senior social work practitioner is now well established and the post holders in Cyprus and Gibraltar continue to offer services in partnership with health colleagues and volunteers. The Brunei team are working to ensure the safe transition of families back to UK in 2013 and the arrival of the incoming the regiment.

346

90

14

health care staff

social care staff

countries worldwide

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Family Support Groups

Children’s Short Breaks

The number of families belonging to our support groups has continued to grow, with 885 family members now belonging to one of the groups. We have also developed further initiatives to support bereaved families and the families of service personnel who are wounded, injured or sick. As well as the children and siblings of both. The recruitment of project support staff, together with the support of designated regional contacts, has assisted our ongoing planning to regionalise group work. Our new website for our Support Groups was completed and can be found at ssafasupportgroups.org.uk

SSAFA continues to run highly specialised short breaks for disabled children and children with additional needs from Service families. These breaks have provided life enhancing opportunities for both the young people and coaches who provide the support on a voluntary basis. They have enabled the remaining family to have a well deserved break from the rigours of meeting the needs of their most dependent member. During the year 96 children took part in the breaks, together with our short break for siblings and young carers.

The Forces Additional Needs and Disability Forum (FANDF ) continues to flourish in support of serving families with children or adult dependents with additional needs or disability. In 2012 we delivered a very successful conference at MoD Main Building that was well received and influenced the strategic development of welfare for both the MoD and its supporting partners.

Forcesline

Our Additional Needs and Disability Advisor provided regular workshops on loss through injury and bereavement to military personnel and family groups throughout the year.

Forcesline continued to provide a valuable, non-judgemental listening and signposting service during 2012. Following the withdrawal of MoD funding in September 2011, SSAFA has taken on funding all costs for the line. In September 2012, trustees committed to retaining the service for a further three years. In 2012, the line had 4,046 contacts, 298 of which were received via email. In order to provide a more effective and better integrated service to our clients, work is underway to develop the capacity of Forcesline to become the first point of contact for all enquiries about assistance from SSAFA. Training, guidance and updated policies and procedures are being prepared to enable this.

The Military Wives Choirs Foundation

Bringing women in the military community closer together through singing.

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During 2012, the project to establish choirs on military bases around the world has grown in scale and scope. The Military Wives Choirs Foundation registered with the Charity Commission in England and Wales as a subsidiary charity of SSAFA on 25th July. It was formally ‘launched’ on 13th September at an event at Wellington Barracks, London, that brought together nearly 700 women from 24 different choirs. To date, more than 60 established choirs exist with more in different stages of development. There is no doubt that the choirs are making a very real and very positive difference to wives and families in the military communities in which they are located.


Housing Norton Homes During the period, both SSAFA Norton Homes continued to provide vital support to the families of wounded servicemen and women. The two homes, close to the Royal Centre for Defence Medicine (RCDM) at the Queen Elizabeth Hospital in Birmingham and the Defence Medical Rehabilitation Centre at Headley Court, Surrey, provide free accommodation for the families of our badly wounded, enabling them to be close to their loved ones when they need them most. During the year, our Norton Home (Headley Court) accommodated 374 residents and our Norton Home (Selly Oak) a further 205 residents. Those staying at the homes during 2012 included injured servicemen themselves, from all three Services, including the Royal Marines. In December, SSAFA was appointed by the Queen Elizabeth Hospital Birmingham Charity to take on the role of day to day management of Fisher House UK, a new 18-bedroomed home to enhance provision to families of those receiving treatment at RCDM. This is due to open in mid 2013.

Stepping Stone Homes During the year, a total of 65 families − 139 residents, including children − were looked after in one of our two Stepping Stone Homes. These homes provide Service families who are experiencing relationship difficulties or marital breakdown with a caring and safe environment where they can consider their future. In 2012, we supported an increasing number of Foreign and Commonwealth families at the homes. Their cases are complex. They require higher levels of support and often remain in residence considerably longer than those with planned onward housing.

579 different people stayed at one of our SSAFA Norton Homes

139 women and children were looked after at one of our Stepping Stone Homes

96 children from forces families attended our short breaks

Residential Homes SSAFA’s Care Home, St Vincent’s, on the Isle of Wight, continued to provide high quality residential care for 30 residents. Our 43 purpose-built bungalows for people with disabilities had 97% occupancy, as did our five apartments for vulnerable single people, between them they housed 74 residents in total. At the end of 2011 trustees made the decision that the Royal Homes at Wimbledon, a subsidiary charity, would be run from the Central Office Housing Department rather than by a management committee. The management committee was dissolved and in its place, with different terms of reference, a Friends Committee has been established. The Royal Homes had a 97% occupancy rate during the year.

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The support and generosity of so many different people means that we can continue to do our vital work.


PUBLIC AWARENESS AND FUNDRAISING Objectives: — To increase the visibility of the work of SSAFA to ensure that the public, stakeholders and beneficiaries are aware of our services and quality of delivery. — To raise sufficient funds to cover charitable activities, both regionally and centrally.

In 2012 the work of the Public Awareness Department continued in support of our overarching strategic objectives. Awareness and knowledge of the work of SSAFA is not only a key aspect of our fundraising activity but is fundamental to our ability to reach potential clients.

We are most grateful to everyone who got involved and supported this vital piece of work. The final stages of the development work was completed in November, enabling internal roll-out of the new brand from January to March 2013, prior to a ‘go live’ date of 10th April 2013.

Following the Strategic Profile and Brand Review of SSAFA in 2011, work continued throughout 2012 to develop and realign our brand identity. The driver for all of the work has been the requirement to reach as many clients and potential clients as possible, across both the Serving and Veterans’ communities. Family has been put at the heart of our new brand.

At the same time, we have continued to initiate and develop other projects to raise awareness and understanding of our vital work. Selecting and developing the most appropriate communication channels is a key challenge and much of our work to enhance our online and digital tools has continued.

The brand development process has involved groups of volunteers and staff from across SSAFA. We also tested our ideas with people outside SSAFA, including Service personnel and some of our partners in the sector, media and commercial world.

Our Fundraising team enjoyed another successful year, meeting targets using a variety of different fundraising initiatives, events and activities. We remain committed to our more traditional fundraising techniques, alongside innovative and new activities.

732

19,882 38

Big Brew Ups held worldwide

children took part in Camo Day

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cyclists took part in Ride of Britain


Unrestricted income decreased by 17%, due to the transfer of funds from the Royal Patriotic Fund Corporation to the charity in the previous year, but we experienced an increase of £831,000 in restricted income. Our heartfelt thanks go to our supporters for their dedication and unwavering commitment to the vital work that we do. Of our more established fundraising activities, our income from legacies grew slightly in 2012, reaching £2.6 million via 120 gifts. Legacy gifts make up almost a third of our voluntary income, and are vital for funding our charitable outputs. Regionally, our network received 7% of these gifts. We continue to raise awareness of just how important this lifetime gift can be and hope that more of our supporters and volunteers will choose to include SSAFA in their will. Other giving from individuals exceeded overall targets and we continue to look for ways of retaining our existing donors. Our regional fundraising has increased from £3.3 million to £3.5 million. New initiatives, such as the Welsh Raffle, were introduced to support our Branches where fundraising is more challenging. This initiative has been well received and will be replicated in 2013.

Our latest ‘get involved’ initiative, Camo Day raised more than £15,000, and involved 19,882 children from 130 schools across the UK, Germany and Cyprus. Within our Challenge Event portfolio, teamSSAFA continued to expand. 300 people took part in different challenge activities, raising more than £140,000. This activity supports donor acquisition as well as raising awareness of the organisation at high profile events such as the Virgin London Marathon. Ride of Britain, our Edinburgh to London five day cycle challenge, saw 38 participants taking part, including SSAFA volunteers, members of staff and three injured service personnel. The event raised nearly £55,000. Our ‘Corporate Friends’ scheme is now in it’s eighth year. The Defence Industry Dinner, continues to be the scheme’s flagship event and was once again hosted by the Chief of the Defence Staff. It was attended by more than 450 key defence sector supporters including Defence Ministers and Service Chiefs. The Secretary of State delivered the key note speech. 2012 saw us begin to diversify our corporate partners, with organisations such as Ernst & Young, Nissan and PriceWaterhouseCoopers all becoming new bespoke partners. Trust fundraising saw some challenges this year with greater emphasis on project fundraising and complexities. We are extremely grateful to: – Royal Navy & Royal Marines Charity – Seafarers UK – ABF – The Soldiers Charity – Royal Air Force Benevolent Fund – Army Central Fund – Forces in Mind Trust – The Royal Foundation of The Duke and Duchess of Cambridge and Prince Harry – The Sodexo Foundation

Sally raised £1,013 at her big brew up. She is also a member of our Bereaved Families Support Group.

