## _**WARDROOM MESS**_
## _**HMS NELSON**_
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
## **For Period**
**1 April 2020 to 31 March 2021**
**Registered Charity No. 1128774**
## **Trustees’ Annual Report and Comments**
Wardroom Mess HMS NELSON Charity Registered No: 1128774 Covering the Accounting Year: 1 April 2020 to 31 March 2021 Address: HMS NELSON Queen Street Portsmouth PO1 3HH 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 Naval Base Portsmouth. Trustee: Commodore JJ Bailey ADC Royal Navy Trustee selection method: Appointed as such by the Naval Secretary. Bankers RBS Holts Lawrie House Victoria Road Farnborough GU14 7NR Independent Examiner: Peter Nicholls MBE MAAT 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. In the past year the mess has put on a full social programme for its members. Generous subsidies have been provided to selected functions from the profits made from the bar and other taxable activities. Financial Review The Covid restrictions led to little social activity and the bar closed for most of the year. Despite these restrictions, the worth of the fund increased by £67.9K. The main reasons were: • Gains in the market value of investments - £29.8K. • Grant income increasing property values - £20.8K.
- Trading profits not needed for subsidies - £12.2K.
- Dividend income - £6.1K.
The fund was worth £620.7K. Of this £286.5K was represented by property and stock. A further £201K was held in long term investments. Bank and deposit accounts holding £108K easily covered liabilities of £11.6K.
Investment Selection Policy. The investment funds are managed by Quilter Cheviot. The objective is to grow the capital value of the portfolio as well as generating some degree of income from the portfolio. Medium risk, can accept moderate variation or disruption to capital value or current income in order to meet the longer term objectives.
Financial Reserves Policy: The Trustee has considered the level of reserves required to retain, appropriate to the charity’s needs. 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 reserves are held in the investment portfolio, which had a market value of £201K. The Trustee will endeavour not to set aside funds unnecessarily but is aware that significant reserves may be required when the Wardroom moves to a new site.
Grant Policy: Grants may be made to mess members to assist with the personal contributions to sporting, adventurous training or other activities where this is not available from the Leisure and Amenities Fund.
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. Quarterly 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 more effectively perform their roles 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 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 Commodore JJ Bailey ADC Royal Navy.
Appointment Naval Base Commander and sole Managing Trustee Date ................... 29 May 2021
## **Independent Examiner’s Report to the Trustee of the Wardroom Mess, HMS Nelson.**
I report on the accounts of the Charity for the year ended 31 March 2021 which are set out in pages 1 to 8 and accompanying notes.
## **Respective responsibilities of trustee and examiner**
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. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a licenced member of the Association of Accounting Technicians.
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustee for any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with my examination, 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 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
P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG
29 May 2021
## **HMS NELSON WARDROOM MESS**
## **Registered Charity No 1128774**
## **BALANCE SHEET 31 March 2021**
|Fixed Assets
_Note_
Mess Property
_7_
Investments
_2_
Total Fixed Assets
