annual report & accounts 2014

Tyrwhitt House,

Oaklawn Road,

Leatherhead,

Surrey KT22 0BX

Tel: 01372 587100 Fax: 01372 587101

Email: [email protected]

Website: www.combatstress.org.uk

Company Limited by Guarantee Registered in England and Wales No 256353 Charity Registration No England & Wales 206002 Charity Registration No Scotland SC038828

ANNUAL REPORT AND ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2014

Combat Stress (Ex-Services Mental Welfare Society) – Trustees’ Report

2014 Annual Report and Accounts | Combat Stress | 3Company Limited by Guarantee | Registered in England and Wales No 256353 Charity Registration No England & Wales 206002 | Charity Registration No Scotland SC038828

Trustees’ Report

Vision, Mission, Values and Aims 4

Strategic Report

Review of 2013/14

Developing integrated Community and Outreach,

Outpatient and Inpatient Services 6

Improving the evidence base 9

Sustaining our Financial base 10

Developing an appropriate brand and image to

deliver excellence 13

Plans for the future 14

Financial review 16

Principal risks and uncertainties 18

Employment of disabled persons 19

Employee involvement 19

Public benefit, policies and governance 20

Statement of Trustees’ responsibilities 23

Auditor’s Report

Independent auditor’s report to the Members and Trustees 24

Financial Statements

Statement of Financial Activities 26

Balance Sheet 28

Cash Flow Statement 29

Notes to the Financial Statements 30

Legal and administrative information 44

4 | Combat Stress | 2014 Annual Report and Accounts


Company Limited by Guarantee | Registered in England and Wales No 256353 Charity Registration No England & Wales 206002 | Charity Registration No Scotland SC038828

Our Vision

Our Vision is that Veterans will be

able to live free from the harmful

effect of psychological wounds.

Our Mission

Our mission is to provide timely,

effective clinical treatment and

welfare support to Veterans who

suffer from psychological wounds.

To realise this we must:

Be accessible to those who

need help

Be expert at what we do and

be recognised as such

Work in partnership with others

Raise awareness of

Veterans’ needs

Our Values

Our Values are:

Putting Veterans at the centre

of our work

Aspiring to achieve excellence

in everything we do

Fostering a culture of respect

and integrity

Our strategic aims

Over the five years from 2012

to 2017 we are focussing on the

following strategic aims:

1. Developing integrated

Community, Outreach,

Outpatient and Inpatient

services;

2. Improving the evidence base

of therapeutic practice;

3. Sustaining our financial base;

4. Developing an appropriate

brand and image culture

to deliver excellence.

These aims will enable Combat

Stress to develop its services,

to respond to a changing

environment and the increased

demand for our help.

This report details what we have

done to achieve these aims in the

year ended 31 March 2014 and our

plans for the future.

TRUSTEES’ REPORT

VISION, MISSION, VALUES AND AIMS



Combat Stress has been providing

mental health care for Veterans

for 95 years since it was founded

in 1919.

In 2014, as we commemorate

the centenary of the start of

World War 1, the reasons for the

charity’s formation are poignantly

remembered. The ‘shell shock’

suffered by those returning from

the trenches 100 years ago is now

much better understood and is

recognised as Post Traumatic

Stress Disorder (PTSD).

A lot has changed since the

First World War but the mental

scars left by conflict are still

as devastating. Today, we are

working with over 5,400 Veterans

and are the leading charity for

Veterans suffering from PTSD and

other mental health conditions.

As we have done over the last 95

years, Combat Stress works with

Government to improve mental

healthcare provision for Veterans.

This takes the form of advocacy

in the areas of pensions, stigma

reduction, specialist healthcare

provision and improving the

interface between the Defence

Medical Services and 3rd sector

medical organisations including

for Reserve Forces. We are also

developing innovative mental

health services for Veterans which

we seek to see adopted by the

NHS.

This year, our troops formally

withdraw from Afghanistan and

this marks the end of the longest

continuous period of war fighting

overseas for over 200 years. This

has left a legacy of mental health

issues, including depression,

anxiety and PTSD for many ex-

Service personnel.

Combat Stress supports Veterans

who have served in many areas

of operations. During 2013/14 we

supported 660 Veterans who

served in Afghanistan (an increase

of 67% on the previous year)

and 960 who served in Iraq (an

increase of 32% on 2012/13).

5,473 Veterans actively

received treatment and support

from us (compared to 5,272 in

2012/13)

We received 1,802 new referrals

during 2013/14 (12% increase on

last year)

1,086 Veterans were sufficiently

recovered to no longer need

our active support.

The average time between leaving

military service and seeking help

from Combat Stress is 12.4 years.

However, Veterans of recent

conflicts are seeking our help

earlier. The average time is just

four years for those who have

served in Afghanistan and eight

years for Veterans of the Iraq

conflict.




REVIEW OF 2013/141. DEVELOPING INTEGRATED COMMUNITY AND OUTREACH,

OUTPATIENT AND INPATIENT SERVICES

We are recognised mental health

experts and, working with partners

including the NHS and other

military service charities, we aim to

deliver an integrated service that

ensures that those in need of help

receive the right support, in the

right place, at the right time and

from the right people.

We have developed integrated

recovery-focused care pathways.

We have improved procedures to

ensure that our service capacity

is monitored and we can adjust

activity to meet demand so that

Veterans can receive timely access

to services.

We have put new governance

structures in place to support

access to, and transition between,

services. A key feature of the new

structures is multi-disciplinary

decision making, in which the new

treatment plans are agreed with

the Veteran and a combination of

welfare, community and Inpatient

services provide a more coherent

care pathway.

During 2013/14 we commenced

a project to implement a new

clinical patient administration

system, which will greatly enhance

planning, Veteran management

and sharing of information across

all areas of our service.

Community and Outreach

This year 945 Veterans were

assessed by the Regional Welfare

Officers (RWOs) (3% increase on

the previous year). RWOs also

provided 2,100 follow up welfare

visits.

Over the last year our community

based clinicians provided 561

support group sessions and 149

Veterans received individual

community-based therapy.

To help meet increasing demand,

we began a programme to expand

our capacity by delivering clinic-

based services in the community.

A new facility for ‘Combat Stress

on the high street’ was opened

in Liverpool in partnership with

the Royal British Legion in one of

their ‘Pop-In Centres’. Additional

sites have been identified which

will be opened over the course

of the next year. Each ‘Pop-In

Centre’ will provide dedicated

clinical space for Combat Stress

Veterans. These hubs will increase

the number of Veterans we are

able to reach and complement our

existing Community and Outreach

services to make the best use of

our resources.

Substance (including alcohol)

misuse case management service

We are piloting a new substance

misuse case management

service for Veterans with mental

health problems, who also have

substance misuse problems.

Funding has been secured of

£2.6m for multiple years from the

Ministry of Defence (Armed Forces

Covenant Team) and from Big

Lottery. This service will monitor

and support Veterans from first

referral through their whole

treatment, including treatment

provided by other organisations.

The service aims to ensure that

Veterans suffering from substance

misuse will be able to move from

detox treatment through to

therapies which will help them

cope with the underlying causes

of their substance misuse and help

prevent relapse.

The first substance misuse

management service has been

established in partnership with

Glasgow and Clyde NHS Trust.

Further pilot sites have been

identified and discussions on

recruitment into the roles are now

progressing. In the first month 80

referrals have been made to the

pilot service.

STRATEGIC REPORT



Outpatient care

We now have Outpatients services

in each of our treatment centres

to provide rapid assessment and

access to appropriate treatment.

Remote Outpatient services in

local communities were trialled

in Essex, Plymouth and Exeter.

These clinics have been received

positively by both Veterans and

clinicians and promote the need

for services to be provided as

close to the Veteran’s home as

possible. Further development of

community clinics will be explored

in 2014/15.

Inpatient care

There have been 1,965 Veteran

admissions to our residential

treatment centres during 2013/14.

This is slightly lower than

previous years due to the length

of stay of 6 weeks for those on

the specialised PTSD Intensive

Treatment Programme.

Over the year 1,767 treatment

sessions and 2,483 group

sessions were provided in a

range of treatments including

trauma focused therapy, one

to one counselling, anger and

anxiety management and art

psychotherapy.

A new transdiagnostic programme

was introduced providing a

more focused treatment plan for

Veterans designed specifically to

meet complex individual needs.

Whilst early in its review, initial

feedback and analysis shows

improved benefit from this

programme over previous versions

and it will be implemented in all

treatment centres in 2014/15.

The increasingly specialised and

clinical nature of our programmes

led to a review of staffing

within the treatment centres.

During 2013/14 we carried out

a restructure within the centres

to ensure that staff had the right

experience and qualifications to

provide expert treatment and

care to Veterans. The process was

difficult and at times painful for

all employees and Veterans alike

as some long serving employees

left the Society. However, the

remaining and new staff have

excellent skills and together

are better qualified to deliver

improved services.

The workforce review has enabled

us to develop further recovery

programmes, confident that we

have the right staff to deliver

them. We have piloted new

programmes in stabilisation,

anger management, substance

misuse and co-morbid PTSD and

will deliver them in all treatment

centres in 2014/15.

Quality

Each treatment centre is subject

to Quality Care Standards and

is periodically inspected by the

regulatory authority: the Care

Quality Commission in England

and the Care Inspectorate for

Scotland. In 2013/14 the regulators

carried out unannounced visits

at all three treatment centres as

follows:

16 April 2013 at Tyrwhitt

House, Surrey. The Centre

passed all care standards

with the inspector noting that

“treatment plans had been

developed and the person had

signed each plan. These plans

identified what the person

needed help with; what support

was needed to achieve the

person’s goals; and how staff

would assist. One person told

us “My keyworker understands

me; they help me to sort out my

issues”. We saw that treatment

was provided in a number of

ways to meet the needs of

individuals.”

13 December 2013 at Audley

Court, Shropshire. The Centre

passed all care standards

with the inspector noting that

“people described their support

and treatment as “exceptional”,

“absolutely brilliant” and,

“unique”. Comments from

people included, “It’s like having

a pair of arms thrown around

us”. “Within a day or two of

being here, you know it’s worth

being here” and, “They’ve

given me a new lease of life”.

People described the staff as

welcoming and “experts in their

field of work”. They considered

staff were competent and

knowledgeable and understood

their individual needs. One

person said, “The staff know us

better than we know ourselves”.

Another person said, “Their

commitment is unbounded and

they are very proficient in what

they do”.”

