2023-04-30-accounts - Wardroom Mess Hms Seahawk

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WARDROOM MESS

HMS SEAHAWK

ANNUAL REPORT AND FINANCIAL STATEMENTS

For Period

1 May 2022 to 30 April 2023

Registered Charity No. 1128507

Trustees’ Annual Report and Comments Wardroom Mess HMS Seahawk Charity Registered No: 1128507 Covering the Accounting Year: 1 May 2022 to 30 April 2023 Address: RNAS Culdrose Helston Cornwall TR12 7RH Governing Document: Constitution (Mess Rules) Object: Promotion of the Military Efficiency and Operational Effectiveness of the Armed Forces by the provision of mess facilities to Commissioned Officers serving in the Her Majesty’s Ship Seahawk. Trustee: Captain S Finn Royal Navy (to 14 July 2022) Captain S Irwin Royal Navy (from 15 July 22) Trustee selection method: Appointed as such by the Naval Secretary. Bankers: Lloyds TSB Market Place Helston Cornwall Independent Examiner: M L Butcher FMAAT 5 Nursery Road Havant Hants PO9 3BG Activities and Achievements: To have resources available for expenditure on improvements to the quality of life, and the engenderment of espirit de corps. The mess put on a full social programme for its members supported by generous subsidies have been provided to functions ~~.~~ Financial Review: The normal activities of the mess had lost £27.4K over the year. There were four main reasons for this loss: • Function subsidies that were not covered by trading profits - £45.3K. • Additional VAT bill - £5.6K. • Offset by military subscriptions exceeding running costs by £20.2K. • Offset by minor incomes totalling £3K. On the other hand, the property revaluation exercise had increased the value of non-depreciating property by £63K. Overall the net worth of the fund had increased by £34.6K to £230.2K. £125.6K was held in property and stocks. Deposit and bank assets of £110.2K more than covered the £19.7K of liabilities.

Investment Selection Policy: No investments are held.

Financial Reserves Policy: The Trustee has considered the level of reserves appropriate to the charity’s needs. This is set at £62.1K and is held in a deposit account. The Trustee aims to ensure that the charity will be able to fulfil its charitable objectives even if there is a temporary shortfall in income and unexpected expenditure. The Trustee will endeavour not to set aside funds unnecessarily. Grant Policy: Grants may be made to mess members to assist with the personal contributions to sporting, adventurous training, or other activities. Risk Assessment: The Trustee reviews the major risks to which the charity is exposed, and systems have been established to manage those risks and believes that by maintaining the free reserves stated it would provide sufficient resources in the event of adverse conditions. Half yearly independent examination of the accounts will mitigate the risk of any mismanagement by the mess committee. Public Benefit Statement: This fund provides public benefit by assisting Service personnel to perform their roles more effectively within the Armed Forces of the Crown. It does this by providing and supporting mess facilities. and social activities. This assistance enables Service personnel to face the challenges and danger associated with military service by developing and maintaining teamwork, spirit and attitude, and morale. As a result, the fund promotes the efficiency of the Armed Forces of the Crown by enhancing the Royal Navy’s and Royal Marines’ capability to undertake the roles demanded of it including the defence of the United Kingdom and its interests.

I confirm that I have paid due regard to the Charity Commission of England and Wales’s guidance on public benefit when deciding what activities, the charity should undertake.

Declaration:

I declare, in my capacity of Charity Trustee, that I have approved the above report.

Signature Signed on Original Name Captain S Irwin Royal Navy. Appointment Commanding Officer and Sole Managing Trustee Date 20 June 2023

Independent Examiner’s Report to the Trustee of the HMS Seahawk Wardroom Mess. (Charity Registration No 1128507)

I report to the trustee on my examination of the accounts of the Charity for the year ended 30 April 2023

Responsibilities and basis report

The charity’s trustee is responsible for the preparation of the accounts. The charity’s trustee considers that an audit is not required for this year under section 144(2) of the Charities Act 2011 (The Charities Act) and that an independent examination is needed.