Current Assets
Stock
_7A_
Mess Bills & Function Payments due
Debtors & Prepayments
_8_
Cash (inc Floats)
Current Accounts
Fairfax Prepaid Card
Scottish Widows Deposit Account
Total Current Assets
Liabilities
Creditors
_9_
VAT due
Total Current Liabilities
Net current assets
**Net Assets**
Funds:
General Fund
Insurance Provision (Designated)|254,608.39
£
201,043.21
£
31,873.88
£
10,344.10
£
22,525.00
£
2,685.61
£
68,578.88
£
949.27
£
39,712.52
£
176,669.26
£
11,397.45
£
246.65
£
11,644.10
£|_251,442.14_
_£_
_171,287.93_
_£_
455,651.60
£
_422,730.07_
_£_
_35,049.26_
_£_
_24,143.93_
_£_
_5,067.00_
_£_
_6,461.76_
_£_
_45,654.19_
_£_
_2,440.97_
_£_
_33,619.15_
_£_
_152,436.26_
_£_
_20,336.30_
_£_
_834.88_
_£_
_21,171.18_
_£_
165,025.16
£
_131,265.08_
_£_
**620,676.76**
**£**
**_553,995.15_**
**_£_**
604,676.76
£
_541,995.15_
_£_
16,000.00
£
_12,000.00_
_£_
620,676.76
£
_553,995.15_
_£_
_31-Mar-20_|_251,442.14_
_£_
_171,287.93_
_£_
455,651.60
£
_422,730.07_
_£_
_35,049.26_
_£_
_24,143.93_
_£_
_5,067.00_
_£_
_6,461.76_
_£_
_45,654.19_
_£_
_2,440.97_
_£_
_33,619.15_
_£_
_152,436.26_
_£_
_20,336.30_
_£_
_834.88_
_£_
_21,171.18_
_£_
165,025.16
£
_131,265.08_
_£_
**620,676.76**
**£**
**_553,995.15_**
**_£_**
604,676.76
£
_541,995.15_
_£_
16,000.00
£
_12,000.00_
_£_
620,676.76
£
_553,995.15_
_£_
_31-Mar-20_|
|---|---|---|---|
||||**_553,995.15_**
**_£_**|
||||_541,995.15_
_£_
_12,000.00_
_£_|
||||_553,995.15_
_£_|
Approved on 29 May 2021
## Signed on Original
Commodore J J Bailey ADC Royal Navy Sole Managing Trustee
1
NWRMar21BSZBALANCE SHEET
## **HMS NELSON WARDROOM MESS**
## **Registered Charity No 1128774**
## **Statement of Financial Activities**
## **For year ended 31 March 2021**
|_Notes_
**Income**
Donations & Grants
Charitable Activities
Other Trading Activities
Investment Income
Total Income
3
**Expenditure**
Raising Funds
Charitable Activities
Total Expenditure
4
Income exceeded Expenditure
Net gains on investments
Net income/(expenditure)
Plus Previous Year Adjustments
Total funds brought forward
Total funds carried forward|20,788.00
£
79,397.39
£
26.76
£
6,110.97
£
106,323.12
£
-
£
68,170.77
£
68,170.77
£
38,152.35
£
29,755.28
£
67,907.63
£
(1,226.02)
£
553,995.15
£
**620,676.76**
**£**|_Year Ended 31 Mar 20_|
|---|---|---|
|||_28,173.00_
_£_
_244,822.26_
_£_
_35,570.01_
_£_
_6,711.40_
_£_
_315,276.67_
_£_
_28,173.00_
_£_
_279,818.50_
_£_
_307,991.50_
_£_
_7,285.17_
_£_
_(27,998.07)_
_£_
_(20,712.90)_
_£_
_-_
_£_
_573,216.21_
_£_
_552,503.31_
_£_|
2
NWRMar21BSZSOFASUM
## **HMS NELSON WARDROOM MESS**
## **Note 3 - Income**
|_Voluntary Income_
Grants
_Charitable Activities_
Mess Subscriptions
Associate Member Subs
Mess Functions
Bar Sales
Laid Down Wine Sales
Coffee
History Books & Other Income
_Other Trading Activities_
Functions
Function Levy & Surplus
Corkage
Family Rooms
Z Bed/IT Equipment
Crystal Sales
Memento Sales
_Investment Income_
Interest
Investment Dividends
Total Income|20,788.00
£
_28,173.00_
_£_
53,995.75
£
_63,944.89_
_£_
10,611.72
£
_12,542.97_
_£_
80.00
£
_89,517.27_
_£_
14,477.06
£
_77,895.04_
_£_
45.29
£
_548.75_
_£_
104.17
£
_153.34_
_£_
83.40
£
_220.00_
_£_
79,397.39
£
_244,822.26_
_£_
-
£
_26,681.16_
_£_
8.10
£
_8,459.01_
_£_
-
£
_20.00_
_£_
-
£
_54.30_
_£_
2.00
£
_152.23_
_£_
-
£
_203.31_
_£_
16.66
£
_-_
_£_
26.76
£
_35,570.01_
_£_
41.59
£
_30.00_
_£_
6,069.38
£
_6,681.40_
_£_
6,110.97
£
_6,711.40_
_£_
106,323.12
£
_315,276.67_
_£_
_2019-20_
2020-21|
|---|---|
4
## **HMS NELSON WARDROOM MESS**
## **Note 4 - Expenditure**
|_Raising Funds_
Functions (Non Mess)
_Charitable Activities_
Trading
Function Expenditure (from tickets)
Function Expenditure (from subsidies)
Excess VAT on subsidies
Bar Purchases
Port /Wine Purchases
Mess Running Costs
Mess Guests
Newspapers & Periodicals
TV & Amenities
LAF Sports
Repairs & renewals
Christmas Decorations
Insurances
Trophy Hire
Laundry