18 November 2013 at Hollybush

House, Ayrshire, Scotland.

The Centre was assessed as

‘Very Good’ and the inspector

summarised that “Hollybush

House offers a very high

standard of care and support,

and acts as a lifeline to many of

the Veterans. We found that the

service had a very professional,

knowledgeable and skilled staff

group that offered very good

support. The service uses a

research-based approach to

treatment and staff work very

closely with the Veterans to

ensure they are involved in all

aspects of their treatment from

admission to discharge.”




Improved Facilities

A significant refurbishment and

expansion programme of all three

of our treatment centres has been

undertaken over the last few years

to ensure that our buildings are

fit for purpose. During 2013/14

the following improvements have

been made:

Extension at Audley Court for

a new Outpatients department,

counselling rooms and a

training room;

Fourth bedroom wing at Audley

Court providing new bedrooms,

including two for disabled

users;

Refurbishment of the Activity

Centre at Audley Court

including an excellent new

kitchen where Veterans can

learn cooking skills.;

A new horticultural garden area

at Tyrwhitt House for Veterans

to grow their own produce and

learn gardening skills.

We have also installed wireless

internet access at all three

treatment centres to help

Veterans stay in touch with work,

friends and family.

Helpline

Our Helpline is available 24 hours a day to the military and naval

community, including Veterans, serving personnel, Reservists and their

families. Trained employees are there to listen, give support and direct

callers to our support workers or refer them for specialist help.

The Helpline continues to be an invaluable lifeline for Veterans, with an

increase in the number calling when in crisis.

Main Issues/Reason For Call

0

1000

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4000

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Inboundcalls

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Outboundcalls

Outboundno response

Voicemails Textsreceived

Emailsreceived

2012/13

2013/14

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200

400

600

800

1000

1200

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1600

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2. IMPROVING THE EVIDENCE BASE

OF THERAPEUTIC PRACTICE

Our work can provide important

evidence in relation to the unique

mental health problems suffered

by Veterans. Together with

partners and other providers we

aim to establish an evidence base

which will help inform national

policy and development of

treatments.

A new framework to assess care

outcomes has been introduced.

This will ensure that baseline

measures are recorded at initial

assessment and improvement

and progress along the recovery

pathway can be tracked and

measured. Staff received training

in accurate data capture.

Outcomes are evidence-based

and are derived from statistical

analysis of our treatment

programmes. However, as many

of our programmes are new and

are currently being piloted it will

be some time before effectiveness

can be determined fully. However,

feedback from Veterans attending

the programmes has provided

good initial indicators.

The six week PTSD Intensive

Treatment Programme has been

running for two years. Evaluation

indicates that the programme

is effective in reducing the

symptoms of PTSD and there are

marked gains in the Veterans’ well-

being.

Combat Stress has again been

asked to provide evidence for

two House of Commons Select

Committees - Northern Ireland

and Defence - on Veterans mental

health issues.

Of particular interest this

year has been the foundation

of the Armed Forces Health

Partnership Working Group.

This group, a development from

the Department of Health Third

Sector Health Partnership, is co-

chaired by Combat Stress and the

Royal British Legion. Membership

includes the Department of

Health, Ministry of Defence and

NHS England alongside those

Veterans’ charities that have

an interest in Veterans’ health.

The Working Group provides

expertise, strategic leadership

and support to the NHS and

Service charity sector, including

Cobseo (Confederation of Service

Charities), in shaping, delivering,

implementing and communicating

health and well-being policy for

the Armed Forces community. It

also seeks to identify areas and

opportunities for joint working and

pooling of expertise on research,

policy and communications work

across the NHS and Service

charity sector.

We have worked with Help for

Heroes to help them to develop

their new low-level psychological

services for Veterans and families.

These services will complement

our own treatments and those

provided by the NHS.

We now have both a descriptive

and numerical monthly report

for all Helpline activity, which

has provided us with accurate

information about calls. As a

result we were able to identify an

additional training need for call

centre workers which is being

addressed.




3. SUSTAINING OUR FINANCIAL BASE

We aim to secure funding in the

ratio of 60% voluntary income to

40% from statutory providers and

commissioned services. During

2013/14 we achieved a ratio of 51%

voluntary to 49% statutory and

commissioned income. However,

the statutory income included

£2m for a three-year project

where the entire grant has been

received in advance.

As our workload increases we

are seeking funding in a post-

Afghanistan era where there will

be less media coverage. We have

increased our fundraising and

communications activity to ensure

that we maintain a high profile.

During 2013/14 we commenced

an improvement programme

of performance measurement

throughout Combat Stress and

now have departmental KPIs (key

performance indicators) which

will help us ensure that valuable

resources are used effectively.

Fundraising summary

As always, we are incredibly

grateful to all our donors and

volunteers who raise money for

Combat Stress. We are also very

fortunate to work with supportive

and generous partners, including

The Royal British Legion, Help for

Heroes, ABF, RAFBF, RNRMC,

SSAFA Forces Help, Comic Relief,

Big Lottery and NHS networks.

We could not achieve any of our

successes without the funds raised

or grants provided.

We are especially grateful to the

Forces benevolent societies whose

foresight and understanding of the

needs of Veterans has led them to

support us over many years. Such

foresight has been a key enabler

in the development of the Society

and established Combat Stress

as a truly world class Veterans’

Mental Health operation.

During 2013/14 we were successful

in securing three-year funding

for a substance misuse case

management service from the

Military Covenant Reference

Group which distributes funds

to Service charities from the

penalties imposed on banks after

the ‘LIBOR’ scandal, and from the

Big Lottery.

During the last year we improved

our communications with donors

and supporters interested in our

events and activities. We have

raised awareness and funds

through a number of appeals

including our ‘Armistice Appeal’

which raised £66k and the

Christmas Appeal ‘Candle of Hope’

which raised £112k.

We held a number of high profile

events during the last year

including:

On 11th November 2013 a West

End performance was given

entitled ‘Dreams From the Pit’,

followed by a panel discussion.

Walk on Wales took place

in August 2013 and Combat

Stress was one of two charities

to benefit. Teams walked the

entire length of the Welsh

Coastal Path and raised a total

of £73k for Combat Stress with

more to follow when all the

sponsorship is collected.

Combat Stress continues to

be the nominated charity at

the Annual Battle Proms each

summer. In 2013 a fantastic

amount of over £23k was raised

during the six performances.

All of our supporters in the

community find inventive ways

to raise vital funds for Combat

Stress, including sky-dives and

sponsored cycle rides. Some

examples included Tom Benson

and Ed Straker who cycled 14,000

miles from Punta Arenas, Chile

to Alaska, raising over £7k. Diana

de Lisle raised £5k at a very

special car boot sale at Bulwick

Park. Ben Kane and friends raised

£14k by walking the length of

Hadrian’s Wall in full Roman

uniform, Pegasus Masonic Lodge

raised over £15k, In Scotland, the

Trades House Ball raised £21k and

Peterborough Council made us

Charity of the Year raising more

than £23k.



Individual Giving had a very good

year in 2013/14. Our Spring Appeal

was a huge success, raising

£138k. The added investment in

Individual Giving in 2013/14 meant

we recruited 1,400 more new

donors than last year.

We also created a new bi-annual

supporter newsletter entitled

‘Support Works’. The first issue in

November attracted an amazing

£61k in donations, the most any

newsletter has produced. The

main highlight of the year was

our regular giving upgrade and

conversion work. In June we sent

out our first regular giving appeal,

asking those who already give

via Direct Debit to increase their

donation and those who gave cash

to convert to Direct Debit. The

appeal performed exceptionally

well.

Combat Stress secured the BBC

TV Lifeline Appeal, presented

by celebrity ambassador Sir

Patrick Stewart. We have been

successful in maintaining existing

relationships with Thales, Network

Rail and BAE Systems. During the

final stage of the BAE Systems

Charity of the Year Award,

Combat Stress was adopted as

the chosen charity partner across

three sites: Filton, Telford and

Newcastle. In addition, there has

been active support from Thales,

one of the leading manufacturers

of defence and electronic

products. Thales sponsored the

Armistice Lecture and to coincide

with Mental Health Week 2013,

they hosted an Insight Lecture

at their head office in Crawley

and were able to raise awareness

of our work and the stigma

associated with mental health.

We give our sincere thanks to

Dr Rami Ranger for introducing

Combat Stress to the British Sikh

and Punjabi communities, which

resulted in a combined donation

total of £20k from two dinners.

We also thank General Sir Richard

and Lady Dannatt for hosting,

and Bernard Jenkin MP and his

wife Baroness Anne Jenkin for

organising the Tower of London

Dinner which raised £100k and

resulted in a beautiful Richard

Stone painting entitled ‘Soldier

Back From Helmand’ being

presented and unveiled to Second

Battalion, Parachute Regiment. It

now hangs in the headquarters of

the 16th Air Assault Brigade.

In June 2013, 138 Combat

Stress supporters attended

the Supporters Dinner held at

Goldsmith’s Hall in London which

raised nearly £35k.

A huge thank you to each one of

you and so many more we could

mention – without your dedication

we couldn’t do what we do.

Combat Stress is very grateful

to our Patron, HRH The Prince of

Wales KG, KT, GCB, OM, AK, QSO,

PC, ADC, for his support during

the year.




Ongoing Contracts

It has been important to maintain

our contractual obligations and

relationships with the NHS and

devolved governments. The last

year we forged relationships

with new NHS commissioners,

as a result of the changes within

the NHS and we engaged with

contacts in the newly formed

Clinical Commissioning Groups.

Our key statutory funders are:

NHS Funding

Combat Stress achieved

recognition from NHS England

as a provider of high quality

services for ex-Service personnel

suffering mental health disorders.

Payment to deliver the residential

PTSD Intensive Treatment

Programme in England was

funded by a National Specialised

Commissioning contract during

2013/14. Similarly, in Scotland the

NHS funded a contract to deliver

the programme.

MoD Funding

Under Article 21 of the Service

Pension Order, the MoD is

responsible for the provision

of remedial treatment to those

suffering from mental ill health

that is attributable to or has been

aggravated by their service prior

to 2005. Where this treatment is

not available in the NHS, another

qualified provider can be paid

to deliver the treatment. Many

ex-Service personnel who are

entitled to a War Pension for their

disability have not registered their

claim, but a declining number

of Veterans are eligible. We

have sought to improve access

to War Pensions for those who

are entitled to receive it and

have negotiated increases in

the amount paid to ensure that

treatment costs are fully funded.

