2021-08-31-accounts - The Wardroom Mess, Hms Drake

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WARDROOM MESS

HMS DRAKE

ANNUAL REPORT AND FINANCIAL STATEMENTS

For Period

1 September 2020 to 31 August 2021

Registered Charity No. 1129025

Trustees’ Annual Report and Comments

	Wardroom Mess
	HMS DRAKE
Charity Registered No:	1129025
Covering the Accounting Year:	1 September 2020 to 31 August 2021
Address:	HMS DRAKE
	Devonport
	Plymouth PL2 2BG
Governing Document:	Constitution (Mess Rules)
Objects:	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 Devonport.
Trustee:	Commodore P Coulson ADC Royal Navy
Trustee selection method:	Appointed as such by the Naval Secretary.
Bankers	Lloyds Banking Group
	Royal Parade
	Plymouth
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. But for Covid 19, the mess would have put
	on a full social programme for its members providing very
	generous subsidies for social functions with profits from the
	bar and associate member subscriptions supplemented by the
	excess from uniformed subscription income.
Financial Review:	The net assets of the fund had increased by £27K over the
	year. There were three main reasons:

Grant income added £10.4K to the property assets.
• Civilian members’ subscriptions totalling £9.1K contribute to function subsidies but were not required this year as there were no mess functions.
Bar profits of £5.7K were not required for function subsidies.

The Wardroom has a worth of £750K. However, this figure is deceptive as the bulk of the fund was represented by its large holding of artefacts and paintings valued at £567.6K . The fund had bank assets of £90.9K to cover current liabilities of £28.5K.

Investment Selection Policy. None are held. Financial Reserves Policy: The Trustee has considered the level of reserves to retain, appropriate to the charity’s needs. This set at £50K in a one year savings bond plus an available bank balance of £62K. 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: Small sports grants are paid to mess members. 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 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

Name Commodore P Coulson ADC Royal Navy Appointment Naval Base Commander and sole Managing Trustee Date 8 October 2021.

Independent Examiner’s Report to the Trustee of the Wardroom Mess HMS Drake

I report on the accounts of the Charity for the year ended 31 August 2021, which are set out in pages 1 to 5 and accompanying notes.

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;
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.

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

8 October 2021

HMS DRAKE WARDROOM MESS FUND

Charity Registration Number 1129025

BALANCE SHEET

31-Aug-21

Note ASSETS Fixed Assets Mess Property 7 Investment Bond Current Assets Messbills Misc Debtors & Prepayments 8 Bank Accounts Cash & Floats Total Current Assets LIABILITIES Creditors 9 47 Cdo RM HQ Fund VAT Current Liabilities Net Current Assets Net Assets	15,453.58 £ 47,638.17 £ 90,903.41 £ 7,367.51 £ 161,362.67 £ 25,142.62 £ 1,491.08 £ 1,843.50 £ 28,477.20 £	567,640.00 £ 560,039.37 £ 50,000.00 £ 50,000.00 £ 617,640.00 £ 610,039.37 £ 23,985.41 £ 40,578.67 £ 68,612.43 £ 10,233.55 £ 143,410.06 £ 28,446.31 £ 697.62 £ 871.42 £ 30,015.35 £ 132,885.47 £ 113,394.71 £ 750,525.47 £ *723,434.08* £ 31 Aug 20	567,640.00 £ 560,039.37 £ 50,000.00 £ 50,000.00 £ 617,640.00 £ 610,039.37 £ 23,985.41 £ 40,578.67 £ 68,612.43 £ 10,233.55 £ 143,410.06 £ 28,446.31 £ 697.62 £ 871.42 £ 30,015.35 £ 132,885.47 £ 113,394.71 £ 750,525.47 £ *723,434.08* £ 31 Aug 20
			610,039.37 £ 113,394.71 £
			*723,434.08* £

Approved on 8 October 2021

Signed On Original

Commodore P Coulson ADC Royal Navy Sole Managing Trustee

DR-WR21BSZBALANCE SHEET

HMS DRAKE WARDROOM MESS FUND

STATEMENT OF FINANCIAL ACTIVITIES

For year to 31 Aug 21

Note Income Donations Charitable Actvities Investment Income Total Income 3 Expenditure Charitable Activities Total Expenditure 4 Net Income/Expenditure Total Funds Brought Forward Total Funds Carried Forward	12,000.00 £ 72,100.43 £ 197.53 £ 84,297.96 £ 57,231.57 £ 57,231.57 £ 27,066.39 £ 723,459.08 £ 750,525.47 £	Previous Year - £ 129,926.11 £ 546.99 £
		130,473.10 £
		87,742.08 £
		87,742.08 £
		42,731.02 £ 680,703.06 £
		*723,434.08* £