Dining Room Consumables
Tea/Coffee
Flowers & Decorations
Presentations
Printing, Postage & Stationery
Performing Rights Society
Fish Tank
Governance Costs
Examination of Accounts
Support Costs
Mess Bill Write Off
Depreciation
Card Charges
Bank Charges
Total Expenditure|-
£
_26,681.16_
_£_
80.00
£
_89,517.27_
_£_
1,411.75
£
_56,956.63_
_£_
-
£
_1,612.00_
_£_
12,889.14
£
_60,345.71_
_£_
45.29
£
_549.95_
_£_
300.53
£
_801.71_
_£_
7,104.30
£
_6,773.60_
_£_
930.02
£
_679.54_
_£_
3,600.00
£
_3,600.00_
_£_
2,020.70
£
_3,319.26_
_£_
-
£
_13,200.00_
_£_
1,492.12
£
_1,492.84_
_£_
655.85
£
_670.36_
_£_
459.01
£
_2,910.91_
_£_
-
£
_791.45_
_£_
8,960.37
£
_11,069.55_
_£_
-
£
_143.00_
_£_
1,096.03
£
_397.21_
_£_
371.55
£
_2,466.05_
_£_
1,783.00
£
_1,493.72_
_£_
821.66
£
_1,686.45_
_£_
2,307.00
£
_2,267.00_
_£_
142.44
£
_-_
_£_
20,880.35
£
_15,990.37_
_£_
769.77
£
_963.96_
_£_
49.89
£
_119.96_
_£_
68,170.77
£
_279,818.50_
_£_
68,170.77
£
_279,818.50_
_£_
_2019-20_
2020-21|
|---|---|
## **Note 5 - Employees**
The fund does not have any employees.
5
## **HMS NELSON WARDROOM MESS FUND**
## **Notes to the Accounts dated 31 March 2021**
## **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 (FRS 102) effective 1 January 2019, UK Accounting Standards and the Charities Act 2011.
## Incoming resources
a. Donations are included in the Statement of Financial Activities (SOFA) when the Mess 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 Mess receives no unpaid volunteer help.
- e. Investment income 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 Mess to the expenditure.
## Assets
a. Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £100. They are valued at cost or a reasonable value on receipt. Non depreciating items such as artefacts, silver and pictures are revalued periodically.Depreciation is straight line over the estimated life of the item but is not allocated to any of the activity costs.
b. Investments on a recognised stock exchange are valued at market value at the date of the Balance Sheet or at best estimate of market value.
c. Stocks are valued at the lower of cost or market value.
## **Note 2 - Investments**
|Quilter Cheviot
at 1 Apr 20
Unrealised Gain or (Loss)
Quilter Cheviott
at 31 Mar 21
Cost price £65,020.13|171,287.93
£
29,755.28
£|
|---|---|
||201,043.21
£|
|||
3
## **Note 6 -Trustees and Other Related Parties**
- a. No expenses or emoluments have been paid to the sole Managing Trustee
- b. The Managing Trustee holds the same position in the Leisure and Amenities Fund (LAF). The Wardroom pays monthly sports contributions to the LAF.
- c. There are no amounts due to or from the sole Managing Trustee
## **Note 7 - Tangible Fixed Assets - Property Account**
Property Valuation as at 1 Apr 20 £ 251,442.14 Plus Additions £ 24,046.60 Less Depreciation £ (20,880.35) Property Valuation at 31 Mar 21 £ 254,608.39 Comprising Artefacts, Pictures, Silver £ 130,230.00 Depreciating items £ 124,378.39 £ 254,608.39
## **Note 7A - Stocks**
Bar Laid Down Wine & Port
|£|14,945.53
|
|---|---|
|£|16,928.35|
|£|31,873.88|
## **Note 8 - Miscellaneous Debtors and Prepayments**
|Interest Accrued
RNRMC Grant
Prepayments
Coffee Machine rent
Insurance
TV Licence
**Note 9 - Creditors (all due within one year)**
Elior
Marquee Fund
Brewgas
Newspapers
Performing Rights Society/PPL
Card Charges
PNIE
Christmas Draw
Crown D94/D95
Dept Dinners
Charity Chests|10.00
£
20,788.00
£
214.00
£
1,369.00
£
144.00
£|
|---|---|
||22,525.00
£|
||4,084.36
£
311.40
£
375.00
£
1,700.00
£
1,265.00
£
90.00
£
580.00
£
1,942.67
£
69.92
£
669.81
£
309.29
£|
||11,397.45
£|
6
## **Note 10 - Endowment or Restricted Income Funds**
There are none
## **Other Information**
- 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. The fund has one designated fund
- c. All the fund's operations are continuing operations and there were no discontinued operations.
