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2023-03-31-accounts

WARDROOM MESS

HMS NELSON

ANNUAL REPORT AND FINANCIAL STATEMENTS

For Period

1 April 2022 to 31 March 2023

Registered Charity No. 1128774

Trustees’ Annual Report and Comments

Wardroom Mess HMS NELSON
Charity Registered No: 1128774
Covering the Accounting Year: 1 April 2022 to 31 March 2023
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 J J Bailey ADC Royal Navy (until 15 June 2022)
Commodore J Voyce OBE Royal Navy (from 16 June 2022 to
30 November 2022)
Captain A Robinson Royal Navy (from 1 December 2022)
Trustee selection method: Appointed as such by the Naval Secretary.
Bankers: RBS Holts
Lawrie House
Victoria Road
Farnborough GU14 7NR
Independent Examiner: Peter NichollsMBE 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.
The mess 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 worth of the mess fell by £49.5K to £576.6K. In summary
the reasons were: running and support costs exceeded military
subscription income - £21.1K, subsidies exceeded trading
profits - £24.4K and loss of market value of investments - £13.7
However this was offset by: dividend income - £6.7K and
previous year accounts corrected - £4.7K.
The fund had £87.8K in readily accessible bank and deposit
accounts with creditors of just £17.2K. It had £193.7K in
investments which could be liquidated if the need arose.

Despite a loss of £49.5K the fund has significant reserves and was worth £576.6K. The collection of mess bills through the Sodexo system remained a concern.

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 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 £193.7K. The Trustee will endeavour not to set aside funds unnecessarily but significant funds may be required when the Wardroom moves to a new site.

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 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 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.

Signed on Original

Captain A Robinson Royal Navy Captain of the Base and sole Managing Trustee 29 May 2023

Independent Examiner’s Report to the Trustee of the Wardroom Mess, HMS Nelson. (Charity Registration No 1128774)

I report to the trustee on my examination of the accounts of the Charity for the year ended 31 March 2023

Responsibilities and basis report

As the charity’s trustee you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 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 do not have full confidence in the figures provided by Sodexo. Otherwise, I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

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

P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG

29 May 23

HMS NELSON WARDROOM MESS

Registered Charity No 1128774

BALANCE SHEET

31 March 2023

Fixed Assets
Note
Mess Property
7
Investments
2
Total Fixed Assets
Current Assets
Stock
7A
Members Mess Bills at Sep 21
Sodexo Mess Bills
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)
Approved on 29 May 2023
219,100.00
£
193,709.00
£
36,116.17
£
8,791.81
£
33,417.32
£
6,061.00
£
1,852.89
£
35,261.83
£
1,998.79
£
52,654.16
£
176,153.97
£
17,167.23
£
(4,824.19)
£
12,343.04
£
Sd O
236,191.65
£
207,412.00
£
412,809.00
£
443,603.65
£
41,024.67
£
16,442.63
£
30,453.05
£
5,044.00
£
2,997.11
£
72,906.25
£
580.37
£
46,153.65
£
215,601.73
£
35,550.04
£
(2,503.66)
£
33,046.38
£
163,810.93
£
182,555.35
£
576,619.93
£
626,159.00
£
552,619.93
£
606,159.00
£
24,000.00
£
20,000.00
£
576,619.93
£
626,159.00
£
l
31-Mar-22
236,191.65
£
207,412.00
£
412,809.00
£
443,603.65
£
41,024.67
£
16,442.63
£
30,453.05
£
5,044.00
£
2,997.11
£
72,906.25
£
580.37
£
46,153.65
£
215,601.73
£
35,550.04
£
(2,503.66)
£
33,046.38
£
163,810.93
£
182,555.35
£
576,619.93
£
626,159.00
£
552,619.93
£
606,159.00
£
24,000.00
£
20,000.00
£
576,619.93
£
626,159.00
£
l
31-Mar-22
626,159.00
£
606,159.00
£
20,000.00
£
626,159.00
£

Signed on Original

Captain A Robinson Royal Navy Sole Managing Trustee

1

NWRMar23BSZBALANCE SHEET

HMS NELSON WARDROOM MESS

Registered Charity No 1128774

Statement of Financial Activities

For year ended 31 March 2023

Notes
Income
Charitable Activities
Other Trading Activities
Investment Income
Total Income
3
Expenditure
Raising Funds
Charitable Activities
Total Expenditure
4
Net (Expenditure)
Net Gains (or Losses) on investments
Net Income (or Expenditure)
Plus Previous Year Adjustments
Total funds brought forward
Total funds carried forward
197,454.71
£
42,995.55
£
6,680.81
£
247,131.07
£
33,792.73
£
253,916.87
£
287,709.60
£
(40,578.53)
£
(13,703.00)
£
(54,281.53)
£
4,742.46
£
626,159.00
£
576,619.93
£
Previous Year
192,138.69
£
9,984.53
£
5,797.82
£
207,921.04
£
4,060.31
£
205,399.42
£
209,459.73
£
(1,538.69)
£
6,368.79
£
4,830.10
£
652.14
£
620,676.76
£
626,159.00
£

2

NWRMar23BSZSOFASUM

HMS NELSON WARDROOM MESS FUND

Notes to the Accounts dated 31 March 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 2019, UK Accounting Standards and the Charities Acts.

