Charity number: 1007784 Company number: 2678419
HMS Trincomalee Trust (A company limited by guarantee) Trustees’ report and financial statements for the year ended 31 March 2024
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Contents
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Statement of Trustees’ and Accounting Officer’s responsibilities ..............cccssscccccessssssscceeceeessssssseeeeesssssssessssseeeeeeeG
Independent auditors' report to the members of HMS Trincomalee TruSt .........::.cccccccccssssssseeeeessssssssesseessssssteeesLO
Statement of financial activities (incorporating the income and expenditure ACCOUNL)...........ccsccceesseeeeesteeeeeeeeeLS
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Legal and administrative information
Charity number 1007784
Company registration number 2678419
Registered office H M Naval Base PP66
Portsmouth
Hampshire PO1 3NH
Business address Jacksons Dock
Maritime Avenue
Hartlepool TS240XZ
Chief Executive and Matthew Sheldon (appointed 1 December 2023)
Accounting Officer
Director General and Dominic Tweddle (resigned 30 November 2023)
Accounting Officer
Trustees Rear Admiral Mark Anderson
Mr Richard Hatfield
Mr John Mennear
Accountants Compass Accountants Limited
Venture House, The Tanneries, East Street, Titchfield, Hampshire PO14 4AR
Auditors Price Bailey LLP
24 Old Bond Street, London, W1S 4AP
Bankers Natwest Bank Plc
130 Commercial Road, Portsmouth, Hampshire PO1 1ES
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Foreword
The Trustees present their annual report and the audited financial statements of the HMS Trincomalee Trust
(“the charitable company”) for the year ended 31 March 2024. The Trustee has adopted the provisions of the
Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing
the annual report and financial statements of the charitable company.
The charitable objectives of the charitable company, as defined in the Articles of Association, are:
a) Torestore, refurbish, improve, maintain and preserve the vessel HMS Trincomalee otherwise and formerly
known as TS Foudroyant (hereinafter called “the Ship”)
b) To provide facilities of an educational or cultural nature calculated to improve public awareness and
appreciations of the Ship’s historical past.
c) To provide recreation and public enjoyment by the promotion and explanation of matters concerning
Britain’s Naval Heritage.
d) To collect, display, restore, safeguard and provide interpretation of artefacts, specimens and other items
relating to the Ship and the naval life of the period and Britain’s maritime heritage in general.
e) To provide training in seamanship and project and activities to the public of a general educational nature.
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The HMS Trincomalee Trust
(A company limited by guarantee) Company number: 2678419
Performance Report
## Overview
The HMS Trincomalee Trust was established in Hartlepool in January 1992 and in June 2014 became a wholly owned subsidiary of the National Museum of the Royal Navy (“the National Museum”). The Trust holds the heritage assets and reserves of the museum which is operated by the charitable entity, NMRN Operations (“the operator” - charity number: 1169061), a wholly owned subsidiary of the National Museum, under an operator agreement. This realises the benefits of operation of the HMS Trincomalee Trust within a large organisation, improving visitor experience, safeguarding and enhancing access to the ship, HMS Trincomalee, and providing greater cohesion in the delivery of the charitable objectives. Activities and Achievements
Since assuming responsibility for the care of HMS Trincomalee in June 2016, the National Museum has adopted a conservation approach set out by National Historic Ships and developed on the HMS Victory Project: Stabilise, Improve Understanding, Assess Significance, Conservation Process and Maintenance.
A Conservation Management Plan for the ship was completed by Wessex Archaeology in 2017, with the associated research and site surveys revealing new details about its construction, modifications and use. Regular maintenance visits have been undertaken by the operator’s Historic Ships team. Following issues with water ingress onboard, a survey of the ship was carried out. As a result, an external contractor was appointed to remove and replace the ship’s beam. The port brow was removed and a new attachment plate fabricated. The design will prove more secure as the ship moves in the water. To record this work, a photogrammetry survey was conducted by the onsite conservation team and will be used for future monitoring.
## Plans for Future Periods
Conservation efforts will continue to focus on reducing water ingress and improving the material state of HMS Trincomalee’s rig. The shipwrights will undertake maintenance of the weather deck caulking and complete remedial works to deck beams around the main hatch — a continuing source of rainwater penetration into the ship’s fabric. Beam replacement work will proceed, and a deck wetting system researched and installed. The starboard brow will be removed to enable a new attachment plate to be fabricated and installed. Once complete, new door frames will be added to the ship. Repairs to channels, which are beginning to decay and weaken, will also be undertaken. The renovation of companionway on the ship will commence.
