REGISTERED CHARITY NUMBER: 1128774
REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
FOR
WARDROOM MESS HMS NELSON
Gibson Whitter Chartered Accountants and Chartered Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP
WARDROOM MESS HMS NELSON
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Independent Examiner's Report | 3 | ||
| Statement of Financial Activities | 4 | ||
| Balance Sheet | 5 | ||
| Notes to the Financial Statements | 6 | to | 13 |
WARDROOM MESS HMS NELSON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024
The trustees present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of 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 (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
Promotion of the Military Efficiency and Operational Effectiveness of the Armed Forces by the provision of mess facilities to Commissioned Officers serving in the His Majesty's Naval Base Portsmouth.
Public benefit
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.
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.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
To have resources available for expenditure on improvements to the quality of life, and the engenderment of espirit de corps. The mess puts 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
Financial position
The worth of the mess fell by £57,101 to £519,519. In summary the reasons were: running and support costs exceeded military subscription income - £65,537, subsidies exceeded trading profits - £18,710. However this was offset by gains of market value of investments - £20,085 and dividend income - £7,061. It was the intention to reduce reserves in the year.
The fund had £103,772 in readily accessible bank and deposit accounts with creditors of £75,364. It had £213,794 in investments which could be liquidated if the need arose. Despite a loss of £57,101 the fund has significant reserves and was worth £519,519. The collection of mess bills through the Sodexo system remained a concern, however this has improved after the balance sheet date.
Investment policy and objectives
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.
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 £213,794. The Trustee will endeavour not to set aside funds unnecessarily but significant funds may be required when the Wardroom moves to a new site.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
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WARDROOM MESS HMS NELSON
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024
STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees
Appointed as such by the Naval Secretary.
Risk management
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.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1128774
Principal address
HMS Nelson Queen Street Portsmouth Hampshire PO1 3HH
Trustees
Commodore M Rosenberg Royal Navy Captain L McLocklan Royal Navy (appointed 18.03.24) Mr A Robinson (resigned 18.03.24)
Independent Examiner
Gibson Whitter Chartered Accountants and Chartered Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP
Bankers
RBS Holts Lawrie House Victoria Road Farnborough GU14 7NR
Approved by order of the board of trustees on 18 March 2025 and signed on its behalf by:
Captain L M McLocklan - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WARDROOM MESS HMS NELSON
Independent examiner's report to the trustees of Wardroom Mess HMS Nelson
I report to the charity trustees on my examination of the accounts of Wardroom Mess HMS Nelson (the Trust) for the year ended 31 March 2024.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than 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.
Gavin Whitter
Gibson Whitter Chartered Accountants and Chartered Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP
4 April 2025
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WARDROOM MESS HMS NELSON
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024
| 31.3.24 Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Charitable activities 4 Mess facilities and activities 199,902 Other trading activities 2 19,026 Investment income 3 7,061 Total 225,989 EXPENDITURE ON Raising funds 5 1,403 Charitable activities 6 Mess facilities and activities 301,772 Total 303,175 Net gains/(losses) on investments 20,085 NET INCOME/(EXPENDITURE) (57,101) RECONCILIATION OF FUNDS Total funds brought forward 576,620 TOTAL FUNDS CARRIED FORWARD 519,519 |
31.3.23 Total funds £ 197,455 42,996 6,681 247,132 33,793 253,918 287,711 (13,703) (54,282) 630,902 576,620 |
|---|---|
The notes form part of these financial statements
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WARDROOM MESS HMS NELSON
BALANCE SHEET 31 MARCH 2024
| 31.3.24 Unrestricted funds Notes £ FIXED ASSETS Tangible assets 11 204,098 Investments 12 213,794 417,892 CURRENT ASSETS Stocks 13 33,945 Debtors 14 39,274 Cash at bank and in hand 103,772 176,991 CREDITORS Amounts falling due within one year 15 (75,364) NET CURRENT ASSETS 101,627 TOTAL ASSETS LESS CURRENT LIABILITIES 519,519 NET ASSETS 519,519 FUNDS 16 Unrestricted funds 519,519 TOTAL FUNDS 519,519 |
31.3.23 Total funds £ 219,100 193,709 412,809 36,116 53,094 91,768 180,978 (17,167) 163,811 576,620 576,620 576,620 576,620 |
|---|---|
The financial statements were approved and authorised for issue by the Board of Trustees and authorised for issue on 18 March 2025 and were signed on its behalf by:
Captain L M McLocklan - Trustee
The notes form part of these financial statements
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
Income
Voluntary income including donations, gifts and legacies and grants that provide funding of a general nature are recognised where there is entitlement, the receipt is probable and the amount can be measured with sufficient reliability. Such income is only deferred when:
-
the donor specifies that the grant or donation must only be used in future accounting periods; or
-
the donor has imposed conditions which must be met before the charity has unconditional entitlement.