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– The Beatrice Laing Trust Finally, the year finished with the London Ladies Carol Concert. It is a spectacular event that, once again, raised nearly £250,000. We are most grateful to everyone who works so hard to make it such a success.


Our Bereaved Families Support Group provides mutual support and advice when it is most needed.


TRUSTEES’ REPORT Structure, Governance AND Management – SSAFA Family Health Services, a Company limited by guarantee not having a share capital, Registered Number 3137764 was established to provide Community Health, Social Work and other services for the Armed Forces worldwide.

Governing Document The Soldiers, Sailors, Airmen and Families Association – Forces Help (SSAFA) was established in 1885 under Royal Charter; this was last amended in 1997 when the Soldiers’, Sailors’ and Airmen’s Families Association amalgamated with The Forces Help Society and Lord Roberts Workshops to form the present Charity, the Soldiers, Sailors, Airmen and Families Association – Forces Help. The Charter allows the Trustees to establish Regulations for the day to day management of the Charity.

– SSAFA Care CIC, a Community Interest Company (CIC), limited by shares Registered Number 06611709 is wholly owned by SSAFA Family Health Services. The CIC carries out contracts for the National Health Services (NHS). – SSAFA Enterprises Limited, a Company limited by shares, Registered Number 2493614 was established as a trading company to sell Christmas Cards and other merchandise and enter into other non-charitable commercial arrangements.

Subsidiary Charities

– SSAFA GSTT Care LLP, an LLP, Registered Number OC333462 is equally owned by SSAFA Family Health Services and GTI Forces Healthcare Limited, a subsidiary of Guy’s and St Thomas’ NHS Foundation Trust. The LLP was formed to provide Health Services to the Ministry of Defence.

The Charity has three subsidiary Charities, The Royal Homes, regulated under a Charity Commission Scheme in 1998; the Aircrew Association Charitable Fund, regulated under a Charity Commission Scheme in 2012, and the Military Wives Choirs Foundation which was established on 25 July 2012, registered charity number 1148302.

– SSAFA Hallam Care LLP, an LLP, Registered Number OC349790, is owned by SSAFA Care CIC and was formed to provide an emergency care contract for the NHS. On 31 August 2012 the contract was novated to SSAFA Care CIC and the LLP ceased trading. The LLP is in the process of being dissolved.

SSAFA Operational Entities Under the authority of Council, SSAFA currently operates two subsidiary companies and two Limited Liability Partnerships. Each Company is run for the benefit of the charity by the paid staff who fill the key posts of Managing Director, Finance Director and Company Secretary and include Trustees as additional external members of the Board. Each Company reports as required to Companies House. Details of the Companies and Limited Liability Partnerships are as follows:

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Other Charitable Jurisdictions

Decision Making

In order to operate in Scotland, SSAFA has been registered with the Office of the Scottish Charity Regulator Register of Charities under number SC038056.

Trustees make and approve SSAFA policy, delegating the day to day management to the Controller and his staff. Council meets four times each year, or as required, and receives reports from the Controller and his staff on activities and progress.

In order to operate in Gibraltar, SSAFA has been registered with the Charity Commissioners for Gibraltar Register of Charities number 149.

Annually, in November, Council approves the outline business objectives for the five years commencing the following January and approves the associated budget. Council reviews all Advisory and Sub Committee reports making decisions on any policy issues which may arise and directing how those issues should be implemented.

Board of Trustees The Royal Charter allows for up to 35 Trustees, and is composed of:

Annually in March, Council reviews SSAFA’s Housing Assets. Council will take decisions to sell, purchase, and build or extend property; having made the decision, the Controller will take the appropriate action.

Officers of SSAFA – Chairman, Vice Chairman and Honorary Treasurer Up to seven Regional Representatives

At each meeting Council reviews the Central Income and Expenditure Budget, recommending adjustments as necessary.

Chairmen of the following Association Committees: – The Regional Representatives’ Forum – The Volunteer Advisory Committee – The Health & Social Care Advisory Committee

Risk Management

– The Public Awareness Advisory Committee

The Controller’s Management Board meets weekly and reviews the Risk Register to ensure compliance. The Audit Committee reviews the Risk Management Policy and Register annually. Areas of significant risk are reported to Council at each meeting. Council then seeks assurance from the Controller that all mitigating action is being or has been taken.

– The Western European Service Committee – The Adoption Management Committee – The Services Community Forum Selected individuals with the following skills: – Investment Banker

Council is content that measures are in hand to manage and minimise all significant risks.

– Legal Expert – Property Specialist – Accountant (ideally from the Branch network) All Trustee appointments are recommended to the Council after a thorough search for suitable candidates. All Trustees are subject to the SSAFA Equal Opportunities policy and an Enhanced Disclosure and Barring Service (DBS) check is requested prior to appointment. On appointment each Trustee is given a standard Trustee briefing pack and undergoes an induction briefing. Annually, Trustees are given an updating briefing following the September meeting of Council. A Register of Trustees’ interests is held centrally. The effectiveness of Council is assessed during the Annual Review of the Management Plan.

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Objectives and Activities for the Public Benefit

Achievements and Performance The achievements and performance of SSAFA in 2012 have been set out in the preceding sections. They testify to the indispensable work of the Charity, led by the changing needs of those who currently serve in our Armed Forces and those who have served, together with their families. Ongoing work and new projects have combined to reinforce the fact that SSAFA continues to reach into every corner of the Service community in order to make a real difference wherever there is a need and whenever anybody turns to us for help. No other Service charity operates on the same scale to support the whole Forces Family.

The Trustees have given due consideration to the Charity Commission published guidance on the operation of the Public Benefit requirement and confirm that the objects of SSAFA, as established and incorporated, are to relieve the need, suffering and distress of all those who are serving or have served in the Armed Forces of the Crown, and their families and dependants. There are only two criteria for assistance, eligibility and need. SSAFA is structured on a Branch basis, approximately conforming to county and local government boundaries. Each Branch is run by its own officers who are ultimately responsible to the Board of Trustees. SSAFA also provides Health & Social Care to the Armed Forces, wherever it may be needed, in addition to a range of other charitable assistance to meet the needs of our Service community through our network of In-service volunteers.

Those who work for SSAFA, whether as paid staff or as volunteers, do so with an outstanding level of energy and commitment. Our volunteers, in both Branches and in-Service Committees, are at the very heart of our work. Their selfless dedication is pivotal to the support we provide to so many of our many clients. Our paid staff demonstrate a similar level of commitment and devotion to their multifarious tasks. The Trustees wish to place on record their thanks and gratitude to all those who have helped to make the year such a success.

To achieve SSAFA’s objects we aim to: – Maintain our client and casework base and the number of SSAFA’s active caseworkers and community volunteers, whilst improving the quality and standards of our volunteer network. – Manage our activities, both voluntary and professional, to support more efficiently serving and ex-serving members of the Armed Forces and their families.

The Trustees also wish to express their thanks and gratitude to the Service and Regimental Associations and Benevolent Funds, The Royal British Legion, Poppyscotland (The Earl Haig Fund Scotland), The Army Central Fund, The RAF Central Welfare Fund, The Guild of St Helena and all other supporters, donors and trusts who provide so much financial assistance, both to those in need and to the Charity. Every expression of support, great or small is equally important.

– Increase visibility and understanding of SSAFA to ensure that potential beneficiaries, stakeholders and the wider public are aware of the support we can provide. – Raise sufficient funds to ensure that our reserves are maintained and there is no running cost deficit in our national funds.

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It is as ever vital that we support our trained volunteers as well as the many services we provide. Namely the Adoption Service, Additional Needs and Disability, the Stepping Stone Homes, the SSAFA Norton Homes and our Support Groups for the Families of Bereaved and Injured Service Personnel. All these activities remain a high priority because of all of them make a very real difference to the lives of the people they help. We must continually be alert to changing needs and identify ways to meet those needs, such as our new mentoring scheme.