An interpretation strategy for the ship and associated exhibition space will progress with support from the Friends of HMS Trincomalee.
Future expenditure will be limited to governance and support costs and any grants awarded to NMRN Operations under the operator agreement to deliver work to support the charitable company’s objects.
## Financial Review
Statement of Financial Activities for the Year Ended 31 March 2024
Total incoming resources for HMS Trincomalee Trust in 2023-24 amounted to £77,280 (2022-23: £43,509). This inflow relates to grant funding received from the National Museum to support governance costs and the fair movement on a long-term debt arising from the sale of the leasehold land at Trincomalee Wharf.
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The HMS Trincomalee Trust (A company limited by guarantee) Company number: 2678419 Total resources expended in 2023-24 amounted to £77,280 (2022-23: £35,255). This relates to governance costs and support costs. There was no net movement in funds for the year.
Balance sheet
The net assets as at 31 March 2024 amounted to £21,393,694 (31 March 2023: £21,393,694).
Reserves
The Trustees regularly monitor the levels of the charitable company's reserves. The Trust retains a ‘free reserve’ in accordance with Group policy, and defined as the amounts shown as Net Current Assets in the accounts and which are attributable to Unrestricted Funds. The Group policy is that there is no requirement to accumulate free reserves within the subsidiary charities and trusts and that any reserves held will be appropriately used, as approved by the Board, for the furtherance of the Trust’s charitable objects. As at 31 March 2024, the level of the charitable company's free reserves (defined as net current assets attributable to unrestricted reserves) stood at a £171 (31 March 2023: £171). The net proceeds from the provisional sale of leasehold land, at a net present value of £450,000, that is due to be received at a future unknown date, is treated in its entirety as a long-term debtor. At the time of sale, a loan repayment of £98,000 (at net present value) will also become due. The Trust’s purpose is solely to hold the heritage assets and reserves of the HMS Trincomalee Trust which it will grant to the operator as and when required until they are expended or a nominal sum remains. Future reserves will be held within NMRN Operations. The ongoing operating costs are undertaken under an operator agreement by a separate group company, NMRN Operations. The Trustees are therefore content that the going concern basis continues to apply and that the free reserves are at an appropriate level.
Investment Policy The Trust does not invest as a strategic means of raising income but nonetheless ensures that cash reserves are maintained in interest bearing accounts. The Trust’s investment policy seeks to produce the best possible financial return within an acceptable level of risk. Auditors
The accounts have been audited by Price Bailey LLP. So far as the Trustees and Accounting Officer are aware, there is no relevant audit information of which the charitable company’s auditors are unaware. Trustees have taken all the steps necessary to make themselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.
Small company provisions
This report has been prepared in accordance with the small companies’ regime under the Companies Act 2006. Approved by the Board and signed on its behalf by Mr Richard Hatfield Matthew Sheldon
Matthew Sheldon Chief Executive and Accounting Officer
Chairman on Behalf of the Board of Trustees
Date: 13'" November 2024
Date: 13" November 2024
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The HMS Trincomalee Trust (A company limited by guarantee) Company number: 2678419
Accountability Report
~~Trustees Report and Governance Statement~~
This report sets out the arrangements for the governance of the HMS Trincomalee Trust, including the Board structure for Trustees. The Trustees, who are also the directors of HMS Trincomalee Trust for the purposes of company law and who served during the year and up to the date of this report are set out on page 3.
The Trustees have due regard to guidance issued by the Charity Commission on public benefit and in its charitable objects, the charitable company seeks to promote the education of the general public about the history, deeds and traditions of the Naval Service and encourage the public to commemorate, honour and preserve the memory of those members of the Naval Service who have died on active service.
This report demonstrates how the system of governance and internal control is maintained within the HMS Trincomalee Trust and how the major risks to which the charitable company is exposed, as identified by Trustees, have been reviewed and systems have been established to mitigate those risks.