With the improvement of NHS

treatment specifically tailored

to meet Veterans’ needs (an

outcome of the Murrison “Fighting

Fit” paper) has come a reduction

in Combat Stress income to

treat qualifying War Pensioners.

To make this income stream

more secure, Combat Stress and

the SPVA/MOD have agreed

the basis of a Memorandum of

Understanding which makes clear

what treatment can be paid for

under Article 21 of the Service

Pension Order.



4. DEVELOPING AN APPROPRIATE BRAND

AND IMAGE TO DELIVER EXCELLENCE

During 2013/14 we introduced

our new brand, with clearer

statements of our Vision, Mission

and Values. Together they place

Veterans at the heart of everything

we do. We worked with key

stakeholders - including our staff,

Veterans and supporters - to

develop our new branding and its

visual identity. Our logo expresses

expertise, heritage and pride,

making us more approachable. It

conveys hope, and the positive

approach to recovery that lies at

the heart of our vision for Veterans

to live their lives free from the

effects of psychological wounds.

The branding inspired one of our

Veterans to create artwork which

is now proudly on display on

posters throughout our buildings.

We want to make sure our brand

conveys the essence of Combat

Stress, and is memorable and

easily recognisable to Veterans,

health professionals, donors and

all our stakeholders and partners.

In particular, we are developing

our new brand culture so that

all of Combat Stress adopts

our values and becomes more

approachable, feels pride

in achievement and works

collaboratively to the benefit of

our Veterans. We want Veterans

to come to us faster and stay with

their recovery programmes until

they are again living fulfilling lives.

As part of the new branding we

have refreshed our publications.

They explain the treatments and

support we offer and increase

awareness of symptoms.

We are also working in partnership

with the NHS, Ministry of Defence,

Royal British Legion and other

Service charities to support

Veterans on their recovery

pathway. As part of this, we

have developed manuals for

our treatment programmes so

other service providers will have

detailed knowledge of the help we

offer and be better able to refer

Veterans to Combat Stress for

specialist support.

Stigma

We received funding from Comic

Relief to support our work to

reduce the stigma associated

with mental health issues that

still exists within the ex-Services

community and the general public.

We know that the situation is

slowly improving and Veterans

are contacting us sooner after

leaving Service. This indicates that

perceptions are changing. Some

of our celebrity patrons, such as

Sir Patrick Stewart, have helped

address mental health stigma by

talking about personal experiences

of family members suffering from

Service related mental health

issues. Martin Shaw presented

a clip for the BBC’s Sport Relief

event in March 2014 concerning

PTSD suffered by Veterans which

was watched by millions and

further helped to raise awareness

and de-stigmatise mental health

problems.

We have improved access to our

services by providing workshops

and training in the symptoms of

PTSD and other mental health

issues and through our updated

publications and website.

Through our new brand we have

started to create a memorable

persona that’s relevant and

recognisable to Veterans, donors,

medical professionals and anyone

who might support or need us.

There has been considerable

media coverage over the last

year so the general public is more

aware of Veterans’ mental health

issues and the work of Combat

Stress. All this has helped break

down the barriers Veterans may

feel in seeking help.




PLANS FOR THE FUTUREThe key feature of our future

plans is the integration of the

Combat Stress / NHS healthcare

pathway into a coherent plan for

each Veteran. We will work with

partners to build relevant holistic,

integrated services for Veterans.

We seek innovative approaches

to respond to our Veterans’ needs

and to measure and monitor

outcomes to demonstrate the

effectiveness of this approach to

mental healthcare providers.

1. DEVELOPING INTEGRATED COMMUNITY AND

OUTREACH, OUTPATIENT AND INPATIENT SERVICES

We plan to continue to expand

our range of available treatments

to meet the individual needs of

Veterans so that we can design

tailored care plans and support.

In addition, we plan to increase

our capacity to meet the needs

of more Veterans by increasing

the availability and breadth of our

community services.


We will continue to work with the

Royal British Legion to establish

hub clinics on the high street to

maximise understanding and

access to services. The hub and

spoke model for clinical services

will continue to evolve as the

Royal British Legion’s Pop-In

Centres become available. The

main benefits are expected to be:

Increased capacity to treat

more Veterans

Improved integration of

services through the whole

treatment pathway

A focus on occupational

therapies, providing Veterans

with life skills and vocational

training, whilst building their

resilience and improving self-

esteem.

More local assessment and

follow-up sessions for those

Veterans who need residential

treatment.

These services will be innovative

and will add value to those

services provided by the NHS

and other providers by focusing

on relapse prevention, which is

currently overlooked.

We will continue to offer welfare

services and clinical visits to

Veterans who cannot travel

to the hubs.

Substance misuse case

management service.

Following the introduction of the

pilot service in Glasgow in 2013/14,

we will roll out the service across

England and Wales and in further

regions in Scotland.

Outpatient services

We will consider further expansion

of community clinics, particularly

as new facilities are opened on

High Streets. We will monitor

the time between first referral

to Combat Stress and initial

assessment enabling us to identify

ways to shorten the time taken

for Veterans to be assessed and

subsequently receive treatment or

referral to other organisations.

Inpatient programmes

We will implement a new trans-

diagnostic programme in all

treatment centres.

Where we have piloted new

programmes in stabilisation,

anger management, substance

misuse and co-morbid PTSD, we

will deliver them in all treatment

centres in 2014/15.

We will continue to deliver

the residential PTSD Intensive

Treatment Programme and the

short stay two week treatment

programme in all treatment centres.

Helpline

We aim to continue to provide

the 24 hour a day Helpline and to

monitor the usage and outcomes.



2. IMPROVING THE EVIDENCE BASE

OF THERAPEUTIC PRACTICE

With King’s College London

we are establishing a research

programme to understand the

needs of Veterans. We will publish

our outcomes and from this

we will develop peer-reviewed

and evidence-based measures

of success.

The implementation of a new

clinical Patient Administration

System will be vital for monitoring

Veterans’ progress along their

treatment pathway and to

measure outcomes. We anticipate

that the new system will be

operative in the Summer of 2015.

However, it is only when new

programmes have been running

for some time that there will

be sufficient data for statistical

analysis of the outcomes.

3. SUSTAINING OUR

FINANCIAL BASE

Improved engagement with

funders will be a key feature of

the work we do next year. We

will continue to work with our

partners to demonstrate clinical

effectiveness and value for money.

We will explore opportunities to

work in partnership to identify

funding streams to support the

core services we provide.

We will undertake a detailed

analysis and costing of our

processes and our treatments

to see where we can do more

for less. We have undergone

considerable growth and change

over recent years and we must

now review our processes to

ensure we maximise efficiency

and effectiveness within our new

structures and practices.

We continue to invest in our

fundraising and will look for new

and innovative ways to attract

funding, from social media,

corporate sponsors and

major donors.

We will launch a new Forces

Lottery where individuals can

support Combat Stress by

purchasing a weekly lottery ticket.

We hope this initiative will also

increase awareness of Combat

Stress and create new supporters.

4. DEVELOPING AN APPROPRIATE BRAND

AND IMAGE TO DELIVER EXCELLENCE

We are developing a

communications strategy that

will embed our Vision, Mission

and Values throughout the

organisation, with an increased

focus on staff engagement,

communication and collaboration.

We will instil a culture of pride,

respect and personal recovery in

everything that we do. We will

develop a clear and appropriate

‘tone of voice’ for Combat

Stress, to make us distinctive

in our communications, and

an overarching narrative and

messages that are relevant and

meaningful to our stakeholders.

Our focus on the Veteran as

the centre of all we do, will

in turn inform our external

communications. It will allow

us to build greater profile and

awareness and engage with

those outside the organisation to

support our Mission as the ‘gold

standard’ mental health charity

for Veterans – a catalyst for better

lives and stronger families.




FINANCIAL REVIEWIn recent years, we have

substantially increased and

improved our services and

facilities. Over the last ten years

our charitable expenditure has

increased from £5.0m in 2003/04

to £13.3m in 2013/14, an increase

of 166%. This growth has only been

possible as a result of generating

surpluses each year which have

funded capital projects, expansion

of community based services and

recruitment of skilled clinicians

to give us capacity to treat more

Veterans and to plan for increased

expenditure on services in

subsequent years.

Building projects to improve and

expand our treatment centres

over the last ten years have cost

£.8.8m (cost of fixed assets at

1 April 2014 £13.3m, (2003/04:

£4.5m)). The cost of the building

improvements is depreciated over

40 years but careful planning and

use of our surpluses has provided

the necessary cash to finance

the projects.

The considerable development

in our scope and size over recent

years is reflected in the following

summary. We believe that the

number of referrals and demand

for our services will continue to

rise and therefore we must work

closely with statutory health and

social care services to ensure they

shoulder more of the burden, while

we continue to reach out to new

supporters and funders to ensure

the Society can continue to deliver

to each Veteran in need and

demonstrate best practice.

2004 2005 2006 2007 2008 2009 2010 20112012

restated2013 2014

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Incoming Resources

Voluntary income 2,465 2,771 3,257 4,189 4,752 5,522 7,113 11,318 8,942 8,335 10,584**

Activities for generating funds

208 433 384 448 860 907 971 431 578 470 696

Charitable activities 2,724 2,876 3,091 3,352 4,072 4,318 4,454 4,411 6,196 6,698 6,098

Other incoming resources

11 12 4 727 17 10 7 6 39 64 7

Total incoming resources

5,408 6,092 6,736 8,716 9,701 10,757 12,545 16,166 15,754 15,567 17,385

Cost of generating funds

(582) (621) (627) (551) (761) (778) (1,201) (1,469) (1,307) (1,667)* (2,284)*

Incoming resources 4,826 5,471 6,109 8,165 8,940 9,979 11,344 14,697 14,447 13,900 15,101

Expenditure on charitable activities

Charitable activities 4,898 5,020 5,252 5,799 6,855 8,362 9,072 10,451 10,837 12,083 13,509

Governance costs 166 127 196 206 120 216 133 143 149 183 209

5,064 5,147 5,448 6,005 6,975 8,578 9,205 10,594 10,986 12,266 13,718

Net incoming/ (outgoing) resources

(235) 324 661 2,160 1,965 1,401 2,139 4,103 3,461 1,634 1,383

(Decrease)/Increase in cost of Tangible Fixed Assets

215 31 415 1,178 910 652 1,441 329 1,146 1,072 897

* Our fundraising costs for 2012/13 and for 2013/14 include expenditure invested in campaigns and appeals where income is expected to be received in future years.

