Annual Report and Financial Statements For the Year Ended 31" October 2022 THE COASTAL FORCES HERITAGE TRUST The Trustees (who are also Directors of the Company for the purposes of Company Law) present their report together with the financial ststements for the year ended 31* (ktober 2022. REFF.RENCE and ADMINSTRA TIVE INFORMATION Charity Name: The Coastal Forces Heritsge Trust 1044933 (England and Wales) 2983847 (England and Wales) The National Museum of the Royal Navy HM Naval Base {PP66) Charity number: Cotnpany number: Registered oifi¢e Principal #ddress: Portsmouth, Hampshire POI 3NH Website address: http'.Ilwww.Co￿taI_fOrces.0rg.Uk Trustees." Rear Admiral Rex Cox (Chainnan) Commander Rodney Agar RN Chief Pety Olyicer Aurora Allan RN Commander Robert Bosshardt RN Commander Andrew Gordon-lknnox RN Commander Rupert Head RN Antony Hichens Esq Captsin Christopher Morri50n RN Captain Trevor RolKitham RN Alan Watson Esq William Dffy¢r Esq Director & Secretary Captain S J J Haill RN THE COASTAL FORCES HERITAGE TRUST Tri)￿￿ STRUCTURE, GOVERNANCE gDd MANAGEMENT The Charity's governing document is its Memorandum and Articles of Association incorporated 27 October 1994 a5 amended by Special Resolution adopted 5 May 1995. li is governed by its Board of Trustees. Trustees are appointed by the Board in a general meeting. The mana8em¢nt of the charity is vested in its board of trustees headed by the Chairman which meets regularly as necessary and is assisted by professional help in the fields of project development and administration. When deemed necessary Trustees are recruiled after being identified by the Board a5 h&ving the skills. contacts and other attributes which will help the Charity in the furtherance of ils obje¢lives and activities. The O￿lee is located in the National Museum of the Royal Navy, within the Portsmouth Naval Base. OWECT and ACTIVITIES The Charity's objectives are as staled in its Governing Document, being the advancement of the education of the public in the history of Coastsl Forces by the restoration, preservation and pern)anent display, for public benefit, of Coastal Forces crdft tO8¢th¢r with relevant artefacts, r¢cords and memorabilia relating to such ¢raft. In furtherance of this the Trust also supw)rts Coastal Forces Veterans and historic Craft. STATEMENT of PUBLIC BENEFIT The Coastal Fc)rces Museum upened io members of the public on 6 October 2021. This Museum fuifils three significant and relevant functions.. firstly. to commemorate the memory of those brave cit17.en sailors of the Royal Naval Volunteer Reserve (RNVR) and 'Hostilities Only" rdtings who rallied in great numbers to the defence of their Nation in WW 11.. secondly to inforni and educate young people about what previous gen¢rntions achieved and.. thirdly lo provide a conduit for local employment and investment within a challenging part of Hampshire. The Museum commemorates the past whilst being relevant to the P￿sent and future. The Trnstees have had regard for the Charity Commlssion's public knefit guidance. In summary the museum b¢nefits ihe Public as follows-. The advancement of education. by promoting knowledge about the contribution of Coastal Forces to Allied success in two world wars The advancement of heritage. by preserving artefacts and information about th¢ contribution of Coastal Forces to Allied success in two world wars, and working towards the creation of a Coastal Force5 Museum The promotion of the e￿l¢lencY of the armed forces of the Crown by resear¢hing the history of Coastal Forces of the Royal Navy, by publishing materials about Coastal Force5 and providing a means which enables serving and fornTrer members ol'the Royal Navy to mix together. A pernianent Museum to facilitalc the above. Th¢ Museum opened to members of the Generdl Public on 6 October 2021. It has already made a favourable impact upon people and the visitor feedback has been most posilive. 