The Governance Framework
HMS Trincomalee Trust is a company limited by guarantee (company number: 2678419) and a charity registered with the Charity Commission (registration number: 1007784). It is governed by its Memorandum and Articles of Association dated June 2014, which incorporates its charitable objects, the powers of the company and provides for the appointment and reappointment of Directors. Trustees are appointed in accordance with the guidelines issued by the Officer of the Commissioner for Public Appointments (OCPA). The Trustees ensure the distinct legal responsibilities and charitable objectives of the charitable company are fulfilled within an overall policy and strategy framework. The day-to-day operation of the charitable company within that framework is delegated to the Chief Executive and Accounting Officer and to the Executive Directors.
A formal induction process for Trustees is in place which combines all the necessary background reading material including items such as the Articles of Association, copies of minutes of recent meetings, a copy of the Charity Commission publication, “The Essential Trustee: what you need to know”, a copy of the National Museum’s strategy and corporate plan and a copy of the Museum Association publication, “Code of Ethics for Trustees” with a day visit to the National Museum to meet key members of staff and to discuss current issues. Recent appointees continue to confirm their satisfaction with this process.
The Board of Trustees meets periodically through the year to set the long-term strategic objectives of the charitable company, agree the priorities and review performance against previous objectives set. The Board undertakes a periodic review of its membership and skills set and new appointments made on the basis of what skills Trustees believe the Board is lacking or believe are needed to tackle specific issues.
Register of Interests A register of Trustees’ and Executives’ interests is maintained, requiring declaration of any interest, pecuniary or otherwise, in any matter being considered by the Board.
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Personal data loss
The charitable company has not identified any personal data related incidents during 2023-24. An incident is
defined as a loss, unauthorised disclosure or insecure disposal. Protected personal data is information which
links an identifiable living person with information about them which, if released would put the individual at
significant risk of harm or distress; the definition includes sources of information that because of the nature of
the individuals or the nature, sources or extent of the information, is treated as protected personal data by the
charitable company.
System of internal control
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk
of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute
assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify
and prioritise the risks to the achievement of the charitable company’s policies, aims and objectives, to
evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage
them efficiently, effectively and economically.
The review of the effectiveness of the system of internal controls is exercised through the National Museum of
the Royal Navy’s Audit and Governance Committee. This Committee is chaired by a Trustee of the National
Museums Board of Trustees and draws expertise from other Trustees and committee members, with the
executive in attendance as required. The Committee also has access to the independent accountants and
external auditors engaged for all companies within the Group, providing review and oversight of the financial
control systems and the creation of company and consolidated group accounts.
Risk Management
The charitable company’s risk register and the responses to risk are managed by the Chief Executive Officer
and overseen by the National Museum’s Audit and Governance Committee as well as the charitable
company’s Board. In addition, the charitable company has a system of internal review and checks which link
to plans and risks.
The principal risks faced by the charitable company centre around identification of and ability to secure future
investment streams to support the maintenance and conservation of HMS Trincomalee.
Relationship with the Friends of HMS Trincomalee
The Friends organisation is a separate registered charity (charity number 1117790). The object of the Friends
is “For the advancement of Education of the Public and for the benefit of the nation, to assist in promoting
and supporting the restoration, preservation and public exhibition of HMS Trincomalee, the oldest British
warship still afloat.” The Friends make a valued contribution to the Museum, not only financially but also in
the support it brings but also providing a valuable source of volunteers.
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The HMS Trincomalee Trust
(A company limited by guarantee) Company number: 2678419
Statement of Trustees’ and Accounting Officer’s responsibilities for the year ended 31 March 2024
The Board of Trustees (who are also directors of the HMS Trincomalee Trust for the purposes of company law) and the Accounting Officer are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
e select suitable accounting policies and then apply them consistently; e observe the method and principles of the Charities SORP 2019 (FRS 102); e make judgements and estimates that are reasonable and prudent; e state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and e prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Mr Richard Hatfield
Chairman on Behalf of the Board of Trustees
Date: 13° November 2024
Matthew Sheldon Chief Executive and Accounting Officer Date: 13*° November 2024
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Independent auditors' report to the members of HMS Trincomalee Trust
Opinion
We have audited the financial statements of The HMS Trincomalee Trust (the ‘charitable company’) for the year
ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow
Statement and notes to the financial statements, including a summary of significant accounting policies. The
financial reporting framework that has been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of
Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
e give a true and fair view of the state of the charitable company’s affairs as at 31 March 2024 and of its
incoming resources and application of resources, including its income and expenditure, for the year
then ended;
e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
e have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report. We are independent of the charitable company in
accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to
continue as a going concern for a period of at least twelve months from when the financial statements are
authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the
relevant sections of this report.