Future Plans Meeting the lifelong needs of our Forces and their families remains the overarching strategic objective of everything done by SSAFA. However at a time of ongoing change within the Armed Forces we must continue to: – Meet our existing contractual obligations by providing the highest level of health and social care in order to ensure our future place at the heart of the Armed Forces. – Prepare for risk of our contract income falling by continuing to develop opportunities for new contracts in the provision of primary care using existing expertise in this area.

Key Performance Indicators SSAFA aims to improve its active membership, assisting Branches to develop the necessary capacity and capability in order to reach clients in need. We have a formal mechanism for collecting casework data. The caseload in 2012 was slightly below that of 2011.

– Recruit, train and retain the highest quality volunteers. – Develop greater coherence with other military charities, working with and in support of the Confederation of Service Charities (COBSEO).

Case referrals from other organisations remain steady at about 48%. Funds received in grants for individuals have decreased slightly.

– Support mentoring.

SSAFA’s contracts with the MoD are subject to performance related indicators and monitored by regular contract meetings. There were no breaches during the year.

– Be in readiness to pick up new requirements as they are realised by the Armed Forces community. – Reduce our property holdings as appropriate. – Support the Defence and National Rehabilitation Centre (DNRC) in the way we are currently supporting the rehabilitation centre at Headley Court. – Achieve enhanced stakeholder engagement, ensuring higher levels of understanding through integrated communication activity. – Reduce the cost of our overheads across the whole of SSAFA.

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FINANCIAL REVIEW Management

Reserves Policy

The Association’s Management Plan continues to be an ideal tool for maintaining the development of the Charity and control of its finances. The Trustees are pleased to report that tight control over the Central Office normal operating budget has, once again, produced a surplus of income over expenditure and overall Branches have raised sufficient funds to cover expenditure.

The Trustees have for some years set a level of free reserves of approximately two years worth of operating costs which must be retained to ensure that the Charity can meet its obligations in the short term. Council agreed to redeploy some of the free reserves into a freehold property. Investments to the value of £3 million were realised during the year and Council have taken steps to put in place medium term borrowing to finance the purchase and refurbishment of the property and to ensure that the Association retains sufficient liquid resources to finance ongoing operations. At 31 December 2012 the level of unrestricted reserves, which were not represented by fixed assets increased to 1.12 years worth of running costs and the level of reserves will be reviewed on an ongoing basis.

The overall result for the Group was a surplus of £246,000 (2011: £1,106,000) before taking account of realised and unrealised losses on investments and actuarial losses on the defined benefit pension fund, leaving a net reduction in funds of £2,814,000 (2011: £5,353,000).

The Trustees have reviewed their policy on the overall level of reserves needed by the Association. At 31 December 2012 the unrestricted general reserves, which were not represented by fixed assets, amounted to £19.4 million (2011: £15.4 million) before any adjustment for the pension deficit under FRS 17. The Trustees accept the legal necessity to include the long term FRS17 pension liability in the consolidated Statement of Financial Activities. They do not however agree that this liability constitutes a diminution to Reserves because in their view this liability lies with the Ministry of Defence and not with the Association.

Investment Policy The majority of the Association’s funds are invested in the Armed Forces Common Investment Fund, a fund specifically designed for Service and ex-Service Charities. The objective of the fund is to achieve long term growth of both capital and income. The performance is measured against a customised benchmark. The performance of the fund was behind the benchmark in 2012 by 0.4%, but nevertheless in the year to 31 December 2012 the Association showed net realised and unrealised profits of £571,000 (2011: £799,000 net losses).

In these circumstances the Trustees consider the Association has adequate resources to sustain operations for the foreseeable future.

23


In preparing these financial statements, the trustees are required to:

Grant Making

– select suitable accounting policies and then apply them consistently;

Assistance from the unrestricted funds may be used only to relieve the need, suffering, and distress of those eligible for our help, as described in the Objects of SSAFA. The Regulations of SSAFA do not permit our funds to be used for gifts, grants or subscriptions to charities, hospitals, schools or other funds, societies or institutions.

– observe the methods and principles in the Charities SORP; – make judgments and accounting estimates that are reasonable and prudent;

Auditor

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

Under our Royal Charter of Incorporation, the Trustees agreed to extend the audit appointment to Grant Thornton UK LLP from 1 July 2012.

– prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations, the provisions of the trust deed, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Account (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the Charity and the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of the Trustees’ Responsibilities The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The Charities Act 2011 requires the trustees to prepare financial statements for each financial year. The trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and the group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

The trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by Council on 18 June 2013 And signed on 1 July 2013 by

General Sir Kevin O’Donoghue Chairman of Council

24


INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE SOLDIERS, SAILORS, AIRMEN AND FAMILIES ASSOCIATION – FORCES HELP (SSAFA) We have audited the financial statements of SSAFA for the year ended 31 December 2012 which comprise the group statement of financial activities, the group and parent Charity balance sheets, the group cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

responsibilities of trustees and auditor As explained more fully in the Trustees’ Responsibilities Statement set out on page 24, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

This report is made solely to the charity’s trustees, as a body, in accordance with Section 154 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

We have been appointed as auditor under sections 151 of the Charities Act 2011 and 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm

25


Opinion on financial statements

Matters on which we are required to report by exception

In our opinion the financial statements:

We have nothing to report in respect of the following matters where the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

– give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 December 2012 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;

– the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

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

– sufficient and proper accounting records have not been kept by the parent charity; or – the parent charity’s financial statements are not in agreement with the accounting records and returns; or

– have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

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

Eleanor Walsh Grant Thornton UK LLP Statutory Auditor, Chartered Accountants London 1 July 2013 Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

26


PRINCIPAL ACCOUNTING POLICIES

Going concern The financial statements have been prepared on the basis that the Charity is a going concern. The Trustees accept the legal necessity to include the long term FRS 17 defined pension scheme liability within the financial statements. They do not consider however that this liability constitutes a diminution to Reserves because in their view this liability lies with the Ministry of Defence and not with the Charity. The Charity had £39 million in unrestricted funds at 31 December 2012, excluding the FRS 17 pension liability. The Trustees therefore consider that the Charity has adequate resources to sustain operations for the foreseeable future.

The principal accounting policies are summarised below:

Basis of preparation The consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of investments, and are in accordance with the Charities Act 2011, the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' (revised 2005) and other applicable Accounting Standards in the United Kingdom.

Incoming resources All income whether restricted or unrestricted is recognised in the consolidated Statement of Financial Activities when the group has entitlement to the funds, the amount can be quantified and there is certainty of receipt.

Basis of consolidation

Donations and other income generated from fundraising is recognised gross on a receivable basis.

The financial statements consolidate those of the Charity, its subsidiary undertakings and its shares in joint ventures. The results and balance sheets of the Charity’s subsidiaries have been consolidated on a line by line basis.

Donated services and gifts in kind are recognised as receivable if their value is able to be estimated reliably. The gift is recognised in income at the market value of the goods or service received and, depending on the nature of the gift recognised in resources expended or fixed assets at the same value and same time.

The accounting reference date for SSAFA Forces Help Enterprises Limited is 31 March, set for administrative convenience since the major part of its income arises annually over the Christmas period. The results and activities of this company are not expected to materially change year on year.

Legacies are recognised once the receipt of the legacy becomes reasonably certain and quantifiable. Pecuniary legacies are usually recognised at the point that probate is granted. For residuary legacies, this will usually be at the earlier of cash receipt or when confirmation has been received from the representatives of the estates that payment will be made or property will be transferred and once all the conditions attaching to the legacies have been fulfilled. Investment income is recognised when receivable.

Joint ventures are accounted for using the gross equity method of accounting. Branch and Committee accounts (including those overseas) have been included in the Charity’s and consolidated financial statements on a receipts and payments basis but adjusted for any accruals or prepayments where material.

Grants receivable from service funds and other charities for specific cases, which have not been almonised at the end of the year are accrued and included as current liabilities. These amounts will be paid in the following year or returned to the relevant providers.

Council have taken the exemption conferred by para 397 of the Charities SORP, not to present a separate Statement of Financial Activities for the Charity. In order to comply with the Charities SORP, the gross income of the Charity is £26.9 million (2011: £29.2 million) and net incoming resources is a £295,000 deficit (2011: £1.1 million) for the year ended 31 December 2012.

