THE CENTRAL AMENITIES FUND
HMS DRAKE
ANNUAL REPORT AND FINANCIAL STATEMENTS
For Period
1 January 2020 to 31 December 2020
Registered Charity No. 1129024
Trustees’ Annual Report and Comments
Central Amenities Fund HMS DRAKE
| Charity Registered No: | 1129024 |
|---|---|
| Covering the Accounting Year: | 1 January 2020 to 31 December 2020 |
| Address: | HMS DRAKE |
| Devonport | |
| Plymouth PL2 2BG | |
| Governing Document: | Constitution |
| Objectives: | Promotion of the Military Efficiency and Operational |
| Effectiveness of the Armed Forces by the provision of | |
| amenities to Service personnel serving in the | |
| Naval Base Devonport. | |
| Trustee: | Commodore P Coulson ADC RN |
| Trustee selection method: | Appointed as such by the Naval Secretary. |
| Bankers | Lloyds Banking Group |
| Royal Parade | |
| Plymouth | |
| Independent Examiner: | M L ButcherFMAAT |
| 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 fund continued to support sporting and | |
| leisure activities and acted as a central bank for a variety of | |
| funds. | |
| Financial Review: | The value of the fund increased by £6.6K over the year to |
| £2.12M. The main reason was an increase of £8.9K.in the | |
| market value of the investments. Apart from the £1.74M | |
| held in investments, the CAF held £455K in bank and | |
| deposit accounts of which £109K was held for other funds. | |
| .Investment Selection Policy. | Investments are spread over 50 - 60 bonds and equities are |
| actively managed by Rathbones. |
Financial Reserves Policy:
The Trustee has considered the level of reserves to retain, appropriate to the charity’s needs. These are set at £1.5M to £2M and are held in investments. These provide the income stream to cover salary and other overhead costs. 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 are paid for capital projects to enhance amenities and grants are paid to individuals and groups to support sporting 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.
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 leisure and sporting amenities. 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 P Coulson ADC Royal Navy
Appointment Naval Base Commander and sole Managing Trustee
Date ................... 26 March 2021
Independent Examiner’s Report to the Trustee of the Central Amenities Fund HMS Drake
I report on the accounts of the Charity for the year ended 31 December 2020
Respective responsibilities of trustees 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.
It is my responsibility to:
-
examine the accounts under section 145 of the 2011 Act;
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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
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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
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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
M L Butcher FMAAT 5 Nursery Road Havant Hants PO9 3BG
26 March 2021
HMS DRAKE CENTRAL AMENITIES FUND
BALANCE SHEET
31-Dec-20
| Fixed Assets Note Property 7 Investments 2 Total Fixed Assets Current Assets Debtors & Prepayments 8 Deposit Accounts Bank Accounts Cash Current Liabilities Creditors 9 Net Current Assets Total Net Assets |
31,548.32 £ 1,738,175.64 £ 1,769,723.96 £ 6,457.24 £ 450,120.68 £ 5,001.00 £ 3,037.52 £ 464,616.44 £ 110,550.14 £ 354,066.30 £ 2,123,790.26 £ |
31-Dec-19 34,300.00 £ 1,736,808.22 £ |
|---|---|---|
| 1,771,108.22 £ 14,389.67 £ 436,986.69 £ 4,633.16 £ 1,660.08 £ |
||
| 457,669.60 £ 111,627.66 £ |
||
| 346,041.94 £ |
||
| 2,117,150.16 £ |
Approved on 26 March 2021
Signed on Original
Commodore P Coulson ADC Royal Navy Sole Managing Trustee
1
DCAF-Dec20BSZ.xlsBALANCE SHEET
HMS DRAKE CENTRAL AMENITIES FUND
STATEMENT OF FINANCIAL ACTIVITIES
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Income | Note | ||||
| Donations & Grants | £ | 10,841.17 |
£ | 37,853.77 |
|
| Charitable Activities | £ | 11,047.70 |
£ | 12,472.77 |
|
| Activities for generating funds | £ | 21,639.38 |
£ | 40,972.85 |
|
| Investment Income | £ | 47,883.85 |
£ | 59,279.98 |
|
| Total Incoming Resources | 3 | £ | 91,412.10 |
£ | 150,579.37 |
| Expenditure | |||||
| Raising Funds | £ | 9,105.69 |
£ | 13,811.82 |
|
| Charitable Activities | £ | 84,558.88 |
£ | 88,907.48 |
|
| Total Resources Expended | 4 | £ | 93,664.57 |
£ | 102,719.30 |
| Net incoming/(outgoing) resources | £ | (2,252.47) |
£ | 47,860.07 |
|
| Plus (Less) Investments revalued | £ | 8,892.57 |
£ | 249,622.17 |
|
| Net movement in funds | £ | 6,640.10 |
£ | 297,482.24 |
|
| Total Funds brought forward 1 Jan 20 | £ | 2,117,150.16 |
£ | 1,819,667.92 |
|
| Net Movement of Funds | £ | 6,640.10 |
£ | 297,482.24 |
|
| Total Funds carried forward 31 Dec 20 | £ | 2,123,790.26 |
£ | 2,117,150.16 |
2
DCAF-Dec20BSZ.xlsSOFA SUM
HMS DRAKE CENTRAL AMENITIES FUND
Notes to the Accounts dated 31 Dec 2020
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 from 1 January 2019 and the provisions of the Charities Act 2011. Significant policies adopted are:
Incoming resources
a. Donations are included in the Statement of Financial Activities (SOFA) when the CAF 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 CAF 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 CAF to the expenditure.