Other information
The other information comprises the information included in the trustees’ annual report, other than the
financial statements and our auditor’s report thereon. The trustees are responsible for the other information
contained within the trustees’ annual report. Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of
assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a
material misstatement in the financial statements themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact.
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
e the information given in the trustees’ report, which includes the directors’ report prepared for the
purposes of company law, for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
e the directors’ report included within the trustees’ report have been prepared in accordance with
applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the
course of the audit, we have not identified material misstatements in the strategic report or the directors’
report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
e adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or
e the financial statements are not in agreement with the accounting records and returns; or
e certain disclosures of trustees’ remuneration specified by law are not made;
e we have not received all the information and explanations we require for our audit; or
e the Trustees were not entitled to prepare the financial statements in accordance with the small
companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’
report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, 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, and for such internal control as the
trustees determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
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# 15 November 2024
The HMS Trincomalee Trust (A company limited by guarantee) Company number: 2678419
Statement of financial activities (incorporating the income and expenditure account)
For the year ended 31 March 2024
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Unrestricted Restricted Endowment 2024 Unrestricted Restricted Endowment 2023
funds funds funds Total funds funds funds Total
Notes £ £ £ £ £ £ £ £
Income from:
Donations and legacies
Grant from NMRN 77,280 - - 77,280 41,303 - - 41,303
Investments 2 - - - - 2,206 - - 2,206
Total income 77,280 - - 77,280 43,509 - - 43,509
Expenditure on:
Charitable activities
Museum and visitor 3 77,280 - - 77,280 35,255 - - 35,255
operations
Total expenditure 77,280 - - 77,280 35,255 - - 35,255
Net income/(expenditure) - - - - 8,254 - - 8,254
Transfers between funds - - - - - - -
Net movement in funds - - - - 8,254 - - 8,254
Reconciliation of funds:
Total funds brought forward 360,052 21,028,642 5,000 21,393,694 351,798 21,028,642 5,000 21,385,440
Total funds carried forward 360,052 21,028,642 5,000 21,393,694 360,052 21,028,642 5,000 21,393,694
All recognised gains and losses are included in the statement of financial activities
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The notes on pages 17 to 24 form an integral part of these financial statements.
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The HMS Trincomalee Trust (A company limited by guarantee) Company number: 2678419 Balance Sheet as at 31 March 2024 Company number: 02678419 2024 Notes £ Fixed assets Tangible assets 5 - Heritage assets 6 21,007,880 21,007,880 21,007,880 21,007,880 Current assets Debtors 7 32,210 Cash at bank and in hand 38,807 71,017 Creditors: amounts falling due within one year 9 (37,203) Net current assets 33,814 Debtors: amounts due after one year 8 450,000 Total assets less current liabilities 21,491,694 21,491,694 Creditors: amounts falling due after more than one year 10 (98,000) Net assets 21,393,694 21,393,694 Funds Unrestricted funds 360,052 360,052 Restricted funds 28,643 Revaluation reserve 20,999,999 20,999,999 Endowment funds 5,000 Total funds 13 21,393,694 21,393,694 The financial statements have been prepared in accordance with the provisions applicable to small companies subject to the small companies' regime. The financial statements were approved by the Board and signed on its behalf by Mr Richard Hatfield On behalf of the Board of Trustees Date: 13*° November 2024
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2024 2023
£ £
- -
21,007,880 21,007,880
21,007,880 21,007,880
32,210 41,475
38,807 30,693
71,017 72,168
(37,203) (38,354)
33,814 33,814
450,000 450,000
21,491,694 21,491,694
(98,000) (98,000)
21,393,694 21,393,694
360,052 360,052
28,643 28,643
20,999,999 20,999,999
5,000 5,000
21,393,694 21,393,694
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The notes on pages 17 to 24 form an integral part of these financial statements.