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination, I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s qualified statement

I have completed my examination; I confirm that no material matters have come to my attention which gives me cause to believe that in any material respect:

The accounting records were not kept in accordance with section 130 of the Charities Act; or
The accounts did not accord with the accounting records; or
The accounts did not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than in any requirement that the accounts give a “true and fair” view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed on Original

M L Butcher FMAAT 5 Nursery Road Havant Hants PO9 3BG

20 June 2023

RNAS CULDROSE WARDROOM MESS FUND

REGISTERED CHARITY No 1128507

BALANCE SHEET

30-Apr-23

Note ASSETS Fixed Assets Mess Property 7 Current Assets Stocks at Cost: 7A Mess Bills & Function Payments Due Misc Debts & Prepayments 8 Charity Deposit Account Bank Accounts Cash & Floats Total Current Assets LIABILITIES Creditors 9 Squadron & Other Funds 10 Charity Chest VAT Current Liabilities Net Current Assets Net Assets	5,788.75 £ 12,927.24 £ 1,131.00 £ 62,101.62 £ 48,051.66 £ - £ 130,000.27 £ 9,074.10 £ 9,650.71 £ 421.30 £ 557.32 £ 19,703.43 £	119,866.05 £ 60,434.22 £ 9,833.91 £ 5,257.16 £ 951.09 £ 90,533.42 £ 43,188.00 £ 137.95 £ 149,901.53 £ 2,947.57 £ 10,908.66 £ 174.70 £ 703.25 £ 14,734.18 £ 110,296.84 £ 135,167.35 £ 230,162.89 £ 195,601.57 £ 30-Apr-22	119,866.05 £ 60,434.22 £ 9,833.91 £ 5,257.16 £ 951.09 £ 90,533.42 £ 43,188.00 £ 137.95 £ 149,901.53 £ 2,947.57 £ 10,908.66 £ 174.70 £ 703.25 £ 14,734.18 £ 110,296.84 £ 135,167.35 £ 230,162.89 £ 195,601.57 £ 30-Apr-22
			195,601.57 £

Approved on 20 June 2023

Signed on Original

Captain S Irwin Royal Navy Sole Managing Trustee

CUL-WR APR23ZBALANCE SHEET

RNAS CULDROSE WARDROOM MESS FUND

STATEMENT OF FINANCIAL ACTIVITIES

For year to 30 Apr 23

Note Income Charitable Actvities Investment Income Total Income 3 Expenditure Charitable Activities Total Expenditure 4 Net Income/(Expenditure) Property Re-Valuation Previous Year Corrections Total Funds Brought Forward Total Funds Carried Forward	223,499.47 £ 1,719.20 £ 225,218.67 £ 252,658.34 £ 252,658.34 £ (27,439.67) £ 62,299.98 £ (298.99) £ 195,601.57 £ 230,162.89 £		Previous Year 132,784.52 £ 99.57 £
			132,884.09 £
			122,114.80 £ 122,114.80 £
			10,769.29 £ - £ - £ 184,832.28 £
			195,601.57 £

CUL-WR APR23ZSOFAsum

RNAS CULDROSE WARDROOM MESS FUND

Notes to the Accounts dated 30 April 2023

Note 1 - Accounting policies

a. The financial statements are prepared under the historic cost convention (as modified by the revaluation of fixed asset investments) and in accordance with applicable accounting standards: Charities Statement of Recommended Practice, UK Accounting Standards and the Charities Acts.

Incoming resources

a. Donations are included in the Statement of Financial Activities (SOFA) when the fund becomes entitled to the donation or grant and it is reasonably certain that it will be received.
b. Incoming resources from fund raising are reported gross in the SOFA
c. Intangible income is not included in the accounts.
d. The fund receives no unpaid volunteer help.
e. Interest is included in the accounts when receivable.

Expenditure and liabilities

a. Liabilities are recognised as soon as there is a legal or constructive obligation committing the fund to the expenditure.

Assets

a. Paintings, furniture, works of art, silver and books were valued 2011.

b. Depreciating fixed assets are capitalised if they can be used for more than one year and cost at least £50. They are valued at cost or a reasonable value on receipt. Depreciation is straight line over the estmated life of the item. Depreciation is not allocated to activity costs as the use is varied.

c. Stocks are valued at the lower of cost or market value.

Note 2 - Investments

No longer held.

Note 3 - Income

Charitable Activities Mess Subscriptions Entertainment Levy Associate Subscriptions Function Income Bar Sales Christmas Draw Income Admin Charges Cufflinks/Enterprise Dog Deposits Dog Waste Misc Income Investment Income Bank Interest Total Income	51,602.53 £ - £ 4,847.62 £ 103,560.11 £ 43,813.65 £ 18,357.81 £ 130.00 £ 23.75 £ 854.00 £ 310.00 £ - £	37,233.93 £ 8,975.84 £ 3,837.25 £ 23,763.28 £ 37,681.64 £ 20,998.08 £ 87.50 £ 65.00 £ 122.00 £ - £ 20.00 £ 223,499.47 £ 132,784.52 £ 1,719.20 £ 99.57 £ 225,218.67 £ 132,884.09 £ Year to Apr 22