'fhe future publi benefit will include groups of people of all a8es and ethnic origin. THE COASTAL FORCES HERITAGE TRUST (IR( I ACHIEVEMENTS Affiliatiolls The period under report has continued to be one of consolidation for ihe Trust. The Trust has ontinued to maintain a professional relationship between our principal partners for the Exhibition- namely the National Museum of thc Royal Navy (NMRN) and the Portsmouth Naval Base Property Trust {PNBPT). A number of fonnal Working Group meetings have taken place throLtghoul the reporting period. The Old Mine Storage Building located at Priddy's Hard, GosporL is the pern]aneni home for the Coastal Forces Exhibition. Thc restoration of the building being part of a major development of ihe Priddy's Hard Arniament Depot site. under the direction of the PNBPT. The actual Coastal Forces Exhibition itself will be developed and maintained by the NMRN in partnership with the CFHT. The Trust has two further affiliations. with the Medusa Trnsl and with the Royal Navy's Coastal Forces Squadron. The fom)er reflects the Trusi's close relationship with one of the few remaining seagoing coastal ¢rdft of World War11. The latter builds a tangible bridge between historic Coastal Force5 and the modern Royal Navy. Cogst41 Forces Exhibition The museum is open for public access as part of the wider NMRN ticketin8 process- f(K)tfall is cy¢li¢al through the year. subject lo many external factors such as weather, the wider economy and. a¢cess restrictions due to ongoin8 building works through the Priddy's Hard estste. Other Historic Craft Th¢ Trust continues to support HDML 1387 (HMS Medusa) and to provide general advice to the PNBPT on the operntion and maintenance of tt5 historic fleet of Coast81 Forces Craft. Tbe Veterans The Coastal Forces Veterans Association (CFVA) Nalional Organisation was disbanded severdl years ago. however some of the Branches continue to meet and provide a source of mutual support and Comrddeship. UBOR Fund Bld The LIBOR Fund bid was su¢¢essful in 2017 and the Trust received £925K for the development and establishment of the CFHT Mu5eum- the finals sums were expended during the period under review and no Res¢rved Funding ￿MainS. The Newsletter The publication of the Newsletter has now ceased due to cost implicaiions. il is inlended to commen¥e publication of articles through the website in the coming peri(Kl. The Website The websile continu¢5 to be maintained and updated, and the CFHT intends to incr¢as¢ the scop¢ of the details in the Coming p¢riod5. Risk Management The T￿sIteS are conscious of the advice ¢onlained in The Charity Commission Document (CC26) Page l O Paragraph 33.3. The CFHT fa115 under the category of a Smaller Charity where the annual income is below Ihe statutory audit threshold. In the interests of maintaining a policy of "g(x)d practice" ongoin8 management of the Risk Management Plan is routinely undertaken. THE COASTAL FORCES HERITAGE TRUST Tri)K( I FtNANCIAL REVIEW The result for the financial year shows a surplus for the year of £194,943 Vs prior year deficit of £211.724. Adjusted surplus for the year (excluding donations and grant awards) is £283.048 Vs prior year £50,276, in line with Trustee expectations. Total Reserved Funds stands ai £0; total Designated Funds stands at £300,(K)O Direct costs have deereased in the year, totalling £808 Vs prior year £5.430, attributable to the ce5satiotk in newsletter direct mailings. Indirect cost￿ Overheads have risen slightly to £21,625 Vs prior year £18.882. this change has arisen as a result of increas¢d aclivity following the COVID pandemic, and the effecls of inflation. Donations and grdnls made by the Trust decreased to £88,105 Vs prioryear £262,000 in line with Trustee expectations and the wmpletion of payments due towards Ihe museum project. The Trust r¢¢eived a donation of £300,000 from the closure of the Navy Club intended for the creation of a pernianent artistic memorial for Coastal Forces. The donation was made free of any Restrictions, and the Truslees have deemed thi5 sum as Designated Funding. Closing year bank deposits stand at a total of £343.317 Vs prior year £146.198. Reserves Poli¢y The Trustees have examined the Charity's requirem¢nts for reserves in light of the risks to the organisation and consider that reserves should be held which would be sufficient lo meet its working capital requirements for at least six months. However, reseryes may exceed this level if no immediale opportunity lo use the funds to achieve the charity's objective is available. At 31 ￿ October 2022 the Unrestricted Funds held were approximately equal to ISO % of the charity's annual