Income from activities for generating funds, such as vending income, are recognised on a receivable basis.
Investment income is recognised on a receivable basis.
Income from charitable activities relates to mess subscriptions and events. Such income is recognised on a receivable basis.
Volunteers and donated services
The value of services provided by volunteers is not incorporated into these financial statements.
Where goods or services are provided to the charity as a donation that would normally be purchased from suppliers, this contributions is included in the financial statements at an estimate based on the value of the contribution to the charity.
Expenditure
Expenditure is recognised when a liability is incurred. Contractual arrangements are recognised as goods or services are supplied.
-
Costs of generating funds are those costs incurred in attracting voluntary income.
-
Charitable activities include expenditure associated with mess facilities and events and include both the direct costs and support costs relating to those activities.
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Support and governance costs include central functions and have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
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 and revalued periodically. Depreciation is straight line over the estimated life of the item but is not allocated to any of the activity costs.
Stocks
Stocks are valued at the lower of cost and net realisable value.
Taxation
The charity is exempt from tax on its charitable activities.
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
1. ACCOUNTING POLICIES - continued
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. OTHER TRADING ACTIVITIES
| Functions (non mess) Function levy and surplus Crystal sales Z bed / IT equipment Memento sales INVESTMENT INCOME Interest income Investment dividends INCOME FROM CHARITABLE ACTIVITIES Activity Bar sales Mess facilities and activities Mess subscriptions Mess facilities and activities Associate member subscriptions Mess facilities and activities Coffee Mess facilities and activities Mess functions Mess facilities and activities History books and other income Mess facilities and activities |
|
|---|---|
3.
4. INCOME FROM CHARITABLE ACTIVITIES
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
5. RAISING FUNDS
Raising donations and legacies
| Functions (non mess) 6. CHARITABLE ACTIVITIES COSTS Mess facilities and activities 7. DIRECT COSTS OF CHARITABLE ACTIVITIES Bar purchases Ticket function costs Subsidy function costs Mementos Shop costs Repairs and renewals Tea / coffee Newspapers TV and amenities LAF sports Christmas decorations Insurance costs Trophy hire Laundry and cleaning Printing, postage and stationery Performance rights society Fish tank Additional VAT Mess guests Presentation costs Bad debt written off |
Direct Costs (see note 7) £ 277,477 |
31.3.24 £ 1,403 Support costs (see note 8) £ 24,295 31.3.24 £ 29,178 79,094 98,671 552 400 1,388 13,664 13,390 4,053 3,300 12,564 937 674 4,214 43 1,699 333 - 111 641 12,571 277,477 |
31.3.23 £ 33,793 Totals £ 301,772 |
31.3.23 £ 33,793 |
|---|---|---|---|---|
| 31.3.23 £ 30,057 103,612 51,015 1,940 3 3,194 9,265 8,257 4,085 3,600 10,200 1,023 797 1,143 578 1,431 100 949 109 465 - |
||||
| 231,823 |
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
8. SUPPORT COSTS
| Governance Management costs £ £ Mess facilities and activities 20,055 4,240 Support costs, included in the above, are as follows: Management 31.3.24 Mess facilities and activities £ Bank and card charges 4,742 Committee meeting costs 115 Depreciation of tangible and heritage assets 15,198 20,055 Governance costs 31.3.24 Mess facilities and activities £ Accountancy and legal fees 4,240 |
Totals £ 24,295 31.3.23 Total activities £ 1,013 228 18,394 19,635 31.3.23 Total activities £ 2,460 |
|---|---|
9. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.