** In 2013/14 our voluntary income included a restricted grant of £2m for a substance misuse case management service which will be spent over a three year period. The balance of unspent funds on this project at 31 March was £1.9m and therefore is the reason for the net incoming resources for the year. However, this funding does not contribute to our core treatments provided to Veterans in the community or in the treatment centres.



Incoming resources

The financial statements show

total incoming resources for the

year of £17.4m (2013: £15.6m),

an increase of £1.8m (11.5%) on

the previous year. Voluntary

income has increased by 26.5%

from £8.3m in 2012/13 to

£10.5m in 2013/14. However, this

includes the one-off three year

restricted grant funding from

the Military Covenant Reference

Group of £2m to be spent on

a new substance misuse case

management service. These

funds will not cover any of the

expenditure on our core activities

in the community or in our

treatment centres.

Our income from charitable

activities has decreased by £0.6m

(8.9%) from £6.7m in 2012/13 to

£6.1m in 2013/14.

The chart above shows the relative

sources of income for 2013/14 and

2012/13.

0

1000

2000

3000

4000

5000

6000

7000

Clinicalservices

6,098

6,5286,755

6,391

1,3291,695

421598

300396170200

647–

2,000

Donations& events

Legacies Investmentincome

Statutorygrants

Othergrants

Helpline Otherincome

2013/14

2012/13

0

2000

4000

6000

8000

10000

Clinicalservices

9,148

8,265

3,154

195210469440

057

1,667

2,284

183209

Communityoutreachservices

Helpline Improvingaccess

Substancemisuse

monitoring

Activitiesfor

generatingfunds

Governance

2013/14

2012/13

3,654

Resources expended

Total resources expended for

2013/14 was £16.0m [2012/13:

£13.9m] with 84% being spent on

service delivery [2012/13: 87%].

Our expenditure on charitable

activities has increased by 11.6%

from £12.1m in 2012/13 to £13.5m

in 2013/14.

The cost of fundraising has

increased from £1.6m in 2012/13

to £2.3m in 2013/14. Much of

this increased investment was to

fund additional campaigns and

mailings, which are expected to

generate income over the longer

term. However, it is also indicative

of the challenging economic

environment which means that our

fundraising efforts and costs have

to increase in order to raise the

required levels of income.

As we have diversified and

improved our clinical treatments

we have recruited more qualified

staff. This has resulted in higher

employment costs. These have

risen to £9.9m in 2013/14 from

£8.96m in 2012/13 as shown in

note 7 on page 34. Due to the

review of the staffing within the

treatment centres new, higher

level posts were created during

2013/14.




PRINCIPAL RISKS AND UNCERTAINTIESCombat Stress aims to achieve

a culture where risk management

is everyone’s business, embedded

in the core processes, systems

and business.

The Board of Trustees has

overarching responsibility for risk.

However, the authority to develop

and oversee risk management

arrangements within Combat

Stress and how they are being

managed and mitigated has

been delegated to the Audit and

Risk Management Committee,

which meets 4 times each year.

It monitors, reviews and reports

to the Board on all processes

of governance. This committee

also reports on anything that

threatens or adversely affects the

accomplishment of Combat Stress

aims and objectives, its assets,

the reliability of its records and

information, its compliance with all

relevant laws, regulations, policies

and its governing document.

Responsibility has been further

delegated to the individual

committees of Combat Stress to

manage risk and implement such

internal or external controls as are

appropriate to their respective

spans of control. The Chairs of

each Committee make regular

reports to the Board.

The risk management system

is formalised. A Risk Register

captures the risks faced by

Combat Stress and identifies

the Committee responsible for

managing each one. It is based on

an ongoing process designed to:

identify those risks most likely

to impact on the realisation of

Combat Stress aims, objectives

and policies,

evaluate the likelihood of those

risks being encountered and the

impact should this occur and

manage and prioritise actions

to mitigate them efficiently,

effectively and economically.

As part of the risk management

process, major risks have been

reviewed and actions taken

in mitigation. Combat Stress

complies with the Charity

Commission’s list of internal

financial controls in all material

respects, though significant risks

arise in the following areas:

Service quality and delivery:

Through service governance

there is the requirement

to ensure that the service

provided is of the highest

standard, which requires an

adequate mix of skills in order

to deliver best practice;

Employee welfare: Combat

Stress has a duty to protect

its employees but there is risk

to the physical and mental

health of those staff working

with Veterans. We have

comprehensive supervision,

support and protection

procedures and policies in place

to reduce the possibility of

problems occurring;

Funding: diversification

of income streams such

that Combat Stress is less

dependent on fees received for

the treatment of war pensioners

whose disablement qualifies

them for funding by the Ministry

of Defence (Veterans Agency);

and

Demand for services: The

increasing demand for our

services is such that it might

exceed resources and the

ability to deliver those services.

The Trustees have responsibility

for ensuring that Combat Stress

has an appropriate system of

controls, financial and otherwise.

They are also responsible for

safeguarding the assets of Combat

Stress and for taking reasonable

steps for the prevention and

detection of fraud and other

irregularities, and to provide

reasonable assurance that:



Combat Stress is operating

efficiently and effectively;

its assets are safeguarded

against unauthorised use

or disposition;

proper records are maintained

and financial information used

within Combat Stress or for

publication is reliable; and

Combat Stress complies with

relevant laws and regulations.

The systems of internal control are

designed to provide reasonable,

but not absolute, assurance

against material misstatement

or loss. They include:

an annual budget approved

by the Trustees;

regular consideration by

the Trustees of financial

results, variance from

budgets and non-financial

performance indicators;

delegation of authority and

segregation of duties; and

identification and management

of risks;

development of a regular

independent internal audit cycle

to visit different areas of the

business and comment on the

policies, processes and controls

implemented by the executive.

Clinical and service related

incidents are reported to the

Director of Operations and

serious incidents to the Medical

Services Committee, the Board of

Trustees and externally through

the appropriate mechanisms.

All incidents undergo full

investigation and where required,

have follow-up actions.

EMPLOYMENT OF DISABLED PERSONSThe Society takes every

practicable step to ensure that

individuals are treated equally

and fairly and that decisions on

recruitment, selection, training,

conditions of work, promotion,

career, management and every

other aspect of employment are

based solely on objective criteria.

EMPLOYEE INVOLVEMENTThe flow of information to staff

has been maintained by our

staff newsletter. Members of the

management team regularly visit

branches and discuss matters of

current interest and concern to the

business with members of staff.




PUBLIC BENEFIT, POLICIES AND GOVERNANCEPublic benefit

Whilst evaluating the public

benefit provided by Combat

Stress, the Trustees have referred

to the Charity Commission’s

general guidance. When reviewing

our aims and objectives and in

planning future activities the

Trustees consider whether or

not there are identifiable public

benefits, what they are, how they

are related to the aims, and how

they are balanced against any

detriment or harm.

Combat Stress is totally committed

to reach out in order to access

those Veterans who need help.

To achieve this, the Society

will work with whoever is most

appropriate to ensure that the

right support and care are given

at the right time, in the right place,

by the right people. In this context,

the Society’s work demonstrates

clear and significant public benefit

through its specialist help for

Veterans. By doing this, it assists

those suffering from psychological

wounds to integrate more fully

back into society, maximising

their mental, physical and

social capabilities.

Combat Stress is increasingly

acknowledged within the medical

profession and the NHS as a

specialist in the treatment of

Veterans suffering from Service-

related mental illness.

Combat Stress also has the

respect of the Serving and

ex-Service communities. By

continuing to raise awareness

of combat-related psychological

injury within the Armed Forces

and society at large the cost to

society as a whole is reduced.

By successful campaigning

and education Combat

Stress contributes to a better

understanding of mental illness

in the country as a whole and

particularly in the Armed Forces.

By working in partnership with

the NHS, other service charities,

statutory agencies and the media

we are now seeing a growing

understanding of the needs of

those with wounded minds.

Investment policy and returns

Under the Memorandum and

Articles of Association, Combat

Stress has the power to make

any investment that the trustees

see fit. The investment policy

and performance are regularly

reviewed and the investment

policy has been confirmed during

the course of the year.

During the year Combat Stress

held its investment portfolio in

the Schroder Charity Multi-Asset

Fund. The investment objective

is to preserve the capital in real

terms over a three year period

with a total return target of the

Consumer Price Index plus 4%.

This should be achieved through a

combination of income and capital

growth and underpinned by a

3.25% income yield. The portfolio

should be sufficiently diversified

so as to reduce risk.

The market value of our equity

portfolio showed an increase to

£11.59m at 31 March 2014 [2013:

£8.07m], representing capital

growth of 43.6% [2013: 23.1%]. The

income yield of £598k represents

an average income return for

the period of 5.6% [2013: 3.1%].

Cash balances totalling £3.29m

[2013: £6.06m] were held by the

investment manager at year end.

Reserves policy

Combat Stress operates on the

basis of a long-term commitment

to registered Veterans. The

trustees believe the level of free

reserves (that is those funds not

tied up in fixed assets, designated

and restricted funds) should

be between 9 and 12 months

budgeted expenditure. This is

necessary to meet working capital

requirements essential for the

maintenance of its operations, to

even out cash flow fluctuations

and to provide a prudent financial



base from which to continue to

develop Combat Stress and its

services. In setting the reserves

policy the Trustees have also

taken account of the financial

demands which would arise

in the event of a reduction in

service or the inability to sustain

continued operations.

The general reserve at

31 March 2014 stood at £10.94m

representing 7.1 months

expenditure [2012: £12.43m, or

8.8 months]. Whilst this amount

does not reach the level of free

reserves set out in the policy, the

trustees have approved increased

investment in fundraising

expenditure over the last two

financial years to 31 March 2014

with the objective of increasing

income and achieving the target

level of free reserves.

Restricted and designated

funds are held for specific

purposes, as detailed in note 19

to these accounts.

The actuarial valuation of the Ex-

Services Mental Welfare Society

1974 Pension & Life Assurance

Scheme 31 March 2014, as required

by FRS17, showed a funding

surplus of £0.138m [2013: deficit of

£0.15m]. This surplus has not been

recognised and the value of the

net asset of the pension scheme

in the accounts is shown as £nil.

The date of the last triennial

actuarial valuation was 1 October

2011. As a result of this valuation,

employer contributions were set

at 30.3% of pensionable salaries

with employee contributions

being made at 5%. Combat Stress

approved a Pension Recovery Plan

to address the deficit over 8 years,

through the payment of £0.2m

per year. Following a consultation

with active members the Scheme

was closed to future accrual on

31 March 2013. Details of the

Scheme are disclosed in Note 17

of the accounts.