Income

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.

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 22
Unrealised Gain or (Loss)
Quilter Cheviott
at 31 Mar 23
Cost price £199,986
207,412.00
£
(13,703.00)
£
193,709.00
£

3

HMS NELSON WARDROOM MESS

Note 3 - Income

Charitable Activities
Mess Subscriptions
Associate Member Subs
Mess Functions
Bar Sales
Laid Down Wine Sales
Coffee
History Books & Other Income
Other Trading Activities
Functions (Non Mess)
Function Levy & Surplus
Family Rooms
Z Bed/IT Equipment
Crystal Sales
Memento Sales
Investment Income
Interest
Investment Dividends
Total Income
45,423.65
£
50,999.69
£
6,766.88
£
9,603.87
£
103,612.43
£
70,114.57
£
40,788.75
£
60,478.52
£
749.28
£
790.20
£
64.50
£
24.92
£
49.22
£
126.92
£
197,454.71
£
192,138.69
£
33,792.73
£
4,060.31
£
7,778.73
£
5,069.26
£
-
£
104.97
£
554.67
£
-
£
121.49
£
41.66
£
747.93
£
708.33
£
42,995.55
£
9,984.53
£
294.77
£
45.00
£
6,386.04
£
5,752.82
£
6,680.81
£
5,797.82
£
247,131.07
£
207,921.04
£
2021-22
2022-23
45,423.65
£
50,999.69
£
6,766.88
£
9,603.87
£
103,612.43
£
70,114.57
£
40,788.75
£
60,478.52
£
749.28
£
790.20
£
64.50
£
24.92
£
49.22
£
126.92
£
197,454.71
£
192,138.69
£
33,792.73
£
4,060.31
£
7,778.73
£
5,069.26
£
-
£
104.97
£
554.67
£
-
£
121.49
£
41.66
£
747.93
£
708.33
£
42,995.55
£
9,984.53
£
294.77
£
45.00
£
6,386.04
£
5,752.82
£
6,680.81
£
5,797.82
£
247,131.07
£
207,921.04
£
2021-22
2022-23
207,921.04
£

4

HMS NELSON WARDROOM MESS

Note 4 - Expenditure

Raising Funds
Functions (Non Mess)
Charitable Activities
Trading
Function Expenditure (from tickets)
Function Expenditure (from subsidies)
Bar Purchases
Port /Wine Purchases
Mementos
Shop
Additional VAT
Mess Running Costs
Mess Guests
Newspapers & Periodicals
TV & Amenities
LAF Sports
Repairs & Renewals
Christmas Decorations
Christmas Draw Subsidy
Insurances
Trophy Hire
Laundry
Dining Room Consumables
Tea/Coffee
Presentations
Printing, Postage & Stationery
Performing Rights Society
Fish Tank
Governance Costs
Examination of Accounts
Support Costs
Committee Mtgs
Depreciation
Card Charges
Bank Charges
Total Expenditure
33,792.73
£
4,060.31
£
103,612.43
£
70,114.57
£
51,014.94
£
18,828.69
£
29,309.74
£
48,488.24
£
747.20
£
790.20
£
1,940.00
£
-
£
2.57
£
77.75
£
949.00
£
-
£
109.11
£
313.96
£
8,256.50
£
7,859.24
£
4,084.69
£
1,645.47
£
3,600.00
£
3,600.00
£
3,193.86
£
1,264.79
£
10,200.00
£
14,400.00
£
-
£
157.98
£
1,022.56
£
1,454.56
£
797.48
£
656.00
£
1,142.50
£
335.98
£
-
£
189.07
£
9,265.08
£
7,432.73
£
465.00
£
122.08
£
577.87
£
254.29
£
1,430.94
£
1,263.57
£
100.45
£
923.10
£
2,460.00
£
2,410.00
£
228.32
£
-
£
18,393.65
£
20,932.22
£
1,009.31
£
1,099.52
£
3.67
£
785.41
£
253,916.87
£
205,399.42
£
287,709.60
£
209,459.73
£
2021-22
2022-23
33,792.73
£
4,060.31
£
103,612.43
£
70,114.57
£
51,014.94
£
18,828.69
£
29,309.74
£
48,488.24
£
747.20
£
790.20
£
1,940.00
£
-
£
2.57
£
77.75
£
949.00
£
-
£
109.11
£
313.96
£
8,256.50
£
7,859.24
£
4,084.69
£
1,645.47
£
3,600.00
£
3,600.00
£
3,193.86
£
1,264.79
£
10,200.00
£
14,400.00
£
-
£
157.98
£
1,022.56
£
1,454.56
£
797.48
£
656.00
£
1,142.50
£
335.98
£
-
£
189.07
£
9,265.08
£
7,432.73
£
465.00
£
122.08
£
577.87
£
254.29
£
1,430.94
£
1,263.57
£
100.45
£
923.10
£
2,460.00
£
2,410.00
£
228.32
£
-
£
18,393.65
£
20,932.22
£
1,009.31
£
1,099.52
£
3.67
£
785.41
£
253,916.87
£
205,399.42
£
287,709.60
£
209,459.73
£
2021-22
2022-23
209,459.73
£

Note 5 - Employees

The fund does not have any employees.