10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | |
|---|---|
| funds | |
| £ | |
| INCOME AND ENDOWMENTS FROM | |
| Charitable activities | |
| Mess facilities and activities | 197,455 |
| Other trading activities | 42,996 |
| Investment income | 6,681 |
| Total | 247,132 |
| EXPENDITURE ON | |
| Raising funds | 33,793 |
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| Unrestricted | ||
|---|---|---|
| funds | ||
| £ | ||
| Charitable activities | ||
| Mess facilities and activities | 253,918 | |
| Total | 287,711 | |
| Net gains/(losses) on investments | (13,703) | |
| NET INCOME/(EXPENDITURE) | (54,282) | |
| RECONCILIATION OF FUNDS | ||
| Total funds brought forward | ||
| As previously reported | 626,159 | |
| Prior year adjustment | 4,743 | |
| As restated | 630,902 | |
| TOTAL FUNDS CARRIED FORWARD | 576,620 | |
| 11. | TANGIBLE FIXED ASSETS | |
| Fixtures | ||
| and | ||
| fittings | ||
| £ | ||
| COST | ||
| At 1 April 2023 | 298,648 | |
| Additions | 196 | |
| At 31 March 2024 | 298,844 | |
| DEPRECIATION | ||
| At 1 April 2023 | 79,548 | |
| Charge for year | 15,198 | |
| At 31 March 2024 | 94,746 | |
| NET BOOK VALUE | ||
| At 31 March 2024 | 204,098 | |
| At 31 March 2023 | 219,100 |
Included in tangible fixed assets are assets totalling £130,230 (2023: £130,230) which are not depreciated.
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
12. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | |
|---|---|
| Listed | |
| investments | |
| £ | |
| MARKET VALUE | |
| At 1 April 2023 | 193,709 |
| Revaluations | 20,085 |
| At 31 March 2024 | 213,794 |
| NET BOOK VALUE | |
| At 31 March 2024 | 213,794 |
| At 31 March 2023 | 193,709 |
| There were no investment assets outside the UK. | |
| Cost or valuation at 31 March 2024 is represented by: |
| Listed | ||
|---|---|---|
| investments | ||
| £ | ||
| Valuation in | 2022 | 7,426 |
| Valuation in | 2023 | (13,703) |
| Valuation in | 2024 | 20,085 |
| Cost | 199,986 | |
| 213,794 |
The Mess's investments are all held in Quilter Investors Limited's QC Global Income & Growth Fund.
| 13. STOCKS Stocks 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors VAT Prepayments |
31.3.24 £ 33,945 31.3.24 £ 21,130 - 2,905 15,239 39,274 |
31.3.23 £ 36,116 |
|---|---|---|
| 31.3.23 £ 42,209 50 4,824 6,011 |
||
| 53,094 |
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Other creditors MOVEMENT IN FUNDS Unrestricted funds Insurance provision (designated fund) General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 225,989 TOTAL FUNDS 225,989 Comparatives for movement in funds Prior year At 1.4.22 adjustment £ £ Unrestricted funds Insurance provision (designated fund) 20,000 - General fund 606,159 4,743 626,159 4,743 TOTAL FUNDS 626,159 4,743 |
At 1.4.23 £ 24,000 552,620 576,620 576,620 Resources expended £ (303,175) (303,175) Net movement in funds £ - (54,282) (54,282) (54,282) |
31.3.24 31.3.23 £ £ 51,914 4,381 23,450 12,786 75,364 17,167 Net movement At in funds 31.3.24 £ £ - 24,000 (57,101) 495,519 (57,101) 519,519 (57,101) 519,519 Gains and Movement losses in funds £ £ 20,085 (57,101) 20,085 (57,101) Transfers between At funds 31.3.23 £ £ 4,000 24,000 (4,000) 552,620 - 576,620 - 576,620 |
|---|---|---|
16. MOVEMENT IN FUNDS
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WARDROOM MESS HMS NELSON
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
16. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 247,132 247,132 |
Resources expended £ (287,711) (287,711) |
Gains and Movement losses in funds £ £ (13,703) (54,282) (13,703) (54,282) |
|---|---|---|---|
17. RELATED PARTY DISCLOSURES
The Managing Trustee holds the same position in the Leisure and Amenities Fund (LAF).
The Wardroom pays monthly sports contributions to the LAF which in 2023/24 totalled £3,300 (2022/23: £3,600).
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