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The HMS Trincomalee Trust
(A company limited by guarantee) Company number: 2678419
Cash flow statement
For the year ended 31 March 2024
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Cash flows from operating activities:
Net cash (used in)/provided by operating activities
(Decrease)/increase in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2023
Cash and cash equivalents at 31 March 2024
Net (expenditure)/income for the reporting period
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
Net cash (used in)/provided by operating activities
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Analysis of cash and cash equivalents
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Cash at bank and in hand
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2024 2023
£ £
8,114 (4,205)
8,114 (4,205)
30,693 34,898
38,807 30,693
- 8,254
9,265 (43,510)
(1,151) 31,051
8,114 (4,205)
Opening Cash Closing
balance flows balance
£ £ £
30,693 8,114 38,807
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Notes to the financial statements
for the year ended 31 March 2024
1.1. Charity information
The HMS Trincomalee Trust is a private company limited by guarantee and incorporated in England and Wales. The
business address is Jackson Dock, Maritime Avenue, Hartlepool, TS24 OXZ. The registered office address is the
National Museum ofthe Royal Navy, HM Naval Base PP66, Portsmouth, Hampshire, PO1 3NH.
The HMS Trincomalee Trust meets the definition of a public benefit entity under section 34 of FRS 102. Assets and
liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant
accounting policy.
The principal objectives of the charity are detailed in the Trustees report.
1.2. Basis of preparation of financial statements
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement
of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial
Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102) issued in October 2019,
the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities
Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January
2019.
The financial statements have been prepared on a going concern basis as the Trustees believe that no material
uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and
expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is
sufficient with the level of reserves for the charity to be able to continue as a going concern.
The financial statements are presented in sterling which is the functional currency of the company. Monetary
amounts in these financial statements are rounded to the nearest f.
1.3. Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of
the general objectives of the Trust and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The
aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which
have been raised by the Trust for particular purposes. The costs 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.
Investment income, gains and losses are allocated to the appropriate fund.
1.4. Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the
item(s) of income have been met, it is probable that the income will be received and the amount can be measured
reliably. Income from investments is included in the year in which it is receivable.
Revenue grants are credited to incoming resources on the earlier date of when they are received or when they are
receivable. If a grant or donation is subject to conditions that require a level of performance before the charity is
entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the
fulfilment of those conditions is wholly within the charity’s control and it is probable those conditions will be met in
the accounting period.
Legacies are included when the charity is advised by the personal representative of an estate that payment will be
made or property transferred and the amount involved can be quantified.
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Notes to the financial statements
for the year ended 31 March 2024
1.5. Expenditure
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be
fully recovered, and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the company in the delivery of its activities and services
for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an
indirect nature necessary to support them.
Governance costs include those costs incurred in the governance of the company and its assets and are primarily
associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to cost categories on a basis consistent with the use
of resources.
1.6. Tangible fixed assets and depreciation
Tangible fixed assets with a cost or value greater than £2,500 and a useful life exceeding one year are capitalised at
historic cost and revalued annually using Ministry of Defence derived indices.
Depreciation has been provided at rates calculated to spread the cost of each asset over its expected useful life as
follows:
Office Equipment - 10 years straight line
1.7. Heritage assets
The HMS Trincomalee Trust holds in trust artefacts comprising its collection. The main and reserve collections have
not been valued and included in the financial statements due to their historic and inalienable nature and due to the
specific and individual nature of the artefacts held, it is not believed to be possible to obtain a reliable value of the
collection without incurring a cost disproportionate to the benefit of the information reported to the readers of the
accounts.
Assets acquired prior to 1 April 2000 have not been capitalised and included in the accounts, but with effect from 1
April 2000, additions to the collection with a cost in excess of £2,500, have been capitalised. These assets are not
depreciated due to infinite useful economic lives. An annual review for impairment is carried out in accordance with
the Charities SORP, with any impairment recognised in the Statement of Financial Activities.
Heritage assets donated to the company with a value in excess of £2,500 are included in the accounts on the basis
of internal valuations estimated by the relevant curatorial staff and determined by their experience and judgement.
Loaned artefacts do not belong to the charity.
The Collection
The company holds a large collection of artefacts which have been either bought, gifted or loaned. These fall into
several categories which are: uniforms; instruments; weapons; utensils; pictures; books; and general maritime
artefacts.