Note 6 - Trustees and Other Related Parties

5

Note 7 - Tangible Fixed Assets - Property Account

Property Valuation as at 1 Apr 22
Plus additions
Less Depreciation
Property Valuation at 31 Mar 23
Comprising
Artefacts, Pictures, Silver
Depreciating items
Note 7A - Stocks
Bar
Laid Down Wine & Port
Mementos
Note 8 - Miscellaneous Debtors and Prepayments
Interest Accrued (Estimated)
Prepayments
Twickenham Coach
Twickenham Tickets
Coffee Machine rent
Insurance
PRS/PPL
Sky TV
TV Licence
Note 9 - Creditors (all due within one year)
Sodexo
Asahi
Volunteer Band
Mr Synott
Insignia
Draw Prize
BrewGas
Newspapers
Trophy Hire 21/22, 22/23
Card Charges
PNIE
PAYD
Laundry
HMS Excellemt WR
Miscellaneous Holdings
Christmas Draw
Crown - D94/D95
Crown - Functions
Dept Dinners
Staff Fund
Charity Chests
236,191.65
£
1,302.00
£
(18,393.65)
£
219,100.00
£
130,230.00
£
88,870.00
£
219,100.00
£
19,474.86
£
15,391.31
£
1,250.00
£
36,116.17
£
50.00
£
1,200.00
£
3,260.00
£
214.00
£
937.00
£
118.00
£
136.00
£
146.00
£
6,061.00
£
1,551.47
£
1,551.48
£
200.00
£
55.50
£
1,022.56
£
900.00
£
175.00
£
3,125.00
£
1,344.54
£
100.00
£
630.00
£
491.90
£
83.57
£
258.28
£
169.55
£
1,657.93
£
1,079.26
£
1,741.89
£
669.81
£
50.00
£
309.49
£
17,167.23
£

6

Note 10 - Endowment or Restricted Income Funds

There are none

Other Information

Declarations

7

HMS NELSON WARDROOM MESS

Trading Accounts for the year ended 31 March 2023

Beers & Spirits
Sales (incl discount & corkage)
Cost of Sales
Gross Profit
Gross Profit on Sales
Gross Profit on Cost of Sales (= av Mark up)
Less Expenses:
Gas & Sundries
Net Profit
28.1%
Laid Down Wines
Sales
Cost of Sales
Gross Profit
0.3%
40,788.75
£
(28,019.04)
£
12,769.71
£
31.3%
45.6%
(1,290.70)
£
11,479.01
£
19.8%
749.28
£
(747.20)
£
2.08
£
0.0%
Year to
31-Mar-22
60,478.52
£
(47,453.14)
£
13,025.38
£
21.5%
27.4%
(1,035.10)
£
11,990.28
£
790.20
£
(790.20)
£
-
£

8

NWRMar23BSZTrading 1

WARDROOM MESS

HMS NELSON

ANNUAL REPORT AND FINANCIAL STATEMENTS

For Period

1 April 2022 to 31 March 2023

Registered Charity No. 1128774

Trustees’ Annual Report and Comments

Wardroom Mess HMS NELSON
Charity Registered No: 1128774
Covering the Accounting Year: 1 April 2022 to 31 March 2023
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 J J Bailey ADC Royal Navy (until 15 June 2022)
Commodore J Voyce OBE Royal Navy (from 16 June 2022 to
30 November 2022)
Captain A Robinson Royal Navy (from 1 December 2022)
Trustee selection method: Appointed as such by the Naval Secretary.
Bankers: RBS Holts
Lawrie House
Victoria Road
Farnborough GU14 7NR
Independent Examiner: Peter NichollsMBE 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.
The mess 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 worth of the mess fell by £49.5K to £576.6K. In summary
the reasons were: running and support costs exceeded military
subscription income - £21.1K, subsidies exceeded trading
profits - £24.4K and loss of market value of investments - £13.7
However this was offset by: dividend income - £6.7K and
previous year accounts corrected - £4.7K.
The fund had £87.8K in readily accessible bank and deposit
accounts with creditors of just £17.2K. It had £193.7K in
investments which could be liquidated if the need arose.

Despite a loss of £49.5K the fund has significant reserves and was worth £576.6K. The collection of mess bills through the Sodexo system remained a concern.

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 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 £193.7K. The Trustee will endeavour not to set aside funds unnecessarily but significant funds may be required when the Wardroom moves to a new site.

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 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 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.

Signed on Original

Captain A Robinson Royal Navy Captain of the Base and sole Managing Trustee 29 May 2023

Independent Examiner’s Report to the Trustee of the Wardroom Mess, HMS Nelson. (Charity Registration No 1128774)

I report to the trustee on my examination of the accounts of the Charity for the year ended 31 March 2023

Responsibilities and basis report

As the charity’s trustee you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 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 do not have full confidence in the figures provided by Sodexo. Otherwise, I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

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

P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG

29 May 23