b. Administration costs are incurred by the CAF Manager. These costs are not apportioned as his tasks are wide ranging in support of leisure and amenities and include the maintenance of the Central Bank facility for other funds.
Assets
a. Tangible 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. The CAF does not have a policy of revaluation. Depreciation is annual, straight line and over the estimated life of the item.
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
| Market value at beginning of year Gain on Revaluation at year end Management Fees & other charges Market value at year end |
1,736,808.22 £ 8,892.57 £ (7,525.15) £ |
|---|---|
| 1,738,175.64 £ |
3
DCAF-Dec20BSZ.xlsNotes 1
Note 3 - Income
| Voluntary Income Bar Gainshare Mess Contributions Charitable Activities Caravan Hire Yacht Lost Property Sales Misc income Activities for Generating Funds Gaming Machines Sports Fund Income Health & Leisure Suite Investment Income Investment income Deposit Interest Sale of investments Gain(Loss) Total Income Note 4 - Expenditure Fund Raising Gaming Machines Investment Management Costs Charitable Activities Operating Costs Sports Fund Grants JR Functions Insurance TV Caravan Caravan Depreciation Yacht Repairs & Renewals Basketball, Rugby, Football Tickets Governance Examination and Accounts Support Salaries Pensions Office Costs Bank Charges Depreciation Total Expenditure |
7,841.17 £ 3,000.00 £ |
34,815.77 £ 3,038.00 £ 10,841.17 £ 37,853.77 £ 6,181.65 £ 5,199.24 £ 228.58 £ 863.30 £ 11,047.70 £ 12,472.77 £ 22,597.85 £ - £ 18,375.00 £ 21,639.38 £ 40,972.85 £ 55,019.45 £ 2,989.41 £ 1,271.12 £ 47,883.85 £ 59,279.98 £ 91,412.10 £ 150,579.37 £ 5,654.78 £ 8,157.04 £ 9,105.69 £ 13,811.82 £ 13,148.11 £ 4A 12,488.41 £ 2,500.00 £ 527.02 £ 7,786.00 £ 5,889.11 £ 3,000.00 £ 2,538.20 £ 403.88 £ 2,942.00 £ 1,080.00 £ 32,512.53 £ 3,301.06 £ 531.16 £ 60.00 £ 200.00 £ 84,558.88 £ 88,907.48 £ 93,664.57 £ 102,719.30 £ 2019 2019 2020 2020 |
34,815.77 £ 3,038.00 £ 10,841.17 £ 37,853.77 £ 6,181.65 £ 5,199.24 £ 228.58 £ 863.30 £ 11,047.70 £ 12,472.77 £ 22,597.85 £ - £ 18,375.00 £ 21,639.38 £ 40,972.85 £ 55,019.45 £ 2,989.41 £ 1,271.12 £ 47,883.85 £ 59,279.98 £ 91,412.10 £ 150,579.37 £ 5,654.78 £ 8,157.04 £ 9,105.69 £ 13,811.82 £ 13,148.11 £ 4A 12,488.41 £ 2,500.00 £ 527.02 £ 7,786.00 £ 5,889.11 £ 3,000.00 £ 2,538.20 £ 403.88 £ 2,942.00 £ 1,080.00 £ 32,512.53 £ 3,301.06 £ 531.16 £ 60.00 £ 200.00 £ 84,558.88 £ 88,907.48 £ 93,664.57 £ 102,719.30 £ 2019 2019 2020 2020 |
|---|---|---|---|
| 3,564.61 £ 7,152.43 £ - £ 330.66 £ |
|||
| 6,132.71 £ 9,250.00 £ 6,256.67 £ |
|||
| 44,710.25 £ 3,173.60 £ - £ |
|||
| 1,580.54 £ 7,525.15 £ |
|||
| 4A | |||
| 9,563.85 £ 22,908.17 £ - £ 444.91 £ 5,875.08 £ 503.82 £ 3,000.00 £ 7,147.69 £ 1,255.93 £ 90.00 £ 900.00 £ 28,509.55 £ 3,266.85 £ 688.03 £ 55.00 £ 350.00 £ |
|||
| 102,719.30 £ |
4
DCAF-Dec20BSZ.xlsI&E
Note 4A Major Grants (above £1000)
| Junior Rates Monthly Grant Sports Fund Grant China Fleet Passes WO&SR Mess |
2,500.00 £ 8,500.00 £ 2,346.00 £ 3,000.00 £ |
|---|---|
| 16,346.00 £ |
Note 5 - Paid Employees 2020
| Previous Year | Previous Year | ||||
|---|---|---|---|---|---|
| a. | Wages/Salaries: | £ | 27,530 |
£ | 31,533 |
| Employers National Insurance: | £ | 980 |
£ | 980 |
|
| Pension | £ | 3,267 |
£ | 3,301 |
-