Note 4 - Expenditure

Charitable Activities Operating Costs Function expenses from Tickets Functions expenses from Subsidy Bar Expenses Additional VAT on Subsidy Running Costs Coffee Biscuits Milk TV and Video Dining Hall Extras Insurances Trophy Hire Mess Guest/Entertainment Mess Flowers Grants/Donations Performing Rights Society/PPL Repairs & Renewals Christmas Decorations Christmas Draw Prizes Dog Bin Expenditure Bouncy Castle/Popcorn/Candy Floss Newspapers & Periodicals Postage/Telephone Leaving Gifts/Flowers RCYC Membership Cufflinks/Enterprise Travel Misc Expenses Governance Costs Property Valuation Costs Examination of Accounts Support Costs Office Costs BACS/Bank Charges Mess Bill write off Property Depreciation Total Expenditure	103,560.11 £ 61,910.18 £ 32,087.64 £ 5,637.72 £ 4,602.40 £ 1,028.55 £ 817.05 £ 7,596.75 £ 769.81 £ 955.52 £ 245.84 £ 1,093.22 £ 159.50 £ - £ 685.06 £ 2,605.15 £ - £ 18,357.81 £ 180.00 £ 589.31 £ 90.98 £ 235.20 £ 100.00 £ 375.00 £ 251.25 £ 40.01 £ 23.64 £ 1,132.20 £ 1,360.00 £ 397.50 £ 1,723.28 £ 13.45 £ 4,034.21 £	23,763.28 £ 20,999.16 £ 27,563.99 £ - £ 4,601.65 £ 1,102.86 £ 627.21 £ 6,027.13 £ - £ 1,319.30 £ 243.16 £ 1,677.59 £ 10.05 £ 1,000.00 £ 321.25 £ 1,630.17 £ 274.98 £ 20,998.08 £ 258.00 £ 453.88 £ 255.07 £ 49.88 £ - £ 358.00 £ - £ 60.12 £ 480.09 £ - £ 1,330.00 £ 35.71 £ 1,699.16 £ 13.90 £ 4,961.13 £ 252,658.34 £ 122,114.80 £ 252,658.34 £ 122,114.80 £ Year to Apr 22

Note 5 - Paid Employees

a. There were no paid employees.

Note 6 - Trustees and Other Related Parties

a. No expenses or emoluments have been paid to the sole Managing Trustee

b. There are no amounts due to or from the sole Managing Trustee

Note 7 - Tangible Fixed Assets - Property Account

Depreciating Property As at 30 Apr 22 £ 13,674.88 Additions £ 1,166.07 Depreciation/Disposals £ (4,034.22) As at 30 Apr 23 £ 10,806.73 Non Depreciating Property As at 30 Apr 22 £ 46,759.34 Re-Valuation 4 £ 62,299.98 As at 30 Apr 23 £ 109,059.32 CUL-WR APR23ZSOFAE

Note 7A - Stocks

Bar/Cellar Note 8 - Prepayments, Misc Debtors Insurance prepaid CCLA Interest TV Licence PRS/PPL Note 9 - Creditors Siemens - Coffee Trophy Hire Additional VAT on Subsidy LWC Cornwall - Bar Sky PNIE Note 10 - Held for Other Funds Civilian Accom PAYD Exchange Service/Entitled Overseas Accom 750 NAS 814 NAS 820M NAS 824 NAS ATC Social Fund Plumbers Union NET Accommodation HoDs Fund Christmas Draw	5,788.75 £
	5,788.75 £
	180.00 £ 213.00 £ 119.00 £ 619.00 £
	1,131.00 £
	1,296.00 £ 21.00 £ 5,637.72 £ 1,018.98 £ 410.40 £ 690.00 £
	9,074.10 £
	608.37 £ 18.77 £ 216.60 £ 155.00 £ 602.00 £ 611.00 £ 616.00 £ 115.00 £ 130.00 £ 10.60 £ 1,985.11 £ 4,582.26 £
	9,650.71 £

Note 11 - Declarations

a. The fund does not have any material commitments not provided for in the accounts
b. The fund has not given any guarantees to any third party that could be called on at the year end. c. The fund has not granted any loans.
d. The fund did not make any ex gratia payments during the year.

Declarations

a. The Trustee has not changed the year end date nor the length of the fund's financial year
b. All the fund's operations are continuing operations and there were no discontinued operations.
c. No funds are in deficit.
d. The fund has no marketable intangible assets
e. There were no interfund loans outstanding at the balance sheet date.
f. None of the funds functional assets have been revalued during the year and the fund does not have a policy of revaluation of these assets.
g. The fund has no material fixed assets which have not been capitalised and included in the Balance Sheet.

