NOTES FORMING PART OF THE STATEMENT OF FINANCIAL ACTIVITIES

AND BALANCE SHEET

i. Accounting Process

The bases of preparation of accounts have been prepared in line with HSBC bank statements numbered 17 to 31 during the ARD and in accordance with the Statement of Recommended Practise, Accounting and Reporting by Charities plus other applicable accounting standards.

ii. Incoming Resources

All income received is from donations and is accounted for on an accrual basis. Each individual donation received is acknowledged and recorded via reconciliation to the appropriate or relevant monthly bank statement.

iii. Expenditure

Payments are made as instructed either via the Trustees or communicated verbally or in writing from the Chief Executive, Mr Derek ‘Smokey’ Cole. Where possible, receipts and acknowledgements or written confirmation are obtained in support of any expenditure or instruction regarding payments if made by The Treasurer / Company Secretary.

1. Donations – Unrestricted Funds

This amount is made up by the generous effort and contribution of those who obtained support and sponsorship via the following activities i.e. Cap Tally Tying (£490.00), Grand National Draw (£2,248.00), Golf Day (£555.00), Cribbage Evening (£1,570.65), HMS SULTAN RN Style Horse Race Evening (£2,222.20), money collected in advance for a Charity Ball taking place in February 2005 (£2,040) and a multitude of various miscellaneous donations amounting to £3,583.27.

1. Donations – Restricted Funds

The 1/6th UK Collectors Club gave a total donation of £195.00 for the specific use and purchase of kitchen equipment i.e. a cooker (or the cost towards the purchase of a cooker) when the building project in Stanley, Falklands Island was completed.

2. Grants Received

No grants were obtained or received during this ARD period.

3. Miscellaneous Income

Interest gained through the FVF’s HSBC Bank plc monthly account balances during the ARD, totalling an amount of £159.90

4. Cost of Generating Income

Various expenditure was incurred to accrue a net profitable income and is substantiated by the following breakdown - The Grand National Draw (£529.00 – Printing & Payouts), Golf Day (£672.00 – Payment for Course, Competitors and Food) Cribbage Tournament (£600.00), Charity Ball February 2005 (£70.00 deposit for hire of hall).

5. Donations made

There were no donations made to any charity, organisation or association during this ARD period.

6. Office Support Costs (Unrestricted & Restricted)

Using the Restricted Funds brought forward from 2003 (£660.48) together with donations received the annual rent for the FVF Office was £1,200.00. Office Liability & Insurance Cover (£262.50), BT Telephone Calls & Internet Charges (£780.46), office equipment for the PC / Scanner obtained from the ‘Refill’ Centre (£52.00) and stationery (£8.99).

7. Administration & Expenses

Financial expenditure was made to the Gosport Borough Council (GBC) for re-registering for the Lottery (£17.50), Advertising in the Gosport Conservative Association dinner brochure (£10.00), reimbursement of expenses such as postage, photocopying, rail travel etc. to FVF Fundraising & Events Manager Mr Les Heyhoe (£855.93) and FVF Co-Founder Mr Colin Waite (£120.00) for the FVF website of www.fvf.org.uk, registration and maintenance costs. Two wreaths on behalf of the FVF were purchased (£57.10).

8. Total Resources Expended – Unrestricted Funds

Derived from the addition of Note 4. + Note 6. + Note 7

Balance Sheet

As agreed to HSBC Bank plc Statement No. 31 as at 31/12/2004 (£22,999.88).