Contracts for the provision of health and welfare services in the UK and Europe are recognised in the period in which the service is provided. No geographical indication of where these services are provided is given on the grounds of commercial confidentiality. Revenue from trading activities, including merchandising, royalties from publishing and recording agreements, excluding VAT are recognised at the point at which the revenue has been earned and/or services have been provided, as applicable.

27


Resources expended and the basis of allocation of costs

Tangible fixed assets and depreciation

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that activity. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of resources. Direct costs, including directly attributable salaries, are allocated on an actual basis to the key strategic areas of activity.

Tangible fixed assets are stated at cost and depreciated in equal instalments from either the date of purchase or the date brought into use at the following rates: Land Nil Freehold buildings

50 years

Long leasehold buildings 50 years

Costs of generating funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

Furniture and fittings

5 years

IT equipment

3 years

Motor vehicles Over 3 years down to 10%

Grants payable are payments made to or on behalf of individuals in the furtherance of the Charity’s charitable objectives. Grants are accounted for when the recipient has a reasonable expectation that they will receive a grant, goods or services.

Freehold and long leasehold property assets in the course of construction are capitalised but not depreciated until the asset has reached completion. Upon completion the asset is transferred to the appropriate fixed asset class and depreciated at the appropriate rate. Loan interest and associated finance costs incurred in the purchase and development of such assets is capitalised.

Health and welfare costs represent the direct costs of the welfare department at central office, including allocated communication and marketing costs, volunteer support costs (including training), branch and committee case-work costs and branch office and staff costs in the provision of advice and assistance to those in need.

Where it has been identified that the recoverable amount of a fixed asset is below its net book value the asset is written down to its recoverable amount and the impairment loss is recognised in the consolidated Statement of Activities.

Support costs include central functions such as management, finance, human resources and information technology and are allocated across the categories of costs of generating funds, charitable activities and governance on the basis of staff numbers engaged in the activities therein as shown in note 7. The administrative charges for the provision of grant aided activities and the provision of health and welfare services include support costs which are calculated in accordance with the contractual agreements.

Additions to furniture, fittings and IT equipment valued at less than ÂŁ2,000 are fully written off as revenue expenditure in the year of purchase unless they form part of a larger scale project.

Governance costs are those associated with the running of the Charity, as opposed to the direct management functions inherent in generating funds and service delivery. This includes such items as Council and Committee expenses, audit, legal advice for Council and other costs which are primarily associated with constitutional and statutory requirements.

28


Investments

Operating leases

Listed investments are included at bid price (which is deemed to be market value) at the balance sheet date and the consolidated Statement of Financial Activities shows net investment gains and losses arising from revaluation of the investment portfolio and disposals during the year.

Payments made under operating leases are charged to the consolidated Statement of Activities on a straight line basis over the lease term.

Foreign currency

Investments in subsidiaries are held at cost.

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date.

Funds accounting Unrestricted funds

Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in the consolidated Statement of Financial Activities.

General funds are unrestricted funds that are available for use at the discretion of Council in furtherance of the objectives of the Charity. Designated funds are unrestricted funds set aside at the discretion of Council for specific purposes. Details of designated funds held are given in note 16.

Contributions to pension schemes

A pension reserve is shown separately within unrestricted funds to reflect the long term non-liquid nature of the pension liability.

The group operates a defined benefit pension scheme that requires contributions to be made to a separately administered fund. The expected costs of providing pensions, as calculated periodically by professionally qualified actuaries, is charged to the consolidated Statement of Financial Activities, so as to spread the cost of pensions over employees’ working lives with the group.

Restricted funds Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose and the restriction means that the related funds can only be used for the specific activities. Details of restricted funds held are given in note 16.

The group also operates a defined contribution scheme. Pension costs charged in the consolidated Statement of Financial Activities represent the contributions payable by the group in the year.

Except for The Royal Homes fund, no interest on cash balances is allocated to restricted funds and no overheads or support costs are allocated except where material costs are incurred by a specific fund. Interest earned on restricted funds and most overhead and support costs if reasonably allocated are considered to be of low value.

Taxation No liability to Corporation Tax arises in these financial statements as the activities of the Charity are exempt from tax under the provisions of the Corporation Tax Act 2011, and any profits earned by the subsidiaries are applied in the furtherance of the Charity’s objects. Irrecoverable value added tax is allocated to the category of expenditure to which it relates.

29


Consolidated Statement of Financial Activities for the year ended 31 December 2012 Unrestricted Restricted Total Total Notes funds funds 2012 2011 £’000 £’000 £’000 £’000 INCOMING RESOURCES Incoming resources from generated funds Voluntary income 1 5,935 2,044 7,979 9,207 Activities for generating funds 2 6,145 - 6,145 4,251 Investment Income 3 467 40 507 464 Total incoming resources from generated funds 12,547 2,084 14,631 13,922 Incoming resources from charitable activities Contributions from Service charities and public providers: 4 18 12,041 Health and Social Care (group and joint venture) 4 28,087 746 (6,966) Less: share of joint venture turnover 4 - Care and accommodation 4 1,104 412 Adoption income 4 292 - Total incoming resources from charitable activities 22,535 13,199 Profit on sale of property - - Total incoming resources 35,082 15,283 RESOURCES EXPENDED Less: costs of generating funds Voluntary income 6 875 - Activities for generating funds 6 4,953 - Total costs of generating funds 5,828 -

12,059 28,833 (6,966) 1,516 292 35,734

13,384 28,961 (6,818) 1,457 448 37,432

-

84

50,365

51,438

875 4,953 5,828

928 3,478 4,406

Charitable activities Welfare and grants payable 5 6,724 13,030 19,754 20,949 Provision of ‘Grant Aided’ activities 6 - 739 739 906 Health and Social Care 6 19,930 - 19,930 20,231 Care and accommodation 6 2,054 810 2,864 2,926 Adoption 6 774 - 774 747 Military Wives Choirs 6 45 - 45 Total cost of charitable activities 6 29,527 14,579 44,106 45,759 Governance costs 8 178 7 185 167 Total resources expended 6 35,533 14,586 50,119 50,332 Net (resources expended)/incoming resources before transfers between funds (451) 697 246 1,106 Transfers between funds Net (outgoing)/incoming resources

16 9

(6) - 6 (445) 691 246 1,106

Share of net resources from joint venture Net unrealised and realised gains/(losses) on investments 13 Actuarial losses on defined benefit pension schemes 21

- 491 (3,631)

- 80 -

- 571 (3,631)

67 (799) (5,727)

NET MOVEMENT IN FUNDS Fund balances brought forward 16

(3,585) 9,105

771 3,267

(2,814) 12,372

(5,353) 17,725

TOTAL FUNDS CARRIED FORWARD

16

5,520 4,038 9,558 12,372

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities. The accompanying accounting policies and notes form an integral part of these financial statements.

30


Consolidated Group and Charity Balance Sheets as at 31 December 2012 Group Group Charity Charity Notes 2012 2011 2012 2011 £’000 £’000 £’000 £’000 FIXED ASSETS Tangible assets 12 20,260 23,162 20,260 23,162 INVESTMENTS Investments 13 8,463 10,913 8,473 10,923 Joint venture: share of gross assets 13 1,166 1,557 - (1,169) (1,514) - Joint venture: share of gross liabilities 13 TOTAL FIXED ASSETS 28,720 34,118 28,733 34,085 CURRENT ASSETS Property due for sale 12 4,979 - 4,979 Debtors 14 6,737 6,098 4,979 6,642 Stock 22 51 - Cash at bank and in hand 16,327 11,754 13,800 9,197 28,065 17,903 23,758 15,839 CREDITORS: Amounts falling due within one year

15

Net Current Assets CREDITORS: Amounts falling due after more than one year

15

Net assets excluding pension liability Defined benefit pension scheme liability 21 Net assets 17

(13,338)

(5,476)

(9,392)

(3,278)

14,727 12,427 14,366 12,561

-

(5,000) - (5,000)

43,447 41,545 43,099 41,646 (33,889) (29,173) (33,889) (29,173) 9,558 12,372 9,210 12,473

FUNDS Unrestricted funds – general 16 36,216 34,951 35,868 35,052 Unrestricted funds – designated 16 3,193 3,327 3,193 3,327 (33,889) (29,173) (33,889) (29,173) Unrestricted funds – pension reserve 16 Total unrestricted funds 16 5,520 9,105 5,172 9,206 Restricted funds

16

4,038 3,267 4,038 3,267

TOTAL FUNDS

16

9,558 12,372 9,210 12,473

Approved by the Trustees on 18 June 2013 and signed on 1 July 2013 by:

General Sir Kevin O’Donoghue Chairman

Mr D J Ashman Honorary Treasurer

The accompanying accounting policies and notes form an integral part of these financial statements.