Heritage assets: polices for maintenance, management, acquisition and disposal
In October 2015, a single set of Collections Management policies for the NMRN Group was approved by the Board.
These policies were the basis of a new single application to the Arts Council for Museum Accreditation to the higher
standards required of a national museum collection, replacing the individual accreditations of the subsidiary
museums. These policies set out a common approach for the maintenance and management of collections at
different museum sites, and will be subject to regular review as directed by the Collections, Research, Learning and
Access Committee (CRLA).
Acquisitions to the museums are now guided bya single Collections Development Policy (2015) and Strategy (2019);
this sets out priorities and processes for acquisition. There are two principal methods of acquisition:
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Notes to the financial statements
for the year ended 31 March 2024
Acquisition by gift - Curators have authority to propose collecting in line with the 'Themes and Priorities for Future
Collecting’. Offers of donations are passed to an Acquisitions Panel, chaired by the Registrar. This Committee sits on
a monthly basis to assess offers. Decisions are reviewed by the Head of Collections and Research.
Acquisition by purchase - Collections and other staff can recommend and where appropriate make purchases of
material from any source up to their authorisation levels in accordance with the NMRN scheme of delegation.
Purchases of up to £25,000 are reviewed by the Head of Collections & Research and/or the Deputy Executive
Director of Museum Operations. Any purchases of a value above £50,000 go to the Director General for assessment.
Significant acquisitions are discussed at the CRLA Committee. This Committee also receives quarterly reports on key
acquisitions and an annual report of all items added to the collection.
Subject to the approval of the Trustees, the Museum may dispose of items from the collection, although this will
only happen in exceptional circumstances, for example:
e When items fall outside the Museum’s Collecting Policy or Charitable Objectives
e When an item contains a serious hazard which cannot be remediated.
e When an item is one of a significant number of duplicates
e When an item is in exceptionally poor condition which cannot be reversed and it cannot be repurposed to
alternate use.
Significant Historic Ships
Accounting policy for initial recognition of the Heritage Asset
The methodology of valuation of significant historic ships by the National Museum group is total rebuild basis,
discounted for the ship’s current state of repair.
The values are calculated by the staff of the National Museum. Where the current build cost or market value of a
similar ship is known and can be relied upon, this is used as the basis for establishing the value of the ship. Where
this information is unavailable, the original build cost of each ship is grossed up to a modern-day value using a
provider of historic economic data. This value is then discounted to take account of the ship’s current state of
repair, using the estimated costs to bring the ship to the final condition (being in most cases something close to ‘as
new’). For ships which are gifted to the National Museum, the discounted value becomes the ‘deemed cost’ of the
ship.
The ship, HMS Trincomalee, is the oldest surviving Royal Navy Frigate and the oldest warship still afloat in the UK.
She was acquired by the Trust for a nominal £1. HMS Trincomalee has been included at a valuation designed to
reflect the estimated rebuild costs of the ship.
The value of HMS Trincomalee, on the basis of a full renewal cost of rebuild, discounted to take account of the
ship's current state of repair, has been calculated at £21,000,000. The calculation is based on the comparable cost
of the Frigate Hermione project, completed in 2012. This cost was pro-rated for the relative displacement tonnages.
L’Hermione’s displacement tonnage was 1,166 tonnes and the rebuild cost was £16,700,000 in 2012. HMS
Trincomalee’s displacement tonnage is 1,447 tonnes (per ‘Great Sailing Ships of the World’ by Otmar Schauffelen)
therefore the rebuild cost is approximately £21,000,000.
The restoration to restore her to her original condition was completed in 2001, which was prior to this revaluation
to her full rebuild cost.
Accounting policy for recognition of subsequent expenditure on significant ships
The National Museum’s operating company, NMRN Operations, is responsible for the restoration, preservation, and
maintenance ofthe [ship] [under] [the] [terms] [of] [the] [operator] [agreement.] [Expenditure] [incurred] [by] [the] [operating]
company is recognised in that entity on an accruals basis as a liability is incurred. Capital expenditure on plant and
machinery not integral to the fabric of the ship is capitalised on the balance sheet of the operating company.