DR-WR21BSZSOFAsum

HMS DRAKE WARDROOM MESS FUND

Notes to the Accounts dated 31 August 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 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 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 by Bearnes, Hampton & Littlewood in June 2017.

b. Depreciating 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. 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

There are none

Note 3 - Income

Donations RNRMC/RBL Grants Charitable Activities Mess Subs Associate Subscriptions Function Income Faciliites Charges Bar Profits Coffee Stamp Sales Xmas Raffle Napkin & Candle sales Investment Income Bank & Bond Interest Total Income	57,240.00 £ 9,139.52 £ - £ - £ 5,682.43 £ - £ 38.48 £ - £ - £	12,000.00 £ - £ 80,997.52 £ 16,020.50 £ 18,739.73 £ 262.50 £ 10,244.65 £ 1,743.18 £ 85.14 £ 1,483.00 £ 349.89 £ 72,100.43 £ 129,926.11 £ 197.53 £ 546.99 £ 84,297.96 £ 130,473.10 £ Previous Year

Note 4 - Expenditure

Charitable Activities Operating Costs Function expenses from tickets Minor Function Expenditure Xmas Raffle Performing Rights/Motion Picture Licences Fruit Baskets Bar chips/Ctee refreshments Insurances Habitability Art Fund Newspapers & Periodicals Internet TV and Video BACS Gifts/Flowers Trophy Hire Napkins Coffee Grants & Donations Mess Guests Xmas Decs Governance Costs Examination of Accounts Support Costs Office Costs Card Charges Depreciation & Write Off Total Expenditure	- £ - £ - £ 1,247.70 £ - £ - £ 2,352.16 £ 4,960.76 £ 312.00 £ - £ 28,800.00 £ 7,316.21 £ 3,125.15 £ 470.00 £ 305.66 £ - £ 2,427.31 £ - £ 29.78 £ 1,844.50 £ 1,020.00 £ 22.83 £ 179.45 £ 2,818.06 £	18,739.73 £ 160.31 £ 7,003.83 £ 2,673.97 £ 765.28 £ 361.84 £ 2,306.15 £ 483.00 £ 26.29 £ 3,943.08 £ 28,800.00 £ 6,230.17 £ 2,178.43 £ 91.00 £ 305.33 £ 343.17 £ 2,981.83 £ 200.00 £ 471.26 £ 8,192.10 £ 1,010.00 £ - £ 75.73 £ 399.58 £ 57,231.57 £ 87,742.08 £ 57,231.57 £ 87,742.08 £ Previous Year

Note 5 - Paid Employees

a. The charity has 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

DR-WR21BSZSOFAE

Note 7 - Tangible Fixed Assets - Property Account -

Non-depreciating Property (over £1000) As at 31 Aug 20 524,850 £ Additions - £ Depreciation - £ As at 31 Aug 21 524,850 £	Non-depreciating Depreciating Property Property Total (under £1000 ) 34,530 £ 659 £ 560,039 £ - £ 10,419 £ 10,419 £ - £ (2,818) £ (2,818) £ 34,530 £ 8,260 £ 567,640 £

Note 8 - Miscellaneous Debts and Prepayments

Accrued Bond Interest ESS Taxis Prepayments Summer Ball 22 Insurance TV Licences Trophy Hire MPLC PRS/PPL Note 9 - Creditors PNIE ESS Holding Account Drake Services ESS PAYD ESS Bar Sales (from Mess Bills) PRNOA Functions WO & SR Mess Crown Accommodation	35.00 £ 18.00 £ 44,487.17 £ 1,207.00 £ 265.00 £ 178.00 £ 100.00 £ 1,348.00 £
	47,638.17 £
	1,020.00 £ 18.39 £ 78.91 £ 563.49 £ 256.60 £ 3,637.24 £ 153.96 £ 19,414.03 £
	25,142.62 £

Note 10 - Endowment of Retricted Income Funds

There are none.

Note 11 - 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.

Note 12 - Declarations

a. The Trustee has not changed the year end date nor the length of the financial year.
b. All the fund's operations are continuing operations and there were no discontinued operations.
c. The fund has no marketable intangible assets.
d. 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 other than periodic professional. valuations of non depreciating assets.
e. Items of non depreciating property which were not owned by the fund were previously removed from fixed assets, as were Trophy Centre loans and Drake's Sword which was on loan.
f. The fund has no material fixed assets which have not been capitalised and included in the Balance Sheet.

PN INDEPENDENT EXAMINATIONS

5 Nursery Road Havant Hants PO9 3BG

 07801 064450

The Naval Base Commander HM Naval Base Devonport 21

15 Sep

THE WARDROOM MESS FUND – EXAMINATION AND ACCOUNTS FOR THE YEAR ENDING 31 AUGUST 2021.