expenditure. this figure exclude5 the Designated Funding relating to the pernjanent memorial project. Investment Policy Most of the charity's funds are expected to be spent in the Short tenn so no funds are available for long Icmi investment. Having Lonsidered the few options available, the trustees have decided to retain its funds in cash. with any element in excess of three month's expected expenditure being held on short terni dep)sit at slightly more favournble rdles than are availabl¢ on the charity's current accounl with Barclays Bank. Goillg Concern The Trust h&s sufficient funds to ￿ntinUe for a period of at least twelv¢ months from when the financial statements are auihori5ed for issue. However, as ihe majority of funds are considered to be designaled. there is a requirement to seek other sources of income to ensure that the Trust can continue io operate beyond twelvc months. THE COASTAL FORCES HERITAGE TRUST TRUSTEES RESPONSIBILITIES The Trustees are responsible for preparing the Trust¢s' Rew)rt and the Financial Statements in a¢¢ordance with applicable law and United Kingdom A¢counting Standards. Th¢ law applicable to charities in EnbTrland and Wales requires the trustees to prepare financial ststcments for each financial year whi¢h give a true and fair view of ihe slatc of affairs of the charity and of the financial resources and application of resources of the charity for that period. In preparing ihese financial stat¢m¢nts. the trustees are required to.. Select suitable accounting policies and then apply them consistently: observe the methods and principles of the Charities SORP: Inake judgements and estimates that are r¢asonable and prudent; state whether applicable accounting standards have been followed, subject lo any departures disclosed and explained in the financial statemenls. and to prepare the financial statements on the goIng￿on¢eM basis unless it 15 inappropriate lo presume that the charity will continue in business. The Trustee5 are resw)nsible for keeping accounting records whi¢h disclose with reasonable accuracy th¢ linancial position of the charity and enable them lo ascertain lo ensure that the financial statements comply with the Charities Act 1993, the Charity {Accounts and Repons) Regulations 2008, both as amended subsequently, and th¢ provisions of the Constitution, Govffliing Document or Trust Deed. They are also responsible for safcguarding the assets of the charity and hen¢e for taking reasonable steps for th¢ preveTrtion and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial inforniation included on th¢ chariiy's website. This report, which has ￿en prePa￿d in accordance with the provistons of the Companies Act 2006 relating to small companies. togeiher with the Charities A¢1 1993, was approved by the trustees on July 2023 and 5ign¢d on their behalf by= Rear Admiral Rex Cox Chairman THE COASTAL FORCES HERrrAGE TRUST BALANCE SHEET as al 31. October 2022 Totsl 2022 Note Unrestricted Restricted Funds Funds Total 2021 Current A&sets Debtors Cash at Bank £2.862.00 £40,455 £43,317 £2,862 £0 £340,455 £149.134 £343.317 £149.134 £300,000 £300,000 Current Liabilities Creditor5 (falling due within one year) £0 £0 £0 £0 £0 £0 £0 £0 Ne¢ Current Assets £43,317 £31)0,000 £343.317 £149,134 Net Assets £43.317 £300,000 £343.317 £149,134 Funds of ibe Charity Retained Surplus BIF Profit and Loss Current Year £56,391 £92,743 £149,134 £360.855 -£13,074 £207,257 £194,183 £211.72] £343,317 £149,134 £43,317 £300,000 Totsl Funds £43J17 £300,000 £343J17 £149,134 ' Re5trirtedfun&ls is the rorololReserved¢YttdtknignotedFuRds The trustees (who are also the directors of the company for the purwses of company law) confirni thal for the year ¢nd¢d 31" October 2022 The company wa5 entitled to exemption from audit under section 477 of the Companies Act 2006 {"the A¢t"). and Member5 have not required the company to obtain an audit of its accounts for the ￿rIOd in question in accordan¢e with section 476 of the A¢t. The trustees a¢knowledge their re5ponsibililies for complyin8 With the requirem¢nt5 of the Act with respect to a￿o￿nting records and the preparation of accounts. These accounts were approved by the Trustees on P July 2023 and signed on their behalf by'.