b. There is one full time employee who manages and administers the fund.
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c. The fund is a member of a defined contribution pension scheme which had a valuation for March 2020 that withdrawal costs of £14,541.52. Should the fund withdraw from the scheme or there are no active members in the scheme then any remaining deficit will fall due and be payable by the fund.
Note 6 -Trustees and Other Related Parties
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a. No expenses or emoluments have been paid to the Sole Managing Trustee
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b. There are no amounts due to or from the Sole Managing Trustee
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c. The sole Managing Trustee is also the sole Managing Trustee of the Service Police Mess HMS Drake and the WO, SR & SNCO Mess HMS Drake. These funds pay contributions to the CAF. The Sole Managing Trustee is also the trustee of the charitable funds that use the CAF as their Central Bank (Note 9).
Note 7 - Fixed Assets - Fixtures, Fittings and Equipment
| Caravan Total value at 1 Jan 20 Less Depreciation Value at 31 Dec 20 Pictures-CF Building Total value at 1 Jan 20 Value at 31 Dec 20 Office Computer PC Total value at 1 Jan 20 Addition Less Depreciation Value at 31 Dec 20 Yacht-Ocean Dragon Total value at 1 Jan 20 Less Depreciation Value at 31 Dec 20 - Debtors and Prepayments HMRC VAT Service Police Mess - Bar Share Accrued Deposit Interest Income Caravan Ground Rent 21 Prepaid Yacht Insurance Prepaid |
33,000.00 £ (3,000.00) £ |
|---|---|
| 30,000.00 £ |
|
| 100.00 £ |
|
| 100.00 £ |
|
| 200.00 £ 598.32 £ (350.00) £ |
|
| 448.32 £ |
|
| 1,000.00 £ - £ |
|
| 1,000.00 £ |
|
| 325.69 £ 29.00 £ 658.14 £ 5,158.41 £ 286.00 £ |
|
| 6,457.24 £ |
Note 8 - Debtors and Prepayments
5
DCAF-Dec20BSZ.xlsNotes 2
Note 9 - Creditors (payable in less than one year)
| PNIE - Accounts Examination Boxing Dec 20 - Ransley Wyvern Kitchen Refurb COVID19 Hardship Fund Chaplaincy RNRMC Holding Fund Other Grants Holding Fund Approved Funds HMS Somerset 47 Cdo Boxing Fund 47 Cdo HQ Fund 47 Cdo Prize Fund 47 Cdo Sports Field Gun Dev Flot Sports Grassroots Drake Sports Grassroots Junior Ratings' Fund QARNNS RN Aid Fund RNR Engineering Southern Diving Group Wyvern Sports Lounge Autonomous Service Funds (using CAF as their bank) 47 Cdo General Purpose Fund 47 Cdo Gig Club South West Armed Forces Sea Angling Club Devonport Services Golf Drake Car Club Hasler Company Museum Manager's Fund RN Health Centre - Purple Fund NSFPS (W) Fund Volunteer Band Western Region Sports Fund Creditors (over 1 year) Nuffield Trust/Sailors Fund/Fleet Amenities Fund (interest in yacht) |
900.00 £ 200.00 £ 16.77 £ 7,154.48 £ 2,225.82 £ 9,078.00 £ 2,308.12 £ 3,301.94 £ 1,680.93 £ 2.59 £ 3,855.71 £ 436.62 £ 407.99 £ 2,371.93 £ 854.53 £ 1,328.78 £ 250.00 £ 1,005.54 £ 140.00 £ 357.87 £ 220.75 £ 2,366.25 £ 1,653.23 £ 944.52 £ 1,497.14 £ 3,839.68 £ 848.47 £ 14,460.76 £ 2,037.36 £ 31,216.45 £ 5,160.74 £ 7,727.17 £ |
|---|---|
| 109,850.14 £ |
|
| 700.00 £ |
|
Note 10 - Endowment or Restricted Income Funds - None held
Note 11 - Other Information
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a. The CAF does not have any material commitments not provided for in the accounts
-