31


Consolidated Cash Flow Statement for the year ended 31 December 2012 Notes 2012 2012 2011 2011 £’000 £’000 £’000 £’000 Net cash inflow from operating activities A 4,094 4,182 Capital expenditure and financial investment (2,542) (10,103) Purchase of tangible fixed assets Proceeds from sale of tangible fixed assets - 147 (77) (862) Purchase of investments Proceeds from sale of investments 3,098 2,644 (8,174) 479 Financing Issue of loan - 5,000 Increase in cash B 4,573 1,008

NOTES TO CONSOLIDATED CASH FLOW STATEMENT

A. Reconciliation of changes in resources 2012 2011 to net cash inflow from operating activities £’000 £’000 Increase in resources before revaluations 246 1,106 Depreciation 465 186 (84) Profit on disposal of tangible fixed assets - Decrease in stock 29 7 Increase/(decrease) in creditors 2,862 168 Increase in pension liability 1,085 605 (639) 2,194 (Increase)/decrease in debtors Change in joint venture holding 46 Net cash inflow from operating activities 4,094 4,182

B. Reconciliation of net cash inflow to movement in net funds Increase in cash Movement in net funds

Net Funds at 1 January 2012 Net Funds at 31 December 2012

C. Analysis of changes in net funds At 1 January 2012 £’000 Cash at bank and in hand 11,754 11,754

The accompanying accounting policies and notes form an integral part of these financial statements

32

4,573 4,573

1,008 1,008

11,754 16,327

10,746 11,754

Cashflows At 31 December 2012 £’000 £’000 4,573 16,327 4,573 16,327


Notes to the Financial Statements for the year ended 31 December 2012 1.

VOLUNTARY INCOME

Unrestricted funds £’000

Restricted funds £’000

Total 2012 £’000

Total 2011 £’000

3,339 2,596 5,935

2,044 2,044

5,383 2,596 7,979

7,019 2,188 9,207

Unrestricted funds £’000

Restricted funds £’000

Total 2012 £’000

Total 2011 £’000

3,898 668 1,579 6,145

-

3,898 668 1,579 6,145

2,367 278 1,606 4,251

Unrestricted funds £’000

Restricted funds £’000

Total 2012 £’000

Total 2011 £’000

303 52 112 467

40 40

343 52 112 507

446 18 464

Unrestricted funds £’000

Restricted funds £’000

Total 2012 £’000

Total 2011 £’000

-

12,041

12,041

13,367

18 18

12,041

18 12,059

17 13,384

Community Health and Social Care – UK and overseas Health and Social Care contracts (group and share of joint venture)

7 28,080 28,087

746 746

753 28,080 28,833

940 28,021 28,961

Less: share of joint venture income Group health and social care

(6,966) 21,121

746

(6,966) 21,867

(6,818) 22,143

254 808 42 1,104

412 412

254 808 42 412 1,516

226 763 77 391 1,457

292

-

292

448

22,535

13,199

35,734

37,432

Donations Legacies Donations include restricted income for the Home from Homes appeal.

2.

ACTIVITIES FOR GENERATING FUNDS

Health services provided to National Health Service Merchandising Fundraising activities

3.

INVESTMENT INCOME

Listed investments Bank deposits and unquoted investments Rental income

4.

INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Contributions from service, charities and public providers: – Service funds and other charities for individuals Public funds for Grant Aided activities: – Administrative costs Total contributions from service, charities and public providers

Care and accommodation contributions: – Stepping Stone Homes – Residential Homes and Cottages – Homes from Home – Royal Homes Total care and accommodation contributions Adoption income TOTAL INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

33


Notes to the Financial Statements for the year ended 31 December 2012 5.

WELFARE AND GRANTS PAYABLE

From charity funds On behalf of service funds & other charities Other Welfare costs

Unrestricted funds £’000

Restricted funds £’000

Total 2012 £’000

Total 2011 £’000

455 6,269 6,724

266 12,041 723 13,030

721 12,041 6,992 19,754

885 13,367 6,697 20,949

Activities undertaken directly £’000

Support costs (see note 7) £’000

Total 2012 £’000

Total 2011 £’000

744 3,628 1,057 5,429

131 121 147 399

875 3,749 1,204 5,828

928 2,372 1,106 4,406

18,477 694 18,842 2,208 655 45 40,921

1,277 45 1,088 656 119 3,185

19,754 739 19,930 2,864 774 45 44,106

20,949 906 20,231 2,926 747 45,759

13

172

185

167

46,363

3,756

50,119

50,332

All grants were paid to or on behalf of eligible individuals.

6.

TOTAL RESOURCES EXPENDED

Costs of generating funds Voluntary income Health services provided to National Health Service Activities for generating funds-merchandising and fundraising Charitable activities Welfare and grants payable Provision of ‘Grant Aided’ activities Health and social care Care and accommodation Adoption Military Wives Choirs

Governance TOTAL RESOURCES EXPENDED

7.

SUPPORT COSTS

Human Finance Resources £’000 £’000

Management £’000 Costs of generating funds Charitable activities Welfare and grants payable Care and accommodation Adoption Governance

Information Technology £’000

Facilities £’000

Total 2012 £’000

Total 2011 £’000

63

72

83

58

123

399

366

198 101 19

218 112 20

77 40 7

243 125 23

541 278 50

1,277 656 119

1,055 681 152

98 479

74 496

207

449

992

172 2,623

141 2,395

1,088 45 3,756

1,151 44 3,590

2012 £’000

2011 £’000

60 17 8 54 46 185

42 24 4 56 41 167

Health & social care services Grant-aided activities Total support costs The administrative charges for the provision of grant aided activities and the provision of health and welfare services charge include support costs and are calculated in accordance with the contract agreements.

8.

GOVERNANCE COSTS Council/Committee Expenses AGM Annual Reports Audit Apportionment of staff costs

34


Notes to the Financial Statements for the year ended 31 December 2012 9.

NET INCOMING RESOURCES/(RESOURCES EXPENDED)

2012 £’000

This is stated after crediting/charging: Auditors remuneration – Group entities (excluding Charity) – Charity – Non audit services – Branch and Committee attendance – Branch and Committee audit fees Depreciation of tangible fixed assets Profit on disposal of tangible fixed assets Expenditure on fixtures, fittings & equipment written off in year Amounts paid under operating leases

10. EMPLOYEE AND STAFF COSTS Staff costs during the year were as follows: Wages and salaries Social security costs Other pension costs

2011 £’000

41

42

42 21 6 14 465 158 243

43 32 6 15 186 (84) 137 190

Charity 2012 £’000

Contracts 2012 £’000

Total 2012 £’000

Total 2011 £’000

4,713 477 420 5,610

16,340 1,060 1,745 19,145

21,053 1,537 2,165 24,755

20,631 1,571 2,178 24,380

In addition, a great amount of time is donated by thousands of volunteers throughout the world. Due to the costs involved in quantifying this the Trustees do not consider it possible to reflect this in the financial statements. The number of employees paid by the charity whose emoluments, excluding employer’s pension contributions, exceeded £60,000 in the year were as follows:

£60,001 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,000 £100,001 to £110,000

3 higher paid staff members are accruing retirement benefits under the defined contribution scheme and 10 higher paid staff under the defined benefit schemes, with 6 other higher paid staff not participating in these schemes.

Charity 2012 Number

Contracts 2012 Number

Total 2012 Number

Total 2011 Number

4 3 2 -

2 5 1 2

6 8 3 2

4 1 5 5 3

(2011: 1 higher paid employee participated in the defined contribution scheme and 12 higher paid employees participated in the defined benefit scheme). Contributions in the year for the defined contribution scheme for higher paid staff amounted to £10,412 (2011: £3,042).