- Rear Admiral Rex Cox Captain Simon Haill RN Chairman Secretary THE COASTAL FORCES HERITAGE TRUST STATEMEwf of FINANCIAL ACTIVITIES for thc year ¢nded 31" October 2021 N(J Unrestricted Restricted le Funds Funds Total Total 2022 2021 Incoming Resourees Income from Generated Funds Voluntary Income Inv¢5tmenl Income Income from Charitable Activities Other Income £5,197 £164 £300.000 £305.197 £74.529 £164 £33 £0 £26 £119 £0 £300,000 £305,480 £74,588 £119 £5,480 Resources Expended Costs of Gcnerating Voluntary Income Fundrdising Trading Cosls Cost of'charitable Activities Goveman¢e Costs £12.200 £805 £1.854 £5,000 £19,859 £17.200 £8,069 £805 £275 £87,008 £88,862 £275,080 £4,430 £4,430 £2,888 £91,438 £111,297 £286,312 10 JJ 12 Recott¢iliatioD of Funds Net Incom¢ / (Expenditure) Transf¢rs between Funds -£14.379 £?08.56* £194.183 £211.714 £0 Net Movement in Funds -£14.379 L?08.562 £194,183 £211.724 Total Funds Brought Forward £56,391 £92,743 £149,134 £360,858 Total Funds C4rried Forwydrd £42,012 £301,305 £343,317 £149,134 4 Restricled Ftsnds ts Lhp i￿al0￿ReSe￿duthlDC5lKNu￿dF￿ The StateTTtent of Financial Activities includes all gains and losses recognised in the year. All incoming resource5 and resources expended derive from continuing a¢tivities. The Statement of Financial Activitie5 also complies with the requirements for an income and expenditure account under the Companies Act 2006. The notes on pages l O to 12 fom an integral part of these financial statements for the benefit of the Trustees. THE COASTAL FORCES HERITAGE TRUST IYOTES to the STATEMENT of FINANCIAL ACTIVtTIES l. B48is ofa¢eouDting l. l. These accounls havc been prepared on the historic cost basis in accordance wilh: Accounling and Reporting by Charities Stat¢m¢nl of Re¢ommended Practice (SORP Second Edition October 2019) Financial and Reporting Standard for Smaller Entities (FRSSE) (Effective January 2015). The Companies Act 2006. 2. Accounting Polieies 2.1. Form of Finaneigl St¥¢emtllts 2.1.l.Unrestrict¢d Funds are funds that may b¢ used at the discretion of the trustees in furtherance of the objects of the Charity. 2.1.2.Restricted Funds are funds that may only be used for specific purposes. Restrictions arise when 5pe¢ified by the donor or when funds are rnlsed for specific purposes. or when Designated as Such by Trustees. 2.2. Incomillg Resources 2.2.1.InLoming ReSoU￿S are recognised and Includ￿ in the Ststement of Financial Activities (SOFA) when the Charity becomes ¢ntitled lo the resourc¢& the trnstees are virtually certain they will receive the incoming resources and the monetary value can be measured with sufficient reliability. 2.2.2.Where incoming resources have related expenditure (as with fundraising) the incoming resources and related expenditure are reEK)rted gross in the SOFA. 2.2.3.Bank interest is recogni5ed when it is credited to the account. 2.3. Expenditure and Liabilities 2.3.1.Expendilure is accounted for on an aC¢n￿lS basis. 2.3.2. Liabililies are recognised as soon as there is a legal or construclive obligation to pay. 2.3.3.Gov¢rnance costs include an apportionment of consultants. fees and office overheads that reflect the relevant amount of time spent on such aclivities. Trustee5 With specifi¢ responsibilities in this field are all volunteers. 2.4. Assets Tangible fixed assets are capitalised if they cost more than £l.000 and Can be used for more than one year. They are valued at cost or, if gifted. at their value on ￿elpt. The charity does not have any ￿pital]Sed fixed assets. 2.5. Taxation The Lharity is not liable to income or capital gains tax on its charitable aclivities. Irrecoverable VAT is included in the asset cost or expense to which it relates. 3. Trgnswetions with trnstees And relgied partie No remuneration or expenses were paid or reimbutsed to trustees or related parties. THE COASTAL FORCES HERITAGE TRUST 4. Debto Unrestricled Funds Restricted Funds Total 2022 Total 2021 Gift Aid receivable £2,862 £0 £0 £2J62 £2,862 £0 £0 Prepayments £0 5. Ca8b at Bank Unrestricted Funds Restricted Funds Total 2022 Total 2021 Bank Deposil account Bank Current a￿OUnt £38,064 £2.39] £40,455 £300,000 £338,064 £141.767 £2J91 £7.367 £340,455 £149,134 £300,000 6. Creditors (falling due within one year) Unrestricted Funds Restri¢t¢d Funds Total 2022 Total 2021 Trade Creditors £0 £0 £0 £0 £0 £0 £0 7. VoluDtary