b. The CAF has not given any guarantees to any third party that could be called on at the year end.
-
c. The CAF has not granted any loans.
-
d. The CAF did not make any ex gratia payments during the year.
Declarations
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a. The Trustee has not changed the year end date nor the length of the CAF's financial year.
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b. The CAF does not have any designated funds.
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c. All the CAF's operations are continuing operations and there were no operations discontinued or acquired during the year.
-
d. The CAF has no intangible assets (other than office space provided by MOD)
-
e. There were no interfund loans outstanding at the balance sheet date.
-
f. None of the CAF's functional assets have been revalued during the year and the CAF
-
g. The CAF has no material fixed assets which have not been capitalised and included in the Balance Sheet
6
DCAF-Dec20BSZ.xlsNotes3
PN INDEPENDENT EXAMINATIONS
5 Nursery Road Havant Hants PO9 3BG 07801 064450
The Naval Base Commander HM Naval Base Devonport
9 Feb 21
THE CENTRAL AMENITIES FUND – HMS DRAKE – EXAMINATION AND ACCOUNTS FOR THE YEAR ENDING 31 DEC 20
-
The examination of the CAF for the year ending 31 Dec 20 has been completed satisfactorily. Two copies of the accounts are enclosed for signature by NBC as the sole Managing Trustee.
-
Copies of the Trustee’s Annual Report (TAR) are also provided for approval and signature by NBC. Once approved, the PDF versions of both the TAR and accounts provided by PNIE should be uploaded onto the Charity Commission website at the same time as the online annual return is completed.
-
The investments had gained £1.3K over the year despite the challenges of 2020. This was also after £7.5K was spent on management fees. The investments had a total market value of £1.74M at year end.
-
The investments provided dividend income of £44.7K. This income stream covers the CAF’s governance and support costs.
-
The fund also held money in several deposit accounts and had delivered interest income worth £3.2K.
-
Scottish Widows 7 Day Deposit £85K
-
• Hampshire Trust Bank £88K • Cambridge & Counties Bank £85.1K • Redwood Bank £85K
-
The property totalled £31.5K.
-
Caravan £30K
-
• Pictures £100 • Office Computers £448 • Yacht – Ocean Dragon £1K
-
The yacht broke even this year. Charter hires had surprisingly increased compared to this time last year by £1.9K to £7.1K, however costs were £7.1K.
-
The main items of income were:
-
Gain share had fallen to £7.8K. This was due to Covid which meant the JR bar was closed for most of 2020
-
Gaming machine profits were £4.5K.
-
Health & Leisure pass fees had fallen dramatically due to Covid with only £6.2K received. Last year’s income was £18.4K.
The main items of expenditure were:
-
£9.6K spent on sporting activities.
-
£23K spent on individual and department grants (£15K in 2019).
10 Summary The value of fund increased by £6.6K over the year to £2.12M. The main reason was an increase of £8.9K.in the market value of the investments. Apart from the £1.74M held in investments, the CAF held £455K in bank and deposit accounts of which £109K was held for other funds.
M L Butcher
PN Independent Examinations
Information:
CAF Manager