Governance

The Ex-Services Mental Welfare

Society is a charitable company

limited by guarantee. It was

incorporated on 11 May 1931 and

is governed by Memorandum and

Articles of Association which were

revised on 14 November 1991 and

then amended by resolution on 21

September 2006, 20 September

2007 and 17 July 2008.

This governing document states

that the objects of the charity

are “to provide, establish and

maintain recuperative homes,

hospitals, sanatoria, schools of

training, clubs, workshops and

other centres, for all ranks of all

branches of HM Forces, including




the Merchant Navy, suffering from

war psychoses and neuroses.” The

charity operates throughout the

United Kingdom.

The Board of Trustees is

responsible for selecting and

recommending suitable trustees

for election to office at the annual

general meeting. A maximum

of fifteen trustees are elected,

each of whom serve for an initial

period of three years. One third

of the trustees shall retire from

office at each Annual General

Meeting. The retiring trustees are

those who have been longest

in office since the last election,

but do not include ex-officio

members of the Board of Trustees.

A retiring trustee is eligible for

re-election and may serve a

maximum of two consecutive

terms of three years unless there

is an extenuating reason for

their retention approved by the

Company in General Meeting, or

they are elected to the position

of Chairman, Vice Chairman or

Honorary Treasurer. The Board of

Trustees is empowered to appoint

a Trustee to fill a casual vacancy

until the next Annual General

Meeting. There is no age limit

imposed on trustees. The trustees

are the Directors of Combat Stress

for the purposes of company law.

New trustees are inducted

through a process of briefings

by the Chairman and executive

management. They are provided

with information relating to

Combat Stress’s governance and

operation. The induction process

includes a visit to the treatment

centre at Tyrwhitt House and

the Head Office, and a trustee

might also accompany a Regional

Welfare Officer visiting Veterans in

the community. Ongoing training

and visits to treatment centres are

encouraged.

The Board of Trustees meets four

times a year and has appointed

committees with responsibility for

finance, fundraising, audit and risk

management, medical services,

remuneration and nominations. A

further committee is responsible

for stewardship of the closed

defined benefit pension scheme.

The Board delegates day to

day control of activities to the

Chief Executive and a team of

operational directors.

During 2013/14 the Board of

Trustees carried out a self-

assessment exercise which

included a skills audit and a review

of effectiveness of the Board. The

exercise showed that trustees

bring a high level of skills to the

Board but also provided insight

into additional skills which could

be sought when recruiting new

trustees in future.

Combat Stress (Ex-Services Mental Welfare Society) – Auditor’s Report


STATEMENT OF TRUSTEES’ RESPONSIBILITIESThe Trustees (who are also

directors of Combat Stress for

the purposes of company law)

are responsible for preparing

the Trustees’ Report and the

financial statements in accordance

with applicable law and United

Kingdom Accounting Standards

(United Kingdom Generally

Accepted Accounting Practice.)

Company law requires the

Trustees to prepare financial

statements for each financial year

which give a true and fair view of

the state of the affairs of Combat

Stress and of the incoming

resources and application of

resources, including the income

and expenditure of Combat Stress

for that period. In preparing these

financial statements, the Trustees

are required to:

select suitable accounting

policies and then apply them

consistently;

observe the methods and

principles in the Statement

of Recommended Practice

(SORP), “Accounting and

Reporting by Charities”

(Revised 2005);

make judgements and

estimates that are reasonable

and prudent;

state whether applicable UK

Accounting Standards have

been followed, subject to any

material departures disclosed

and explained in the financial

statements; and

prepare the financial statements

on the going concern basis

unless it is inappropriate to

presume that the charitable

company will continue in

business.

The Trustees are responsible

for keeping proper accounting

records that disclose with

reasonable accuracy at any time

the financial position of Combat

Stress and enable them to ensure

that the financial statements

comply with the Companies

Act 2006, the Charities and

Trustee Investment (Scotland)

Act 2005 and the Charities

Accounts (Scotland) Regulations

2006. They are also responsible

for safeguarding the assets of

Combat Stress and hence for

taking reasonable steps for the

prevention and detection of fraud

and other irregularities. In so far as

the Trustees are aware:

there is no relevant audit

information of which the

charitable company’s auditor is

unaware; and

the Trustees have taken all

steps that they ought to have

taken to make themselves

aware of any relevant audit

information and to establish

that the auditor is aware of that

information.

The Board of Trustees approved

this Trustees report and Strategic

Report on 26 August 2014.

R Ward

Honorary Treasurer




INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF EX-SERVICES MENTAL WELFARE SOCIETYWe have audited the financial

statements of the Ex-Services

Mental Welfare Society for

the year ended 31 March 2014

which comprise the Statement

of Financial Activities (including

Income and Expenditure Account),

the Balance Sheet, the 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).

This report is made solely to the

charity’s trustees and members,

as a body, in accordance with

Chapter 3 of Part 16 of the

Companies Act 2006 and the

Charities and Trustee Investment

(Scotland) Act 2005. Our audit

work has been undertaken so

that we might state to the

charity’s trustees and members

those matters we are required

to state to them in an auditor’s

report and for no other purpose.

To the fullest extent permitted

by law, we do not accept or

assume responsibility to anyone

other than the charity and the

charity’s trustees and members

as a body, for our audit work,

for this report, or for the opinions

we have formed.



Respective responsibilities

of trustees and auditor

As explained more fully in

the Statement of Trustees’

Responsibilities, the trustees

(who are also the directors of

the charitable company for the

purposes of company law) are

responsible for the preparation of

the financial statements and for

being satisfied that they give a

true and fair view.

We have been appointed as auditor

under section 44(1)(c) of the

Charities and Trustee Investment

(Scotland) Act 2005 and under the

Companies Act 2006 and report in

accordance with regulations made

under those Acts.

Our 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 Financial

Reporting Council’s (FRC’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 FRC’s website at

www.frc.org.uk/auditscopeukprivate

Opinion on financial statements

In our opinion the financial

statements:

give a true and fair view of

the state of the charity’s

affairs as at 31 March 2014

and of its incoming resources

and application of resources,

including its income and

expenditure, for the year then

ended;

have been properly prepared

in accordance with United

Kingdom Generally Accepted

Accounting Practice; and

have been prepared in

accordance with the

requirements of the Companies

Act 2006, the Charities and

Trustee Investment (Scotland)

Act 2005 and regulation 8

of the Charities Accounts

(Scotland) Regulations 2006

(as amended).

Opinion on other matters

prescribed by the

Companies Act 2006

In our opinion the information

given in the report of the trustees,

which includes the strategic report

for the financial year for which the

financial statements are prepared,

is consistent with the financial

statements.

Matters on which we are

required to report by exception

We have nothing to report in

respect of the following matters

where the Companies Act 2006

and the Charities Accounts

(Scotland) Regulations 2006 (as

amended) requires us to report to

you if, in our opinion:

the charitable company has

not kept proper and adequate

accounting records or returns

adequate for our audit have not

been received from branches

not visited by us; or

the financial statements are

not in agreement with the

accounting records and

returns; or

certain disclosures of trustees’

remuneration specified by law

are not made; or

we have not received all the

information and explanations

we require for our audit.

Donald Bawtree

Senior Statutory Auditor

for and on behalf of

BDO LLP, Statutory Auditor, Gatwick, West Sussex, United Kingdom

Date 26 August 2014.

BDO LLP is a limited liability partnership registered in England and Wales (with registered

number OC305127)


Combat Stress (Ex-Services Mental Welfare Society) – Financial Statements


STATEMENT OF FINANCIAL ACTIVITIES(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2014



Unrestricted Funds

Restricted Funds

Totals 2014

Totals 2013

Notes £’000 £’000 £’000 £’000

Incoming resources

Incoming resources from generated funds

Voluntary income 2 5,711 4,873 10,584 8,335

Activities for generating funds 98 - 98 49

Investment income 598 - 598 421

Incoming Resources from charitable activities

3 6,098 - 6,098 6,098

Other incoming resources 7 - 7 64

Total incoming resources 12,512 4,873 17,385 15,567

Resources expended

Costs of generating funds

Cost of generating voluntary income 2,216 - 2,216 1,614

Investment management fees 68 - 68 53

2,284 - 2,284 1,667

Charitable activities

Clinical services 8,237 911 9,148 8,265

Community and Outreach Services 2,185 1,469 3,654 3,154

Helpline 10 200 210 195

Raising awareness and improving access 341 99 440 469

Substance misuse case management service - 57 57 -

10,773 2,736 13,509 12,083

Governance costs 209 - 209 183

Total Resources Expended 4 13,266 2,736 16,002 13,933

Net incoming / (outgoing) resources before transfers

(754) 2,137 1,383 1,634

Transfers between funds 19 (2,312) 2,312 - -

Net incoming resources / (resources expended) before other recognised gains and losses

(3,066) 4,449 1,383 1,634

Increase/(decrease) in value of investments 241 - 241 564

Actuarial surplus/(loss) on defined benefit pension scheme

16 (30) (30) 78

Net movement in funds (2,855) 4,449 1,594 2,276

Fund balances brought forward at 1 April 24,496 257 24,753 22,477

Fund balances carried forward at 31 March 19 21,641 4,706 26,347 24,753

The notes on pages 29 to 42 form part of these financial statements. All activities relate to continuing operations.

There are no gains and losses for either the current or prior years other than those recognised above. All items in the Statement of Financial Activities would appear in the Income and Expenditure Account with the exception of the realised and unrealised gain/(loss) on investments.

There is no difference between the net incoming resources before other recognised gains and losses and their historical cost equivalents.




The notes on pages 29 to 42 form part of these financial statements.