- d. No funds are in deficit.
- e. The fund has no marketable intangible assets
- f. There were no interfund loans outstanding at the balance sheet date.
- g. 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.
- h. The fund has no material fixed assets which have not been capitalised and included in the Balance Sheet.
7
## **HMS NELSON WARDROOM MESS**
## **Trading Accounts for the year ended 31 March 2021**
|**Beers & Spirits**
Sales (incl discount & corkage)
Cost of Stock sold
Gross Profit
Gross Profit on Sales
Gross profit on cost of sales (= av Mark up)
Less Expenses:
Write off
Gas & Sundries
Net Profit
9.6%
**Laid Down Wines**
Sales
Cost of Stock sold
Gross Profit
0.0%|16,481.53
£
(12,452.30)
£
4,029.23
£
24.4%
32.4%
(2,004.47)
£
(436.84)
£
**1,587.92**
**£**
_22.6%_
45.29
£
(45.29)
£
**-**
**£**
_-0.2%_|_Year to_
_31-Mar-20_
_77,915.04_
_£_
_(59,723.44)_
_£_|
|---|---|---|
|||_18,191.60_
_£_
_23.3%_
_30.5%_
_-_
_£_
_(571.30)_
_£_|
|||**_17,620.30_**
**_£_**|
|||_548.75_
_£_
_(549.95)_
_£_|
|||**_(1.20)_**
**_£_**|
8
NWRMar21BSZTrading 1
## _**WARDROOM MESS**_
## _**HMS NELSON**_
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
## **For Period**
**1 April 2020 to 31 March 2021**
**Registered Charity No. 1128774**
## **Trustees’ Annual Report and Comments**
Wardroom Mess HMS NELSON Charity Registered No: 1128774 Covering the Accounting Year: 1 April 2020 to 31 March 2021 Address: HMS NELSON Queen Street Portsmouth PO1 3HH 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 Naval Base Portsmouth. Trustee: Commodore JJ Bailey ADC Royal Navy Trustee selection method: Appointed as such by the Naval Secretary. Bankers RBS Holts Lawrie House Victoria Road Farnborough GU14 7NR Independent Examiner: Peter Nicholls MBE MAAT 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. In the past year the mess has put on a full social programme for its members. Generous subsidies have been provided to selected functions from the profits made from the bar and other taxable activities. Financial Review The Covid restrictions led to little social activity and the bar closed for most of the year. Despite these restrictions, the worth of the fund increased by £67.9K. The main reasons were: • Gains in the market value of investments - £29.8K. • Grant income increasing property values - £20.8K.
- Trading profits not needed for subsidies - £12.2K.
- Dividend income - £6.1K.
The fund was worth £620.7K. Of this £286.5K was represented by property and stock. A further £201K was held in long term investments. Bank and deposit accounts holding £108K easily covered liabilities of £11.6K.
Investment Selection Policy. The investment funds are managed by Quilter Cheviot. The objective is to grow the capital value of the portfolio as well as generating some degree of income from the portfolio. Medium risk, can accept moderate variation or disruption to capital value or current income in order to meet the longer term objectives.
Financial Reserves Policy: The Trustee has considered the level of reserves required to retain, appropriate to the charity’s needs. 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 reserves are held in the investment portfolio, which had a market value of £201K. The Trustee will endeavour not to set aside funds unnecessarily but is aware that significant reserves may be required when the Wardroom moves to a new site.
Grant Policy: Grants may be made to mess members to assist with the personal contributions to sporting, adventurous training or other activities where this is not available from the Leisure and Amenities Fund.
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. Quarterly 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 more effectively perform their roles 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 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 Commodore JJ Bailey ADC Royal Navy.
Appointment Naval Base Commander and sole Managing Trustee Date ................... 29 May 2021
## **Independent Examiner’s Report to the Trustee of the Wardroom Mess, HMS Nelson.**
I report on the accounts of the Charity for the year ended 31 March 2021 which are set out in pages 1 to 8 and accompanying notes.
## **Respective responsibilities of trustee and examiner**
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. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a licenced member of the Association of Accounting Technicians.
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustee for any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with my examination, 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 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
P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG
29 May 2021