The examination of the Wardroom fund for the year has been completed satisfactorily and the annual accounts are enclosed.
A draft version of the Trustee’s Annual Report (TAR) is also provided. Once this is 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 annual return is completed.

Accounts

The Mess Accountant (WRMA) presented a comprehensive and accurate set of documentation. There was an independent count of cash at the end of the year and there had been surprise counts of cash.
Bar and food sales by ESS were collected by credit through the mess bill system or by cash. However, these sales have increasingly been collected by contactless payments via ESS card machines which use the Wardroom bank account. ESS has agreed that the 2.75% charge for each transaction can be offset against money owed to it. Nevertheless, the system to account for all this mixing of mess and ESS money is not straightforward and is creating difficulties. The WRMA is, rightly, extremely uncomfortable about ESS using the contactless system to run its sales through the Wardroom bank account, as is PNIE.

Property

The property owned by the Wardroom worth £567.6K, as well as items on loan from the RN Trophy Centre worth £119K, had been signed

off as having been mustered by staff. The recent arrival of grant funded furniture had added £10.4K to property assets, although there were depreciation costs of £2.8K.

Whilst there are various folders with photographs of nondepreciating property, there was no central register of non-depreciating property. In effect the last valuation report from Bearns Auction House was the closest to a register but musters were not checked against it. As the last valuation was in 2017, the next valuation will be due in 2022 (BR 18 Art 0610). It is recommended that a register is created by using the PNIE supplied register for depreciating items as a template.

Debtors

The accounts contained a running account for amounts owed by ESS for items bought through the Wardroom Amazon account. Items such as an Apple IPad, an IPad writing stick and a telephone. However, ESS, as policy, takes 90 days to pay these bills. It is inappropriate for ESS to borrow money from Wardroom funds to buy items it needs. This effectively gives an interest free loan to a commercial organisation from charitable funds. PNIE still finds it surprising that a large organisation such as Compass/ESS has to use the mess funds in HMS Drake as its bank. This is not seen in other establishments where ESS is present.
Outstanding mess bills were closely monitored by the WRMA. Debts over three months old totalled £4.4K but this included nearly £4K from IDT with the rest from five members. The WRMA is confident she can collect all these debts.

Subscriptions

Subscriptions were not levied in the three months Jun 21 to Aug 21 to recognise that members had not been able to access the usual range of facilities during the various Covid-19 lockdowns.
Military subscriptions totalled £57.2K (£81K in the previous year) and this income matched the £57.2K cost of running the mess. Retired officer and other civilian members’ subscriptions totalled £9.1K (previous year £16.K).

Bar

The Wardroom does not own the stock in its bars, which is an arrangement unique amongst RN messes. The ESS bars made a profit of £5.7K compared to £10.2K in the previous year but, as this was also a year impacted by Covid-19 closures, a better comparison would be with 2019 when the profit was £13.4K. The contractor provided its own

figures for the costs of sales which were used to calculate bar profit. These figures were not available for audit.

Functions

There were no mess or private functions in this year. The accounts show a total of £44.5K as prepayments for the Summer Ball 22. These were actually payments for the Summer Balls in 20 and 21 but these were cancelled and the deposits carried forward to the Summer Ball 22. However, it cannot be completely certain that all the deposits will be honoured in this way.

Expenditure

The following items were of note:
The annual cost of the Media Force system connecting all cabins to the Internet was £28.8K (£2.4K monthly). An expense of this magnitude is not seen elsewhere but then other messes can receive DBI (including the WO&SR Mess in HMS Drake).
There were no newspaper costs.
TV costs increased to £7.3K compared to £6.2K in the previous year.
Coffee costs fell from £3K to £2.4K.
Christmas decorations expenses were modest at £1.8K compared to £8.2K in the previous year.

Finances

The net assets of the fund had increased by £27K over the year. There were three main reasons:
Grant income added £10.4K to the property assets.
Civilian members’ subscriptions totalling £9.1K contribute to function subsidies but were not required this year as there were no mess functions.
Bar profits of £5.7K were not required for function subsidies.
The Wardroom has a worth of £750.5K. However, this figure is deceptive as the bulk of the fund was represented by its large holding of artefacts and paintings valued at £567.6K . As a better guide to the committee, the fund had bank assets of £90.9K to cover current liabilities of £28.5K.
The Wardroom held its reserves of £50K in a one year investment bond but with an interest rate which had fallen this year to just 0.10%.

Summary

The Wardroom was in a good position financially, as it had available bank assets of £62.4K . Its overall financial position had increased by £27.1K to £750.5K.

P A Nicholls PN Independent Examinations

Information:

Mess President Mess Treasurer