The accounts were approved and authorised for issue by the Board of Trustees on 26 August 2014 and signed on its behalf by:

AJN Graham

Chairman

R Ward

Honorary Treasurer

BALANCE SHEET AT 31 MARCH 2014

2014 2013

Notes £’000 £’000

Fixed assets

Tangible fixed assets 8 9,747 9,028

Fixed asset investments 9 14,879 14,137

24,626 23,165

Current assets

Investments 9 - -

Debtors 10 2,094 759

Cash at bank and in hand 1,321 1,950

3,415 2,709

Creditors: amounts falling due within one year 11 (1,694) (974)

Net current assets excluding Pension Asset 1,721 1,735

Defined Benefit Pension Scheme Liability 16 - (147)

Net assets 18 26,347 24,753

Funds

Unrestricted funds

General fund 10,738 12,427

Investment revaluation reserve 1,106 288

Defined benefit pension scheme deficit - (147)

Designated funds 9,797 11,928

21,641 24,496

Restricted funds 4,706 257

Total Funds 19 26,347 24,753



CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2014

2014 2013

£’000 £’000 £’000 £’000

Net incoming resources before transfers 1,383 1,634

Adjustment of net surplus / (deficit) to net cash outflow from operating activities

Depreciation 401 370

(Increase)/Decrease in debtors (1,335) 26

Increase/(Decrease) in creditors 720 (114)

Pensions scheme costs under FRS 17 (177) (492)

(391) (210)

Net cash inflow / (outflow) from operating activities 992 1,424

Capital expenditure and financial investment

Payments to acquire tangible fixed assets (1,121) (1,091)

Purchase of investments (3,284) (952)

Receipts from sales of investments 10 -

(4,395) (2,043)

Increase / (decrease) in cash (3,403) (619)

At 1 April 2013 Cash flowsAt 31 March

2014

Changes in net funds during the year £000 £000 £000

Cash at bank, in hand and short term deposits 1,950 (629) 1,321

Cash held by investment manager 6,062 (2,774) 3,288

8,012 (3,403) 4,609




NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 20141 ACCOUNTING POLICIES

a Basis of preparation

The financial statements have

been prepared under the historical

cost convention, with the

exception of investments which

are included at market value.

The financial statements have

been prepared in accordance

with the Statement of

Recommended Practice (SORP),

“Accounting and Reporting by

Charities” (Revised 2005) and

applicable accounting standards.

The charity has presented

its accounts as an individual

undertaking, not as a group. The

subsidiary has not been included

as the results are immaterial to

the charity accounts (see note 16).

b Company status

The Ex-Services Mental Welfare

Society, also known as Combat

Stress, is a company limited by

guarantee. The directors of the

company are the members of

the Board of Trustees named

on page 44.

In the event of Combat Stress

being wound up, the liability in

respect of the guarantee is limited

to £1 per member.

c Fund accounting

General funds are unrestricted

funds which are available for use

at the discretion of the trustees

in furtherance of the general

objects of Combat Stress and

which have not been designated

for other purposes.

Designated funds comprise

unrestricted funds that have been

set aside by the Board of Trustees

for particular purposes. The aim

and use of each designated fund

is set out in the notes to the

financial statements.

Restricted funds are funds which

are to be used in accordance with

specific restrictions imposed by

donors or which have been raised

for particular purposes. The cost

of raising and administering such

funds are charged against the

specific fund. The aim and use

of each restricted fund is

set out in the notes to the

financial statements.

d Incoming resources

All incoming resources are

included in the SOFA when

Combat Stress is legally entitled

to the income, and the amount

can be quantified with reasonable

accuracy. The following specific

policies apply to categories

of income:

Legacies

Entitlement is the earlier of

Combat Stress being notified of

an impending distribution or the

legacy being received. No value

is included where the legacy is

subject to a life interest held by

another party.

Donated services and facilities

These are included at the value

to Combat Stress where this

can be quantified. No amounts

are included in the financial

statements for services donated

by volunteers.

Conduit funds

Combat Stress acts as agent for

other organisations and receives

funds on their behalf in respect of

registered Veterans. These funds

are not recognised as income

and are excluded from the

Statement of Financial Activities

and Balance Sheet.

Grants received which are

to be utilised over more than

one year

In accordance with the Charities

Statement of Recommended

Practice, Combat Stress has

recognised the £2m grant funding

for the substance misuse case

management service in the year

of receipt as a restricted grant.

The resources have been received

in advance of the expenditure on

the activity funded by the grant

but the charity has entitlement

to the resource with the timing

of the expenditure being within

the discretion of the charity.

Therefore, the incoming resources

cannot be deferred but the

unspent monies are carried

forward as a restricted fund

balance to be expended in

future years.

e Resources expended

All expenditure is accounted for

on an accruals basis and has been

classified under headings that

aggregate all costs related to the

category. Where costs cannot be

directly attributed to particular

headings they have been allocated

to activities on a basis consistent

with use of the resources.



Expenditure is allocated as follows:

i Cost of generating funds

Fundraising costs are

those incurred in seeking

voluntary contributions and

do not include the costs of

disseminating information

in support of the charitable

activities.

ii Clinical Services

This represents all direct

expenditure incurred in

the running of Treatment

Centres, including related

payroll, office and other

costs. A proportion of

central support costs is

allocated on the basis set

out in note 5.

iii Community and Outreach

Services

Costs represent the direct

expenditure on Community

and Outreach Services and

a proportion of central

support costs allocated on

the basis set out in note 5.

iv Helpline

This represents the direct

cost of providing the 24/7

Helpline and a proportion

of central support costs

allocated on the basis set

out in note 5.

v Raising awareness and

improving access


costs of publicising and

promoting our services

directly to Veterans, their

families and medical health

professionals. It includes




vi Substance misuse case

management service


cost of providing the

substance misuse case

management service and




vii Governance costs

These costs are associated

with the governance

arrangements that relate to

the central administration

and statutory compliance of

Combat Stress as a charity

and a limited company.

Included within this category

are costs associated with

strategic management, costs

of committees and Board

meetings, and Audit fees.

It does not include the cost

of day to day operational

activities.

f Tangible fixed assets

Tangible fixed assets are stated

at cost less depreciation and

provision for impairment. Only

items over £1,000 are capitalised.

Repairs are written off as incurred.

Depreciation is provided from the

date assets are brought into use,

to write down cost to estimated

residual value over the estimated

useful life by equal annual

instalments, as follows:

Freehold property – 40 years

Furniture and equipment – 5 years

Computer equipment – 3 years

g Investments

Investments are stated at market

value. Valuations are kept up to

date such that when investments

are sold there is no gain or loss

arising. As a result the statement

of financial activities only includes

those unrealised gains and losses

arising from the revaluation of the

investment portfolio throughout

the year.

h Pension costs

Pension costs and the pension

provision for the defined benefit

scheme are calculated on the

basis of actuarial advice and

are charged to the statement

of financial activities on a basis

to spread the costs over the

employees’ working lives. Pension

costs for the defined contribution

scheme are charged to the

accounts on an accruals basis

in accordance with FRS 17. A

pensions reserve has been created

within unrestricted funds in

compliance with paragraph 335 of

the SORP. Details of the pension

schemes are disclosed in Note 16

to the accounts.

i Leases

Rentals applicable to operating

leases are charged to the

Statement of Financial Activities

over the period in which the cost

is incurred.




2 VOLUNTARY INCOME

Unrestricted Restricted Totals 2014

Totals 2013

£’000 £’000 £’000 £’000

Donations 4,166 2,127 6,293 6,706

Statutory Grants - 396 396 300

Legacies 1,545 150 1,695 1,329

Other grants – Armed Forces Covenant - 2,200 2,200 -

5,711 4,873 10,584 8,335

3 INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestricted Restricted Totals 2014

Totals 2013

£’000 £’000 £’000 £’000

Clinical services

Ministry of Defence - Veterans Agency Fees

1,367 - 1,367 1,766

Contract funding 4,610 - 4,610 4,678

Other income 121 - 121 84

6,098 - 6,098 6,528

Helpline - - - 170

6,098 - 6,098 6,698

4 TOTAL RESOURCES EXPENDED

Activities undertaken directly

Allocated Support Costs

Total 2014

Total 2013

restated

£’000 £’000 £’000 £’000

Cost of generating funds 2,095 189 2,284 1,667

Charitable activities

Clinical services 7,906 1,242 9,148 8,265

Community and Outreach Services 3,210 444 3,654 3,154

Helpline 201 9 210 195

Awareness raising and improving access

403 37 440 469

Substance misuse case management service

53 4 57 -

11,773 1,736 13,509 12,083

Governance 200 9 209 183

14,068 1,934 16,002 13,933

Resources expended included:

2014 £’000

2013 £’000

Audit fee – charity 19 11

Audit fee – pension scheme 4 1

Other accountancy and VAT services 11 -

Operating leases 303 321

Depreciation 401 370



5 SUPPORT COSTS

Finance Management Human Resources

Information Technology

2014 Total

£’000 £’000 £’000 £’000 £’000

Activities for generating funds 90 7 42 50 189

Clinical Services 350 63 364 465 1,242

Community and Outreach 133 23 132 156 444

Helpline 9 - - - 9

Awareness raising and improving access 18 1 8 10 37

Substance misuse case management service 2 - 1 1 4

Governance 9 - - - 9

611 94 547 682 1,934

Finance Management Human Resources

Information Technology

2013 Total

£’000 £’000 £’000 £’000 £’000

Activities for generating funds 52 18 19 41 130

Clinical Services 240 133 147 373 893

Community and Outreach 98 52 57 124 331

Helpline 6 - - - 6

Awareness raising and improving access 13 2 3 5 23

Governance 6 - - - 6

415 205 226 543 1,389

Basis of allocation

The support costs expenditure is allocated on the following bases:

Finance costs On the basis of the value of direct costs incurred by each activity

Human resource costs On the basis of Full time equivalent numbers of employees directly employed in each activity

Information Technology On the basis of the number of employees directly employed in each activity

Management costs On the basis of the Full-time equivalent number of employees directly employed in each activity.

6 TRUSTEE EXPENSES

Out of pocket expenses were reimbursed as follows.

Number 2014 £’000

Number 2013 £’000

Travel & Sundry Expenses 11 7 11 5

No members of the Board of Trustees received any remuneration or emoluments in respect of their services as a member of the Board of Trustees during the year (2013: £Nil) nor had any beneficial interest in any contract with Combat Stress during the year.




7 STAFF COSTS

2014 £’000

2013 £’000

Wages and salaries 8,214 7,649

Social security costs 843 753

Pension costs 382 816

FRS 17 (280) (492)

Other costs 741 231

9,900 8,959

The Remuneration Committee determines the salaries and benefits of the Executive Management Team.