The average number of UK contracted staff throughout the year for the Group, analysed by activity, was:

Voluntary income Activities for generating funds Grants payable Care and accommodation Adoption Health and welfare Community Health and Social Service staff in the provision of ‘Grant Aided’ activities Management & support

35

Charity 2012 Number

Contracts 2012 Number

Total 2012 Number

Total 2011 Number

7 16 107 55 10 19 214

63 364 25 18 470

7 79 107 55 10 364 25 37 684

7 57 103 60 13 426 28 38 732


Notes to the Financial Statements for the year ended 31 December 2012 11. TRUSTEE REMUNERATION Trustees are not remunerated. They are reimbursed expenses or amounts are paid on their behalf for attending meetings and duties directly related to their duties as trustees. In 2012 total expenses of £27,635 (2011: £21,260) were paid for 13 trustees.

12. TANGIBLE FIXED ASSETS

Trustee indemnity insurance is held as part of a wider policy covering staff and volunteers. The premium for Trustee insurance cannot be separately identified but is estimated at £2,500 (2011: £2,500)

Motor vehicles £’000

Furniture & equipment £’000

140 140

244 126 370

20,433 (7,660) 15 (5,589) 7,199

3,616 558 4,174

7,660 1,843 9,503

24,433 2,542 (5,589) 21,386

117 4 121

123 123

966 (610) 255 611

188 83 271

-

1,271 (610) 465 1,126

Net book value At 31 December 2012

19

247

6,588

3,903

9,503

20,260

At 31 December 2011

23

244

19,467

3,428

-

23,162

Group and Charity: Cost At 1 January 2012 Transfer from freehold to assets under construction Additions Transfer to current asset-property due for sale At 31 December 2012 Depreciation At 1 January 2012 Transfer to current asset-property due for sale Charge for year At 31 December 2012

Additions to freehold properties include the purchase of the new Central Office building at 4 St Dunstan’s Hill. The purchase and development costs of this property are included in assets in the course of construction as works were taking place at 31 December 2012. The building was not ready for occupation until mid 2013. Finance costs associated with the purchase have been capitalised.

Freehold Long leasehold Assets in course properties properties of construction £’000 £’000 £’000

The property for resale disclosed as a current asset relates to the sale of the 19 Queen Elizabeth Street property. Whilst contracts were exchanged during December 2012, the risks and rewards of using the property were considered to have been retained until completion. Details of the deposit attaching to the sale are disclosed in Note 15. All tangible fixed assets are used for charitable purposes.

36

Total £’000


Notes to the Financial Statements for the year ended 31 December 2012 13. INVESTMENTS Group: Market value: At 1 January 2012 Acquisitions Disposals Payments to acquire listed investments Receipts from disposal of listed investments Funds Withdrawn Realised and unrealised profit on revaluation At 31 December 2012 – Group

Cash £’000

Listed £’000

Total £’000

(77) 3,098 (3,021) -

10,913 77 (3,098) 571 8,463

10,913 77 (3,098) (77) 3,098 (3,021) 571 8,463

Investment in subsidiary At 31 December 2012 – Charity

10 8,473

Historical cost at 31 December 2012

-

5,852

5,862

Listed investments are represented by:

2012 £’000

2011 £’000

Armed Forces Common Investment Fund Units United Kingdom – Equities

7,934 529 8,463

10,400 513 10,913

2012 £’000

2011 £’000

7,934

10,400

Investments within the portfolio which amount to more than 5% of total holdings as at 31 December 2012 were:

Armed Forces Common Investment Fund

Any charges made by the fund manager for managing the fund are deducted in arriving at the income or gains available for distribution and can not be separately identified. There are no restrictions on the realisation of these investments. Subsidiary undertakings As at the balance sheet date the Charity owned the entire ordinary share capital of the following subsidiary undertakings: Name Holding Activity SSAFA Family Health Services Limited by guarantee Health and welfare services SSAFA Forces Help Enterprises Limited 10,000 £1 ordinary shares Sale of merchandise The Military Wives Choirs Foundation Limited by guarantee Military Wives and other choirs As at the balance sheet date SSAFA Family Health Services owned the entire share capital of SSAFA Care CIC consisting of 2 £1 ordinary shares and SSAFA Care CIC held the entire capital of SSAFA Hallam Care LLP, held at a cost of £2 in the SSAFA Care CIC accounts. Details of the subsidiaries’ profit and loss accounts are as given overleaf. These undertakings donate their taxable profits to the Charity each year by gift aid.

37


Notes to the Financial Statements for the year ended 31 December 2012 13 INVESTMENTS (continued) The assets and liabilities of each subsidiary, as extracted from the latest financial statements were: SSAFA Family Health Services

Total assets Total liabilities

Represented by: Share capital Reserves

The results for the year were: Income Expenditure Net income Gift aid to charity Retained in subsidiary

SSAFA Forces Help Enterprises Limited

SSAFA Care CIC

SSAFA Hallam Care LLP

Military Wives Choirs Foundation

2012 £’000 6,341 (6,341) -

2011 £’000 6,651 (6,651) -

2012 £’000 161 (151) 10

2011 £’000 127 (117) 10

2012 £’000 814 (814) -

2011 £’000 1,175 (1,376) (201)

2012 £’000 -

7 months 2012 £’000 339 (2) 337

-

-

10 10

10 10

-

(201) (201)

-

337 337

21,114 (19,303) 1,811

21,203 (20,147) 1,056

667 (667) -

278 (278) -

3,309 (3,094) 215

2,366 (2,283) 83

677 (602) 75

393 (56) 337

(1,811) -

(1,056) -

-

-

(14) 201

(92) (9)

(75) -

337

Joint ventures The provision of primary healthcare services in North West Europe are performed by the Charity’s joint venture, SSAFA GSTT Care LLP. The Group holds 50% of the capital of SSAFA GSTT Care LLP, held at a cost of £1 by SSAFA Family Health Services. The provision of primary healthcare services in the UK were performed by SSAFA Hallam Care LLP. SSAFA Hallam Care LLP was held as a joint venture in SSAFA Care CIC’s (‘CIC’) accounts until the LLP partner Hallam Medical Limited officially retired on 25 September 2012. Agreement was reached with all parties that the contract for which this LLP was set up should novate directly into CIC on 31 August 2012.

The assets and liabilities in SSAFA Hallam Care LLP were accordingly transferred into CIC on that date. A deed of variation between parties confirmed that Hallam Medical Limited was not entitled to accrue or receive any further share of profits arising from this venture with effect from 9 September 2011. On the basis that all profits arising in 2012 belong to the SSAFA group. SSAFA Hallam Care LLP up to 31 August 2012 has been treated as a subsidiary in the group for consolidation purposes rather than as a joint venture. The results for the eight months to 31 August 2012 for SSAFA Hallam Care LLP are shown above with the other group subsidiary entities.

A summary of the Group’s share of the joint ventures is shown below: SSAFA GSTT Care LLP 2012 2011 £’000 £’000 6,966 6,818 (7) 1,166 1,274 (1,169) (1,276)

Turnover (Loss)/Profit before and after tax Current assets Liabilities due within 1 year

38

SSAFA Hallam Care LLP 2011 £’000 489 67 283 (238)


Notes to the Financial Statements for the year ended 31 December 2012 14. DEBTORS

Trade debtors Amounts owed by subsidiary undertakings Taxation recoverable Other debtors Prepayments and accrued income

15. CREDITORS Amounts falling due within one year: Trade creditors Other tax and social security costs Other creditors Unalmonised grants Accruals and deferred income Loan

Amounts falling due after more than one year: Loan

A £5 million loan was taken out with Coutts & Co during 2011 to contribute towards the purchase of the Charity’s new headquarters at St Dunstan’s Hill. The terms of the loan were such that the loan was to be repaid no later than 3 years after the date of drawdown, from the sale proceeds of the existing headquarters at 19 Queen Elizabeth Street. As the sale of Elizabeth Street was agreed in 2012, the loan will be repaid during 2013.