Income Unrestri¢t¢d Funds Restricted Funds Total 2022 Total 2021 Donations Gift Aid Legacies £4,417 £1,063 £300,000 £304,417 £72,003 £1,063 £2.276 £0 £250 £5,480 £300,000 £305,480 £74.529 In¢ome from Charitable A¢tivities to genernte fund8 Unrestricied Funds Restricied Funds Total 2022 Total 2021 Sale of merchandise £119 £119 £26 101 Page THE COASTAL FORCES HERITAGE TRUST 9. Apportioned Costs of genergting voluDtsry income Unrestricted Funds Restricted Funds Total 2022 Total 2021 Newsletter production costs Project consultsncy Archive consuliancy Bookkeeping Office rtnt and insurance Stationery, posta8¢, etc Websiie Fundraising costs Other operating costs £0 £0 £0 £5,430 £2,137 £280 £0 £24 £198 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £8,069 10. Apportioned Costs of fundr*ising trading Unrestricted Funds Restricted Funds Total 2022 Total 2021 Newsletter pr(Kluction costs DVD film production costs DVD ittterview costs Bookkeeping Office rent Mnd insurance Stationery. postage, etc Website Other operating Costs £0 £0 £0 £0 £0 £0 205 £24 £46 £0 £0 £805 £805 £805 £0 £275 I l. Apportioned Costs of Charitsble A¢tivi¢ies Unrestricted Funds Restricted Funds Totsl 2022 Total 2021 Project consultancy Archive consultancy Bookkeeping Office rent and insurance Staiionery, postage, etc Website Other operating costs Charitable Donations and Grants £1,554 £1 J34 £0 £300 £11.488 £0 £423 £205 £24 £53 £887 £262.000 £275,080 £300 £0 £0 £0 £87,1)08 £88,862 £87,008 £87.008 £1,854 11 Ipage THE COASTAL FORCES HERITAGE TRUST aTriiR( I 12. Apportiolled Governance Costs Unrestricted Funds Re5tri¢ted Funds Total 2022 Totsl 2021 Project consultancy A￿h]ve consultancy Bookke¢ping OtTi¢e rent and insurance Stationery. postsge. etc Website Other operydting costs £4,000 £4,030 £4,030 £2.340 £i.000 £400 £400 £0 £0 £0 £0 £277 £206 £24 £0 £142 £0 £4.430 £4,430 £2,989 12 IPage 125 Old Manor Road Rustington West Sussex BN16 3QD 7[th] June 2023 ## **Independent Examination** ## **The Coastal Forces Heritage Trust – Charity number 1044933** ## Dear Sir We have undertaken a review of the books and records of The Coastal Forces Heritage Trust, a registered charity, for the Period Ending 31st October 2022; this review has been performed in accordance with the requirements of the Charities Act 2011 and is made to the Trustees of the Charity. During this review we assessed and reviewed approximately 65% of the transactions and reconciled such to the data within the financial system and records. The year in review showed donations from external and unrelated charitable organisations; The Coastal Forces Heritage Trust has confirmed that the source of these funds had been verified, formal receipts issued and, that the funds were recorded as either Unrestricted or Designated, subject to the terms of the original donation. It is noted that within the period under review, Unrestricted Funds totalling £5480 were received; additionally, £300,000 was received free from any restrictions from the sale of the Navy Club and has been deemed as Designated Funding from the Trustees. We can confirm that no material matters have been identified in connection with the examination of such records. Further, it is our opinion that The Coastal Forces Heritage Trust has demonstrated diligent and transparent financial management process and practices, with internal oversight, together with clear and demonstrable involvement of the Trustees, not only the Chairman. Further, the Board of Trustees continues to improve internal processes in line with Charity Commission guidelines and regulations. It is our view that the financial statements represent a true and fair representation of the Charity. There are no recommendations arising. No liability or legal responsibility is accepted for the state of the financial statements as our assessment relates to an examination of best practice only and is not an audit. Therefore, we make no comment on the content of the statements. Yours faithfully Kerrie Adams AATQB Kerrie Adams is licensed and regulated by AAT to provide services in accordance with licence number 1006390 details of which are displayed at the address shown. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and Old Manor Bookkeeping Services is supervised by AAT in this respect.