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The HMS Trincomalee Trust
(A company limited by guarantee)
Company number: 2678419
Notes to the financial statements for the year ended 31 March 2024
1.8. Basic financial Instruments
Within one year The Trust’s financial assets and liabilities consist of cash and cash equivalents, trade debtors, trade creditors and accrued expenses. The fair value of these items approximates their carrying value due to their short-term value. Unless otherwise noted, the Trust is not exposed to significant interest, foreign exchange or credit risks arising from these instruments.
In excess of one year
Long term debtors and long-term liabilities are discounted to net present value. The difference between the discounted balance and the full balance is recognised as interest income or as an interest expense.
1.9. 1.11. Estimation techniques
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Valuation of HMS The valuation of historic ships acquired by the group has been based on an
Tincomlaee estimate of current costs of rebuilding the vessels, as the actual costs of
doing so are unknown.
This assumes that the same materials and methods of construction would be
utilised with the same cost profile as the original, and, on the same basis,
adjusted proportionately for those parts of the vessel that would not be
replaced (for example, guns and engines).
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2. Investment income
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Unrestricted Unrestricted
funds 2024 funds 2023
£ £ £ £
Fair value movement on long term debtors - - 2,206 2,206
3. Museum and visitor operations
Operations 2024 2023
£ £ £
Governance and support costs
Accountancy fees 1,200 1,200 1,458
Auditor’s remuneration 4,693 4,693 4,502
Legal and professional fees 70,785 70,785 28,800
Travel expenses 600 600 -
Fair value movement on other creditors - - 482
Other costs 2 2 13
77,280 77,280 35,255
4. Employees
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No trustees received remuneration during the period. No trustees were reimbursed for expenses during the period (31 March 2023: Nil).
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The HMS Trincomalee Trust (A company limited by guarantee) Company number: 2678419
Notes to the financial statements for the year ended 31 March 2024
5. Tangible fixed assets
Office Equipment Total £ £ Cost At 1 April 2023 199,434 199,434 Disposals (5,072) (5,072) At 31 March 2024 194,362 194,362 Depreciation At 1 April 2023 199,434 199,434 On disposals (5,072) (5,072) At 31 March 2024 194,362 194,362 Net book values At 31 March 2024 - - At 31 March 2023 - - Heritage assets At valuation At cost Total £ £ £ Carrying amount at 1 April 2023 and 31 March 2024 21,000,000 7,880 21,007,880 There were no additions made to the Collection in the year. There were no impairments during the year. In 2012, the collection belonging to Mr David Hamilton was gifted to the Trust. This collection consists of 33 items and includes medals, printed material and ephemera relating to the history of the Royal Navy. The collection was valued at £7,880. Five-year summary 2024 2023 2022 2021 2020 £ £ £ £ £ Additions Purchases - - - - - Donations - - - - - ~~Disposals~~ - - - - - Debtors 2024 2023 £ £ Amounts due within 1 year: Other debtors 171 171 Amount owing from group undertakings 32,039 41,304 32,210 41,475
Cost At 1 April 2023 Disposals At 31 March 2024 Depreciation At 1 April 2023 On disposals At 31 March 2024
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Net book values
At 31 March 2024
At 31 March 2023
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6. Heritage assets
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Carrying amount at 1 April 2023 and 31 March 2024
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There were no additions made to the Collection in the year. There were no impairments during the year.
Additions
7. Debtors
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The HMS Trincomalee Trust
(A company limited by guarantee) Company number: 2678419
Notes to the financial statements for the year ended 31 March 2024
8. Debtors: amounts falling due after more than one year
2024 2023 £ £ Other debtors 450,000 450,000 Other debtors due after more than one year relate to amounts due from the sale of the leasehold land. The debtor is interest free and has been discounted to net present value. Creditors: amounts falling due within one year 2024 2023 £ £ Trade creditors 7,164 - Other creditors 2,466 2,466 Accruals 24,982 33,207 Amount owed to group undertakings 2,591 2,681 37,203 38,354 Creditors: amounts falling due after more than one year 2024 2023 £ £ Other loans 98,000 98,000 Other loans relate to amounts due to Hartlepool Borough Council. These amounts will become due once the other debtor shown above has been received. The loan is interest free and has been discounted to net present value. Restricted funds 1 April 2023 Incoming Outgoing Revaluation 31 March 2024 £ £ £ £ £ Lift replacement 10,045 - - - 10,045 Interpretation & learning fund 18,000 - - - 18,000 Friends of Trincomalee projects fund 598 - - - 598 28,643 - - - 28,643 Revaluation reserve 20,999,999 - - - 20,999,999 21,028,642 - - - 21,028,642
Other debtors
Other debtors due after more than one year relate to amounts due from the sale of the leasehold land. The debtor is interest free and has been discounted to net present value.