39

Group 2012 £’000

Group 2011 £’000

Charity 2012 £’000

Charity 2011 £’000

4,057 368 30 1,226 1,056 6,737

4,304 33 1,011 750 6,098

565 3,212 30 146 1,026 4,979

331 5,158 33 370 750 6,642

Group 2012 £’000

Group 2011 £’000

Charity 2012 £’000

Charity 2011 £’000

1,502 462 368 2,044 3,962 5,000 13,338

583 481 347 2,203 1,862 5,476

874 444 287 2,044 743 5,000 9,392

248 472 304 2,203 51 3,278

-

5,000 5,000

-

5,000 5,000

The interest rate applicable to the loan is 2.1% per annum above LIBOR, totalling 3.35% per annum. The loan is secured on the freehold property at 19 Queen Elizabeth Street and £1.5 million in the Investment Fund. Deferred income includes a £505,000 deposit due on the signing of contract for the sale of this property on 21 December 2012. This amount was received on 3 January 2013.


Notes to the Financial Statements for the year ended 31 December 2012 16. FUNDS

Balance at 31 December 2012 Transfers £’000 £’000 19 36,216

Balance at 1 January 2012 £’000 34,951

Incoming resources £’000 35,070

Resources expended £’000 (34,298)

Net investment gains/(losses) £’000 474

291 1,018 2,018 3,327

8 4 12

(150) (150)

17 17

(13) (13)

303 1,018 1,872 3,193

(29,173)

-

(1,085)

(3,631)

-

(33,889)

TOTAL UNRESTRICTED FUNDS

9,105

35,082

(35,533)

(3,140)

6

5,520

Restricted funds Welfare and casegrants Housing Homes from Home appeal UK Armed Forces and other charities UK Armed Forces-’Grant Aided’ activities The Royal Homes Miscellaneous branch funds Welfare funds TOTAL RESTRICTED FUNDS

442 1,664 1,073 88 3,267

802 26 211 12,041 746 598 552 307 15,283

(723) (26) (314) (12,041) (746) (471) (198) (67) (14,586)

65 12 3 80

(6) (6)

79 339 1,856 1,433 331 4,038

TOTAL FUNDS-GROUP

12,372

50,365

(50,119)

(3,060)

-

9,558

General funds SSAFA Care CIC reserves Share of joint venture Military Wives Choirs Foundation TOTAL FUNDS-CHARITY

144 (43) 12,473

General funds Designated funds Carmichael Walker fund Homes From Home Appeal Royal Patriotic Fund Total designated funds Pension reserve

(14) 3 (337) 9,210

Funds are held for use for the following purposes: General funds General funds are available for use at the discretion of Council to further the Charity’s objectives.

Restricted funds Homes from Home Appeal – to provide funding for families visiting injured servicemen and women at the Norton House Headley Court and Norton House Selly Oak.

Designated funds Carmichael Walker Fund – for use on charitable activities in the North East of England.

UK Armed Forces and other charities – contributions received from these bodies to provide grants to individuals for welfare purposes.

Homes from Home Appeal – to provide funding for families visiting injured servicemen and women at the Norton House Headley Court and Norton House Selly Oak.

UK Armed Forces-Grant Aided – received under grant in aid to reimburse the costs incurred in the provision of Community Health and Social Services.

Royal Patriotic Fund – having accepted the funds and obligations of the Royal Patriotic Fund Corporation on 27 May 2011, the assets attaining have been designated for the purposes of the Royal Patriotic Fund Corporation.

The Royal Homes – a charity providing residential facilities linked with the Charity’s activities under a Charity Commission Scheme in 1998. Miscellaneous branch funds – funds which have been received by branches for specific use in their local areas. Welfare funds – income or capital received which may only be applied in the provision of welfare services to eligible individuals in need. Included under this heading is The Aircrew Association Charitable Fund, a subsidiary charity.

40


Notes to the Financial Statements for the year ended 31 December 2012 17. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS Fund balances at 31 December 2012 are represented by: Tangible Fixed Assets Investments Current Assets Current Liabilities Defined Benefit Pension Liability

General 2012 £’000

Designated 2012 £’000

Restricted 2012 £’000

Total 2012 £’000

19,930 6,801 20,560 (11,075) (33,889) 2,327

283 2,910 3,193

330 1,376 4,595 (2,263) 4,038

20,260 8,460 28,065 (13,338) (33,889) 9,558

18. CAPITAL COMMITMENTS At 31 December 2012 the Charity had capital commitments, which were authorised and contracted for, of £3.7 million in respect of the Charity’s new headquarters (2011: nil). Amounts authorised but not contracted for in respect of the same property at 31 December 2012 were £0.8 million (2011: nil). 19. CONTINGENT LIABILITIES Neither the Group nor the Charity had any material contingent liabilities at 31 December 2012 or 31 December 2011. 20. BANK GUARANTEE The Charity has guaranteed overdraft facilities for its charitable trading subsidiary, SSAFA Family Health Services, up to £1 million. As additional security the bank holds a debenture over the assets of SSAFA Family Health Services. 21. RETIREMENT BENEFITS The total contributions made by the Group in the year were: Local Government Pension Scheme Scottish Widows Money Growth Plan Aviva Group Personal Pension Plan NHS Pensions Scheme Total contributions

2012 2011 £’000 £’000 1,890 1,915 5 124 185 5 86 162 2,166 2,206

Scottish Widows Money Growth Plan The Association operates a defined contributions pension scheme for the benefit of the Association’s employees. The assets of the scheme are administered by trustees in a fund independent from those of the Charity. The charge for the year represents those contributions payable to the scheme in respect of the accounting period.

NHS Pensions Scheme Following the transfer of staff to the Association from the Ministry of Defence, the Association currently participates in the NHS Pensions Scheme. The NHS Pension Scheme is an unfunded multi-employer defined benefit scheme. The assets of the scheme are administered by NHS Pensions in a fund which is independent of the Association.

The Association had 3 active members in the scheme as at 31 December 2012 (2011: 3) and total pension scheme contributions outstanding at year end amounted to £629 (2011: £619).

The Association is unable to identify the underlying assets and liabilities of the scheme and therefore it is accounted for as defined contribution in nature. The charge for the year represents those contributions payable to the scheme in respect of the accounting period. Entry into this scheme is strictly limited to employees transferring to the Association from the MOD or NHS and at 31 December 2012, the Association had 13 (2011: 20) active members in this scheme. The pension scheme contributions outstanding at the end of the accounting period amounted to £9,860 (2011: £13,103).

Aviva Group Personal Pension Plan The Association operates a defined contributions pension scheme for the benefit of the Association’s employees. The assets of the scheme are administered by trustees in a fund independent from those of the Charity. The charge for the year represents those contributions payable to the scheme in respect of the accounting period. The Association had 156 active members in the scheme as at 31 December 2012 (2011: 124) and total pension scheme contributions outstanding at year end amounted to £22,111 (2011: £19,365).

41


Notes to the Financial Statements for the year ended 31 December 2012 21. RETIREMENT BENEFITS (continued) Local Government Pension Scheme The Association participates in a defined benefit scheme with contributions paid by the employer. The scheme is a multi-employer scheme administered by the London Pension Fund Authority and is only open to certain categories of the Association’s employees.

The last actuarial valuation of the scheme was at 31 March 2010 using the projected unit method and the attained age method, dependent on the fund being valued. At the valuation date the market value of the LPFA assets was £3,717 million in comparison to the actuarial value of benefits that had accrued to members of £4,587 million. Accordingly, as at 31 March 2010, there was a deficit of £870 million. Although the London Pension Fund Authority is a multi-employer scheme, it has been able to allocate assets and liabilities relating to SSAFA Forces Help and these are disclosed below.

At 31 December 2012 the Association had 220 active members (2011: 228)

The employer contributes 23.9%, and the employee contribution rate ranges from 5.5% to 7.5% depending on the full time annual rate of pay. At 31 December 2012 the valuation was updated in accordance with FRS 17. The major assumptions used by the actuary were: Assumptions as at RPI Increases CPI Increases Salary Increases Pension Increases Discount Rate

31 December 2012 31 December 2011 %p.a. %p.a. 2.9% 3.0% 2.4% 2.2% 3.8% 4.0% 2.4% 2.2% 4.4% 4.7%

The expected return on assets is based on the long-term future expected investment return for each asset class as at the beginning of the period. Mortality assumption The post retirement mortality is based on Club Vita mortality analysis which has then been projected using the medium cohort projection and allowing for a minimum rate of improvement of 1%.

Assumptions: members will exchange half of their commutable pension for cash at retirement and active members will retire one year later than they are first able to do so without reduction.