Emoluments for employees above £60,000

2014 Number

2013 Number

Between £60,001 - £70,000 2 2

Between £70,001 - £80,000 1 1

Between £90,001 - £100,000 3 2

Between £100,001 - £110,000 1 -

Between £150,001 - £160,000 - 1

Between £160,001 - £170,000 1 -

8 6

Pension contributions for employees above £60,000

2014 2013

Number £’000 Number £’000

Defined contribution schemes 8 47 1 16

Defined benefit schemes - - - -

The number of employees including bank and casual staff, analysed by function was:

2014 2013

Number FTE* Number FTE*

Clinical services 192 173 190 152

Community and Outreach 64 63 63 59

Substance misuse service 1 1 - -

Fundraising and communications 25 23 24 23

Management and administration 20 19 19 17

302 279 296 251

* FTE = Full Time Equivalent



9 INVESTMENTS

Fixed asset investments

2014 2013

£’000 £’000

Investments at start of the period 14,137 13,134

Less cash held by investment manager (6,062) (6,575)

Market value at start of the period 8,075 6,559

Additions at cost 3,284 952

Disposal proceeds (10) -

11,349 7,511

Net investment gain / (loss) 241 564

Market value at end of period 11,590 8,075

Cash held by investment manager 3,289 6,062

14,879 14,137

Analysis of investments held at end of the period Schroders Charity Multi Asset Fund 11,590 8,075

Historical cost of listed investments at end of period

10,484 7,211

Unrealised gains / (losses) 1,106 864

The cash held by the investment manager is held for cash management purposes.

8 TANGIBLE FIXED ASSETS

Assets in the course of

construction

Freehold property

Long term IT projects in

progress

Furniture and Equipment

Total

£’000 £’000 £’000 £’000 £’000

Asset Cost

At 1 April 2013 367 10,759 - 857 11,983

Additions 812 11 112 185 1,120

Disposals - - - (224) (224)

Transfers (1,177) 1,177 - - -

At 31 March 2014 2 11,947 112 818 12,879

Accumulated Depreciation

At 1 April 2013 - 2,388 - 567 2,955

Charge for period - 269 - 132 401

Disposals - - - (224) (224)

At 31 March 2014 - 2,657 - 475 3,132

Net book values

At 1 April 2013 367 8,371 - 290 9,028

At 31 March 2014 2 9,290 113 343 9,747

In 2011/12 restricted funding of £3.5m was received from Help for Heroes for an extension and refurbishment of Tyrwhitt House. A condition was attached to this funding such that if Combat Stress disposes of Tyrwhitt House or ceases to make use of it in accordance with its charitable objects then for a period of ten years from 31 March 2011 funding shall be repayable on reducing terms calculated as a proportion of the period yet to expire. The unexpired portion of this restricted funding at 31 March 2014 and the value of Freehold Property above represented by a restricted fund is £2.45m.




10 DEBTORS

2014 2013

£’000 £’000

Fees 1,086 192

Accrued income 539 149

Income tax recoverable 74 126

Other debtors 141 208

Prepayments 254 84

2,094 759

11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2014 2013

£’000 £’000

Trade creditors 548 406

Other taxes & national insurance 196 209

Accruals & Deferred Income 592 155

Pension fund 46 87

Sundry Creditors 312 117

1,694 974

12 CAPITAL AND FINANCIAL COMMITMENTS

2014 2013 restated

£’000 £’000

Annual commitments under non-cancellable leases expiring:

In less than one year 43 69

In two to five years 32 153

In later years 0 12

13 CONTINGENT LIABILITIES

In 2011/12 restricted funding of £3.5m was received from Help for

Heroes for refurbishment and to extend the facilities at Tyrwhitt House

as follows:

the refurbishment and extension to the Welfare Block

the extension to the Activities Centre

the extension of Tyrwhitt House – the “Living Zone”

the reorganisation of the ground floor of Tyrwhitt House including

the construction of a new main entrance

other associated work including profession fees and expenses for

design and project management, infrastructure, external works,

furnishings and equipment

If Combat Stress disposes of Tyrwhitt House or ceases to make use

of it in accordance with its charitable objects then for a period of ten

years from 31 March 2011 funding shall be repayable on reducing terms

calculated as a proportion of the period yet to expire. The remaining

value of the restricted fund at 31 March 2014 is £2.45m.



14 TAXATION

As a registered charity the Ex-Services Mental Welfare Society is

exempt from taxation of income and gains falling within Section 505

Income and Corporation Taxes Act 1988 or Section 256 Taxation of

Chargeable Gains Act 1992 to the extent that these are applied to its

charitable objectives. No tax charge has arisen in the year.

15 TRADING SUBSIDIARY

The charity has one wholly owned trading subsidiary, Combat Stress

Trading Limited, which is registered in England and Wales (Company

registration number 07839816). The company was incorporated on 9

November 2011 and started to trade on 1 April 2013.The following is a

summary of the assets and liabilities at 31 March 2014.

2014 2013 Restated

£ £

Net assets at 31 March

Current assets 57,704 79,121

Current liabilities (57,703) (79,120)

Share Capital 1 1

Combat Stress Trading Limited’s issued share capital comprises two £1

ordinary shares, which are held by the charity.

The main source of income for the company has been the sale of

merchandise and promotional material bearing the Combat Stress logo,

such as the sale of Christmas cards, clothing and badges. An agreement

is in place between Combat Stress and the trading subsidiary such that

the profits are gifted annually to Combat Stress.

2014 2013 Restated

£ £

Turnover 57,479 154,437

Cost of Sales (34,051) (103,229)

Gross profit 23,428 51,208

Administrative costs (8,986) (7,040)

Profit for the year 14,442 44,168

Gift aid donation to Combat Stress (14,442) (44,168)

Retained profit for the year - -




16 PENSION COSTS

2014 2013

£’000 £’000

Defined benefit scheme 170 723

Defined contribution scheme 212 93

382 816

Defined contribution scheme

The defined contribution scheme is a Group Personal Pension Scheme provided by Scottish Life. Employee

contributions into the scheme are matched by Combat Stress up to a maximum of 10% of basic salary.

Ex-Services Mental Welfare Society 1974 Pension & Life Assurance Scheme

The Ex-Services Mental Welfare Society 1974 Pension & Life Assurance Scheme is a defined benefit scheme

which was closed to new entrants on 31 August 2000 and closed to future accrual on 31 March 2013.

Over time, under the projected unit method, the current service cost will increase as the members of

the scheme approach retirement. The assets of the Scheme are held separately from Combat Stress in a

Trustee-administered fund. The Trustees administer the fund in accordance with the Trust Deed and Rules

of the Scheme, and in the best interest of the Scheme.

Contributions to the Scheme are determined by a qualified actuary on the bases of triennial valuations using

the projected unit method. The last valuation of the Scheme was at 30 September 2011, which showed that

the actuarial value of the Scheme’s assets represented 84% of the benefits that had accrued to members,

after allowing for future increases in earnings. The market value of the scheme assets at the valuation date

was £10,594,506 (Of which £5,220,000 related to the value of secured annuities).

The trustees agreed that during the period contributions would be paid at the overall rate of 35.3% of

pensionable salaries, inclusive of employee’s contributions of 5% of pensionable salary. A new Pension

Recovery Plan commenced from October 2013 with the employer contributing £200,000 per annum

for a period of 8 years.

FRS 17 Disclosures

In accordance with the requirements of Financial Reporting Standard 17 the full actuarial valuation dated

30 September 2011 has been updated at 31 March 2014 by a qualified actuary using membership data at

30 September 2011, updated for materially significant changes that occurred up to 31 March 2014.

Combat Stress has selected assumptions based on actuarial advice.

Investments have been valued, for this purpose, at market value. The major assumptions used for the

actuarial valuation were:

2014 2013

Liability discount rate 4.30% 4.10%

Price Inflation 3.50% 2.80%

Pensionable salary increases 3.50% 2.80%

Revaluation of deferred benefits 3.50% 2.80%

Expected return on assets at end of year 5.30% 4.65%

Increases to pension in payment at 5% or RPI if less, subject to a minimum of 3% pa

Pre 97 Pensions 3.00% 3.00%

Post 97 Pensions 3.75% 3.30%

Proportion of employees opting for early retirement 0.00% 0.00%

Proportion of employees commuting pension for cash 20.00% 0.00%



16 PENSION COSTS (CONTINUED)

Mortality 2014 2013

Current Pensioners (born 1949) Male 88.7 years 88.6 years

Female 91.3 years 91.1 years

Future Pensioners (born 1969) Male 91.8 years 91.6 years

Female 94.3 years 94.1 years

The amounts recognised in the Balance Sheet are as follows:

2014 2013

£’000 £’000

Present value of scheme liabilities (12,316) (12,220)

Fair value of scheme assets 12,454 12,073

Net asset/(liability) 138 (147)

Pension asset not recognised (138) -

Net asset/(liability) - (147)

Analysis of the amount charged to the Statement of Financial Activities under FRS17

2014 2013

£’000 £’000

Current service cost - 253

Expected return on pension scheme assets

(526) (519)

Interest on pension scheme liabilities 491 509

Total (35) 243

Analysis of changes in the present value of the defined benefit obligations and fair value of assets

Present value of defined benefit obligation

Value of Scheme Assets Net (Asset) / Liability Recognised in the Balance

Sheet

2014 2013 2014 2013 2014 2013

£’000 £’000 £’000 £’000 £’000 £’000

Scheme liabilities at the start of the year

12,220 11,077 12,073 10,360 147 717

Current service cost - 253 - - - 253

Interest cost 491 509 - - 491 509

Expected return on scheme assets - - 388 519 (388) (519)

Employer contributions - - 280 735 (280) (735)

Members contributions - 43 - 43 - -

Benefits received / paid (508) (314) (508) (314) - -

Actuarial (gain) / loss 113 652 83 730 30 (78)

Scheme liabilities at the end of the year

12,316 12,220 12,316 12,073 - 147




2014 2013

% of Scheme Assets % of Scheme

Assets

£’000 % of Scheme

Assets

£’000

Experience adjustments on scheme liabilities

(1.0)% (113) (5.3)% (652)

Experience adjustments on scheme assets

1.0% 83 6.0% 730

Actuarial (gain) / loss recognised in STRGL

0.0% (30) (10.9)% 78

Scheme Assets

The assets of the scheme are invested in a Cash Accumulation Policy issued by Prudential. The market

value of the assets has been taken as the amount available if the scheme had surrendered its policies with

Prudential in accordance with the terms available on surrender. In addition the scheme holds an asset

in respect of annuities in payment that have been fully secured with an insurance policy. The value of

assets in respect of these policies is taken as equal to the value of the liabilities.