9. Creditors: amounts falling due within one year
Trade creditors
Other creditors Accruals
Amount owed to group undertakings
10. Creditors: amounts falling due after more than one year
Other loans
Other loans relate to amounts due to Hartlepool Borough Council. These amounts will become due once the other debtor shown above has been received. The loan is interest free and has been discounted to net present value.
11. Restricted funds
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The HMS Trincomalee Trust (A company limited by guarantee) Company number: 2678419
Notes to the financial statements for the year ended 31 March 2024
Restricted funds (continued)
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1 April 2022 Incoming Outgoing Revaluation 31 March 2023
£ £ £ £ £
Lift replacement 10,045 - - - 10,045
Interpretation & learning fund 18,000 - - - 18,000
Friends of Trincomalee projects fund 598 - - - 598
28,643 - - - 28,643
Revaluation reserve 20,999,999 - - - 20,999,999
21,028,642 - - - 21,028,642
The interpretation and learning fund represents money received towards this charitable aim and related annual
expenditure. The year end balance includes funding which will be spent in the next financial years from The Sir
James Knott Trust, The Drapers Foundation and the Hedley Trust.
Other restricted funds represent money given to the Trust for the maintenance and running costs of HMS
Trincomalee.
Endowment funds
1 April2023. Incoming Outgoing Revaluation 31 March 2024
£ £ £ £ £
Endowment funds 5,000 - - - 5,000
1April2022 Incoming Outgoing Revaluation 31 March 2023
£ £ £ £ £
Endowment funds 5,000 - - - 5,000
The endowment fund was a donation received in a prior year to enable the Trust to start a capital fund.
Analysis of net assets between funds
Tangible Netcurrent Debtorsdue Long term 2024
fixed assets assets after1year _ liabilities Total
£ £ £ £ £
Unrestricted funds 7,881 171 450,000 (98,000) 360,052
Restricted funds 20,999,999 28,643 - - 21,028,642
Endowment funds - 5,000 - - 5,000
21,007,880 33,814 450,000 (98,000) 21,393,694
Included in the above figures is the revaluation reserve:
Revaluation reserve 20,999,999 - - - 20,999,999
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12. Endowment funds
13. Analysis of net assets between funds
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The HMS Trincomalee Trust (A company limited by guarantee) Company number: 2678419 Notes to the financial statements for the year ended 31 March 2024
Analysis of net assets between funds (continued)
Tangible Netcurrent Debtorsdue Long term 2023 fixed assets assets after1year _ liabilities Total £ £ £ £ £ Unrestricted funds 7,881 171 450,000 (98,000) 360,052 Restricted funds 20,999,999 28,643 - - 21,028,642 Endowment funds - 5,000 - - 5,000 21,007,880 33,814 450,000 (98,000) 21,393,694 Included in the above figures is the revaluation reserve: Revaluation reserve 20,999,999 - - - 20,999,999 Revaluation reserve £ At 31 March 2023 and 31 March 2024 20,999,999
14. Revaluation reserve
At 31 March 2023 and 31 March 2024
15. Taxation All of the charitable company's income is applied for charitable purposes and therefore the charitable company is exempt from corporation tax.
16. Related parties
~~Principal subsidiaries~~
Company Percentage Company name number shareholding Description The Foudroyant Trust - charity number 306082 00628111 N/A Dormant
The charitable company has taken advantage of the exemption under FRS 102 33.1A regarding disclosure of transactions with other NMRN group entities. There were no other related party transactions (2023: None).
17. Ultimate parent undertaking
The HMS Trincomalee Trust considers the National Museum of the Royal Navy (NMRN), a charitable company (charity number 1126283, company number 06699696), to be its ultimate parent undertaking.
Control is exercised by the NMRN being the corporate member of the HMS Trincomalee Trust.
Consolidated accounts can be obtained from the NMRN's registered office: National Museum of the Royal Navy, HM Naval Base PP66, Portsmouth, Hampshire, PO1 3NH.
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