The assets and liabilities in the scheme and the expected long term return on the assets were: Assets (employer)

Equities Target Return Portfolio Alternative Assets Corporate Bonds Cash

Long Term Long Term Long Term Assets At Return At Assets At Return At Assets At Return At 31 December 31 December 31 December 31 December 31 December 31 December 2010 2010 2011 2011 2012 2012 £000 %p.a £000 %p.a £000 %p.a 6.1% 31,023 6.1% 27,766 7.3% 28,367 4.7% 4,369 4.7% 5,156 5.9% 4,395 5.2% 6,991 5.2% 5,553 6.4% 5,594 n/a n/a 5.4% 799 0.5% 1,311 3.0% 1,190 3.0% 799

Fair Value of Scheme Assets (bid value) Present Value of Funded Obligations Net Pension Liability

43,694 (77,583) (33,889)

39,665 (68,838) (29,173)

The Trustees accept the legal necessity to include the FRS17 pension liability in the consolidated Statement of Financial Activities. They do not however agree that this liability constitutes a diminution to Reserves because in their view this liability should be reimbursed by the MoD in accordance with an agreement dated 25 February 1977.

42

39,954 (62,795) (22,841)


Notes to the Financial Statements for the year ended 31 December 2012 Analysis of amount charged to the consolidated Statement of Financial Activities

2012 £000

2011 £000

Current service cost Interest on obligation Expected return on Scheme assets Losses on curtailments and settlements Total Actual return on Scheme assets

1,998 3,241 (2,264) 1 2,976 3,891

1,950 3,407 (2,777) 2,580 (920)

Recognised gains and losses

2012 £000 1,627 (5,258) (3,631)

2011 £000 (3,697) (2,030) (5,727)

Opening defined benefit obligation

2012 £000 68,838

2011 £000 62,795

Current service cost Interest cost Contributions by Scheme participants Actuarial losses Losses on curtailments Estimated benefits paid (net of transfers in)

1,998 3,241 556 5,258 1 (2,309)

1,950 3,407 603 2,030 (1,947)

Closing defined benefit obligation

77,583

68,838

Reconciliation of fair value of employer assets: Opening fair value of Scheme assets

2012 £000 39,665

2011 £000 39,954

Expected return on Scheme assets Contributions by Scheme participants Contributions by Employer (including unfunded) Actuarial (losses)/gains Estimated benefits paid (net of transfers in and including unfunded)

2,264 556 1,891 1,627 (2,309)

2,777 603 1,975 (3,697) (1,947)

Closing fair value of employers assets

43,694

39,665

2012 £000 (29,173)

2011 £000 (22,841)

(1,998) 1,891 (1) (977) (3,631)

(1,950) 1,975 (630) (5,727)

(33,889)

(29,173)

Actual return less expected return on pension scheme assets Changes in assumptions underlying the present value of the scheme liabilities Actuarial losses in pension scheme and consolidated Statement of Financial Activities

Reconciliation of defined benefit obligation:

Reconciliation of opening and closing deficit: Deficit at beginning of the year Current Service Cost Employer Contributions Settlements and curtailments Other Finance Income Actuarial losses Deficit at end of the year

43


Notes to the Financial Statements for the year ended 31 December 2012 21. RETIREMENT BENEFITS (continued) Historical Pension Scheme Information Year Ended

31 December 31 December 31 December 31 December 31 December 2012 2011 2010 2009 2008 £000 £000 £000 £000 £000 (77,583) 43,694 (33,889) 0 1,627 (26,186)

(68,838) 39,665 (29,173) 0 (3,697) (22,555)

(62,795) 39,954 (22,841) 4,652 (491) (65)

£000

£000

£000

Adjustment to discount rate Present value of total obligation Projected service cost

0.1% 76,018 2,099

0% 77,583 2,166

-0.1% 79,191 2,235

Adjustment to mortality age rating assumption Present value of total obligation Projected service cost

+1 Year 75,065 2,080

None 77,583 2,166

-1 Year 80,102 2,252

Defined Benefit Obligation Scheme assets Deficit Experience gains/(losses) on Scheme liabilities Experience gains/(losses) on Scheme assets Cumulative Actuarial Gains and Losses The estimated employer’s contribution for the year to 31 December 2013 will be approximately £1,962,000. Sensitivity analysis The following table sets out the impact of a small change in the discount rate or mortality assumptions:

44

(69,677) 36,930 (32,747) 0 3,430 (1,519)

(47,745) 30,660 (17,085) 219 (10,552) (8,700)


COUNCIL AND OFFICERS Patron

Council Members

Her Majesty The Queen

Mr R S Broadhurst Mr J Carleton Major C Champion (from November 2012) Colonel R Gordon Mr A Gornall (from November 2012) Lieutenant Commander D Griggs Lady Jackson (from June 2012) Mr J L Jelley Mrs H Kirkland (from September 2012) Mr D McPhie Wing Commander I Miskelly (retired March 2013) Ms J Ridgway Major General Sir Sebastian Roberts (retired June 2012) Mr D Rowe Colonel J A N Royle (retired November 2012) Dr M Stuttaford (from June 2012)

President HRH Prince Michael of Kent

Vice Presidents Field Marshal Rt Hon the Lord Bramall Lady Dalton Lady Dannatt The Baroness Fookes Major General H E M L Garrett (retired July 2012) Air Chief Marshal Sir Michael Graydon The Lady Guthrie Lieutenant Colonel Colin Hogg Lady Huxtable Mrs A Jenks Surgeon Captain A McEwan The Rt Hon the Countess Mountbatten of Burma Lady Richards Lady Stanhope The Lady Walker Lady Wall The Rt Hon The Lord Westbury

Officers of the Association (Chairman, Vice Chairman and Treasurer) and Members of the Council are all Trustees. They are incorporated as a body operating under the Association’s Royal Charter. One third of the Trustees is required to retire each year, but is eligible for re-election by the Association.

Controller Major General A A J R Cumming (retired September 2012) Air Vice-Marshal The Hon D P Murray (from October 2012)

Chairman Secretary

General Sir Kevin O’Donoghue

Mr K R Wood

Vice Chairman Deputy Controller Services Support & Managing Director of SSAFA Family Health Services

Brigadier W E Shackell (retired July 2012) Wing Commander K J Bushell (from July 2012)

Mrs J Quinn

Honorary Treasurer Mr D J Ashman

45


Deputy Controller Branch Support

Auditors Grant Thornton UK LLP Registered Auditors Chartered Accountants Grant Thornton House Melton Street Euston Square LONDON NW1 2EP

Mrs C M Walker

Director of Finance and Human Resources Mr K R Wood

BANKERS

Officers of the Most Excellent Order of the British Empire

Coutts & Co 440 The Strand LONDON WC2R 0QS

Mr David Ashman Honorary Treasurer

Barclays Bank Plc PO Box 544 54 Lombard Street LONDON EC3V 9EX

Member of the Most Excellent Order of the British Empire Mrs Sally McFerran Assistant Director Clinical Governance (Overseas Commands) Mrs Michelle Salter Divisional Secretary of Dereham, Swaffham and Watton Division, Norfolk Branch Mr Richard Adams West Midlands Branch and nationally on Audit and Financial Controls committees Mr Jonathan Jelley Essex Branch and nationally as a Trustee

Royal Bank of Scotland Plc West End Commercial Centre 1st Floor Argyll House 246 Regent Street LONDON W1B 3PB

INVESTMENT MANAGERS BlackRock Investment Managers Ltd 33 King William Street LONDON EC4R 9AS

British Empire Medal Mr Philip Froomberg London South West Branch Mrs Agnes Johnston Perth & Kinross Branch

SOLICITORS

His Royal Highness Prince Michael of Kent Award

Withers LLP 16 Old Bailey LONDON EC4M 7EG

Major Christopher Grose Branch Chairman, Gloucestershire

46


Registered Charity Numbers SSAFA Forces Help 210760 (England and Wales) SC038056 (Scotland) 149 (Gibraltar) Military Wives Choirs Foundation 1148302 (England and Wales)


For more information about SSAFA, please contact us: SSAFA Queen Elizabeth House 4 St Dunstan’s Hill, London EC3R 8AD T 0845 130 0975 E info@ssafa.org.uk

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Registered Charity No. 210760 and SC038056, Est. 1885.

SSAFA Annual Report 2012  

SSAFA support 50,000 Forces people every year. If you're interested in the figures, take a look at our Annual Report for 2012.

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