2014 2013

£’000 £’000

Estimated surrender value of Prudential Cash Accumulation Policy

5,399 6,003

Value of annuities secured in respect of pensions in payment

7,055 6,070

12,454 12,073

17 RELATED PARTY TRANSACTIONS

A payment of £355 was made during the year to Mr A.N. Cameron, the son of the Chief Executive through

the subsidiary trading company for the design of a Christmas card.

A payment of £7,500 was made during the year for a subscription to The Confederation of Service Charities,

Cobseo, of which Commodore Andrew Cameron is on the Executive Committee of that organisation by

virtue of his Chief Executive position at Combat Stress.

Advantage has been taken of exemption under FRS8 (Related Party Disclosures) not to disclose

balances with or transactions between Combat Stress and Combat Stress Trading Limited which is a 100%

owned subsidiary.

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2014 are represented by:

Restricted Funds

Designated Funds

Investment Revaluation reserve

General Funds Total

£’000 £’000 £’000 £’000 £’000

Tangible Fixed Assets

2,450 7,297 - - 9,747

Investments 1,500 1,000 1,106 11,273 14,879

Current assets 756 1,500 - 1,159 3,415

Current liabilities - - - (1,694) (1,694)

4,706 9,797 1,106 10,738 26,347



19 STATEMENT OF FUNDS

At 1 April 2013

Income Expenditure Gains / (Losses)

Transfers At 31 March 2014

£’000 £’000 £’000 £’000 £’000 £’000

General reserves 12,427 12,512 (13,266) 211 (1,146) 10,738

Investment revaluation reserve 288 - - - 818 1,106

Defined benefit pension scheme asset / (liability)

(147) - - - 147 -

Designated funds

Fixed asset fund 9,028 - - - (1,731) 7,297

Audley Court project 1,400 - - - (1,000) 400

Hollybush House project - - - - 500 500

Tyrwhitt House project 250 - - - 100 350

IT development fund 500 - - - - 500

Property maintenance fund 750 - - - - 750

Total unrestricted funds 24,496 12,512 (13,266) 211 (2,312) 21,641

Restricted funds

Treatment Centres:

Audley Court 3 9 (12) - - -

Hollybush House 81 236 (317) - - -

Tyrwhitt House 52 429 (481) - - -

Community and Outreach - 1,407 (1,274) - - 133

Helpline - 200 (200) - - -

Reservists - 250 (197) - - 53

Improving access 26 88 (99) - - 15

Clinical services 95 8 (99) - - 4

Substance misuse case management service - 2,093 (57) - - 2,036

Property – Audley Court - 132 - - (132) -

Property – Hollybush House - 21 - - (6) 15

Property – Tyrwhitt House - - - - 2,450 2,450

Total restricted funds 257 4,873 (2,736) - 2,312 4,706

Total funds 24,753 17,385 (16,002) 211 - 26,347

General (Free) Reserves: these are funds which are available for general use and are not designated or

restricted to particular purposes.

Investment Revaluation Reserve: this represents the excess of the market value of investments over their

historical cost at the balance sheet date.

Defined Benefits Pension Scheme liability: this represents the actuarial deficit calculated under the

requirements of FRS 17 at 31 March 2014 the valuation of the pension scheme using FRS 17 principles

showed a surplus of £138k. This surplus has not been recognised as it is considered that this surplus will

not be realised. The provision for the scheme liability has been included at £nil as at 31 March 2014 (2013:

deficit of £147k).




19 STATEMENT OF FUNDS (CONTINUED)

Designated Funds:

Fixed Asset Fund: this

represents the net book value

of fixed assets, less amounts

represented by restricted

funds, and reflects the fact

that the reserve value is tied

up in property and assets and

therefore the funds cannot be

spent on operational activity.

Audley Court, Tyrwhitt House

and Hollybush House Project

Funds: these are designated

funds which have been set

aside for planned capital work.

IT Development Fund enables

Combat Stress to undertake

planned development of

the Information Technology

infrastructure and database

software.

The Property Maintenance Fund

is to ensure that sufficient funds

are set aside for any unforeseen

major property issues.

Restricted funds

Treatment centres: These funds

have been received for use

within the specific treatment

centres.

Community and Outreach:

These funds represent

donations or grants which have

been received for regional


Services.

Helpline: This represents grant

funding for running the Helpline.

Reservists: This funding is from

the Duke of Westminster’s

Foundation and funds our work

with those who have served

in the Territorial Army or

Reservists.

Improving access: This funding

has been provided by Comic

Relief to address stigma

issues and to work to improve

knowledge of the mental health

problems encountered by

Veterans so that ex-Service

personnel are informed about

our Services and can access

them more easily.

Clinical services: this represents

two donations, one from BAE

Systems which goes towards

the costs of The Head of

Psychological Therapies, and

the other from the Cabinet

Office Young Philanthropist

Syndicate which is to fund

EMDR (Eye Movement and

Desensitisation Reprocessing)

Therapy.


management service: This

funding has been provided by

the Ministry of Defence Armed

Forces Covenant Team from

the fund set up from collection

of penalties incurred by banks

for LIBOR fixing. The funding of

£2m is to run a UK wide multi-

year project providing a case

management service for those

Veterans with substance misuse

disorders who may also have

underlying mental health issues.


management service: The

Big Lottery have committed

funding of £600K to provide

substance misuse case

management services in

Scotland over 3 years. £93K of

this was received in 2012-13.

Property – Audley Court: This

fund comes from a number

of funders and is to be used

on building improvements at

Audley Court.

Property – Hollybush House:

This fund comes from a number

of funders and is to be used

on building improvements at

Hollybush House.

Property – Tyrwhitt House:

This restricted funding was

from Help for Heroes in 2010/11

for £3.5m to fund major

refurbishment and extension

work. The restriction is released

over 10 years on a straight

line basis provided Combat

Stress does not dispose of the

property or cease using it for

charitable purposes.



20 DISCLOSURE OF FUNDING

Funding is acknowledged under the terms and conditions of the following grants:

Funder Purpose Funding

Received

Expenditure

£’000 £’000

ABF – The Soldiers’ Charity Community and Outreach and

clinical Treatment

270 270

Big Lottery Fund Substance misuse case

management service

93 14

Comic Relief Anti-Stigma Campaign 88 73

Help for Heroes Community and Outreach and

clinical Treatment

1,000 1,000

Ministry of Defence (Armed

Forces Covenant Team)

Helpline 200 200

Ministry of Defence (Armed

Forces Covenant Team)


management service

2,000 43

Royal Air Force Benevolent Fund Community and Outreach and

clinical Treatment

207 207

Royal Navy and Royal Marines

Charity

Community and Outreach and

clinical Treatment

100 100

Scottish Government – Section 10

Grant

Community and Outreach -

Scotland

200 200

Victims & Survivors Service –

Northern Ireland

Community and Outreach –

Northern Ireland

65 65

Welsh Assembly Community and Outreach - Wales 14 14

Westminster Foundation Reservists Community and

Outreach

250 197


Combat Stress (Ex-Services Mental Welfare Society) – Legal and administrative information


LEGAL AND ADMINISTRATIVE INFORMATIONPatron

HRH The Prince of Wales KG, KT,

GCB, OM, AK, QSO, PC, ADC

President

General Sir Redmond Watt KCB

KCVO CBE

The members of the Board of

Trustees are directors of the

charitable company under The

Companies Act and are also

its trustees for the purposes of

charity law. They are collectively

referred to as the Trustees.

Those who served on the

main board and the Society’s

committees, supported by

members of the Executive

during the year and since the

year-end were:

Committees

Name Role Fin

ance

Aud

it &

Ris

k

Manag

em

ent

Fund

rais

ing

Med

ical

Serv

ices

Rem

unera

tio

n

No

min

ati

ons

TRUSTEES

Lieutenant General AJN Graham CB CBE Chair of Trustees X* X*

Air Commodore D Amroliwala OBE MA MBA FCIPD A X X

P Allen A X

Colonel P Baxter X*

Major General APN Currie CB CBE R

Air Commodore O Delany OBE MBA BA FCIPD FCMI FBIFM

R

JM Green OBE MA Deputy Chair X X X

J Hughes MA (Hons) LLB A X

Major General WEB Loudon CBE R

CKB Melville WS NP TEP LLB Dip LP A X

M Molesworth-St.Aubyn DL X

H Pernelet Lic en Droit; Dip Law R

A Pollitt OBE MA X

TB Royle MA FRSE X

S G Smith FCA BA X

R Thompson OBE FInstF X*

Dr S Walton BSc MSc PhD CPsychol CSci CDir FRSA X*

Colonel MRL Ward RM Honorary Treasurer X* X X

Professor Sir Simon C Wessely MA BM BCh MSc MD FRCP FKC FRCPsych FMedSci

X

EXECUTIVE MANAGEMENT

Commodore AJB Cameron MA, FCMI, RN Chief Executive X X X X X

Dr W Busuttil MB, ChB, MPhil, MRCGP, FRCPsych Director of Medical Services X X

Tim Brawn BA Director of Fundraising & Communications X X

Lieutenant Colonel PM Poole MBE, MILT Director of Strategic Planning and Partnerships X X

Victoria Reynolds FCCA Director of Finance, Information Management & Governance X X

Natalie Styles MSc MCIPD Director of Corporate Management X X

Garrett Taylor RGN, DPSN, BSc (Hons), LLM Director of Operations X X

* Committee Chair R Retired / resigned as a trustee on 25 September 2013 A Appointed as a trustee on 25 September 2013

Combat Stress (Ex-Services Mental Welfare Society) – Legal and administrative information


Chief Executive

Commodore AJB Cameron MA,

FCMI, RN

Company Secretary

Victoria Reynolds, FCCA

Registered Office

Tyrwhitt House

Oaklawn Road

Leatherhead

Surrey KT22 0BX

Auditors

BDO LLP

2 City Place

Beehive Ring Road

Gatwick

West Sussex RH6 0PA

Bankers

National Westminster Bank plc

City of London Office

PO Box 12258

1 Princes Street

London EC2R 8PA

Investment Managers

Cazenove Capital Management

12 Moorgate

London EC2R 6DA

Solicitors

Buss Murton Law LLP

Wellington Gate

7-9 Church Gate

Tunbridge Wells

Kent TN1 1HT

Brodies LLP

2 Blythswood Square

Glasgow G2 4AD

Weightmans

St Philips Point

Temple Row

Birmingham

West Midlands B2 5AF

annual report & accounts 2014

Documents

charity registration

england wales

accounts combat stress

scotland sc038828combat

scotland sc038828annual

report details

strategic report review

financial review