Bar Trading for year ended 30 Apr 23

Sales Sales at Cost Opening Stock Purchases Less Closing Stock Cost of Sales Gross Profit Less Bar Equipment Spillage & Ullage Stock Write Off Net Profit	9,793.11 £ 26,468.33 £ 36,261.44 £ (5,788.75) £ 915.28 £ 682.25 £ 17.42 £	39,390.45 £ 33,890.27 £ 4,423.20 £ 3,791.37 £ 43,813.65 £ 37,681.64 7,731.85 £ 27,732.48 £ 35,464.33 £ (9,793.11) £ £30,472.69 £25,671.22 13,340.96 £ 30% 12,010.42 32% 1,197.57 £ 692.22 £ 2.98 £ 1,614.95 £ 1,892.77 £ 11,726.01 £ 30% 10,117.65 £ 30% Previous Year

PN INDEPENDENT EXAMINATIONS

5 Nursery Road Havant Hants PO9 3BG

 07801 064450

The Commanding Officer RNAS Culdrose 24 May 23

THE WARDROOM MESS FUND – EXAMINATION AND ACCOUNTS FOR THE YEAR ENDING 30 APR 23

The examination of the Wardroom Mess fund for the year to 30 Apr 23 has been completed satisfactorily. Two copies are provided for approval by the Managing Trustee, one copy is to be retained centrally and the other is to be made available to mess members. A draft copy of the Trustee’s Annual Report (TAR) is also enclosed.
After approval by the Commanding Officer, as sole managing trustee, PDF copies of the TAR and the accounts (which are supplied by PNIE) should be uploaded onto the Charity Commission website.
The wardroom building was condemned, and the mess was re-located to the upstairs area of the WOSR mess building. The messes have separate areas, and the arrangement is reported to work very well.

Accounts

Mr Creed, the Treasurer, has an excellent understanding of all aspects of the Wardroom accounts. This knowledge considerably helps the process of examining and preparing the annual accounts. All the relevant documentation and information was provided.
The bar was mustered by the Bar Manager and Mr Creed, but property was not independently mustered. As the mess holds no cash, there was no need for an independent count.
The mess held £62.1K in a COIF Charity Deposit Account earning £1.7K from the interest rate that had risen to 4.1% by Apr 23.

Property

Non-depreciating property (artwork, artefacts, silver etc) was professionally re-valued and this increased its worth by133% to £109.1K. The depreciating property was worth £10.8K after depreciation. The register is kept on the Sage Accounts package and is efficiently maintained by Mr Creed.

Mess Debtors

There was just one outstanding mess bill, which had subsequently been paid. This was an impressive achievement.

Subscriptions

Military subscriptions income was £51.6K which was an increase of £14.4K over the previous year. This more than covered the running costs of £31.4K.
Associate and civilian subscriptions had increased by £1K to £4.8K.

The Bar

Bar sales had increased by £6.1K to £43.8K leading to a net profit of £11.7K (30%). compared to the £10.1K seen in the previous year. The stock held was valued at £5.8K, a more realistic stock holding when compared to nearly £10K last year.
The Bar Manager, Mr Rutterford, was doing a good job with continual monitoring of the cost and retail prices and stock rotation, whilst providing all the relevant documentation to the Treasurer.

Subsidies

There will be an additional VAT bill to pay because the function subsidies were part funded from military subscriptions. This year the trading income (bar profit and associate member subscriptions) totalled nearly £16.6K whilst the subsidy on functions was exceptionally high at £61.9K. On the other hand, £11.5K of the two previous years’ trading income was not used for subsidies and this sum can be added to this year’s trading income to make £28.1K. This means there will be an additional VAT bill of £5.6K to pay on that part of the subsidy, £33.8K, which came from subscriptions and other untaxed income.

Other Activities

Annual trophies hire cost £216. However, the mess also pays £30 for the Captain’s House trophies. The mess committee chooses not to insure these items and accepts the risk.
Wardroom – 64 items worth £80.6K.
Captain’s House – 6 items worth £10K.
The Christmas Draw income exceeded the cost of the prizes by £4.5K and so this will be carried over to the Dec 23 draw. Total cost of the Dec 22 draw was £18.4K.

Summary

The normal activities of the mess had lost £27.4K over the year. There were four main reasons for this loss:
Function subsidies that were not covered by trading profits - £45.3K.
Additional VAT bill - £5.6K.
Offset by military subscriptions exceeding running costs by £20.2K.
Offset by minor incomes totalling £3K.
On the other hand, the property revaluation exercise had increased the value of nondepreciating property by £63K. Overall the net worth of the fund had increased by £34.6K to £230.2K.
£125.6K was held in property and stocks. Deposit and bank assets of £110.2K more than covered the £19.7K of liabilities.

M L Butcher PN Independent Examinations

Information:

Mess President Mess Treasurer